Can a bank be forced to remediate known mold issues due to health and safety concerns on an REO?

UPDATED: Dec 22, 2011

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Can a bank be forced to remediate known mold issues due to health and safety concerns on an REO?

Asked on December 22, 2011 under Real Estate Law, Indiana


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If the REO (real estate owned) parcel is not occupied, the bank that foreclosed on the property has no legal duty to remediate any known mold issues with the parcel unless there is an order issued from a court mandating some form of remediation or there is some citation issued by the local health department or building and permit department as to the property.

If you are interested in the property that has some apparent mold issues, you can preface the offer that you may make for its purchase on the estimated cost to remediate if you acquire the property with its known condition.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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