---
title: Addressing Mold in a Receivership Property
description: Discover the hidden dangers of mold, from structural damage to health risks, and learn how it impacts property values and complicates receivership processes.
image: https://blog.griswoldreceivers.com/hubfs/Mold%201.jpg
---

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Blog

# [Addressing Mold in a Receivership Property](https://blog.griswoldreceivers.com/addressing-mold-in-a-receivership-property)

August 23, 2024

Mold is a frustrating reality that damages properties, decreases property values, and poses serious health risks to residents. Left unaddressed, mold spreads quickly and compounds both the physical and financial harm to a property.

Many types of mold are dangerous to human health, and even common varieties can cause negative effects with sufficient exposure. Prolonged exposure to certain molds — particularly black mold (Stachybotrys chartarum) — has been linked to serious respiratory illness, chronic sinus infections, neurological symptoms, and immune system suppression. Vulnerable populations including children, the elderly, and those with compromised immune systems face heightened risk. In severe cases, mold exposure has been associated with permanent lung damage and other long-term health consequences.

When a property owner fails to remediate a mold condition, whether due to neglect, financial distress, or abandonment, the problem rarely resolves on its own. A court-appointed receiver can step in to assess the extent of the contamination, coordinate licensed remediation, and ensure the property is returned to a safe and habitable condition — all under court supervision and without placing the burden on municipal resources.

## How Mold Causes Structural Damage

One of the biggest challenges of remediating mold damage is addressing the impacts on the building’s structure. Removing mold is hard enough, but finding and fixing all of the structural damage can be especially difficult. 

Some of the things to look out for include: 

**Wood decay:** Mold can break down cellulose in wood, causing damage to wooden elements like beams, floor joists, and studs. 

**Drywall damage:** Mold can populate in drywall very quickly; it is important to replace drywall after a flood to prevent mold growth. If you discover mold in the wooden elements of the building, it is also very likely to be found in the drywall, which is made of gypsum and paper. 

**Insulation damage:** Porous materials like insulation are hospitable places for mold to grow. It is best to replace insulation and other porous building materials rather than trying to “clean” them. Another reason is that moldy insulation does not insulate well. 

**Corrosion:** Check for damage to any metal components where mold has developed, including nails, screws, and fasteners. 

**Moisture-related expansion and contraction:** Mold often follows water damage. If you have had any flooding or water damage in a building, you may find mold in cracks, gaps, and warped materials. This can require significant structural repairs if left undetected.

**Ventilation system damage:** Mold in your HVAC system must be addressed for both health and structural reasons. 

There are other types of damage that mold can cause, but these are some of the most common issues to look for. 

## Health Issues Caused by Mold 

![Mold](https://blog.griswoldreceivers.com/hs-fs/hubfs/Mold.jpg?width=242&height=322&name=Mold.jpg)Sometimes, residents only find out about mold because they begin to experience negative health outcomes. Symptoms of mold exposure can appear to be other illnesses, such as viral infections, dermatitis, and asthma. 

The dangers of mold include these health issues, which can often be traced back to mold exposure:

**Allergic reactions:** This can include skin reactions, respiratory problems, runny nose, itchy eyes, and other hay fever-like symptoms. 

**Asthma attacks:** Some asthma phenotypes are more likely to respond to mold than others. For example, allergic asthma, which is the most common asthma phenotype, will often be [triggered by mold and mildew.](https://www.mayoclinic.org/diseases-conditions/mold-allergy/symptoms-causes/syc-20351519) 

**Respiratory infections:** Prolonged mold exposure can lead to respiratory infections, with symptoms like coughing, sneezing, sore throat, congestion, headache, etc. This is especially serious for individuals with suppressed immune systems, such as individuals with chronic conditions or those going through chemotherapy. 

### Types of Mold Most Likely to Cause Health Problems 

Although some individuals may experience symptoms from any type of mold they encounter, some mold strains are more likely to cause health problems than others. Molds that produce mycotoxins are the most dangerous to people’s health. 

According to the [World Health Organization](https://www.who.int/news-room/fact-sheets/detail/mycotoxins#:), *“Mycotoxins are toxic compounds that are naturally produced by certain types of moulds (fungi). Moulds that can produce mycotoxins grow on numerous foodstuffs such as cereals, dried fruits, nuts and spices. Mould growth can occur either before harvest or after harvest, during storage, on/in the food itself often under warm, damp and humid conditions. Most mycotoxins are chemically stable and survive food processing.”*

Molds that produce mycotoxins include: 

- Stachybotrys chartarum (AKA: Black Mold)
- Aspergillus
- Penicillium
- Fusarium
- Alternaria
- Chaetomium
- Trichoderma 
- Mucor

Additionally, Mucor and Rhizopus can cause mucormycosis, even though they don’t produce mycotoxins. This is a rare but serious fungal infection. 

## Mold Decreases Your Property Value 

Because of the combination of structural risks and health risks, mold has a significant impact on property value. 

Structural damage that requires extensive repair work brings down the total value of the property. Additionally, mold remediation is expensive, and many buyers will never purchase a property that has previously been damaged by mold. 

The effect on property value is dependent upon the extent of the infestation. A small area of mold that was quickly rehabbed is probably not going to bring your property value down significantly, but a large infestation that requires professional mold removal and major repairs will adversely affect the total value. 

In extreme cases, it has been more cost-effective to demolish the property and rebuild instead of trying to repair the damage. 

## How to Remediate and Abate the Dangers of Mold

As court-appointed receivers, our Griswold Law team has been responsible for overseeing the remediation of [hundreds of properties](https://griswoldreceivers.com/property-examples/) in California. Properties that are [abandoned, blighted, or damaged](https://griswoldreceivers.com/health-safety-receiverships/) commonly have mold growth issues that need to be addressed. 

It is crucial to address mold damage *before* any new construction can begin. You don’t want to waste money on renovation projects that end up being unusable because of undetected or unabated mold damage. 

A court-appointed receiver can act with the authority of the court in the following ways: 

- Hire mold inspectors to determine the extent of the mold
- Contract mold removers to fix mold problems
- Make decisions about appropriate renovation or demolition methods, based on the extent of the damage
- Other mold-abatement tasks as necessary

### The Importance of Protecting Your Property Against Mold

If you or someone you represent is responsible for a property that has mold damage, it is essential to act right away. Waiting to act may increase the costs of repair, decrease your property value, and create an uninhabitable living environment for residents or future buyers. 

A [court-appointed receiver](https://griswoldreceivers.com/about-griswold-law/) has the authority to address all kinds of damage at a property, whether that is a single-family home, a multi-family residence, a large apartment complex, a commercial building, a hotel, or any other type of property. 

Richardson “Red” Griswold has been appointed by the California courts hundreds of times and has overseen many mold abatement projects for receivership properties. 

To learn more about the work that receivers can do, or to ask questions about how receivers can ensure mold abatement, contact us today.

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- [lien (1)](https://blog.griswoldreceivers.com/tag/lien)
- [liquidation (1)](https://blog.griswoldreceivers.com/tag/liquidation)
- [litigation (1)](https://blog.griswoldreceivers.com/tag/litigation)
- [lodging properties (1)](https://blog.griswoldreceivers.com/tag/lodging-properties)
- [massage parlors (1)](https://blog.griswoldreceivers.com/tag/massage-parlors)
- [misappropriation (1)](https://blog.griswoldreceivers.com/tag/misappropriation)
- [motel (1)](https://blog.griswoldreceivers.com/tag/motel)
- [new business (1)](https://blog.griswoldreceivers.com/tag/new-business)
- [nuisance abatement (1)](https://blog.griswoldreceivers.com/tag/nuisance-abatement)
- [occupant relocation (1)](https://blog.griswoldreceivers.com/tag/occupant-relocation)
- [partnership (1)](https://blog.griswoldreceivers.com/tag/partnership)
- [partnership disputes (1)](https://blog.griswoldreceivers.com/tag/partnership-disputes)
- [provisional director (1)](https://blog.griswoldreceivers.com/tag/provisional-director)
- [public nuisance (1)](https://blog.griswoldreceivers.com/tag/public-nuisance)
- [real property lien (1)](https://blog.griswoldreceivers.com/tag/real-property-lien)
- [real property receiver (1)](https://blog.griswoldreceivers.com/tag/real-property-receiver)
- [relocation (1)](https://blog.griswoldreceivers.com/tag/relocation)
- [rental (1)](https://blog.griswoldreceivers.com/tag/rental)
- [repair (1)](https://blog.griswoldreceivers.com/tag/repair)
- [residential zoning laws (1)](https://blog.griswoldreceivers.com/tag/residential-zoning-laws)
- [retail center (1)](https://blog.griswoldreceivers.com/tag/retail-center)
- [right of possession (1)](https://blog.griswoldreceivers.com/tag/right-of-possession)
- [safety (1)](https://blog.griswoldreceivers.com/tag/safety)
- [san diego real estate (1)](https://blog.griswoldreceivers.com/tag/san-diego-real-estate)
- [sex trafficking (1)](https://blog.griswoldreceivers.com/tag/sex-trafficking)
- [short-term rental (1)](https://blog.griswoldreceivers.com/tag/short-term-rental)
- [sober living house (1)](https://blog.griswoldreceivers.com/tag/sober-living-house)
- [struggling hotels (1)](https://blog.griswoldreceivers.com/tag/struggling-hotels)
- [substandard hotel (1)](https://blog.griswoldreceivers.com/tag/substandard-hotel)
- [sunnyvale (1)](https://blog.griswoldreceivers.com/tag/sunnyvale)
- [tenancy (1)](https://blog.griswoldreceivers.com/tag/tenancy)
- [unlicensed in-home business (1)](https://blog.griswoldreceivers.com/tag/unlicensed-in-home-business)
- [wage garnishment (1)](https://blog.griswoldreceivers.com/tag/wage-garnishment)
- [warranty of habitability (1)](https://blog.griswoldreceivers.com/tag/warranty-of-habitability)
- [weed abatement (1)](https://blog.griswoldreceivers.com/tag/weed-abatement)
- [writ of execution (1)](https://blog.griswoldreceivers.com/tag/writ-of-execution)

See all

### Recent Posts

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