Do I Have to Disclose Mold When Selling?
Most states require disclosure of known material defects, and mold generally qualifies as a material defect that a buyer would consider important. Some states have specific mold disclosure laws; others rely on general material defect disclosure requirements. California, Texas, New York, and Florida are among the states with more specific mold-related disclosure guidance.
What Mold History Must Be Disclosed?
Generally, you must disclose mold that you know about — currently visible mold, past mold that was remediated, and mold-related insurance claims. You are typically not required to inspect for mold you don't know about, but you cannot close your eyes to obvious signs. If you hired a mold remediation company, the work is discoverable through contractor records and CLUE reports.
How to Document Mold Remediation for Disclosure
- Keep all contractor invoices and scope of work documents
- Obtain a post-remediation clearance air quality test report
- Preserve any permits pulled for the remediation work
- Include a written explanation of the cause and the remediation process in your disclosure
- Provide the post-remediation report to interested buyers proactively
Consequences of Non-Disclosure
Non-disclosure of known mold can result in post-sale litigation, damage awards covering remediation costs and diminution in value, rescission of the sale, and reputational damage. Courts take mold concealment seriously because of the health implications. The cost of disclosure is always less than the cost of a lawsuit.
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