disclose termite and mold in a flip when selling it - Houston TX

6 Replies

I am currently flipping a house in Houston Texas and I found termite that was treated and mold that was also removed (New,sheetrock)

At the time of selling this house am I required to disclose that the house had termite and mold or the disclosure is at the time of the sale?

I am trying to hide it but just wanted to understand What is must And what is can be disclosed.

How does that affect your pricing if any?



Does your disclosure ask if you have ever had an issue, or does is ask if you are aware of any current issues on this matter.  In ny if you believe there are currently no issues then, in my opinion you would not have to say anything. 

In pa they ask things like, have you ever done anything to stop water/foundation shifts.  With that language you would have to say something.

Just my opinion. 

An experienced listing agent in your area should know for sure. Consulting your attorney may be prudent in this case as well. 

Since you already did the work to remedy both issues, the right thing to do, in my opinion, is to disclose these issues as well as all the work done to correct them and turn it into a positive. Far better than the buyer(s) discovering this later on down the line or during an inspection.

As the saying goes: when in doubt, disclose. 

You will likely need to disclose. I can send you the disclosure form I filled out for my last flip. I suspect your form will be very similar. I agree with @Alex Saleeby in that you can turn this into positive. You might look into a termite certificate that guarantees the house is clear of termites and also provides a warranty. I haven't had to do that yet, so I'm unsure of the particulars. I think @J Scott has done that on his flips. I'm sure there is something similar for mold.

It is possible both mold and termite remediation have to be done by a company licensed for the work. If you disclose but cannot show that the remediation was done by a properly licensed company - that might open a can of worms. I don't know that for sure. Hopefully some BP experts will chime in. I would like to know myself if this is a possible issue.

@Ayman Elmasik - as a licensed agent, I advise all of my sellers that they should disclose all material defects with a property in the listing. The Texas Real Estate laws requires sellers disclosures on property conditions to be provided to potential buyers.
I would be happy to answer any specific questions you might have but in short... Yes you need to disclose that there was evidence of prior pest treatment and mold remediation. Feel free to message me if you would like to chat in more detail.