Claims News Service, Nov. 9, 12:45 p.m. EST — Sixty percent ofbuilders and real estate lenders have heard of a party backing outof a real estate transaction because of the fear that mold problemsexist on the property, according to a new poll conducted byEnvironmental Assurance Group (EAG).
Seventy-six percent of executives acknowledge that they areconcerned about mold liability on properties in which they haveinvested. In addition, respondents familiar with a specificmold-related incident in a real estate transaction said it wouldhave taken an average of more than $300,000 to fix the problem.
The survey of 75 real estate building and banking executives wasdone to assess mold's financial impact on the real estate market.Developers, architects, construction executives, and mortgagelenders are taking precautions to protect themselves because of themold exclusions recently written by the insurance industry onproperty and business policies.
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