22
Mar
2014

The Realtors Guide to Mould

Posted by henry in Services Category

 

Mould is an inevitable circumstance that can affect any house on the market, causing realtors major headaches.

According to the Canada Mortgage and Housing Corporation (CMHC), it is highly suggested to seek professional help when there is an extensive amount of mould. In all cases, the underlying cause of mould damage has to be addressed and fixed in order to prevent regrowth. The mould will need to be properly assessed by a professional and a solution to control moisture in the area will be installed. It is crucial to hire a successful company that has environmental experience in mould and asbestos abatement.

The ‘leaky condos of B.C’ is an unfortunate issue that caused extensive damage due to structural defects. Served now as a cautionary tale, the B.C condos ended up costing over $1 Billion in reconstruction and now the whole country began new regulations regarding construction and mould insurance.

Potential homebuyers, owners and tenants across Canada are paying closer attention to mould due to recent studies on long-term health issues. Realtor liability is now a concern. Due to these unforeseen circumstances, some insurance companies are beginning to limit coverage for mould damage.

According to the Ontario Real Estate Association (OREA), the premiums for environmental insurance are quite high-about $10,000 for $1 million of coverage – which can be seen to homeowners as outrageous.

It is essential to know that realtors are obligated to disclose the following information:

–  When there is a defect (e.g. Mould/Flooding) of which the seller knows or ought 
to know
–  When the buyer inquires on specifics in relation to mould in the home
–  If you are representing both the buyer and seller as a dual agent, you have a responsibility to disclose all information pertaining to mould to both parties.

Your client could be liable for damages incurred to the buyer for repairs and removal of mould if it has not been professional performed. Home inspectors should pay close attention to attics, cold storage rooms, crawl spaces and basement walls. Not all homes require a mould inspection unless the house has previously had issues or warning signs such as structural defects. It can be the responsibility of the buyer to get an inspection done. Despite this, many buyers are requesting mould inspections before they consider purchasing.

Certain cases require professional intervention. In the South Ontario region, Healthy Environmental offers inspection and remediation services.


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