Agent Hid Mold in Her Own Home Sale

Richard Montgomery on Mar 3, 2026

Dear Monty: We bought a house in September 2025 from an agent selling her own home. She was evasive about details such as proof of roof replacement, providing only a roofing company brochure dated November 2024. The house looked good during showings, but after moving in, we found extensive hidden problems. Under the kitchen sink, dried mold and fungus from an uncleaned leak were concealed behind a large water filtration system. We found mold in the lower-level walls from water seeping through a cracked foundation. The seller checked "NO" on the disclosure statement when asked about water leaks or damage. If she lied on the disclosure, what recourse do we have? Does this give us leverage for legal action?

Monty's Answer: Proving a seller "lied" versus being unaware presents significant challenges. According to the National Association of Realtors, agents have disclosure obligations to customers, and she may not have complied with the rules or state laws. Did the seller actually live there? If you moved in and cleaned up, you may have damaged physical evidence. Also, did the agent discourage you from getting an inspection? Your evasive comment suggests your red flag was waving early, but you proceeded.

How to Determine Your Leverage:

Step 1: Document and Investigate

Gather evidence now. Hire a qualified home inspector to document remaining issues with photos and written reports. Get estimates from licensed contractors for remediation costs. Request maintenance records from the water filtration company; if they serviced the under-sink area, they may have notes about existing mold. Check with the roofing company directly to verify the October 2024 replacement and ask if they noted any water damage during installation. According to the EPA, visible mold growth typically indicates ongoing moisture problems, strengthening your case.

Step 2: Consult Legal or Mediation Professionals

Many attorneys offer free initial consultations. Mediation is considerably less costly than litigation. Bring your documentation and ask about your state's specific disclosure laws and statutes of limitation. Some states require proof of "material defects," while others impose strict liability for false disclosures.

Step 3: Pursue Insurance Claims

Contact your title company to learn if they include coverage for fraud or misrepresentation. If the seller maintained errors and omissions insurance as an agent, her policy might cover disclosure violations related to her own property sale. Your homeowner's insurance may cover mold remediation.

Step 4: File Professional Complaints

Report the agent to your state's real estate commission. Even if this doesn't provide a direct financial remedy, professional sanctions may motivate settlement discussions. Agents selling their own properties still owe fiduciary duties regarding the accuracy of their disclosures.

Critical Considerations:

Not seeking a pre-purchase inspection may reduce your odds. However, if the agent didn't offer one or suggested it wasn't necessary, it may increase your odds. Courts often question why buyers didn't discover visible issues during inspection. The strategic placement of water filtration equipment might support concealment claims, but you may need expert testimony.

Litigation costs often exceed remediation costs unless damages are substantial. Get repair estimates first. If you're facing $5,000 in cleanup versus $15,000 in legal fees, settlement negotiations make more sense than court.

Start with documentation and free legal consultations before deciding whether to proceed. The evidence you gather now determines your leverage in any negotiation or litigation.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @montgomRM or DearMonty.com.

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