Mold and Real Estate Sales in Hawaii: What You're Required to Disclose

In Hawaii, residential sellers must give the buyer a written disclosure statement under HRS Chapter 508D, the state's mandatory seller disclosure law. The statute defines a material fact as any past or present fact, defect, or condition that would be expected to measurably affect the property's value to a reasonable person. A mold problem, past or present, is the kind of condition that fits that definition. The Hawaii Association of Realtors notes that the duty runs to material facts within the seller's knowledge or control. In plain terms: if you know about it, disclose it. Even if the mold has been removed, having no documentation of the remediation makes that disclosure harder to make well.

Before listing your home, consider a mold inspection to address potential red flags. A recent clearance report from an independent third party gives buyers something concrete instead of a verbal assurance, and it lets you answer the disclosure question with a document rather than a memory. Whether your home has had mold issues or not, being up-front with the details will go a long way with a buyer, especially if they see that you have already worked with professionals to handle the issue.

In some cases, homeowners paint over mold before listing it to sell. This puts both the new owner and the previous owner in a dangerous situation: health is at risk for the new owner, and the previous owner is now vulnerable to a lawsuit for failing to disclose and covering up a mold issue. Don't follow in their footsteps! Book an inspection, and let buyers see that you've done the work to prepare the property for sale.

We work with real estate agents and homeowners to prep properties for market. If you're preparing to sell, give us a call to make sure mold won't cost you the deal.