Environmental

The presence of mold in a property is material because:

AMold must always be disclosed under federal law
BCertain molds can cause significant health problems and must be disclosed as a known material defect✓ Correct
CMold automatically voids a purchase contract
DLenders will never finance a property with any mold present

Explanation

Mold can cause health problems, particularly for individuals with allergies or respiratory conditions. In California, known mold conditions are material defects that sellers and agents must disclose. California Health and Safety Code Section 17920.3 identifies visible mold as a substandard condition.

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