Property Conditions and Disclosures
Buyers rely on disclosures to understand what they are purchasing, and the law imposes duties to reveal known material defects and federally regulated hazards. This topic covers environmental issues and the disclosure obligations tied to them.
Environmental Hazards
Common environmental concerns include lead-based paint in older homes, asbestos in insulation and flooring, radon gas seeping from the soil, mold from moisture intrusion, and underground storage tanks. Lead-based paint was banned for residential use in 1978, which is why federal disclosure rules focus on housing built before that year. Brokers should recommend qualified professionals to test and remediate rather than offering opinions outside their expertise. Awareness of these hazards helps brokers guide clients toward appropriate inspections.
Federal Lead-Based Paint Disclosure
For most housing built before 1978, federal law requires sellers and landlords to disclose known lead-based paint and hazards, provide any relevant records, and give buyers the EPA lead hazard pamphlet. Buyers in a sale must be offered a ten-day period to conduct a lead paint inspection unless they waive it in writing. The disclosure must be part of the sales or lease contract. Failing to comply can expose sellers, landlords, and their brokers to significant federal penalties.