SYNTHETIC STUCCO
Builders and real estate agents are aware of problems in various areas of the country involving moisture damage to the wall cavities of some newly constructed homes. These wood-framed homes have been sided with a product known as "exterior insulating and finishing system" (EIFS), which is often referred to as "synthetic stucco."
Typically, "synthetic stucco" is applied to foam panels which have been affixed to the sheathing on the outer walls of the homes. The application process is less expensive than applying conventional stucco to masonry or wire mesh subsurfaces. The result is an attractive exterior finish which has become popular with designers as well as home buyers. In recent years, however, building inspectors have detected high moisture levels in wood components of the wall cavities of many of the homes they tested.
High moisture levels often lead to damage of structural features inside the walls, causing wood to rot and plywood or other sheathing to delaminate and deteriorate. Also, in some instances, excess moisture may contribute to termite infestation. Damage occurs behind the synthetic stucco and therefore is difficult to detect. Often, termites are the first visible clue. But by then, problems may be substantial and expensive to correct. Careful, competent testing with a moisture testing device is the best way to detect the problem in its early stages.
The cause of the problem, according to builders and inspection officials, is that water entering the wall cavities cannot easily escape to the outside of a home which has been sided with EIFS. Instead, the moisture is held inside the wall cavities, where it eventually causes damage. Other finishing systems, such as brick veneer and wooden siding, allow moisture to escape.
EIFS manufacturers have blamed shoddy workmanship and poorly constructed windows, in conjunction with the high moisture levels in humidity-laden areas such as the Deep South where the problem has been most prevalent. Numerous civil suits have been filed as a result of the controversy.
As a result of the severe problems which have arisen in homes constructed using synthetic stucco, the Tennessee Legislature amended the Tennessee Residential Property Disclosure Act to require disclosure of synthetic stucco use in a home, together with known moisture-related problems. The required form contains the following question:
21. Any exterior wall covering of the structure(s) covered with exterior insulation and finish systems (EIFS), also known as "synthetic stucco"?
YES NO UNKNOWN
If yes, has there been a recent inspection to determine whether the structure has excessive moisture accumulation and/or moisture related damages? (The Tennessee Real Estate Commission urges any buyer or seller who encounters this product to have a qualified professional inspect the structure in question for the preceding concern and provide a written report of the professional’s finding.)
YES NO UNKNOWN
If yes, please explain. If necessary, please attach an additional sheet. ________________________
_____________________________________________________________________________
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What should you do to protect yourself? First, when buying real estate, if the home utilizes synthetic stucco, employ a qualified home inspector to examine the home for moisture-related damages prior to purchasing the property. If you own a home covered with synthetic stucco, have the home inspected by a qualified home inspector to determine if you have a moisture-related problem. If you do, consult with an attorney immediately. If you fail to act once you are aware of the problem, you will probably lose any claim that you may have against the seller or builder. Time is of the essence.
James H. Forsythe
Attorney at Law
6410 Poplar Avenue, Suite 130
Memphis, Tennessee 38119-4839
Phone: (901) 767-0057
Fax: (901) 767-0927
E-mail: forsythe@bellsouth.net