While local legislation is still pending, real estate attornies are busy educating their clients about an upcoming federal regulation that will require disclosure of lead paint hazards when selling or leasing any residential property built before 1978.
The regulation is called for in the Housing and Community Development Act of 1992, which was one of the last pieces of legislation signed by former President Bush. The new law, passed in October, amends the National Affordable Housing Act.
While the act as it applies to privately-owned housing is, for the most part, transaction-based, there is also a provision that calls for rules for the inspection and abatement of lead paint hazards in public or government subsidized housing of
The rules are to be promulgated no later than October of 1994, two years after the act's passing.
Owners who are about to enter into a contract to transfer property will have to:
* Issue the buyer or renter a lead hazard information pamphlet
* Inform the purchaser or renter of any known lead hazards in the housing
* Provide a lead hazard evaluation report
* Permit the purchaser or renter to inspect the property over a 10-day period to determine lead paint hazards
* Insert a "lead warning statement" in the contract for sale
Violation of the regulations will result in civil fines of up to $10,000 for each offense and the offender may be liable to the purchaser or lessee for treble damages.
While two years away, attornies believe early awareness is critical to avoiding panic. In addition, the industry should be aware that the language of the act applies not only to owners entering into contracts but 'agents' as well. Though not defined in the act, this is presumed to mean realtors and management companies, and it is expeaed that when regulations are promulgated the term agent will be defined as such.
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