Housing...Inside and Out

January 15, 1999
LEAD - Real Estate Notification and Disclosure Rule

The purpose of the Real Estate Notification and Disclosure Rule is to protect the public from exposure to lead from paint, dust and soil. Congress passed the Residential Lead-Based Paint Hazard Reduction Act of 1992, also known as title X. Section 1018 of this law directed HUD and EPA to require disclosure of information on lead-based paint and lead-based paint hazards before the sale or lease of most housing built before 1978. The rule is designed to ensure that purchasers and renters of housing built before 1978 receive the information necessary to protect themselves and their families from lead-based paint hazards.

The rule went into effect in late 1996. This rule does not affect housing built after 1978 because the Consumer Product Safety Commission banned the use of lead-based paint to be used in housing in 1978.

The Seller and Landlord Responsibilities include the following:

Property owners who sell or rent target housing (built before 1978) must:

  • Disclose all known lead-based paint and lead-based paint hazards in the housing and any available reports on lead in the housing. 
  • Give buyers/renters the EPA pamphlet "Protect Your Family from Lead in Your Home."
  • Include certain warning language in the contract as well as signed statements from all parties verifying that all requirements were completed.
  • Retain signed acknowledgements for 3 years, as proof of compliance. 
  • Give buyers a 10-day opportunity to test the housing for lead.

The Agent Responsibilities include the following:

Agents must ensure that:

  • Sellers and landlords are made aware of their obligations under this rule.
  • Sellers and landlords disclose the proper information to lessors, buyers and tenants.
  • Sellers give purchasers the opportunity to conduct an inspection.
  • Leases and sales contracts contain the appropriate notification and disclosure language and proper signatures.
  • The seller and/or the lessor understands his/her obligation under this rule. If the agent responsible for informing the client if the seller or lessor fails to comply.

Liability issues include:

In some cases, disclosure may actually reduce the owner's liability since occupants may be able to prevent exposure from the beginning. Under this rule, sellers, landlords or agents who fail to provide the required notices and information are liable. The rule does not identify mortgage lenders as liable parties.

A seller, lessor or agent who fails to give the proper information can be sued for triple the amount of damages. In addition, they may be subject to civil and criminal penalties. Ensuring that disclosure information is given to homebuyer and tenants helps all parties avoid misunderstandings before, during and after sales and lease agreements.


Written by Dr. Francis Graham (Retired)

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