A buyer entered into a contract to purchase a residential property from a seller. After moving in, the buyer discovered extensive mold growth in the basement, which was not disclosed before closing. The seller was aware of the mold problem but took no steps to remediate it or inform the buyer. The purchase agreement did not contain a specific warranty about the condition of the property, but the jurisdiction follows the implied warranty of habitability in residential transactions. Can the buyer recover damages based on the mold issue?
Yes, if the buyer decides to pursue action against the home inspector for failing to identify the mold issue.
No, because the purchase agreement did not include a specific warranty about the property’s condition.
No, because the buyer had the obligation to inspect the property and discover the mold issue before closing.
Yes, because the implied warranty of habitability requires the seller to provide a residential property free of latent defects that render it uninhabitable.
Under the implied warranty of habitability, a seller warrants to the buyer that the property is suitable for its intended residential use. In this case, the extensive mold growth renders the property unfit for residential use and could endanger the health of inhabitants. The buyer can recover damages because the seller was aware of the issue and failed to disclose it, violating the implied warranty. The fact that the purchase agreement lacked a specific warranty does not negate the implied warranty.
Other answers are incorrect because the implied warranty of habitability protects against latent defects affecting residential habitability regardless of specific warranties or the buyer’s inspection obligations. The mold issue is a latent defect not easily discoverable even with reasonable diligence by the buyer.
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