Question

A seller has just learned from a home inspection that her home has mold identified as allergenic/pathogenic. The affected area is small, and the seller is afraid that if she discloses the mold to a purchaser that the purchaser will become concerned and buy another property, even though the seller believes it likely that any other home in the area undergoing the test would have a similar outcome. The seller asked her agent if they could refrain from mentioning the mold. The agent must advise the seller that

A) he is not required to tell customers but would have to tell other clients.
B) she can only omit disclosure if she has it professionally removed.
C) the presence of mold is a material adverse fact and could affect the health of the person(s) occupying the house.
D) he will be obedient to the instructions of his client and make no disclosure.

Answer 1

C) the presence of mold is a material adverse fact and could affect the health of the person(s) occupying the house.

Step-by-step explanation:

In the given scenario the presence of the mold in the house can affect the health of the buyer so it needs to be disclosed to him. It is a material adverse fact.

According to the Alabama law the seller and agent are required to disclose any material defects the buyer who will know make the final decision.

So the agent should tell the seller that the presence of mold is a material adverse fact and could affect the health of the person(s) occupying the house.