The Importance of Correctly Making Lead Paint Disclosures for Residential Properties
There are a number of disclosures that must be made to tenants in a residential leasing transaction. One of the most important is the disclosure of any lead-based paint hazards in the leased premises. These disclosures are required by the Residential Lead-Based Paint Hazard Reduction Act of 1992. The purpose of this legislation is to reduce the public’s exposure to lead from sources such as paint, dust, and soil.
This law requires disclosure of known lead-based paint and related hazards prior to the rental or sale of most housing units that were built before 1978. This statute requires the EPA and HUD to jointly enforce the Real Estate Notification and Disclosure Rule. The disclosure rule requires landlords, property management companies, real estate agencies, and sellers to inform potential lessees and purchasers of the presence of lead-based paint and lead-based paint hazards in pre-1978 housing.
For properties subject to this law, landlords are required to make certain disclosures and provide tenants with a pamphlet prepared by the federal government. Violations of these requirements can subject a landlord to administrative compliance proceedings, civil fines of up to $63,500 per transaction, and criminal sanctions in certain situations. In addition, tenants injured by lead in their units can sue their landlords under this statute, with possible recoveries of triple damages and expenses, including expert and attorneys’ fees.
With such serious penalties for non-compliance with the Real Estate Notification and Disclosure Rule, once could be forgiven for assuming that all those subject to the Rule consistently provide the required information in the proper form. However, many landlords, management companies and sellers either fail to given any notice or information at all concerning lead hazards in their properties or fail to meet the requirements of the Disclosure Rule.
Any company involved in the sale or rental of residential real estate property should involve legal counsel at the earliest juncture possible to ensure that federal lead-based paint disclosures are being properly given.
This law requires disclosure of known lead-based paint and related hazards prior to the rental or sale of most housing units that were built before 1978. This statute requires the EPA and HUD to jointly enforce the Real Estate Notification and Disclosure Rule. The disclosure rule requires landlords, property management companies, real estate agencies, and sellers to inform potential lessees and purchasers of the presence of lead-based paint and lead-based paint hazards in pre-1978 housing.
For properties subject to this law, landlords are required to make certain disclosures and provide tenants with a pamphlet prepared by the federal government. Violations of these requirements can subject a landlord to administrative compliance proceedings, civil fines of up to $63,500 per transaction, and criminal sanctions in certain situations. In addition, tenants injured by lead in their units can sue their landlords under this statute, with possible recoveries of triple damages and expenses, including expert and attorneys’ fees.
With such serious penalties for non-compliance with the Real Estate Notification and Disclosure Rule, once could be forgiven for assuming that all those subject to the Rule consistently provide the required information in the proper form. However, many landlords, management companies and sellers either fail to given any notice or information at all concerning lead hazards in their properties or fail to meet the requirements of the Disclosure Rule.
Any company involved in the sale or rental of residential real estate property should involve legal counsel at the earliest juncture possible to ensure that federal lead-based paint disclosures are being properly given.