Mold Still Impacts Real Estate Transactions

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Realtor Magazine Online

Mold Still Impacts Real Estate Transactions

(December 27, 2005) -- Research shows that mold problems continue to add a

new element of risk to real estate transactions.

Ninety-nine percent of builders and real estate lenders polled for a recent

survey said mold can influence the value of a property deal, while 60 percent

said they were aware of cases in which prospective buyers backed out of

real estate transactions because they feared potential mold problems.

Seventy-six percent of respondents cited possible mold liability involving

investment

properties as a concern.

Presently, most property-casualty, business risk insurance, and directors

and officers policies do not cover mold. When it comes to supporting mold

prevention protocols, 59 percent of respondents said a preferred mortgage rate

would be the biggest factor in approving a protocol; while 49 percent said

having mold included in their insurance coverage would be the biggest factor.

Source: Claims (12/01/05)