Introduced In 1992, congress passed the "Residential Lead-Based Paint Hazard
Reduction Act" which in part required the U.S. Department of Housing and Urban
Development (HUD) and the Environmental Protection Agency (EPA) to implement disclosure
regulations for the sale and lease of residential housing built prior to 1978. (Residential use
of lead-based paint was banned for post-1977 housing.) According to these agencies, this
legislation was in response to the growing awareness of the possible health risks caused by
prolonged exposure to lead-based paint. At particular risk may be children, pregnant women
and their unborn children, residents of renovated, older buildings, and those living in dilapidated
housing. After some delay, HUD and EPA have released the final disclosure regulations. While
the effective date of these regulations was technically March 6, 1996, the practical effects is
that the requirements will not be enforced until later this year. Specifically, for residential
dwellings of more than four units, the enforcement date will be September 6, 1996, and for
residential dwellings of one to four units, the enforcement date will be December 6, 1996.

The disclosure requirements do not apply to the following transactions:
1. Foreclosure sales. (Subsequent resales, however, are subject to the disclosure
    requirements);
2. Rental housing where there has been a formal determination that the housing is
   "lead-based paint free";
3. Short-term loans of 100 days or less where there is no provision for renewal or extensions;
4. Lease renewals where there has already been disclosure compliance and no new
    information is available to the landlord;
5. The purchase, sale, and/or servicing of mortgages;
6. Zero-bed dwellings (efficiencies , studios, military barracks, etc);
7. Housing exclusively for the elderly, unless there are children living there ; and,
8. Housing exclusively for the handicapped, unless there are children living there.

The regulations clearly state that if an agent "ensures compliance," the agent shall
not be liable for a seller/landlord's failure to disclose a lead-base paint hazard.
"Ensuring Compliance" consists of having the seller, buyer, and all REALTORS®, sign and
date a "Disclosure Of Information And Acknowledgment - Lead-Based Paint
And/Or Lead-Based Paint Hazards" form. This document informs and discloses to all
parties involved in the transaction:

   1. What (if any) lead hazards the seller is aware of. (If "Yes", a
       written explanation must be submitted).
   2. What documents (if any) the seller provided to the buyer
       pertaining to an existing lead-based hazard.
   3. Affirmation that the buyer has received all documents
       pertaining to the absence or existance of lead hazards.
   4. That the buyer has received the EPA pamphlet "Protect
       Your Family From Lead In Your Home".
   5. That the buyer has received a 10-day opportunity to
       conduct an inspection for lead-based hazards.
   6. That the buyer "waives" any inspection or risk assessment.

It is important to note, also, that these regulations do not affect any existing and/or
local requirements. In fact states and municipalities may impose additional requirements as
long as they do not conflict with the federal regulation.

All of these disclosure requirement must be met complete before the purchaser or tenant
is obligated under any purchase agreement or lease. More specifically, for sales
agreements, the disclosure requirements must occur prior to the seller's acceptance of a
buyer's offer. An offer may may be accepted until after the disclosure requirements are satisfied
and the purchaser has had an opportunity to review the disclosure language and to amend his
offer, if he wishes. In a lease transaction, a landlord must satisfy the disclosure requirements
before accepting the tenants offer. Like the purchaser, a tenant must have an opportunity to
review the information and amend his offer if he chooses, prior to becoming obligated under the
lease. For the purposes of these disclosure requirements, a 'purchaser" is defined as any entity
any enters into an agreement to purchase, and a "tenant' as any entity that enters into an
agreement to lease, rent, or sublease. these definitions make it clear that sellers or landlords do
not have to make mass disclosures to any potential buyer or tenant. Rather, they are obligated
only to the actual buyer or tenant.

If the lead-paint regulations are violated, the sale or lease is not null and void. Rather, the
agreements remain in tact, and the purchaser or tenant must seek compensation through the
remedies provided in the 1992 law and within these disclosure regulations.

Specifically, the regulations give HUD and EPA the authority to issue warning to sellers,
landlords, and real estate agents for violations, without penalties.

However, the penalties for non-compliance (when imposed) may be severe. Civil fines can be
as much as $10,000 for each violation. Further, criminal sanctions may result in fines up to
$10,000 per violation, imprisonment for up to one year, or both.

Finally, if a purchaser or tenant has suffered any injuries as a result of non-compliance, a seller,
tenant or, real estate agent may be liable for 3 times the amount of damages. In addition, they
could be required to pay the other party's actual litigation cost including expert witness fees
and attorney's fees.

Lead based paint that is in good condition is usually not a hazard, but peeling, chipping,
chalking or cracking lead-based paint is a hazard and needs immediate attention.

Lead-based paint may also be a hazard when found on surfaces that children can chew or that
get a lot of wear-and-tear. These areas include:

Lead dust can form when lead-based paint is dry scraped, dry sanded or heated. Dust also
forms when painted surfaces bump together or rub together. Lead chips and dust can get on
surfaces and objects that people touch. Settled lead dust can reenter the air when people
vacuum, sweep or walk through it

Lead in soil can be a hazard when children play in bare soil or when people bring soil into the
house on their shoes. Call your state agency to find out about soil testing for lead.