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Real Estate Lead Disclosure Requirements

Nationwide disclosure requirements pertaining to lead-based paint have been in place since 1996. They are triggered whenever a home built prior to 1978 is either rented, transferred, or sold, thereby affecting approximately 9 million renters and 3 million homebuyers every year. These requirements apply to all transactions involving pre-1978 residential dwellings, except for: foreclosure sales; housing set aside for the elderly and housing set aside for the handicapped (provided no children under the age of six live there or are expected to live there); 0-bedroom units, otherwise known as studio apartments; efficiencies; lofts; military barracks; or dormitories; rental housing that has been inspected by a certified lead inspector and found to be free of lead-based paint; rentals of individual rooms; and leases for less than 100 days.

The requirements apply to the property owners as well as to any real estate agents involved in the transaction. Non-compliance can result in civil and criminal penalties.

Before a sale is completed, the seller/agent must:

1. Provide the prospective buyer with a copy of the EPA pamphlet entitled, "Protect Your Family From Lead in Your Home." Alternatively, an equivalent pamphlet can be provided, so long as it has been approved by EPA for use in that state.
2. Disclose any known information about the presence of lead-based paint or lead-based paint hazards (such as lead-contaminated soil or lead-contaminated household dust), along with copies of any reports about their presence. This means that if the owner ever received notice of the presence of lead-based paint or lead-based paint hazards at the property in question, the owner must reveal this information, both to the prospective buyer and to any agent involved in the transaction.
3. Add an attachment to the sales contract that lists any records or reports pertaining to lead-based paint or lead-based paint hazards that have been provided to the buyer. If none was provided, the attachment must say so.
4. Inform the buyer that he/she has a 10-day window in which to get the home evaluated for the presence of lead-based paint or lead-based paint hazards. This is often formalized through a contingency clause in the purchase and sale agreement, similar to termite inspection or home inspection contingencies.
5. Insert the following Lead Warning Statement into the sales contract, translating it if necessary into the same language that the contract is written in:
"Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase."
6. Document the disclosure process with an attachment to the sales contract, signed by the buyer. The attachment must specify that the buyer affirms that he/she has received the EPA pamphlet and the disclosure information about the presence of lead-based paint and/or lead-based paint hazards. The attachment must also specify that the buyer affirms that either he/she has received the 10-day opportunity to conduct a lead inspection or a risk inspection, or he/she has waived the opportunity to do so.
7. When an agent is involved in the transaction on behalf of the seller, another attachment must be added to the sales contract, signed by the agent. The attachment must specify that the agent has informed the seller of the above-listed requirements, and that the agent is aware of the agent's duty under the law to ensure compliance with these requirements.
8. A final attachment to the sales contract must bear the dated signatures of sellers, buyers and agents, and must certify to the accuracy of their statements.

Note that each of these items must be provided in the same language that the sales contract is written in.

Before a rental transaction is completed, the landlord/agent must:

1.Provide the prospective tenant with the EPA pamphlet "Protect Your Family From Lead in Your Home." Alternatively, an equivalent pamphlet can be provided, so long as it has been approved by EPA for use in that state.
2.Disclose any known information about the presence of lead-based paint or lead-based paint hazards (such as lead-contaminated soil or lead-contaminated household dust), along with copies of any reports about their presence. This means that if the landlord ever received notice of the presence of lead-based paint or lead-based paint hazards at the property in question, the owner must reveal this information, both to the prospective tenant and to any agent involved in the transaction.
3.Insert the following Lead Warning Statement into the lease, translating it if necessary into the same language that the lease is written in:
"Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing, lessors must disclose the presence of lead- based paint and/or lead-based paint hazards in the dwelling. Lessees must also receive a federally approved pamphlet on lead poisoning prevention."
4.Document the disclosure process with an attachment to the lease that discloses the presence of known lead-based paint and/or lead-based paint hazards in the dwelling being rented, or that affirms that the landlord has no knowledge of the presence in that dwelling of any lead-based paint and/or lead-based paint hazards. The attachment must also include a list of any records or reports that the landlord provided to the tenant pertaining to lead-based paint and/or lead-based paint hazards in the dwelling. If none was provided, the attachment must state so. The attachment must also state that the tenant acknowledges having received the records and reports listed, and that statement must be signed by the tenant.
5.When an agent is involved in the transaction on behalf of the landlord, another attachment must be added to the lease, signed by the agent. The attachment must specify that the agent has informed the landlord of the above-listed requirements, and that the agent is aware of the agent's duty under the law to ensure compliance with these requirements.
6.A final attachment to the lease must bear the dated signatures of the landlord, the tenant and any agent involved, and must certify to the accuracy of their statements.

Note that each of these items must be provided in the same language that the lease is written in.
Nationwide disclosure requirements pertaining to lead-based paint have been in place since 1996. They are triggered whenever a home built prior to 1978 is either rented, transferred, or sold, thereby affecting approximately 9 million renters and 3 million homebuyers every year.