Property Owners Guide To Federal Lead Based Paint Rules

Lead-based paint: Years after its banning, it remains the bane of many residential real estate investors.

Little may paint manufacturers have realized that their product, applied to millions of homes for decades, could be so hazardous to people’s health, especially that of young children, nor that it would lead to such unwieldy and costly reparation still today.

Federal lead-based paint regulations took effect in 1996 and make it critical for anyone involved in the sale or lease of residential properties built before 1978 to educate themselves on the regulaitons. Milwaukee’s prevalence of older buildings and historic structures makes it imperative that consumers and real estate professionals alike understand their duties, as well as their rights, under the law.

The federal rules are designed to protect families from lead poisoning due to exposure to lead-based paint. According to the Wisconsin Division of Housing, fully half the housing in every Wisconsin county has some lead-based paint. Between July 1, 1994, and June 30, 1995, more than 40,000 Wisconsin children were screened for lead poisoning and more than 20 percent tested positive. By comparison, the national average is about nine percent.

In transactions involving target housing, the federal rules require sellers and landlords to disclose known information on lead-based paint and lead-based paint hazards to buyers and renters. Specifically, the rules require sellers and landlords to:

• Disclose the presence of known lead-based paint or lead-based paint hazards to buyers/renters
• Provide buyers/renters with any available records regarding any known lead-based paint
• Provide buyers/renters with a federally-approved lead hazard information booklet
• Include certain disclosure and acknowledgment language in sales and leasing contracts
• Provide home buyers with a 10-day opportunity to conduct a lead-based paint inspection or risk assessment at their own expense

The rules also provide that real estate agents involved in target housing transactions must make sure that sellers and landlords comply with the law. In many cases, the agents will personally fulfill the federal disclosure requirements to insure compliance.

Violation of these requirements may result in civil and criminal penalties – so be fully aware by learning more – and be safe.