I subscribe to Joan Trice's Appraisal Buzz newsletter and found this great article on mold written by an Appraiser.  I was very impressed with the comprehensive nature with which the topic was dealt with. To subscribe, go to www.appraisalbuzz.com . I believe that the mold issue will destroy our businesses if we are not proactive in defining what it is that we do. This is one of the major reasons that I dislike the Mets Laboratory one day wizard mold trainings for home inspectors. I believe that the more home inspectors that start up mold testing services, that the more the line will be blurred as to what the responsibilities of a home inspection are. It makes very little difference if our SOP's and service agreements disclaim mold from our responsibility list IF the general public percieves it to be in our job description.

I believe that it is important for us to know all that we can about mold and know where the line is drawn so that we can stand safely under our umbrellas of security. Every other real estate related profession would love to hang the mold responsibility upon our industry's shoulders, and we need to keep that from happening.

SIDE NOTE: I am all in favor of the way Russ Colliau set up his mold business. Having an inspection firm he set up a completely different entity to perform his mold services. I believe that it would be business suicide to just start including mold under your inspection enterprise shingle. The mold detection industry is still in its infancy. If you want to jump on the bandwagon you had better have the credentials of a Richard Grisham, or set up a separate business..... and keep them separate.

You will remember the disclaimer shared here in the MMM back in the April 22, 2002 issue:

MOISTURE EQUALS MOLD - Moisture may be found in the structure during our visual inspection. If moisture is found, then it is scientifically known that moisture and mold are inter-related. We do not claim to have the background, education, or experience necessary to formulate an opinion as to the existence or non-existence of mold. If moisture is listed in any portion of the report, then we want our clients to understand that mold may also be present and that they should meet with the experts of their choice who have the background, education and experience to help them.

See how this responsibility for finding moisture fits in with the following article. Also consider these questions as you read this article. Are we ultimately going to be responsible for mold damages because we missed the moisture condition? And how is anybody going to provide a report stating that the home is Mold Free?

Mold, Moisture, Stigma and Value

In the “good old days” when most of us thought of mold in our homes we thought of the gunk growing in that jar in the back of the refrigerator. Those were the “good old days”. Today we worry about mold growing in the walls, or attic, or under the floor and if it is dangerous to us or others. Common questions include: How do I know if I have mold? What happens if I do have mold? How will mold affect me or others? How will mold affect my home's value and for how long? How do I keep from getting mold? This article attempts to explore those questions and provide some answers.

Sources of information: My sources of information for this article include numerous articles from professional trade journals, considerable internet research and a seminar specifically dedicated to mold. The reason for my research began through routine research involved in my appraisal practice. With the recent cases of mold in my own area, it became obvious that I should learn as much as I could about the subject. After several months of intermittent research, and discussions with local lenders, insurance agents, homeowners, builders, and Realtors®, I realized that the general public has many questions about mold and its ramifications. This article is simply a very brief summary of my research. I will include several web addresses for your reference.

What are molds? Molds are living fungi. These organisms produce spores that can be released into the air. It is estimated that there are over 100,000 different species of fungi world wide.

There are five (5) major types of molds found in homes, they are: • Cladosporium • Penicillium (source of penicillin vaccine) • Aspergillus • Alternaria • Stachybotrys chartarum (commonly referred to as “Black Mold”)

Stachybotrys chartarum is the type commonly referred to as “Black Mold” because it is commonly identified as black, or dark, in color resulting from its food source. Stachybotrys does not have to be black. It could appear lighter in color, depending on the specific contents of its food source.

Health concerns: While it is true that some molds are toxic, not all molds are. Some being more toxic than others and toxicity varies among the molds and the effect on individuals also varies. For example, those allergic to penicillin vaccine are likely to experience allergic reactions to Penicillium mold. If you are not allergic to penicillin vaccine, then Penicillium mold may not significantly affect your health, particularly in small amounts. If you are allergic to any of the molds, or the toxins they produce, then more dense quantities of spores (indicating more mold) should affect you more significantly than environments with less dense quantities of spores (less mold).

Stachybotrys chartarum spores produce poisonous mycotoxins. When these spores are inhaled and ingested by a human, they can cause unpleasant, and even very serious symptoms and conditions.

The website for the Center for Disease Control and Prevention states that there is no “test” that proves a link between Stachybotrys chartarum and particular health symptoms. While mold is not proven to cause specific health problems the spores released by mold may contribute to illnesses or problems experienced by those with chronic respiratory diseases, allergies, asthma, immune suppression, and/or other illnesses as these people will likely be more susceptible to the mycotoxins in the spores released by the mold.

You may learn more about how mold can affect health at the Center for Disease Control and Prevention website at www.cdc.gov.

A website at www.toxic-mold-tort-news-online.com says “Stachybotrys is thought to be responsible for a potentially fatal condition called acute idiopathic pulmonary hemorrhage. This has only occurred in infants and individuals with impaired immune systems.” Other symptoms may include headaches, fevers, respiratory infections, diarrhea, burning or watery eyes, fatigue, and skin irritations.

Homeowners Insurance coverage: If you live here in Texas and have had to renew your homeowners insurance policy recently, you probably were unable to obtain coverage for water damage. This is a result of a number of recent large claims concerning severe health problems, even death, and property damage possibly caused by mold and legal cases involving insurance companies reluctance to compensate for remediation and reconstruction of mold infested areas. In several of these cases the courts have awarded well over one million dollars to plaintiffs. Other cases have been filed by home owners who have found mold believed by the insurance companies to have been caused by “slow and continuous” leaks, indicating possible deferred regular maintenance by the home owner. Some claims have been fraudulent. There have been claims for small amounts of mold found under a kitchen sink and the claimant gets a new kitchen, etc. These cases became more frequent and are financially crippling the insurance companies. As a result, here in Texas at least, the insurance companies simply stopped offering coverage for water damage. Any water damage, whether mold is involved or not.

Recent news from the Texas Department of Insurance is that some coverage for water damage will soon be available to home owners. Likely on a “sliding scale” where incremental costs of coverage will buy more coverage. And there will likely be a “cap” or maximum amount the insurance company will cover at each increment or for specific types of claims. For example, there will likely be no coverage at all for any type of water damage deemed to be caused by “slow and continuous” water leaks OR anything deemed as deferred maintenance on the part of the home owner. Insurance companies are taking the position that regular maintenance should be a requisite for insurance coverage. Water damage coverage of the future will likely be in the form of coverage for damage caused by “sudden and accidental events”.

This, then, raises the question, what is a “sudden and accidental event”? What if the hose connecting my washing machine to the water source in the wall bursts while I am away for a weekend? That would be “sudden and accidental” wouldn’t it? Or would the insurance company view that as deferred maintenance? Should I have replaced that hose prior to its failure? An example of a “slow and continuous” leak which would be very difficult to detect might be in the case where the bathroom floor covering is a vinyl sheet and it is caulked around the toilet and then that ring seal between the toilet and floor begins to slowly leak. The moisture may stay below the vinyl floor covering for some time before being noticed.

As you can see there are many questions remaining when discussing water damage coverage with your insurance agent. For more information the Texas Department of Insurance web address is www.tdi.state.tx.us

Specific Information: Now that we have discussed what mold is and why it has become such an issue recently, we’ll take a closer look at mold, how to prevent it, what happens if you get it, and some things you may experience in the future as a result of having mold.

Sources of Mold

Since mold is a living organism, it requires three basics to remain alive and to grow. They are:

1. Light - mold must have light to grow. Not much, but some light is required.

2. Food Source - mold must feed on something, i.e.: proteins found in building materials, such as the glue used to hold the paper onto the gypsum in drywall, wallpaper glue, carpet, etc..

3. Moisture - mold must have moisture to grow.

Mold can not survive without all three of these components.

Light: We generally think that mold grows in dark places. It does. But it must have some light. You say, there is no light inside my walls so how could mold grow in there? Well, I can’t answer that except to say that there must be “enough” light. I know that it can grow in that enclosed container in the back of my fridge and there isn’t much light in there.

Food: Food sources for Stachybotrys chartarum are primarily materials which are high in cellulose and low in nitrogen content. Examples include wallpaper, cardboard, ceiling tile, cellulose insulation and wood. “Black Mold” is called that because of its color. Mold gets its color from its food source. Different materials in the different in the different food sources that the mold is feeding on determine the color, or the appearance of the mold. Stachybotrys does not always appear as being very dark in color, it can be lighter, depending on the particular food source. Other types of mold can be dark or light in color, depending on its food source. If “Black Mold” is found growing on materials that do not contain cellulose, it is probably not Stachybotrys. That is why you should hire a professional to test the mold for type.

Moisture: Of these three requirements, moisture is considered the most controllable. Omit the moisture and you omit the mold. Mold can not begin to grow without a source of moisture and existing mold can not survive if the source for moisture is removed.

Some common sources of moisture are: • Leaking plumbing - supply or drain lines, slow drip behind a sink, toilet, or in a wall • Appliances and Fixtures- damaged water heaters, refrigerators, dishwashers, clothes washing machines, faucets, sinks, tubs, showers, toilets, etc.. • Moisture by condensation or steam. Both central and window A/C units, boilers, etc. • Structural problems - Leaking roof, leaks around windows, improper drainage under pier and beam homes, “pooling” in basements or under or around homes. • Natural causes - Flooding. Poor drainage.

Prevention of moisture methods (i.e. prevention of mold) are: • Maintenance - plumbing system, appliances and fixtures, and structural • Drainage - insure proper drainage and prevent pooling under or near home • Ventilation - insure proper ventilation - In the home with windows and heating and air conditioning - Under the home (for pier and beam construction) with ventilated crawl spaces - Above the home (the attic) with vented soffits or other attic vents.

Detection of Mold and Testing for Quantity: Visual detection. Get down on your knees and look under sinks, behind washing machines, under dishwashers and refrigerators, behind and under and around water heaters. If moisture is found, look for mold. If mold is found, take further steps to determine the extent of the infestation. Large infestation of mold can usually be seen or smelled. Smaller infestations may require professional testing to detect. If it is “scary”, hire a professional remediation company.

Prevalence of Mold: Mold is everywhere in our environment, indoors and out. Mold is considered harmless in the outdoors. It is only considered harmful in enclosed areas where spore concentration is generally higher. Most homes, and other buildings are thought to have some degree of some type of mold presence. Some authorities believe as many as 50 percent of all homes may have some level of Stachybotrys infestation.

Remediation (Clean up): The degree of remediation, or clean up, is generally determined by the degree of infestation. Minor infestation (spots) remedied with a mixture of bleach and water. More severe infestation requires other steps be taken, all the way up to professional technicians (men in white suits) and complete containment of the area.

While there are no national standards for remediation of mold infestation, the following are known as “The New York City Guidelines” for cleaning up mold infested areas and have been referred to as being generally acceptable guidelines.

New York City Guidelines for Mold Remediation

Level 1 = 10 Sq. Ft. or Less - local remediation, no containment Level 2 = 10 to 30 Sq. Ft. - local remediation with containment of the area and filter vacuum the area not removed. Level 3 = 30 to 100 Sq. Ft. - remediation by professionally trained technicians with complete containment of the area and filter vacuum Level 4 = more than 100 SF - remediation by professionally trained technicians with full facial respirators, rubber gloves, and protective clothing, complete containment, negative pressure the area while working to prevent spread of spores, clearance testing prior to re-occupancy.

The suggested means of “clean-up” for Level 1 and Level 2 infestation included removal of all personal effects and furniture, including lamps, dressers, clothing, basically everything, from the area prior to beginning to search for the extent of the mold infestation. Then removing floor covering and/or wall and/or ceiling covering and insulation and structural components (studs, plates, wiring, plumbing, etc.) to about 3 feet beyond the infested area. At approximately the Levels 3 and 4 infestation, every piece of material (including clothing, furniture, personal belongings, floor covering, pieces of the walls, etc.) to be removed must be bagged in plastic and sealed (taped closed) for removal from the area. Once removed to the outdoors the mold is considered safe and the contaminated material is disposed of in landfills. The mold is only considered dangerous when in contained areas.

The hiring of professionals for remediation is expensive. Generally, the testing for type and quantity is performed by chemical engineers, or other qualified professionals. The clean up is done by trained technicians who must dress in those “white suits” with rubber gloves, covered foot wear, head gear and breathing apparatus while they are working. When mold is disturbed, such as during removal, larger amounts of spores are naturally released. As previously mentioned, at the Levels

3 and 4 infestation, every piece of material to be removed must be bagged in plastic and sealed prior to removal. To get an idea of the work involved (and why it is so expensive), just try to imagine yourself taking the time to get suited up in all that garb and then doing even a small repair job in your own home, say replacing a broken window. Every item you remove, including furniture, must be reduced to small enough pieces to be removed in plastic bags. You must be in full “uniform” when working which is cumbersome and clumsy. If you take a break and leave the work area you must be “decontaminated” and then before you can return to the work area you must get completely suited up again. This is very time consuming and painstaking work.

Upon completion of the remediation, the area must be tested and approved for re-occupancy. At that point reconstruction can begin.

Recovery, what happens after mold is “cleaned up”?

Inspections and Reports: If you have had mold in your house and there is even a remote possibility that you may sell that house at some point in the future you should have a qualified professional thoroughly inspect your home and prepare a detailed written report of the findings of that inspection a soon as your remediation is complete. This will likely be expensive to obtain, but necessary as it provides you with written documentation that your home is free of mold as of a specific date. It is also likely that you will have to obtain another similar inspection and report at what ever point in time it is that you decide to sell your home to provide written documentation to a prospective Buyer that the home remains mold free.

Disclosure: As a Seller of a residence we are bound to disclose all known facts about any property we sell. New disclosure forms will have a section for mold. Owners should disclose if any mold has ever been found and if any reports have ever been made regarding mold in any property. If reports have been made, either identifying that mold does exist or that mold has been properly remedied as of a specific date, then those reports should be made available to any prospective purchaser.

Remaining questions: If a property has had mold and has been properly remedied and a professional inspection is made and report written indicating that the property is free from mold as of a given date, how long and to what degree, if any, will the simple fact that a property has had mold in the past affect the public perception, or marketability of that property, and, thus, the price that a prospective purchaser will be willing to pay for a property that has had mold in the past? And, for how long of a period of time is disclosure of a known mold case required? Will insurance companies write policies to cover a home after a report is made indicating that it is mold free, or will there be a specific period of time that it must remain mold free? Will lenders finance a home with a known mold case?

The local lenders that I have discussed this matter with indicate that their decisions to loan money on a home with a known history for mold will be handled on a case by case basis. They will likely require a recent inspection and written report documenting that the home is free from mold and moisture. Another major factor will be if the home is insurable, which takes us back to the insurance companies and the requirements that they will impose.

Summary: Although there is no “test” that proves a link between Stachybotrys chartarum and particular health symptoms, it is likely that it poses serious risks for infants or those with existing illnesses or allergies. Large quantities or concentrations of molds are likely to pose a greater risk than small quantities. Insurance will likely never be available specifically for mold but likely will be for “sudden and accidental events” as determined by the insurance companies and will likely be incremental and with a coverage cap. The key to prevention of mold is prevention of moisture in your home or other buildings. Remediation can be very costly, particularly if the infestation is significant. The long term effects of mold infestation can be detrimental, not only to health, but also to your property.

About the Author:

Jack Schoppa, I.F.A.S., is a Certified General Appraiser and Licensed Broker and owner of North Texas Properties, a full service real estate firm in north central Texas. Jack's appraisal practice includes appraisal of a variety of farm and ranch properties as well as residential and small commercial properties. He can be reached at jack@northtexasproperties.com

Jack's research on mold became more intensified when several cases of mold appeared in some of the small towns in which he works and insurance companies began excluding water damage from coverage.

Does the old popcorn ceiling contain asbestos?I think I remember it does,any verbage would be would be greatly appreciated.Thanks in advance. Mark Leblanc - Central Point Or

Mark: It was prohibited around 1976 but not the asbestos lubricant they had on the shelf. Only a lab test will determine if the sample has >1% Chysotile. Jim Lucas, Camino - CA

The production of asbestos was banned in 1978 I think. Richard Grisham provably knows the date for sure. Product that was in stock was allowed to be used up, so one may find it in housing a little later than that. It may or may not be in acoustic ceiling material. When we find a home that has an acoustic ceiling that may be contain asbestos we use the following comment.

“The sprayed on acoustic ceilings may contain asbestos. Actual asbestos content can only be determined by laboratory testing. Further information on asbestos can be obtained from a licensed asbestos consultant or abatement contractor.” Jon Gudnason - Placerville, CA

About 5 to 10 percent of "popcorn" (sprayed acoustic) ceilings still contain asbestos. The newer applications contain pellitized styrofoam mixed with "pulped (pulverized) polyethylene" which looks amazingly like Chrysotile asbestos under the phase contrast microscope - to the point that it is sometimes used in the NVLAP samples to fool even good microscopists (yes, I got fooled once - the only sure way to tell the difference is to hold it in a flame. Real asbestos does not melt!) The samples must be analyzed by real expert microscopists.

In the early 1960's medical studies showed an alarming increase in the death rate of asbestos workers whose exposure to this "miracle" material dated back to WWII. By around July of 1989 the hazardous nature of asbestos had become so evident that the EPA began prohibiting the manufacture, importation, processing, distribution and commercial use of asbestos in almost all products (it is still used in very large sewar pipes). If you do an older house (around 1980 or earlier), always recommend further investigation...etc. etc. Please don't send me any samples to analyze, I only look at mold now. Richard Grisham - Las Vegas, NV

What do you report when you encounter sprayed accoustical ceilings?

Your Name: City, State: B2

Please provide your full name or else we will not know who the response is from.

BEEN THERE - DONE THAT! Reggie Ayres - Medford, OR

Looks like an every day thing here in SC, but we don't wear hats!! This reminds me of Arachnaphobia! Jim Maass - Columbia, SC

Jim gets my vote as the official "Amazing Spiderman" of A.I.I.! The sad thing is this is actually a photo of Jim while wearing his hat and crawl suit. Steve Handlen - Post Falls, ID

Is this guy still in the business? Unknown Sender

"Recommend Licensed Psychologist interrogate and evaluate mental condition (is this Technically Exhaustive testing?) of the Home Inspector Professional. Special attention, possibly involving Specialists in the fields of Arachniphobia and Claustrophobia, are highly recommended." Jim "Spiderman" Archer - Florence, OR

So how many spiders is too many spiders. When do you draw the line? And howzabout the recommended safety gear for entering the depths of the dark side. Is a baseball hat the recommended head gear? I would love to hear your feedback on where your line is drawn for crawlspace safety. What precautions do you take? What crawlspace do you wish that you hadn't entered into? Even us Utah inspectors here in the land of the basements get to enter a few crawlspaces each year. All of you should have a story to share. Would you please take a moment to reflect and document you most memorable crawlspace. If you have a photo, please pass it along too.

What has been your most memorable crawlspace?

Your Name: City, State: B1

Please provide your full name or else we will not know who the response is from.