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