If I began the process of purchasing a home on contract but have now been told it is full of black mold, what are my rights?

I paid the seller $500 earnest money by check and then gave him another check for $5,300 as a downpayment. The seller was supposed to provide a contract for me to sign but as of today there has never been one signed. I have been paying $480 (for the house payment and property taxes) a month for the past 8 months. I found on about a week ago that the home has serious black mold issues. I would like to know what my rights are in this situation? Who is responsible for making the repairs? Can I get my money back?

Asked on November 11, 2011 under Real Estate Law, Iowa

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you have yet to acquire legal title to the property that you are writing about and have just discovered that there is a mold issue with it, most likely you can cancel the purchase and get the return of all of your deposits.

I would consult with your real estate agent (if you have one), or better yet, consult with a real estate attorney about this situation. Good luck.


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