1 lead hazard disclosure in real estate transactions
TRANSCRIPT
1
Lead Hazard Disclosure Lead Hazard Disclosure in in
Real Estate TransactionsReal Estate Transactions
2
Goals of this PresentationGoals of this Presentation
1.1. Background information on childhood Background information on childhood lead poisoning.lead poisoning.
2.2. Overview of the federal lead hazard Overview of the federal lead hazard disclosure law.disclosure law.
3.3. How to maintain lead-safe housing.How to maintain lead-safe housing.
4
Effects of Lead ExposureEffects of Lead Exposure
High Levels:High Levels: ComaComa ConvulsionsConvulsions DeathDeath
High levels rare in the United StatesHigh levels rare in the United States
5
Effects of Poisoning (cont’d)Effects of Poisoning (cont’d)
Low/Moderate Levels:Low/Moderate Levels: Reduced IQReduced IQ Reading and Learning Reading and Learning
DisabilitiesDisabilities Behavior ProblemsBehavior Problems Impaired GrowthImpaired Growth Hearing LossHearing Loss
6
Children Are Particularly Children Are Particularly VulnerableVulnerable
Rapidly developing nervous systemsRapidly developing nervous systems Hand-to-mouth behaviorHand-to-mouth behavior High absorption rateHigh absorption rate
7
Sources Of Lead ExposureSources Of Lead Exposure
Lead-Based PaintLead-Based Paint
GasolineGasoline
Plumbing Pipes, Fixtures, SoldersPlumbing Pipes, Fixtures, Solders
Industrial Point SourcesIndustrial Point Sources
Ceramics and CrystalCeramics and Crystal
Hobbies & OccupationsHobbies & Occupations
Home Remedies & CosmeticsHome Remedies & Cosmetics
8
““Lead-based paint and paint Lead-based paint and paint contaminated dust account contaminated dust account for most cases of childhood for most cases of childhood
lead poisoning today.”lead poisoning today.”
Source: CDC, Strategic Plan for the Elimination of Childhood Lead Source: CDC, Strategic Plan for the Elimination of Childhood Lead Poisoning, 1991.Poisoning, 1991.
9
Major Exposure PathwaysMajor Exposure Pathways
Lead-based paint deteriorates or is Lead-based paint deteriorates or is disturbed by renovation or repaintingdisturbed by renovation or repainting
Lead-contaminated bare residential soilLead-contaminated bare residential soil Lead dust or paint chips ingested or Lead dust or paint chips ingested or
inhaled - especially by young children inhaled - especially by young children through hand-to-mouth behaviorthrough hand-to-mouth behavior
Ingestion of settled dust is the most Ingestion of settled dust is the most common way children are poisonedcommon way children are poisoned
10
Lead-Based Paint HazardsLead-Based Paint Hazards
Lead-based paint is a hazard when it:Lead-based paint is a hazard when it:
Deteriorates from age or weather;Deteriorates from age or weather; Wears off friction surfaces, such as Wears off friction surfaces, such as
binding doors and windows;binding doors and windows; Deteriorates due to moisture (e.g., Deteriorates due to moisture (e.g.,
leaking pipes or roofs)leaking pipes or roofs) Is disturbed using unsafe work practicesIs disturbed using unsafe work practices
11
Prevention Is the AnswerPrevention Is the Answer
Lead poisoning is entirely preventable.Lead poisoning is entirely preventable. No medical cure.No medical cure.
►Prevention requires making Prevention requires making housing lead-safe housing lead-safe beforebefore a child is a child is poisoned.poisoned.
12
Goal #2:Goal #2:
Overview of the Federal Lead Overview of the Federal Lead Hazard Disclosure LawHazard Disclosure Law
13
Legal BasisLegal Basis
Residential Lead-Based Paint Hazard Residential Lead-Based Paint Hazard Reduction Act, 42 U.S.C. 4852dReduction Act, 42 U.S.C. 4852d
Implemented by HUD and EPA Implemented by HUD and EPA Regulations at Regulations at 24 CFR Part 35 and 40 24 CFR Part 35 and 40 CFR Part 745 CFR Part 745
14
Disclosure Does Not…Disclosure Does Not…
Require testing for lead-based paintRequire testing for lead-based paint
Require owners to control lead-based paint Require owners to control lead-based paint hazardshazards
Relieve property owners of liabilityRelieve property owners of liability
Relieve owners of the legal duty to provide Relieve owners of the legal duty to provide a safe and sanitary dwellinga safe and sanitary dwelling
15
Target HousingTarget Housing
All Pre-78 Residential Properties All Pre-78 Residential Properties (Including Oral Leases)(Including Oral Leases)
Except . . . .Except . . . .
16
ExemptionsExemptions
Zero-Bedroom DwellingsZero-Bedroom Dwellings
Housing for the Elderly or Disabled (Unless Housing for the Elderly or Disabled (Unless Occupied by Children Under 6)Occupied by Children Under 6)
Property certified “Lead-Based Paint Free”Property certified “Lead-Based Paint Free”
Property Leased for 100 Days or LessProperty Leased for 100 Days or Less
Renewal of Leases Where Disclosure Has Renewal of Leases Where Disclosure Has Already Occurred and No New Information is Already Occurred and No New Information is AvailableAvailable
17
Transactions that Trigger Transactions that Trigger DisclosureDisclosure
All real estate transactions involving most All real estate transactions involving most pre-1978 housing at the time pre-1978 housing at the time consumers:consumers:
Rent a homeRent a home Renew an existing leaseRenew an existing lease Sublet a homeSublet a home Buy a homeBuy a home
18
Timing of DisclosureTiming of Disclosure
NotNot Required for All Prospective Required for All Prospective Purchasers/LesseesPurchasers/Lessees
Complete Before Purchaser or Lessee Complete Before Purchaser or Lessee Is Obligated Under ContractIs Obligated Under Contract
19
Disclosure RequirementsDisclosure Requirements
(1)(1) Provide Lead Hazard Information Provide Lead Hazard Information Pamphlet to the TenantPamphlet to the Tenant
(2) (2) Disclose Known Hazards and Provide Disclose Known Hazards and Provide Copy of Existing ReportsCopy of Existing Reports
(3)(3) Complete and Retain Acknowledgment Complete and Retain Acknowledgment Statement for 3 YearsStatement for 3 Years
► Owners also must inform agents of known LBP Owners also must inform agents of known LBP or hazards and the existence of any reports.or hazards and the existence of any reports.
20
(1) Provide Lead Hazard Information (1) Provide Lead Hazard Information PamphletPamphlet
““Protect Your Family From Lead in Your Protect Your Family From Lead in Your Home”Home”
oror
Equivalent Pamphlet Approved by EPA Equivalent Pamphlet Approved by EPA for Use in Statefor Use in State
21
(2) Disclose Known Hazards (2) Disclose Known Hazards andand Provide Copy of Existing ReportsProvide Copy of Existing Reports
““Actual Knowledge” -- Prior Test Results or Actual Knowledge” -- Prior Test Results or Other First-Hand Information, Even If Written Other First-Hand Information, Even If Written Reports are Not AvailableReports are Not Available
Any Records, Test Reports, or Other Information Any Records, Test Reports, or Other Information in your Possession or “Reasonably Obtainable”in your Possession or “Reasonably Obtainable”
22
Disclosure in Multi-Family Disclosure in Multi-Family PropertiesProperties
Any Unit-Specific InformationAny Unit-Specific Information Any Records on Common Areas Any Records on Common Areas
(Hallways, etc.)(Hallways, etc.) Records on Other Units Done as Part of Records on Other Units Done as Part of
Evaluation of Entire PropertyEvaluation of Entire Property
23
(3) Complete and Retain Certification (3) Complete and Retain Certification and Acknowledgmentand Acknowledgment
No Required Federal Form, but Form No Required Federal Form, but Form Must Contain Required ElementsMust Contain Required Elements
Must Be in Same Language as ContractMust Be in Same Language as Contract Retain Copy for 3 Years from Closing or Retain Copy for 3 Years from Closing or
Start of LeaseStart of Lease
24
Required Elements of Certification Required Elements of Certification and Acknowledgment and Acknowledgment
““Lead Warning Statement” Exactly as Required Lead Warning Statement” Exactly as Required
(Different Versions for Sales and Leases)(Different Versions for Sales and Leases) Acknowledgment by Seller/Lessor Acknowledgment by Seller/Lessor Acknowledgment by Purchaser/Lessee Acknowledgment by Purchaser/Lessee Acknowledgment by Agent Acknowledgment by Agent Certification by All Parties of AccuracyCertification by All Parties of Accuracy
25
What If I Don’t Disclose?What If I Don’t Disclose?
EPA/HUD Enforcement Actions:EPA/HUD Enforcement Actions: Civil penalties (fines)Civil penalties (fines) Administrative ordersAdministrative orders InjunctionsInjunctions Supplemental Environmental Projects (SEPs)Supplemental Environmental Projects (SEPs) Child Health Improvement Projects (CHIPs)Child Health Improvement Projects (CHIPs) Criminal ActionsCriminal Actions
26
What If I Don’t Disclose? What If I Don’t Disclose? (cont’d)(cont’d)
Private Actions:Private Actions: Damages (including three times actual Damages (including three times actual
damages for willful violations)damages for willful violations) Attorney’s fees, expert witness fees, Attorney’s fees, expert witness fees,
and court costsand court costs InjunctionsInjunctions
28
Preventive MaintenancePreventive Maintenance
Annual visual inspectionsAnnual visual inspections Train staff in lead safe work practicesTrain staff in lead safe work practices Promptly and safely repair peeling paint and Promptly and safely repair peeling paint and
underlying causesunderlying causes Make floors smooth and cleanableMake floors smooth and cleanable Advance lead safety at unit turnoverAdvance lead safety at unit turnover
► Request that tenants report chipping and Request that tenants report chipping and peeling paint.peeling paint.
29
Lead Safe Work Practices Lead Safe Work Practices (LSWP)(LSWP)
Isolate the work area.Isolate the work area. Shield surfaces from dust.Shield surfaces from dust. Protect occupants.Protect occupants. Mist painted surfaces before scraping and Mist painted surfaces before scraping and
sanding.sanding. Do not use tools that create dust and paint Do not use tools that create dust and paint
chips.chips. Beware of toxic hazards when removing old Beware of toxic hazards when removing old
paint.paint. Clean up the area after the job.Clean up the area after the job. Protect Workers.Protect Workers.
30
LSWP ResourcesLSWP Resources
HUD and EPA Training CoursesHUD and EPA Training Courses One day “basic training” availableOne day “basic training” available Free training courses in many citiesFree training courses in many cities
Free Federal Field GuideFree Federal Field Guide Lead Paint Safety Field Guide for Painting, Lead Paint Safety Field Guide for Painting,
Home Maintenance, and Renovation Work (Home Maintenance, and Renovation Work (www.epa.gov/opptintr/lead/leadsafetybk.pdfwww.epa.gov/opptintr/lead/leadsafetybk.pdf) )
31
Unsafe Work PracticesUnsafe Work Practices
Open Flame Burning or TorchingOpen Flame Burning or Torching
Dry Sanding or ScrapingDry Sanding or Scraping
Abrasive BlastingAbrasive Blasting
Power WashingPower Washing
32
Clearance TestingClearance Testing
A lead dust test is the A lead dust test is the onlyonly way to be sure way to be sure lead hazards are not left behind:lead hazards are not left behind:
Hire a certified lead inspector, risk Hire a certified lead inspector, risk assessor, or sampling technicianassessor, or sampling technician
33
For More InformationFor More Information Document Requests, Information on Document Requests, Information on
Disclosure, and General Lead Disclosure, and General Lead InformationInformation
Phone: 1-800-424-LEADPhone: 1-800-424-LEADWeb: Web: www.epa.gov/lead/nlic.htmwww.epa.gov/lead/nlic.htm
Contractor ReferralContractor ReferralPhone: 1-888-LEADLISTPhone: 1-888-LEADLIST Web: www.leadlisting.orgWeb: www.leadlisting.org