As required by HUD, this form gives Buyers of HUD-owned property notice that no representation is made regarding radon gas or mold. In addition, Buyer releases HUD and its agents from any liability associated with either of these substances. The form also advises Buyer to contact a lawyer and have an inspection.
It also is to comply with the HUD requirement, (effective June 28, 2004). In May 2004, HUD distributed a letter requiring that the new form be included with all sales contracts for the sale of HUD-owned single family properties. The form accomplishes several things: It puts purchasers of HUD-owned properties on notice of the potential health effects of radon gas and mold; It instructs the purchasers of the importance of getting an inspection for radon gas and mold; It specifies that the property is being sold "as-is" and that neither HUD nor the real estate brokers have any knowledge of radon gas or mold that has not otherwise been put in writing; and It is a waiver and release of liability by the purchaser in favor of HUD and those representing HUD (brokers, etc.).
Revised July 2004