04/04/2023
THE FOUR ZOMBIES OF HOME BUYING
Author: Monty F. Fordham, B.A., LL.B., Fordham & Brightling Associates
It seems that most movies, T.V. programs, and books (remember them?) these days have at least a few zombies in them. Although I’m not that familiar with zombies in general, the ones I have seen on screen at least, seem exceptionally good-looking, all things considered. However, although we can tolerate the presence of a few zombies in our entertainment, the same certainly cannot be said about our homes.
Much like the Hollywood variety, house zombies pretty much remain interred, at least until someone looks more carefully. Then, out they come, lurching and shuffling toward their ultimate goal: the complete destruction of your house deal. No, these are not real zombies; the real ones would be a lot less expensive to get rid of. As a seller or a buyer, you should know where to look for them, how to identify them, and what to do if you find them.
To find the first of these critters, you have to go up into the attic of the home. There, you may find various kinds of insulation: cellulose, fiberglass, or that creepy, granular, VERMICULITE! And to make it even more difficult, vermiculite may be hiding under the other types of insulation. Now, vermiculite looks quite harmless (looks like cat litter), and, in fact, the vast majority of it is. It seems only vermiculite produced from a certain mine in Montana contained asbestos, and was, therefore, considered harmful. Problem is, there is no way of telling where the vermiculite came from unless it is tested professionally. Removal by certified removal companies can be quite expensive, and according to most experts, unnecessary, as long as the material remains undisturbed.
To find the next zombie, go to the basement. If the home is older, you may find pipes, ducts, and other infrastructure wrapped in ASBESTOS! Once again, left undisturbed, the material is quite harmless. However, should it flake off or become damp, the air-borne particulate is considered quite harmful. The good news is that removal is not overly expensive, and it is usually much easier to access.
These two zombies, even taken together, should not be considered deal-killers.In fact, in the standard real estate form of agreement of purchase and sale, you won’t find them mentioned at all. There is no hard legal requirement for the seller to disclose the presence of either, but the real estate agent must disclose if he/she becomes aware. A thorough home inspection, by a qualified home inspector, should reveal any presence of asbestos or vermiculite. Most mortgage lenders and insurers are not frightened off by either, but consideration should be given to having both removed to facilitate resale.
The next zombie should have been put out of his misery years ago. His name is UFFI! Back in the mid 70's the federal government was paying homeowners to put this stuff in their homes, and, by the mid 80's was paying them to take it out. It has been outlawed for over 30 years. UFFI, or Urea Formaldehyde Foam Insulation, was an injected form of insulation (looked like shaving cream) and its presence can be detected by plugs, either on the exterior or interior of the walls. After all this time, any remaining UFFI is dry, powdery, (looks like Styrofoam) and, at least according to most experts, is completely harmless.
However, the standard real estate form still contains a representation and warranty to the effect that the house does not contain UFFI. Once again, a thorough home inspection by a qualified inspector should reveal the presence of UFFI. Sellers should be very wary of giving a false representation and warranty, as they can be liable for damages if the house is later found to contain UFFI. Moreover, the costs of removal of UFFI can be substantial.
And, finally, what about the zombie called GROW-OP? He’s not as common these days, his progeny being legal and all, but he is still lurking in the shadows and real estate agreements.
