What Happens if Mold Is Found During Home Inspection in Florida? Everything You Need to Know

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By Gary M. Landau, Esq.

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What Happens if Mold Is Found During Home Inspection in Florida? Everything You Need to Know | Call (954) 979-6566

When a buyer finds a home they are excited about and enters into a purchase contract, you hope everything goes smoothly towards getting your keys and stepping over the threshold. Sometimes, however, issues turn up during the period between contract and closing. One of the most problematic is the discovery of mold in your future home.

What happens if mold is found during a home inspection in Florida? What are your legal options, and does the presence of mold allow buyers to pull out of a real estate deal?

The real estate professionals at the Law Office of Gary M. Landau, P.A., have more than 25 years of experience with Florida real estate transactions. Learn what you can do if a mold inspector discovers a significant mold problem in the property you were planning to purchase (or sell). If you still have questions or want to discuss your situation, or want an experienced attorney to handle all aspects of your real estate deal, call us at (954) 979-6566 to schedule a consultation.

What Exactly Is Mold?

Mold is a fungus-like organism that is everywhere in the outside environment. According to the Centers for Disease Control and Prevention, the offshoots, or spores, of mold can enter a home in any number of ways, especially through air conditioning systems, windows or doorways, or by residents or pets trekking them in on shoes or clothing.

When the spores end up near moisture, they can begin to grow, especially when the spores and water appear on materials especially conducive to growth such as wood, drywall, ceiling tiles, insulation materials, wallpaper, carpets, and fabric. Mold on these surfaces can spread quickly.

Why Mold in the Home Is a Serious Problem

Many people fear mold because of its potential effects on health. A renowned medical organization, the Institute of Medicine, put out a report in 2004 which said that indoor exposure to mold can lead to various health problems including heightened asthma symptoms in people with the disease and coughing and wheezing in otherwise healthy individuals. Other health issues attributed to mold include headaches and fatigue, and allergic-like reactions. People who have compromised immune systems can especially face health risks when exposed to mold.

Some websites and magazines have used the term “toxic mold” to describe one species of greenish-black mold, Stachybotrys chartarum, which they claim is especially dangerous, but the CDC says all molds should be viewed as having potential health risks.

Mold can be difficult (and expensive) to eliminate. And because mold thrives in moist conditions, its discovery may point to hidden water damage in the home such as a leaky pipe or roof that also must be resolved in addition to eradicating the mold itself.

How a Mold Addendum Can Provide Security for Real Estate Closings in Florida

Discovering mold growth can throw a wrench into real estate closings in the Sunshine State. It’s important to note that if a home inspection reveals mold, this doesn’t automatically allow you as the buyer to rescind your purchase agreement. It may also not obligate the seller to fix the mold problem.

To avoid a protracted legal fight, I always recommend that buyers include a mold inspection addendum along with the real estate sale contract, as a way to protect themselves from this unfortunate occurrence.

This mold addendum specifically lays out what happens when it comes to mold, defining a time window during which you as buyer can inspect the property for mold (at your own expense). If the inspection reveals significant mold (defined by its prospective cleanup cost), the addendum calls for the buyer to be able to notify the seller to cancel the deal and have their deposit returned.

What to Do If a Home Inspection Reveals Mold Growth

The discovery of mold doesn’t have to kill a deal, however. Mold can safely be removed by professional remediation services.

Once a home inspection uncovers mold, the buyer needs to decide how to proceed.

Option 1. Make a Plan for Dealing with the Mold Problem

Speak to a mold removal company to get an accurate estimate of what fixing the mold issue will cost. A comprehensive solution must also include addressing the condition that allowed mold to spread in the first place, like the plumbing issue or roof leak.

If the contract includes a signed mold addendum and mold is found during the specified mold inspection time, the buyer can attempt to negotiate with the seller to have them eradicate the mold, or to reduce the sales price to cover the costs of mold remediation.

Option 2. Pull Out of the Deal

If the mold is discovered during the contract’s standard inspection period, all buyers are within their rights to back out of the deal.

If that time has passed but your contract includes an addendum giving you a longer inspection period for mold, you would typically be able to cancel the contract in the specified time period and get your deposit back in full.

Without such an addendum, the buyer is dependent on the good will of the seller to agree that the deal could be cancelled. If the seller does not agree and you believe they knew about the mold before signing the contract and they did not disclose it as required, you could file a lawsuit in state court to try to have your deposit returned to you.

Why You Need an Experienced Florida Real Estate Lawyer

Working with an experienced attorney for your real estate deal can save you time, trouble, and money during real estate closings. The best approach is to involve the attorney at the start of the deal, so you can receive legal advice and protection for all aspects of the closing, including ensuring the real estate contract addresses mold.

A skilled real estate lawyer may:

    • Amend your contract to include the Mold Inspection Addendum.
    • Review your legal options if a home inspection reveals mold when you are buying a home.
    • Explain whether the contract as signed allows the buyer an option to cancel the contract for a mold problem.
    • Protect your rights and interests throughout the real estate deal.

At the Law Office of Gary M. Landau, P.A., we bring more than 25 years of experience and thorough knowledge of Florida real estate law to every real estate deal and closing.

Quick Frequently Asked Questions

1. Does a seller have to disclose hidden mold if the property is being sold in “As-Is” condition?
Yes. In the landmark case of Johnson v. Davis, the Florida Supreme Court established that a seller must disclose all known facts that materially affect the value of a residential property which are not “readily observable.” Even if the contract is “As-Is,” this duty to disclose Latent Defects—such as mold growth behind drywall or within HVAC systems—remains mandatory. Failure to disclose known mold can lead to legal liability for fraudulent misrepresentation.

2. Can the same company perform both the mold assessment and the remediation?
Generally, no. To protect consumers from a conflict of interest, Florida Statute § 468.8419 prohibits a person or company from performing mold remediation on a structure if they (or their company) provided a mold assessment on that same property within the last 12 months. This ensures that the licensed Mold Assessor who identifies the problem is not financially incentivized to exaggerate the scope of the work for the Mold Remediator.

3. If I am a Personal Representative selling a home through probate, am I exempt from mold disclosure?
No. While a Personal Representative (the individual appointed by the court to oversee a probate estate) may have never lived in the home, they are still bound by Florida’s disclosure laws. If the Personal Representative gains “actual knowledge” of a mold issue—whether through a pre-listing inspection or existing estate records—they must disclose it to potential buyers. Ignoring “red flags” can lead to claims against the estate or the Personal Representative.

4. How does mold impact the ability to secure home insurance for a closing?
Mold can significantly affect a property’s Insurability. Many Florida carriers view mold as a high-risk “hazard” and may refuse to issue a new policy until a Post-Remediation Verification (PRV) or “clearance letter” is provided. Furthermore, most standard Florida policies include a Sub-limit for mold (often capped at $10,000), which covers testing and removal only if the mold resulted from a “covered peril,” such as a sudden pipe burst rather than gradual humidity or neglect.

5. What is the timeframe for filing a legal claim if mold is discovered after the closing?
If a buyer discovers mold after taking title, they may have a claim based on a Latent Defect. Under Florida Statute § 95.11, there is generally a four-year Statute of Limitations for actions founded on the design, planning, or construction of an improvement to real property. For latent defects like hidden mold, this clock typically begins to run from the moment the defect is discovered or should have been discovered through the exercise of due diligence.

The Law Office of Gary M. Landau, P.A.: Reliable South Florida Real Estate Attorney

When a home inspection reveals the presence of mold or other unexpected defects in a property you plan to buy, you need expert guidance on what to do next. Our team at the Law Office of Gary M. Landau, P.A., can explain what happens if mold is found during the home inspection in Florida.

With more than 25 years of experience and countless satisfied clients, Gary M. Landau and his team are uniquely positioned to help you with your probate and real estate needs in South Florida. Whether you’re ready to probate a loved one’s estate or to write your own will, or if you are purchasing a home, have inherited a home, or want a closing agent to handle title insurance and all documents for your closing or refinancing, the Law Office of Gary M. Landau is ready to work with you.

Call our office at (954) 979-6566 or complete our online form today to schedule a free consultation. We work with our clients in person, over the phone, or on Zoom.

Copyright © 2023. LAW OFFICE OF GARY M. LANDAU, P.A. All rights reserved.

The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction.

LAW OFFICE OF GARY M. LANDAU, P.A.
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Coral Springs, FL 33067
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Frequently Asked Questions

A will is the simplest way to ensure that your funds, property and personal things will be distributed after your death the way you want them to. Even if you have very few assets, you will benefit from having a will. About half of all Americans die without a will (known in legal terminology as dying intestate). Without a will to indicate your wishes, the court steps in and distributes your property according to state law. A will ensures that your assets will be given to family members or other beneficiaries you designate.

 

Having a will is doubly important if you have young children. One section of the will allows you to designate a guardian for them in the event of your death. Without a will, the court will appoint a guardian for your children, who may not be the person you desire.

Many Florida residents have out-of-state wills, drawn up while they were still living among the hills of North Carolina or the hubbub of New York. If the will was valid according to your old state’s laws at the time you made it, it is still legal in Florida. However, if you are a Florida resident, you may benefit greatly by having a new will drawn up in Florida, because it will likely be more easily admitted to probate.

 

It is important to know that each state has its own requirements for what makes a will a legally binding document. For example, Florida doesn’t recognize handwritten wills that haven’t been witnessed (known as “holographic wills”), or oral wills not put into writing, even if other states okay them. There’s also the matter of Florida estate law. In this state, for example, your surviving spouse is entitled to 30 percent of your net probate estate, regardless of what you say in your will. The spouse may also have a “Homestead” interest in property you share here, even if you want your house to go to someone else. In fact, all real property owned in Florida will be subject to this state’s laws, even if you’re a snowbird maintaining a residence in the state where your will was drawn up. Other peculiarities also exist, which is why a Florida will could make things much easier for your heirs.

 

If you would like to have me review your current out-of-state will, I am happy to do so without charge. If it turns out to be in accordance with Florida state laws and procedures, you can continue to rely on it. If not, however, your heirs would rather you discover that now.

It is a good idea to re-read your will every few years to be sure it reflects up-to-date realities (you may not want to leave your heirloom to a niece you are no longer speaking to, nor have someone be named your child’s guardian if they have taken seriously ill since you drafted your will). It is especially important to reexamine your will if:

 

  • You have gotten married since it was last drafted;
  • You have made bequests to people who have fallen out of your favor or are no longer living (I recently updated the will of a man who had left everything to his first wife, who was long deceased), or you have not included people who are now dear to you;
  • You would like to change the person named as the personal representative of the estate. (Note: Florida law does not allow a nonresident of the state to serve in this position, unless it is an immediate family member or certain other relatives);
  • You have acquired pricey or sentimental items that are not accounted for in your will. Do note, though, that Florida law allows you to attach a separate personal property memorandum to your will, detailing who will get which specific items. This list can be changed whenever you want.

Perhaps I should answer this question with where not to store it: in a bank’s safety deposit box. Although it may seem logical to put this with your other important papers, it is often difficult for your heirs to gain access to the box once you die, since the box is sealed then and must be opened in the presence of a bank employee.

 

One good option is to leave your original will with the attorney who drafted it, making copies for your personal representative and other important relatives and letting them know who has the original. For my clients who prefer that I store their original will, I keep it in a fireproof will vault in my office, or in the vault in my bank.

 

As an alternative, you could store the will in a fireproof box or vault in your own home.

 

Wherever you store it, be sure to let your personal representative and other close relatives know where you have put it!

Probate is when the court oversees your assets and liabilities after your death. During probate, the court makes sure that your will is valid and acceptable; that all debts, bills, creditor’s claims, and taxes are paid from your estate’s assets; and that your remaining assets are distributed to your beneficiaries according to your will (or, if no will exists, by Florida law).

 

Probate usually does take longer than most beneficiaries would like. But in order to ensure that everyone with a right to a claim is included in the process, the court requires several steps. If the size and complexity of your estate are minimal, however, the entire process of probate can take as little as a few months. Larger estates that are subject to IRS estate taxes or those involving litigation on the part of creditors or heirs generally take longer, often one or more years.

 

To speed the process along for simple and small estates, the courts allow a shortened form of probate, known as “summary administration,” which requires much less paperwork and time.

A personal representative (PR) is a friend or relative, or an attorney or bank, who is put in charge of the estate until all matters regarding the probate are resolved. (In other states, this person is sometimes called an executor or administrator.) The job of the PR includes identifying all assets, searching for creditors and paying valid claims, filing required estate tax returns if the estate is large enough (the figure escalates over time, according to Congressional laws), coordinating with the probate court and attorneys, and overseeing the distribution of assets–all done under the guidance and assistance of a qualified attorney.

 

Serving as a PR is an important role, and such a person should be selected with care as to who is most willing and best able to serve in this position. By Florida law, your personal representative must be over 18 years of age, and be a blood relative, your spouse, the parent or child of your spouse, or a Florida resident.

Generally, no. If you co-own all property via such legal structures as “tenancy by the entirety” or by “joint tenancy with right of survivorship” the property immediately passed to you upon your spouse’s death. Proof of death is usually all that is needed to pass such jointly owned title for cars, stocks, and other personal property to the surviving spouse.

 

But if even one asset was held solely in the deceased person’s name, or any property is owned in the form of a “tenancy in common,” that estate will be required to go through probate. If the assets are limited, the shorter, simpler form of probate is generally all that is required.
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