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Disclosure Regarding Lead-Based Paint Hazards

Many housing units in California still contain lead-based paint, which was banned for residential use in 1978. Lead-based paint can peel, chip, and deteriorate into contaminated dust, thus becoming a lead-based paint hazard. A child’s ingestion of the lead-laced chips or dust may result in learning disabilities, delayed development or behavior disorders.

The federal Real Estate Disclosure and Notification Rule requires that owners of "residential dwellings" built before 1978 disclose to their agents and to prospective buyers or lessees/renters the presence of lead-based paint and/or lead-based paint hazards and any known information and reports about lead-based paint and lead-based paint hazards (location and condition of the painted surfaces, etc.). The Rule defines a residential dwelling as a single-family dwelling or a single-family dwelling unit in a structure that contains more than one separate residential dwelling unit, and in which each such unit is used or occupied, or intended to be used or occupied, in whole or in part, as the residence of one or more persons.

Properties affected by the Rule are termed target housing. Target housing does not include pre-1978 housing which is:

• sold at a foreclosure sale (but a subsequent sale of such a property is covered);
• a "0-bedroom dwelling" (e.g., a loft, efficiency unit or studio);
• a dwelling unit leased for 100 or fewer days (e.g., a vacation home or short-term rental), provided the lease cannot be renewed or extended;
• housing designated for the elderly or handicapped, unless children reside there or are expected to reside there;
• leased housing for which the requirements of the Rule have been satisfied, no pertinent new information is available, and the lease is renewed or renegotiated;
• rental housing that has been inspected by a certified inspector and found to be free of lead-based paint. (The Rule allows use of state certified inspectors only until a federal certification program or a federally accredited state certification program is in place.)

Sellers (and lessors) of units in pre-1978 multifamily structures must provide a buyer (or lessee) with any available records or reports pertaining to lead-based paint and/or lead-based paint hazards in areas used by all the residents (stairwells, lobbies, recreation rooms, laundry rooms, etc.). If there has been an evaluation or reduction of lead-based paint and/or lead-based paint hazards in the entire structure, the disclosure requirement extends to any available records or reports regarding the other dwelling units.

The Rule requires that a seller of target housing offer a prospective buyer ten days to inspect for lead-based paint and lead-based paint hazards. This 10-day inspection period can be increased, decreased, or waived by written agreement between buyer and seller. The Rule does not require a seller to pay for an inspection or to remove any lead-based paint/hazards, but merely gives a buyer the opportunity to have the property inspected.

The federal Environmental Protection Agency (EPA) publishes a pamphlet titled "Protect Your Family From Lead In Your Home." This pamphlet describes ways to recognize and reduce lead hazards. The Rule requires that a seller (or lessor) of target housing deliver this pamphlet to a prospective buyer (or tenant) before a contract is formed. Provision of a California pamphlet now constitutes compliance with this requirement.

The Rule further requires that the seller’s (or lessor’s) lead-based paint/lead-based paint hazards disclosures, a Lead Warning Statement, and the buyer’s (or lessee’s) acknowledgment of receipt of that information, the offer of inspection period (or waiver of same) and the EPA pamphlet be included in an attachment to the contract. Seller (or lessor), buyer (or tenant) and agent must sign and date the attachment. The retention period, for sellers (or lessors) and agents, of this document is three years from completion of the sale (or from commencement of the lease/rental).

A real estate agent must ensure that:

• his or her principal (seller or lessor) is aware of the disclosure requirements;
• the transaction documentation includes the required notifications and disclosures;
• the buyer or lessee/renter receives the EPA pamphlet; and,
• in the case of a sale, the buyer is offered an opportunity to have the property inspected for lead-based paint and lead-based paint hazards. In the case of a sale, "agent" does not include one who represents only the buyer and receives compensation only from the buyer.
• Violation of the Rule may result in civil and/or criminal penalties.

Contact us for more info on CA Lead Disclosures

California Real Estate Laws & Disclosures

Relative to Sub-Divisions

  Prospective Purchaser
  Disclosure of Material Facts
  Statement of Defects
  Blanket Encumbrance
  Right to Recind
  Notices to Tenants

Financing Real Property

  Adj. Rate Loan Disclosure
  Disclosure By Agent
  Disclosures to Borrower
  Multi Lender Transactions
  Transfer of Loan
  Truth in Lending
  Disclosures to Lender
  Housing Discrimination Act
  Equal Credit Opportunity Act
  Loan Servicing
  Right to Appraisal
  Real Estate Settlement Act

Real Estate Agents

  Sale Price Information
  Visual Inspection
  Real Estate Commissions
  No Disclosure Required
  Agency Relationship Disclosure

Transfer of Real Property

  Water Heater Certification
  Structural Pest Control Inspection
  Disclosures Upon Transfer
  Retrofit and Thermal Insulation
  Foreign Investment Tax Act
  State Tax Withholding
  Registered Sex Offenders
  Lead-Based Paint Hazards
  Controlling Documents
  Title Insurance
  Smoke Detector

Transfer of Business Opportunity

  Bulk Transfer Law
  Ficticious Name
  Sales Tax Clearance
  Definition of Business Opportunity
  Franchise Investment Law
  Government Agencies
  Liquor License 

Misc

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