Legal Question in Real Estate Law in California

Mold not disclosed

We purchased a REO property from Fannie Mae on 7/27/02 Inspection report states mildew stains,nothing mold, MOLD & MILDEW are very different. Selling agent was given a copy report, Fannie Mae did repairs of 10,152.00 Appraisal report says (no apparent adverse environmental conditions or hazardous substances were noted at the time of inspection). Appraisal guy didn't see anymore mildew, that when they did the repairs. November cold season, mildew grew the walls,carpet,furniture, clothing, toys,shoes of my 5 children�s room: They started get sick,with coughs, sore throats, ear infections, diarrhea. . So I contacted Fannie Mae, contractors that did the work. Sellers Agent , told him what was going on needed phone numbers, my Agent, he told me he mention mold to the sellers . I never sign the new disclosure on the MOLD. Structural engineer inspected our home, a Environmental Hygienist to test for mold type of mold of: ALTEMARIA, ASCOSPORES, ASPERGILLUS, PENICILLIUM, AND CLADOSPORIUM.

Could give me some advice on what I can do with this situation. Any information you give me would be great.

Thank You,


Asked on 5/16/02, 6:41 am

2 Answers from Attorneys

Victor Hobbs Victor E. Hobbs

Re: Mold not disclosed

There's always the question that mold may not have been there when the inspection(s) took place, or in such an insignificant amount that it was undetectable. When the matter is brought into a legal arena that becomes a question of fact for the jury (if no jury then the judge) to determine. This is an additional legal cost because it becomes the battle of the experts. Your decision is to either attempt, with your limited assets, to solve the mold problem, or move out. Lawsuits take awhile. They can be started in a day. However, the trials are normally a year later. Then if there's an appeal. That's heard one to two years later. And your legal costs are not recoverable unless there a statute or contractual provision covering the legal costs. Does any of your neighbors have the problem? Will your Homeowner's Insurance Policy cover any of the costs? I have a client in San Bernardino County that has a sever mold problem. This is appaerently a new problem that I'd not heard of before.

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Answered on 5/16/02, 9:27 am
Victor Hobbs Victor E. Hobbs

Re: Mold not disclosed

I mentioned your mold problem to my wife who grew up here. She tells me that there has always been a mold problem in California. So a factor in any litigation would be if there's a scientific test. That could be used during the house inspection to detect the spores, and it wasn't used. Are any of the neighbors experiencing the same problem? This would give notice to the inspector what to look for.

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Answered on 5/16/02, 10:58 am


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