Mold Addendum Agreement

MOLD ADDENDUM AGREEMENT

Property Identification

Property Address:

Parcel / APN Number:

Parties

Recitals and Agreement Date

This Mold Addendum Agreement ("Addendum") supplements and is incorporated into the Purchase Agreement dated between Seller and Buyer with respect to the Property identified above. The terms below govern inspection, disclosure, remediation, escrow holdback, and related remedies concerning mold conditions.

Seller Disclosures

Seller represents and discloses as follows (check applicable boxes and provide explanations where indicated):

Seller discloses known mold conditions: Yes No

Prior remediation work performed: Yes No

Inspection and Testing

Buyer shall have the right to conduct mold inspection and testing within calendar days following mutual execution of the Purchase Agreement and this Addendum ("Inspection Period"). All inspections shall be performed by qualified inspectors selected by Buyer. Inspection reports must be delivered to Seller within days of testing.

Cost of testing shall be paid by: Buyer Seller Escrow/Other

If testing results indicate active mold growth or hazardous conditions above applicable action levels, Buyer may: (a) require Seller to perform remediation consistent with this Addendum; (b) request an escrow holdback as set forth below; or (c) within the Inspection Period, elect to terminate the Purchase Agreement by providing written notice to Seller and Escrow, in which case Buyer shall be entitled to return of earnest money in accordance with the Purchase Agreement.

Remediation and Cost Allocation

Seller's obligations if remediation required:

1. Seller shall, at Seller's expense unless otherwise agreed, engage a licensed mold remediation contractor to remediate the affected areas in accordance with industry standards and applicable law and shall provide Buyer with contractor proposals, scope of work, and invoices.
2. Remediation shall be completed prior to Closing or, if agreed in writing by Buyer, completed following Closing under the escrow holdback provisions below. Estimated remediation completion date: .
3. Contractor performing remediation: . Seller shall furnish proof of contractor licensing and insurance prior to commencement.

Escrow Holdback

If remediation cannot reasonably be completed prior to Closing, parties agree to an escrow holdback in the amount of $ to be retained by Escrow to secure completion of remedial work and related claims. The holdback shall be disbursed only upon presentation to Escrow of: (a) invoices from the remediation contractor showing completion of the agreed scope; and (b) a written clearance certificate from an independent testing firm or licensed environmental professional acceptable to Buyer certifying successful remediation.

Any disputes regarding disbursement shall be handled in accordance with escrow instructions and the Purchase Agreement. The party claiming entitlement to funds from the holdback must commence an action or arbitration within days after the date remediation is certified as complete.

Representations, Warranties and Indemnity

Seller represents and warrants to Buyer that, except as disclosed in this Addendum, Seller has no actual knowledge of ongoing moisture intrusion, active mold growth, or concealed conditions that materially affect habitability of the Property. Seller shall indemnify, defend and hold Buyer harmless from and against any third-party claims, losses, damages, liabilities, or costs (including reasonable attorneys' fees) arising from Seller's failure to disclose known mold conditions or from Seller's negligence in connection with any remediation performed prior to Closing.

Buyer acknowledges that sampling and testing are representational and that non-detectable or non-actionable results do not constitute a warranty of future absence of mold. Buyer agrees to notify Seller promptly of any discovered conditions and to permit Seller a reasonable opportunity to remediate where Seller has assumed remediation responsibility.

Default and Remedies

Material breach of this Addendum shall constitute a breach of the Purchase Agreement. In the event of Seller's material breach, Buyer may pursue all remedies available at law or equity, including termination of the Purchase Agreement, specific performance, recovery of costs for remediation, and recovery of reasonable attorneys' fees and costs to enforce this Addendum. In the event of Buyer's material breach, Seller may seek available remedies under the Purchase Agreement, including retention of earnest money as liquidated damages where applicable.

Notices

Miscellaneous

Governing Law: This Addendum shall be governed by and construed in accordance with the laws of the state in which the Property is located. The parties agree that venue for any dispute shall lie in the county where the Property is located.

Entire Agreement: This Addendum constitutes the entire agreement between the parties regarding mold matters for the Property and supersedes any prior representations or agreements, whether oral or written, with respect to such matters. No modification of this Addendum shall be effective unless in writing and executed by both parties.

Severability: If any provision of this Addendum is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Acknowledgment

By signing below, the parties acknowledge that they have read and understand this Mold Addendum Agreement, that they have had the opportunity to seek independent advice, and that they agree to be bound by its terms.

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