Chinese Drywall: Understanding and Uncovering the Issue

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What Is Chinese Drywall?
Thomas Martin, president of America’s Watchdog, a private national consumer advocacy group based in Washington, D.C., believes the suspect imported Chinese drywall is made from material taken from vats under a conveyor belt filled with coal. Gypsum is dripped into the coal to clean it. Martin’s sources say the liquefied vats are being shipped to drywall manufacturers, allegedly, without cleaning them and turned into drywall. He claims that the drywall has been found in 41 states from Alaska to Hawaii and up to 300,000 homes may be affected.

 

 

Robert P. Demont, Ph.D., the principal toxicologist for Environ International, Arlington, Virginia, an environmental testing company, said, “The Chinese drywall is naturally-mined gypsum and seems to be from one particular mine in China.”

Warning Signals
There are several problems caused by the Chinese drywall. How can a problem be detected?

1. The drywall releases sulfur dioxide gas creating sulfuric acid. There is a smell like rotten eggs. Unfortunately, not all affected homes contain this odor.

2. Look for pitting faucets, appliances, and chrome or blackening of silver jewelry.

3. Look inside your electrical outlets and fuse box. If you have a soot-like blackening on the copper wires, they are being eaten away and could short circuit and create a fire.

4. Smoke and carbon monoxide alarms, cable boxes, televisions, and computers begin to fail, and light switches stop working.

5. Copper air conditioning coils pit, creating holes and releasing Freon gas into the homes. Open the back of your air conditioner and inspect the coils and pipe leading out. If they are soot black rather than normal tarnished copper, you may have a problem. Call an air conditioning repairman to confirm.

6. Brass and other metal fittings in natural gas furnaces corrode. Look for possible leakage.

7. Inspect drywall for a “Made in China” label.

If any of the above are discovered, you should follow up with your builder, county or state health department, the Environmental Protection Agency (EPA), and your insurance company.

 

Health Warnings
The health issue surrounding Chinese drywall is still open for debate and continuing research. According to Dr. David Krause, the lead toxicologist for the state of Florida, “We are currently testing Chinese-made drywall to determine if it is toxic and if it will be a long-term health problem.” The testing determines what chemicals are in the drywall, gypsum, paper, and glue, and has been ongoing since October 2008.

 

However, Lennar Homes, the nation’s second largest homebuilder, has been proactive. It has discovered the drywall in dozens of its homes and has hired Environ International to investigate buyers’ complaints. Air sampling tests confirmed that sulfur compounds are inside many homes.

 

Lennar Homes has assumed the liability, and is incurring the costs of moving buyers out of their homes, relocating them to rentals and gutting the homes. This includes removing all of the drywall, electrical wiring, appliances, metals, air conditioning systems, plumbing, insulation, and carpeting. They also remove all of the dust with a powerful HEPA vacuum air scrubber. Rebuilding a house and making it safe to live in takes four to six months with costs ranging from $50,000 to more than $100,000.

 

Health Issues
There are reports from owners who have purchased new homes containing Chinese drywall since 2004 that they are having health problems; several personal and class action lawsuits have been filed over health issues from Chinese drywall in state and federal courts.

 

The investigation is ongoing by consumer advocacy groups, county and state health departments, the consumer product safety commission, the EPA, and private toxicology labs representing owners, attorneys, and builders. During a Lee Building Industry Association conference in February 2009, Dr. Krause reported, “no health problems have been proven yet. Tests are ongoing and the results will be published in the future… on the hundreds of homes that have been inspected that contain the Chinese drywall.” Only time and science will determine the existence of potential health problems caused by the drywall.

 

This author’s advice is if you suspect you have Chinese drywall you should contact your insurance company immediately and put them on notice. This is for your future protection. Your policy may have a provision for paying a claim. You want to do this before the insurance company inserts a disclaimer in your policy. Michael Reitmann, executive vice president of the Lee Building Industry Association said, “Homeowners with concerns should contact their builder because, ultimately, the builder is responsible.”

This is currently an emerging problem, only becoming public in Florida in December 2008. Not all areas of the country are aware of the potential problems the Chinese drywall may have created.

 

Any homeowner who has had a home built or remodeled since 2001 should inspect it for the previously discussed warning signals. Real estate agents, appraisers, and home inspectors all should be aware of this potential challenge. If you find one of the warning signals, be prepared. Chinese drywall could be more costly to remediate than other historical challenges.
 

About the Author
Alvin L. Wagner, Jr., SCRP, SRA, Ft. Myers, Florida, is a retired relocation real estate appraiser and currently a consultant to A.L. Wagner Appraisal Group in Naperville, Illinois. A member or Worldwide ERC® since 1968, Wagner has written articles for MOBILITY, has participated as a speaker or panelist at many conferences, and served on numerous committees. He was one of the original authors of “The Guide to Relocation Appraising,” and has received the Worldwide ERC® President’s Award, Meritorious and Distinguished Service Awards, and is one of the founders of RAC. He can be reached at (708) 825-6624, or ladwag@aol.com.

 

 

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