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The purpose of these regulations is to provide disclosure of known lead-based paint and lead-based paint hazards by sellers and landlords of real estate constructed before 1978 which is the date when lead paint use was phased out. The regulations target properties constructed before 1978 but exclude housing for the elderly and housing for persons with disabilities. The disability exception does not apply if a child under the age of six resides or will reside at the premises. Other exceptions to the disclosure requirements are for sales from or through foreclosure proceedings, leases of housing that have been found to be free of lead-based paint after an approved inspection, short-term leases for 100 days or less which do not contain renewal options, and lease renewals where the lessor has previously made the required disclosures.

These requirements were imposed by the U.S. Residential Lead-Based Paint Hazard Reduction Act of 1992 which required the Environmental Protection Agency and the U.S. Department of Housing and Urban Development to establish regulations regarding the disclosure of lead-based paint hazards in the sale and lease of all residential property built before 1978. For a sale of real estate, the regulations require that the seller or the seller's real estate agent take the following steps prior to the execution of a real estate contract:

1) The buyer should be provided with the lead hazard information pamphlet which has been published by the U. S. Environmental Protection Agency. Copies of that pamphlet are available at our office or from the U. S. Environmental Protection Agency.

2) The seller must disclose to the buyer, in writing, the presence of any known lead-based paint or any known lead-based paint hazards. Disclosure of Information forms are available from our office.

3) The real estate contract must permit the buyer a ten (10) day period (unless the parties mutually agree upon a different period of time) to conduct a risk assessment or inspection for the presence of lead-based paint hazards. A rider which may be attached to a real estate contract containing this inspection language is also available from our office.

4) In addition, the contract must contain the lead warning statement published in the federal regulations. Sample lead warning statements for both the sale and lease of real estate are enclosed with this letter.

The requirements for every real estate lease transaction are identical as those referenced above except that a tenant need not be afforded an inspection period and an opportunity to cancel the lease if an inspection determines that undisclosed and unknown lead-based hazards exist at the property. In both a sale and lease transaction, the landlord or the seller must provide the tenant or the buyer with photocopies of any records or reports disclosing the existence of lead-based paint at the property.

Any person who knowingly violates this law will be liable to the buyer in an amount equal to three (3) times the buyer's damages, together with court costs, reasonable attorneys' fees, and expert witness fees. A court may also impose fines and injunctive relief against a violator of the Act. A landlord may also be subjected to liability for damages, court costs and attorneys' fees in any action based upon the statute.

If a lease or contract has been signed without complying with these regulations, the parties should consider amending the contract to ensure compliance. Such action will undoubtedly be unsettling and will create business risks for the parties. For that reason, it is highly recommended that you familiarize yourself with these regulations and ensure that they are complied with in all transactions in which you are involved.

If you have further questions concerning the impact of the Residential Lead-Based Paint Hazard Reduction Act of 1992, feel free to contact our office.