Monday, November 24, 2008

Lead Paint Disclosure Requirements in Residential Transactions

A recent article in the Commercial Record reported that a number of real estate brokerages throughout New England were being investigated by the federal Environmental Protection Agency for failing to comply with lead paint disclosure requirements. I don’t know if these agencies really were not in compliance, but it presents a good opportunity to provide some background information on the disclosure requirements. I won’t go into the requirements in depth because a detailed description of the requirements can be found at the HUD website. But it is important to remember that, before any contract for 1-4 family property is fully signed, the seller and the agent must provide the following information:
 
  • EPA approved pamphlet on lead-based paint hazards.
  • Disclose any known information concerning lead paint at the property.
  • Provide copies of all existing reports on lead paint at the property.
  • Include an attachment to the contract which includes a lead paint warning statement.
  • Allow the buyers an opportunity to inspect for lead paint hazards.
 

Note that these requirements also apply to leases of apartments and single-family residences.

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