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It is only mold if it is still vital. Try spraying with household bleach or pool shock if it is very difficult. It is only a small area. If it is killed off I don't think you have to report, "We used to have mold" anymore than you would have to say, "We used to have an old roof".
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Is the wood punky at all. Looks more cosmetic at rhis point in the picture but just going by the picture.
If it's light damage I would first eliminate the water ingress and remove and stop the mold. Then if the wood isn't bad I would sister a joist on that one then I would block on both sides up against the rim joist.
As for reporting it as mold by the seller I dunnow. That varies allot by state and even county and city and in recent years the mold fear has subsided as the insurance companies got hammered for repairs that cost more than they should have.
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Fixing the clogged downspout should stop that area from getting moisture. Kill the mild with bleach and it should stay away once the water is gone. If you fix a problem you do not have to report the ex-problem. At least that is the way my RE agent told me. We had an issue with sewer backing up - I put in a check valve and the problem went away; did not have to report that. Had a leak in the roof - reroofed - no more problem.
There is no need to rehash the problems you fixed. This problem looks easy to me. I think I would place a fan there to help the drying. I can't tell if there is any more damage then the mold. Once it is dry then you can poke the wood to see if it still soft. If it is still soft then there maybe damage that needs to be fixed. Then is becomes a job.
John
Always use the right tool for the job.
We need to clean house.
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There has to be a way for water to get into the rim joist(what the joists connect to) and cause that mold. I'd use more than just bleach. Bleach kills mold but not the spores.
If the rim joist is punky(soft all the way through, it really needs to be replaced, at least that section. Unfortunately, the best replacement method is from the outside.
If the rim joist is just damp, dry it(fan for several days is a good idea) and make sure it is dry and solid. Kill the mold and spores and simply add sections of 2x12(whatever the rim joist size is) between the floor joists, more to hide the mold than anything. As long as the leak is fixed and the wood is dry, the area should be fine.