Lead Hazard Disclosure in Real Estate Transactions - PowerPoint PPT Presentation

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Lead Hazard Disclosure in Real Estate Transactions. Goals of this Presentation. Background information on childhood lead poisoning. Overview of the federal lead hazard disclosure law. How to maintain lead-safe housing. Goal #1. Background on Childhood Lead Poisoning.

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Lead Hazard Disclosure in Real Estate Transactions

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Lead Hazard Disclosure in Real Estate Transactions


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Goals of this Presentation

  • Background information on childhood lead poisoning.

  • Overview of the federal lead hazard disclosure law.

  • How to maintain lead-safe housing.


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Goal #1

Background on Childhood Lead Poisoning


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Effects of Lead Exposure

High Levels:

  • Coma

  • Convulsions

  • Death

  • High levels rare in the United States


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Effects of Poisoning (cont’d)

Low/Moderate Levels:

  • Reduced IQ

  • Reading and Learning Disabilities

  • Behavior Problems

  • Impaired Growth

  • Hearing Loss


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Children Are Particularly Vulnerable

  • Rapidly developing nervous systems

  • Hand-to-mouth behavior

  • High absorption rate


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Sources Of Lead Exposure

  • Lead-Based Paint

  • Gasoline

  • Plumbing Pipes, Fixtures, Solders

  • Industrial Point Sources

  • Ceramics and Crystal

  • Hobbies & Occupations

  • Home Remedies & Cosmetics


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“Lead-based paint and paint contaminated dust account for most cases of childhood lead poisoning today.”

Source: CDC, Strategic Plan for the Elimination of Childhood Lead Poisoning, 1991.


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Major Exposure Pathways

  • Lead-based paint deteriorates or is disturbed by renovation or repainting

  • Lead-contaminated bare residential soil

  • Lead dust or paint chips ingested or inhaled - especially by young children through hand-to-mouth behavior

  • Ingestion of settled dust is the most common way children are poisoned


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Lead-Based Paint Hazards

Lead-based paint is a hazard when it:

  • Deteriorates from age or weather;

  • Wears off friction surfaces, such as binding doors and windows;

  • Deteriorates due to moisture (e.g., leaking pipes or roofs)

  • Is disturbed using unsafe work practices


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Prevention Is the Answer

  • Lead poisoning is entirely preventable.

  • No medical cure.

  • Prevention requires making housing lead-safe before a child is poisoned.


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Goal #2:

Overview of the Federal Lead Hazard Disclosure Law


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Legal Basis

  • Residential Lead-Based Paint Hazard Reduction Act, 42 U.S.C. 4852d

  • Implemented by HUD and EPA Regulations at 24 CFR Part 35 and 40 CFR Part 745


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Disclosure Does Not…

  • Require testing for lead-based paint

  • Require owners to control lead-based paint hazards

  • Relieve property owners of liability

  • Relieve owners of the legal duty to provide a safe and sanitary dwelling


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Target Housing

All Pre-78 Residential Properties (Including Oral Leases)

Except . . . .


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Exemptions

  • Zero-Bedroom Dwellings

  • Housing for the Elderly or Disabled (Unless Occupied by Children Under 6)

  • Property certified “Lead-Based Paint Free”

  • Property Leased for 100 Days or Less

  • Renewal of Leases Where Disclosure Has Already Occurred and No New Information is Available


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Transactions that Trigger Disclosure

All real estate transactions involving most pre-1978 housing at the time consumers:

  • Rent a home

  • Renew an existing lease

  • Sublet a home

  • Buy a home


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Timing of Disclosure

  • Not Required for All Prospective Purchasers/Lessees

  • Complete Before Purchaser or Lessee Is Obligated Under Contract


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Disclosure Requirements

(1)Provide Lead Hazard Information Pamphlet to the Tenant

(2) Disclose Known Hazards and Provide Copy of Existing Reports

  • Complete and Retain Acknowledgment Statement for 3 Years

  • Owners also must inform agents of known LBP or hazards and the existence of any reports.


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(1) Provide Lead Hazard Information Pamphlet

  • “Protect Your Family From Lead in Your Home”

    or

  • Equivalent Pamphlet Approved by EPA for Use in State


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(2) Disclose Known Hazards and Provide Copy of Existing Reports

  • “Actual Knowledge” -- Prior Test Results or Other First-Hand Information, Even If Written Reports are Not Available

  • Any Records, Test Reports, or Other Information in your Possession or “Reasonably Obtainable”


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Disclosure in Multi-Family Properties

  • Any Unit-Specific Information

  • Any Records on Common Areas (Hallways, etc.)

  • Records on Other Units Done as Part of Evaluation of Entire Property


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(3) Complete and Retain Certification and Acknowledgment

  • No Required Federal Form, but Form Must Contain Required Elements

  • Must Be in Same Language as Contract

  • Retain Copy for 3 Years from Closing or Start of Lease


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Required Elements of Certification and Acknowledgment

  • “Lead Warning Statement” Exactly as Required

    (Different Versions for Sales and Leases)

  • Acknowledgment by Seller/Lessor

  • Acknowledgment by Purchaser/Lessee

  • Acknowledgment by Agent

  • Certification by All Parties of Accuracy


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What If I Don’t Disclose?

EPA/HUD Enforcement Actions:

  • Civil penalties (fines)

  • Administrative orders

  • Injunctions

  • Supplemental Environmental Projects (SEPs)

  • Child Health Improvement Projects (CHIPs)

  • Criminal Actions


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What If I Don’t Disclose? (cont’d)

Private Actions:

  • Damages (including three times actual damages for willful violations)

  • Attorney’s fees, expert witness fees, and court costs

  • Injunctions


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Goal #3:

Maintaining Lead-Safe Housing


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Preventive Maintenance

  • Annual visual inspections

  • Train staff in lead safe work practices

  • Promptly and safely repair peeling paint and underlying causes

  • Make floors smooth and cleanable

  • Advance lead safety at unit turnover

  • Request that tenants report chipping and peeling paint.


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Lead Safe Work Practices (LSWP)

  • Isolate the work area.

  • Shield surfaces from dust.

  • Protect occupants.

  • Mist painted surfaces before scraping and sanding.

  • Do not use tools that create dust and paint chips.

  • Beware of toxic hazards when removing old paint.

  • Clean up the area after the job.

  • Protect Workers.


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LSWP Resources

HUD and EPA Training Courses

  • One day “basic training” available

  • Free training courses in many cities

    Free Federal Field Guide

  • Lead Paint Safety Field Guide for Painting, Home Maintenance, and Renovation Work (www.epa.gov/opptintr/lead/leadsafetybk.pdf)


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Unsafe Work Practices

  • Open Flame Burning or Torching

  • Dry Sanding or Scraping

  • Abrasive Blasting

  • Power Washing


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Clearance Testing

A lead dust test is the only way to be sure lead hazards are not left behind:

  • Hire a certified lead inspector, risk assessor, or sampling technician


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For More Information

  • Document Requests, Information on Disclosure, and General Lead Information

    Phone: 1-800-424-LEAD

    Web: www.epa.gov/lead/nlic.htm

  • Contractor Referral

    Phone: 1-888-LEADLIST

    Web: www.leadlisting.org


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