Mold problems are injecting an element of chance into real estate deals, according to a recent survey of builders and real estate lenders conducted by the Environmental Assurance Group, based in Hartford, Conn.

When asked whether they believe that mold can affect the value of a real estate transaction, 99 percent of respondents said yes. Of those surveyed, 60 percent reported hearing of parties who had backed out of real estate transactions due to the fear that mold problems might exist. Possible mold liability involving investment properties was a concern among 76 percent of executives. In addition, respondents familiar with specific mold-related incidents said that it would have taken an average of more than $300,000 to fix the problems.

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, according to EAG. “Our latest survey shows that mold fear is growing exponentially among the major stakeholders in the real estate business in a post-insurance world,” said Charles Perry, a principal with the firm. “It's clear that, without the emergence of a new risk mitigation method, doing a real estate deal nowadays is just a roll of the dice, which is why the insurance industry bowed out.”