BROKER RISK MANAGEMENT
WEEKLY PRACTICE TIP
EPA Lead Paint Regulations – Disclosure Issues
Q: I am aware of the new EPA Lead Paint Regulations which went into effect on April 22, 2010. But, what do we do when we know that the seller hired a contractor who demolished a portion of a pre-1978 home, replaced the window and re-painted the remodeled work? Does the seller need to disclose that?
A: Good question. Clearly, any renovations started after the effective date of the EPA Regulations (April 22, 2010) should only be done with contractors/painters who have been EPA trained and certified.
See Weekly Practice Tip entitled “Paint Renovation Rule”
However, what about those jobs that may have started or contracted for before that date, or even a renovation in the past before the EPA rules became effective?
As we know, The Residential Lead-Based Paint Hazard Reduction Act of 1992 and the subsequent EPA regulations require sellers, landlords and real estate agents to provide certain disclosures of the existence of lead-based paint and lead-based paint hazards in a transaction for a sale or lease of pre-1978 housing. So, since that date, agents have been giving buyers the pamphlet entitled “Protect Your Family From Lead in Your Home,” providing a disclosure in the purchase agreement that buyer can have the property inspected for the presence of lead-based paint, and providing the buyer with the Lead-Based Paint Disclosure and Addendum (ZipForms form FLD).
For more information on the original federal lead-based paint hazards disclosure requirements, see the CAR Legal Memo entitled: “Federal Lead-Based Paint Hazard Disclosures” at
http://www.car.org/legal/2005articles/fed-lead-based-paint-hazard/
Over the past years, most agents have found that lead-based paint hazards have not been high on buyers’ concerns when they buy residential properties. However, with these new EPA regulations regarding renovations and painting for pre-1978 “target housing,” it is fairly certain that buyers’ attention will, once again, focus on this issue.
For that reason, agents should be diligent for proper disclosure of possible lead-based paint hazards, especially as related to renovations or re-painting of older homes.
PRACTICE TIPS:
1. Do not recommend any contractors or painters who have not been EPA certified. Remove all contractors and painters from your list of recommended vendors. Do not recommend “handypersons.”
See Weekly Practice Tip entitled “Recommending Licensed and Unlicensed Contractors”
2. If you are listing a pre-1978 property, ask your seller if they have conducted any renovations or re-painting of the property that would be more than a “minor repair” (“Minor repairs” are defined as repairs that disturb 6 square feet or less of paint per room in the interior, or 20 square feet or less of paint in the exterior.).
3. If the answer is “yes,” then disclose that in the seller’s disclosure in the FLD form:
“Seller had the _______________(part of the home) painted/renovated prior to sale (or during _______month___, 20__) and this work may not have been done by the painter/contractor in conformance with the new EPA Lead Paint regulations which went into effect on April 22, 2010. Buyers should conduct their own investigation.”
3. Note that the definition of “target housing” in the new EPA Lead-Paint regulations are very similar to those in the 1992 law.
4. If you are uncertain that the property you are selling is subject to these regulations, or you would like more detail on this new regulation, see the CAR Legal Memo entitled “Federal Lead-Based Paint Renovation Rule” at:
http://www.car.org/legal/legal-questions-answers/2010-qa/fed-lead-paint-renovation/
DO NOT FORWARD TO CLIENTS. This Weekly Practice Tip is for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.
© Copyright Broker Risk Management 2010 05/21/10