About that undisclosed asbestos in the attic

I purchased my home about four years ago. The home inspection report said the attic insulation was fiber glass and vermiculite, but it did not mention that the vermiculite might contain asbestos.

Now that I’m selling my home, the buyer’s home inspector disclosed that the insulation could contain asbestos, and this caused the buyer to cancel the deal. I had the vermiculite tested and, sure enough, it does contain asbestos.

So now I’m stuck with a house that cannot be sold because no one wants to buy a home that has asbestos in the attic. What do I do? Do I have a legal case against my home inspector?

There are several points at play here. First of all, home inspections do not include disclosure of environmental hazards. That exclusion is part of the standards of practice for the home inspection industry and is probably stated in the home inspection contract that you signed when you hired your inspector.

On the other hand, this exclusion does not prevent home inspectors from reporting materials that may contain asbestos. Many home inspectors actually do make such disclosures, while recommending further evaluation by qualified experts.

Common examples of this include “popcorn” ceilings, old shingle siding and vermiculite insulation in attics. These can simply be reported as materials that "may contain asbestos." Home inspectors who do not do this are not providing reasonable disclosure to their customers. However, they are not obligated to make this kind of disclosure and therefore cannot be held liable for nondisclosure.

Another issue in your case is the amount of time that has passed since your home was inspected. In many states, four years is at or beyond the statute of limitations. Therefore, even if your home inspector was at fault in this situation, he might still be outside the reach of legal liability.

Aside from questions of liability, there remains the issue of what to do now. Basically, you have three choices: Professional removal of the vermiculite, disclosure to buyers or a reduction of the sales price.

The problem with removal is that it is usually very expensive. However, bids from abatement contractors are free and will give you a clear idea of what is at stake. If the cost of removal is not affordable to you, you can offer buyers a price reduction in the amount of the bids.

Disclosure to buyers is not entirely negative. Although some buyers would be unwilling to purchase a home with asbestos material, there are those who are not intimidated by the exaggerated health risks associated with asbestos materials in homes.

Finally, the vermiculite insulation in your attic is unlikely to emit asbestos fibers into the air in your home unless the material is disturbed. As part of your disclosure to buyers, you can hire a certified asbestos inspector to conduct a lab analysis of the air in your home to determine whether asbestos fibers are actually present. If the report shows no significant air contamination, that will make a positive difference to some homebuyers.

ACTION COAST PUBLISHING