Addressing Mold in Leases and Purchases of Commercial Buildings

5/28/2019 (Permalink)

Given the increased attention to toxic mold, owners & tenants of commercial buildings and their attorneys are starting to address mold prevention and remediation directly in leases and purchase agreements. And, due to the current lack of scientific knowledge and regulatory uncertainty, the focus should be on risk assessment and prevention of mold problems.

Tenants and purchasers considering a transaction should have an assessment for toxic mold performed by a competent consultant with experience in industrial hygiene, mold sampling and mold remediation. This protocol should become part of their due diligence process. An assessment of indoor air quality for the presence of toxic molds will establish baseline conditions and, if necessary, allow the parties to correct a pre-existing mold problem.

Practices and customs for assessing toxic mold risk and indoor air quality are still developing. Some building owners may develop protocols for regular testing and may provide results to prospective tenants or purchasers. However, most retailers contemplating a lease or purchase transaction will likely have to request permission to perform a toxic mold assessment.