Federal Real Estate Disclosure and Notification Rule

Legislative History
The residential Lead-Based Paint Hazard Act of 1992, also referred to as Title X, required the U.S. Environmental Protection agency (EPA) and the U.S. Department of Housing and Urban Development (HUD) to develop regulations for the disclosure of lead-based paint hazards in homes built before 1978 that are offered for sale or lease. These regulations, known as Final Rule -- Lead; Requirements for Disclosure of Known Lead-Based Paint in Housing (24CFR Part 35 and 40 CFR Part 745) were published on March 6, 1996.
* Effective Dates
September 6, 1996 for owners of more than four residential dwellings.
December 6, 1996 for owners of one to four residential dwellings.
* Requirements

Under the new law, before finalizing a contract to purchase or lease a home built before 1978:

  • Sellers, landlords or their agents must disclose known information regarding lead based paint/hazards in the housing, including copies of any inspection reports. Sales contracts and leasing agreements must contain specific elements. Click here for more details on this. Copies must be retained for three years;
  • Sellers, landlords or their agents must provide purchasers and renters with an EPA-approved lead hazard information pamphlet. Such pamphlets include the EPA document entitled Protect Your Family from Lead in Your Home; (EPA #747-K-94-001); and;
  • Purchasers have ten days to inspect/test for lead hazards. This time period may be shortened, lengthened, or waived by mutual written consent.
* Resources
  • Real Estate Notification and Disclosure Rule, the "Protect Your Family from Lead in Your Home", in English or Spanish and other information about the new law visit EPA's Web-Site -OR- contact the EPA at 1-800-424-LEAD
* Exemptions
  1. "0-bedroom dwellings" such as studios, dormitories, lofts, etc.
  2. Leases of 100 days or fewer, such as vacation homes and short term rentals
  3. Housing designated for the elderly or handicapped unless child resides there
  4. Rental housing that has been inspected by a certified inspector and is found to be free of lead-based paint. Lead-based paint is defined as a coating containing lead equal to or in excess of 1.0 milligram per squared centimeter or 0.5% by weight.
* Penalties

A seller, lessor, or agent who fails to comply with these regulations may be subject to the following penalties:

  • Civil: Violators can be subject to penalty provisions (TSCA section 16) of up to $10,000 for each violation
  • Criminal: Any person who "knowingly and willfully" violates the law could also be subject to, upon conviction, "a fine of not more than $10,000 or to imprisonment for not more than 1 year, or both."
  • Triple damages: In addition to EPA and HUD enforcement authority, the law states that "Any person who knowingly violates the provisions of this section shall be jointly and severely liable to the purchaser or lessee in an amount equal to 3 times the amount of damages incurred by such individual"
* Questions and Answers

Q. WHAT ARE MY RESPONSIBILITIES AS AN AGENT OR PROPERTY MANAGEMENT COMPANY?
A. Agents and owners share responsibility for ensuring compliance with the new law. Agents are required to inform owner of his/her obligations, and ensure he/she has performed all activities required under the law.

Q. AM I REQUIRED TO GIVE THIS INFORMATION (PAMPHLETS, DISCLOSURE INFORMATION, ETC) TO EXISTING TENANTS?
A. No, but when an existing leasing agreement is modified (i.e. renewed, rent increased, lessees added/deleted, etc.) you must give existing tenants the information specified under the law.

Q. DO THE NEW REGULATIONS REQUIRE OWNERS TO HAVE THEIR PROPERTY INSPECTED?
A. No. The law does not require an owner to conduct or finance an inspection. Sellers are required to give buyers a 10-day opportunity to test the housing for lead paint/hazards.

Q. IS THE OWNER REQUIRED TO REMOVE LEAD-BASED PAINT OR LEAD-HAZARDS FROM THE PROPERTY?
A. No. Nothing in the rule requires a building owner to remove lead-based paint or lead hazards.

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