Lead is a highly toxic metal that can attack the central nervous system when inhaled or ingested and is considered to be one of the major environmental concerns in residences, commercial buildings and work places. Negative effects of lead-based paint are most detrimental to children, fetuses and women of childbearing age. Although the use of lead-based paint ceased in 1977, according the Department of Housing and Urban Development (HUD), more than three quarters of the homes built before 1978 contain some lead-based paint.

Real estate professionals historically have kept an eye on environmental issues that affect ownership of private property. Lead-based paint is obviously one such issue. 

Fortunately for the entire industry, the U.S. Environmental Protection Agency (EPA) and HUD promulgated federal lead-based paint regulations which balance the need to protect the health and welfare of those most at risk (particularly small children) without undue government burden on families seeking to secure same and affordable housing. 

The EPA and HUD issued final regulations to implement the Residential Lead-Based Paint Hazard Reduction Act, known as Title X, passed by Congress in 1992. In a nutshell, the rule requires real estate agents to ensure that those selling or leasing property built before 1978 disclose the known presence of lead-based paint or lead-based paint hazards. This rule encourages both the seller and the buyer to explore possible existing environmental hazards on a property before a transaction occurs.

Specifically, the EPA/HUD rules state that:

1. Sellers and landlords must disclose known lead-based paint hazards and provide available reports to buyers or tenants.

2. Sellers and landlords must give buyers and renters the EPA/HUD/Consumer Product Safety Commission pamphlet titled, Protect Your Family From Lead in Your Home.

3. Home buyers get a 10-day period to conduct a lead-based paint inspection or risk assessment at their own expense, if desired. The number of days can be changed by mutual consent.

4. Sales contracts and leasing agreements must include certain language to ensure that disclosure and notification actually take place.

5. Sellers, lessors and real estate agents share responsibility for ensuring compliance.

The rules require no testing, removal or abatement of lead-based paint and does not invalidate leasing and sales contracts. But, if any lead hazards are found, the law does not prevent the two parties from negotiating hazard reduction as a contingency. This will be handled in the same way as any other housing defect. Penalties for noncompliance are quite severe and can range up to $10,000 for each violation and imprisonment for up to one year.

For more information about what to do if lead-based paint is found, click here.

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