Chinese Drywall Raises A Stink

Chinese-manufactured drywall has caused has caused problems in approximately 25 states nationwide. The drywall could potentially cause an electrical fire in homes and is alleged to cause certain respiratory health problems. However, the Florida Department of Health and other private laboratories and have yet to conclude that the Chinese drywall is the source of such health problems.

Lawsuits have been filed against manufacturers, distributors, and suppliers of Chinese drywall. It is possible that unhappy buyers of homes containing the drywall may add home sellers to that list of defendants. All of this has real estate agents and brokers wondering: How does one know whether a home was made with Chinese drywall, and how can real estate practitioners assist clients in avoiding future litigation regarding Chinese drywall?

How does one know whether a home contains Chinese drywall?

Consulting with a professional home inspector is the best way to determine whether or not a home contains Chinese drywall. However, if a homeowner wants to do a self-inspection prior to hiring an expert, there are several things that may indicate the presence of Chinese drywall. First, it has been widely reported that Chinese drywall emits a sulfuric acid odor. If your home smells like rotten eggs, then Chinese drywall may be the cause. Chinese drywall is also known to corrode internal wiring and air conditioning coils. Oftentimes, the air conditioning unit turns black from this corrosion. Another indication of Chinese drywall may be found on the source itself. If you have access to the drywall, such as in an attic, look on it to see whether it states, "Made in China", or if it contains the logo of a Chinese drywall manufacturer such as Knauf Plasterboard Tianjin or Taishan Gypsum.

Please remember when purchasing a bank owned REO home that you are buying it in "as-is" condition.  There are no disclosures required other than lead based paint, if the home is built from 1977 or earlier.  Suspecting Chinese drywall in a home is a cost that a buyer should estimate in their offers.  If the buyer has found evidence of the Chinese drywall, such as labeling indicated above, it would be fine to explain the tangible finding and its affect on the offer.  You might just be sharing information the bank or broker was not aware of. 

That being said..Wilmoth brokers are educated and on the look out for Chinese drywall.