Need advice on multifamily unit problem

[jayzee54]

I invested in a 10 plex about 1 year ago in TX. Went through the normal routine: inspections done, turned up some roof leak issues but no mold. The property has pretty much been sitting idle for 1 year. Suddenly this week, while upgrading the kitchen cabinets, my contractors open a wall and find it is filled with mold and the support studs are rotting away. Turns out the entire bottom floor is in this condition: mold and rot.

Is it better for me to just file a claim with the insurance and forget about this? Does insurance typically cover mold or is it similar to earthquake policies here in California? I feel like the former owner, or inspector, should have disclosed this - it is such an obvious problem there is no way they could have been unaware of it...is there some recourse I can take against the former seller, agent or inspector?

Any advice from the experienced players out there?

Thanks

[Codythebest]

My guess is the property disclosure shows no knowledge of this by the owner, true of false. It is easier for an owner just to 'forget' about it.
However, I'll go after the inspector. It is his job to discover that kind of stuff. Get the inspection report and check the disclaimer though. These days, inspectors are smart enough the disclose that while they charge for the job, they take no responsability if they miss something!!

[TJ2007]

I would guess it will be really difficult to prove the seller & realtor knew about it, would assume easiest to chase inspector. ..

[stock_post]

The property has pretty much been sitting idle for 1 year.

it is an year after you bought the house!

I am not sure if the inspector can be liable.

Not sure, would love to know more about this. Please keep us informed.

Thanks

[builderscut.com]

I think the inspector should of saw this..He would be my first stop..The broker and the seller probably was not aware of it.Or it is realy hard to prove if they did

[RobGerhart.com]

my contractors open a wall and find it is filled with mold and the support studs are rotting away.


How is an inspector supposed to find this? Tear down the walls during an inspection? You said they did find roof leak issues, this should have clued you in, but I guess you accepted? Then a year later you want to go after someone?

Im pretty sure there will be enough inspection disclaimers in the report to exhonerate the inspector.

[JChristin]

Typically, and unless otherwise stated in the report, most property inspections are only liable up to the amount (or cost) of the inspection. If you are lucky, and have the willingness to risk taking this to court - and have the money to pay for court costs, attorney fees, expert witness testimony fees, as well as the costs associated with the time value of money while the property sits vacant during the proceedings, then by all means, go for the jugular.

How long did the seller own the property? Did they live on-site? Did they hold the property for a sufficent period of time in which to have acquire reasonable knowledge of the condition? Is there evidence of prior discovery on the part of the prior owner?

Most Realtors (or Real Estate Licensees) would not have reasonable knowledge of a well-hidden condition, unless they torn apart the structure(s) and put it (them) back together again prior to the listing or the seller told them about the pre-existing condition and they failed to disclosed.

Best of luck!