Facts about lead-paint disclosure
Q: I've started to advertise my home "for sale by owner" and am concerned about the seller disclosure laws. Disclosing normal building defects is obvious, but a friend says I must also inform buyers about any lead paint in the house. Frankly, I haven't a clue whether the paint here contains lead, and I have no idea how to find out. Can you please explain the lead paint disclosure rules and what I should do about them.
A: Facts and hearsay have become intermingled in common discussions of lead-based paint disclosure laws. Misunderstandings range from overblown fears of lead-based paint to the false belief that removal of lead paint is required. So let's clear the air on this subject.
In 1996, federal regulations were issued by the Environmental Protection Agency and the Department of Housing and Urban Development, requiring disclosure by those who sell, rent or lease certain residential properties that were built prior to 1978.
These rules do not require sellers or landlords to perform tests, hire inspectors or otherwise pursue discovery of lead-based paint. The primary requirement is to disclose whatever information you already possess. If you are unaware of the lead status of paint in your home, then that is all you need to tell a prospective buyer or renter. The only additional information you must provide is a copy of a federally approved lead-based paint hazard pamphlet. This can be obtained from a local real estate office.
The one further requirement is that you allow buyers a 10-day contingency period during which they may arrange for professional lead testing of the painted surfaces. Buyers may waive this right, but sellers must make the option available.
If lead-based paint is found in the building, removal is not a legal requirement, and the parties to a transaction should not become unduly alarmed, as lead does not pose a health threat by its mere presence. Of primary concern are small children, who have been known to teethe on painted woodwork, such as windowsills. Lead paint can be harmful if ingested, particularly by youngsters.
Regardless of actual health risks, the lead paint disclosure law should be taken seriously. Failure to comply may subject property owners to penalties including criminal prosecution, court-imposed punitive damages and fines up to $10,000.
Two types of properties are exempt from the lead paint disclosure law:
• Homes that are acquired through foreclosure by banks or other creditors are exempt because, when they eventually are resold, banks and creditors are presumably unaware of specific property conditions, having not been in personal possession or occupancy in such cases. Unfortunately, legislative lobbying by banks and mortgage companies has eliminated the 10-day option for buyers to obtain a lead-paint inspection.
• Also excluded from the lead paint disclosure requirement are homes designed for elderly or disabled people, particularly where children below the age of six years are not in residence.
For further information regarding lead-based paint disclosure, visit the websites of EPA or HUD.
• To write to Barry Stone, visit him on the web at www.housedetective.com, or write AMG, 1776 Jami Lee Court, Suite 218, San Luis Obispo, CA 94301.
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