What are my rights if a home inspector failed to discover mold that was throughout the house?

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What are my rights if a home inspector failed to discover mold that was throughout the house?

I purchased a home about 6 weeks ago. I did have an inspection and they stated everything was fine. However, when I went to remodel the home we found mile. The entire home is infested with mold. I

had the mold tested, it is black mold, so a respirator must be worn when inside the home. Can I sell the house back to the mortgage company? What do I do? The insurance company says that it is pre-existing

so they won’t do anything.

Asked on November 1, 2017 under Real Estate Law, Michigan

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You can sue the seller for fraud and the inspector for negligence.
Fraud on the part of the seller is the intentional misrepresentation or nondisclosure of a material fact  made with knowledge of its falsity and with the intent to induce your reliance upon which you justifiably relied to your detriment.
In other words, you would not have purchased the house had you known of the mold.
Your damages (monetary compensation you are seeking in your lawsuit for fraud) would be either the benefit of the bargain or your out of pocket loss.
Benefit of the bargain means a defrauded purchaser may recover the difference between the real and represented value of the property purchased regardless of the fact that the actual loss suffered might have been less.
Out of pocket damages for fraudulent misrepresentation permits recovery of the difference between the price paid and the actual value of the property acquired.
The home inspector is liable for negligence.  Negligence is the failure to exercise due care (that degree of care that a reasonable home inspector would have exercised under the same or similar circumstances to prevent foreseeable harm).  Your damages for negligence against the inspector would be what was foreseeable that was caused by the negligence.  For example, costs incurred for repairs to remove the mold, medical expenses resulting from the mold, etc.
You would file one lawsuit naming the seller and the inspector as defendants.  Fraud and negligence are separate causes of action (claims) in the lawsuit.
You won't be able to sell the house to the mortgage company.


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