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Federal
Rule on
Real Estate
Disclosure and Notification
California Department of Health
Services -- Childhood Lead Poisoning Prevention Branch
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The Residential Lead-Based
Paint Hazard Act of 1992, also called 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 disclosing lead-based paint hazards in homes built before 1978 that
are offered for sale or lease. On March 6, 1996, these new regulations
went into effect. They are known as 24 CFR Part 35 and 40 CFR Part
745, “Lead; Requirements
for Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards
in Housing; Final Rule”.
The law put in place
by these regulations went into effect on September 6, 1996 , for owners
of buildings with more than four units, and December 6, 1996, for owners
of buildings with four or fewer units (including single family homes).
What
does this law require?
Under this new law,
before finalizing a contract for the sale or lease of housing 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;
-
Sellers, landlords or
their agents must provide purchasers and renters with an EPA pamphlet entitled
“Protect Your Family from
Lead in Your Home”;
-
Purchasers have ten days
to inspect or test for lead hazards.* This time period may be shortened
or lengthened by mutual agreement; and
-
Sales contracts and leasing
agreements must contain disclosure statements. Signed copies must
be kept for three years.
*(Please note that under
California's new Lead-Related Construction
Work Practice Standards, Inspector/Assessors must be State-Certified.)
What
is the disclosure statement for?
The disclosure statement
serves to legally document that a seller or landlord met the requirements
of the Federal real estate disclosure rule. By completing and signing
this statement...
-
Sellers legally
document that they:
-
told the home buyer about
any known lead hazards in the home,
-
made inspection records
and reports available to the buyer,
-
gave the buyer 10 days
to inspect for lead, and
-
gave they buyer a copy
of the EPA pamphlet.
-
Landlords legally
document that they:
-
told the renter about
any known lead hazards in the home,
-
made inspection records
and reports available to the renter, and
-
gave they renter a copy
of the EPA pamphlet.
-
Agents legally
document that they:
-
informed the seller or
landlord of their obligations under the law.
-
Buyers legally
document that they:
-
reveived information from
the seller about any known lead hazards in the home,
-
were able to review inspection
records and reports,
-
received 10 days to inspect
for lead or that they waived this right, and
-
were given a copy of the
EPA pamphlet.
-
Renters legally
document that they:
-
reveived information from
the landlord about any known lead hazards in the home
-
were able to review inspection
records and reports, and
were given a copy
of the EPA pamphlet.
Does
this law require owners to inspect for lead or have lead removed?
No. The law
does not require an owner to conduct or pay for an inspection. A
seller must, however, give buyers 10 days to inspect the property for lead.
Nothing in the rule requires an owner to remove lead-based paint or lead
hazards from the property.
What
type of homes does this law apply to?
This law applies to
most private housing, public housing and housing that is Federally owned
or funded. The law does not apply to following kinds of residential
properties:
-
Housing built after 1977.
-
“Zero-bedroom” dwellings
such as studios, dormitories, lofts, etc.
-
Properties leased for
100 days or fewer, such as vacation homes and short term rentals.
-
Housing for the elderly
or handicapped (unless children live there).
-
Rental housing that has
been inspected by a certified inspector and found to be free of lead-based
paint. (Lead-based paint is paint that contains 1.0 mg/cm2 or (0.5%
by weight) or more lead.)
-
Foreclosure sales.
What
are the penalties for failing to comply with this law?
A seller, lessor or
agent who does not comply with this law may be subject to:
-
Civil fines of
up to $10,000 for each violation.
-
Criminal fines
of up to $10,000 and/or imprisonment for up to 1 year.
-
Damages up to 3
times the amount sufferend by the purchaser or renter.
What
are my responsibilities?
Your responsibilities
in complying with this law, depend on your role in the real estate transaction.
-
Real-estate agents and
owners share responsibility for complying with the new law. Agents
must inform owners of their obligations under the law and make sure the
owner has performed all required activities.
-
Landlords are responsible
for complying with the law when establishing a new lease or rental agreement
or when modifying an existing lease (example: renewals, rent increases,
etc.).
-
Landlords are not
responsible for notifying existing tenants of lead hazards nor are they
required to give existing tenants the EPA pamphlet.
-
Landlords and owners are
not required to inspect the property for lead before selling or
rentinga home, nor are they required to remove any lead hazards that exist
there.
-
Home buyers and renters
have no responsibilities under this law.
What
does this mean for California?
California already
has laws about lead disclosure (Civil
Code, Sections 1102 to 1102.15). This new Federal law is more
extensive. The table below shows what has changed in California because
of the new Federal law.
| Under
California’s Law... |
Under
the Federal Law, in California... |
| Sellers or their agents
must tell buyers any information they know about lead hazards in a home
before selling it. |
This will stay the
same. |
| Sellers or their agents
must give buyers the State of California booklet “Environmental Hazards:
Guide for Homeowners and Buyers”. |
Sellers or their agents
must also give buyers the EPA pamphlet “Protect Your Family from Lead in
Your Home”. |
| Buyers do not have
be given time to inspect a home they plan to buy for lead. |
Buyers must be given
at least ten days to inspect a home they plan to buy for lead. |
| Landlords or their
agent do not have to tell renters about the lead hazards in a home before
renting it. |
Landlords or their
agent must tell renters any information they know about the lead hazards
in a home before renting or leasing it. |
| Landlords do not have
to give renters any information about preventing lead poisoning. |
Landlords must give
renters the EPA pamphlet entitled “Protect Your Family from Lead in Your
Home”. |
How
can I find a qualified person to inspect my house for lead?
The California Department
of Health Services can provide you with a list of Certified
Lead Inspector/Assessors who can safely and accurately inspect your
home for lead. You may also request a copy of the list by calling
the Lead-Related Construction Information Line at 1-800 597-5323.
Outside California, call 510-869-3953. Also see Hiring
a Lead Professional for information on what you should know before
hiring an inspector/assessor.
How
can I get California’s real-estate booklet on environmental hazards?
To request an order
form for California's booklet, “Environmental Hazards: Guide for Homeowners
and Buyers” and other Department of Real Estate publications, send a self-addressed
stamped, envelope to California Department of Real Estate, Publications,
P.O. Box 187000, Sacramento, CA 95818-7000.
How
can I get the EPA pamphlet?
To get copies of the
EPA pamphlet, “Protect Your Family from Lead in Your Home” or to get sample
disclosure forms, full text of the law, interpretive guidance for the real
estate community and other information about disclosure, contact the National
Lead Information Clearinghouse at
1-800-424-LEAD (TDD
1-800-526-5456), Fax (202) 659-1192.