Home buyers fear asbestos siding will hurt resale

Must condition be disclosed, corrected before selling?



An interesting article in Mortgage 101 in which Alan asks:

We are currently buying an old home and were told by our home inspector that the tile siding probably contains asbestos. Neither the sellers nor their agent have provided any documentation to verify this, and the property is being sold "as is." What kind of liability will we have if we decide to resell the house in the future? Would we merely have to disclose the presence of asbestos, or would we have to replace the siding? --Alan

The response from Barry at Mortgage 101:


The tile siding is most likely a material called "transite," commonly used on building exteriors from the 1940s through the mid-1950s. Transite is a cement product that is reinforced with asbestos fibers. As a finish material for exterior walls, its most common forms are tile shingles and lap siding. Since the asbestos fibers in transite are embedded in a solid medium, they are not readily released into the air. Therefore, transite is not regarded as a significant health hazard. The only way to release asbestos fibers from transite siding is to severely disturb the material, as would occur if the material were cut or abraded with a power saw or sander.


The only requirement for sellers of homes with asbestos siding is to disclose the presence of the material. There is no requirement for removal or any other type of remediation. However, if the exterior of the building is remodeled or renovated, removal of the material might then be required, and this would require the services of a licensed asbestos abatement contractor. Such services, by the way, can be very expensive.


Another consideration with asbestos siding is future marketability of the property. When you eventually resell the home, some buyers may be unwilling to purchase a building with asbestos siding or may expect a price reduction reflecting the cost of eventual asbestos removal.


Source: Mortgage 101