Mold Disclosure
Definition
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
Example
During a home inspection, mold is discovered behind the bathroom walls from a slow leak that the seller knew about but did not disclose. The buyer can seek remediation costs, negotiate a price reduction, or potentially rescind the contract if the seller intentionally concealed the mold.
Exam Tip
There is no federal mold disclosure law—requirements vary by state. Sellers must disclose KNOWN mold, and concealing known mold can lead to liability. The key issue is often water intrusion—where there is water damage, there may be mold. Mold is a growing area of real estate litigation.
Related Disclosures Terms
Protected Classes
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
Lead-Based Paint Disclosure
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
Property Condition Disclosure
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Seller's Disclosure Statement
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Flood Zone Disclosure
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
Megan's Law Disclosure
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
Frequently Asked Questions
Test Your Disclosures Knowledge
Practice with exam-style questions to make sure you can apply Mold Disclosure and other disclosures concepts.