🛑 What Are Radon, Mold, and Termite Clauses in Real Estate?

Radon, mold, and termite clauses in real estate allow buyers to obtain specialized inspections for environmental or structural hazards and request remediation, repairs, or credits if issues are discovered. These clauses protect buyers from hidden problems that standard inspections may miss.

How Radon, Mold, and Termite Clauses Work

These clauses allow buyers to order tests or inspections for specific hazards. If the results exceed acceptable levels or reveal damage, the buyer can request repairs, negotiate credits, or cancel the contract depending on the terms.

Common elements of these clauses include:

  • Radon testing — measuring radon gas levels and requiring mitigation if above EPA guidelines.
  • Mold assessment — identifying moisture issues, mold growth, or indoor air quality hazards.
  • Termite or pest inspection — checking for wood-destroying insects and structural damage.
  • Repair or remediation requirements — defining who pays for treatment and repairs.
  • Buyer cancellation rights — allowing buyers to withdraw if major hazards are found.

These clauses ensure buyers have protection from hidden health or structural issues that could be costly to fix.

Why These Clauses Matter

Benefits for Buyers:

  • Provides specialized inspections beyond a general home inspection.
  • Protects against expensive remediation issues.
  • Ensures health and safety problems are identified early.
  • Gives negotiation leverage for repairs or credits.

Benefits for Sellers:

  • Clarifies obligations if hazards are found.
  • Reduces surprises late in the transaction.
  • Allows proactive disclosure of known environmental conditions.
  • Helps avoid disputes and delays at closing.

Example of Radon, Mold, or Termite Clauses

A purchase agreement may include terms such as:

  • Buyer may conduct a radon test and request mitigation if levels exceed 4.0 pCi/L.
  • Buyer may order a mold inspection and require remediation for any identified growth.
  • Buyer may order a termite inspection and require treatment or repairs for structural damage.
  • If required repairs exceed an agreed amount, the buyer may cancel or renegotiate.

These clauses clarify expectations and ensure both parties understand how environmental hazards will be addressed.

Why These Clauses Matter for FSBO Sellers

FSBO sellers must disclose known environmental or pest issues and may be responsible for remediation if inspections reveal hazards.

  • Prevents surprises after inspection.
  • Clarifies seller responsibilities for remediation.
  • Helps avoid expensive contract disputes.
  • Reduces fall-through risk from undiscovered hazards.

Using Flat Fee MLS through Brokerless helps FSBO sellers document disclosures and comply with inspection requirements.

Frequently Asked Questions

Are radon, mold, or termite inspections required?
Not always. Requirements depend on state laws, the lender, and the purchase agreement.

Can buyers cancel if hazards are found?
Yes. Many clauses allow cancellation or negotiation if remediation costs exceed expectations.

Do sellers have to fix every issue discovered?
Not necessarily. The clause defines what must be repaired and who pays.

Are these inspections part of the general home inspection?
No. They are specialized inspections requiring separate tests and professionals.