Lead disclosure laws are designed to protect people from the harmful effects of lead-based paint, especially in homes and buildings built before 1978. Despite their importance, many property owners, real estate professionals, contractors, and landlords find themselves unwittingly out of compliance with these regulations. Failing to follow these laws can lead to hefty fines and legal consequences, not to mention the potential health risks to occupants.
Here are the ten most common reasons for non-compliance with lead disclosure laws and tips on how to avoid these pitfalls.
1. Lack of Awareness
One of the biggest reasons for non-compliance is simply not knowing the rules. Many property owners and real estate professionals are unaware that federal and state lead disclosure requirements apply to homes built before 1978. This lack of awareness is often the root cause of missing or incomplete lead disclosures.
Tip: If you’re involved in the sale, rental, or renovation of a property built before 1978, familiarize yourself with the requirements of the EPA’s Lead-Based Paint Disclosure Rule. This includes providing a lead disclosure form and the “Protect Your Family from Lead in Your Home” pamphlet to buyers or tenants.
2. Failure to Provide Proper Documentation
Even when property owners are aware of the regulations, they may forget or neglect to provide the necessary documentation. This often includes the failure to provide the EPA-approved lead hazard information pamphlet or missing the lead disclosure form in lease or purchase agreements. Without this paperwork, you are not compliant with the law.
Tip: Create a checklist to ensure that all required documents, including the lead disclosure form and the pamphlet, are included in every lease or sale transaction. This simple step can prevent costly mistakes.
3. Incomplete Disclosures
Partial or incomplete disclosures are another common issue. Some sellers or landlords may disclose only some known lead hazards or fail to provide copies of all relevant records and reports. Omitting any detail regarding lead hazards can be considered non-compliance.
Tip: Always provide full disclosure of any known lead hazards. If any testing or risk assessment has been done, share all available reports with the buyer or tenant.
4. Neglecting the 10-Day Inspection Period
Under federal law, homebuyers have a 10-day period to conduct a lead inspection or risk assessment before finalizing the purchase of a home. Some sellers, however, may neglect to offer this inspection period, either due to oversight or a desire to speed up the transaction.
Tip: Always inform buyers of their right to a 10-day lead inspection period. Even in fast-moving markets, this step is crucial for staying compliant with the law.
5. Outdated Practices
Many real estate professionals and property managers continue to use outdated forms or procedures that no longer meet current lead disclosure requirements. This often happens because they’ve been using the same documents for years without realizing that the rules have changed.
Tip: Regularly review and update your forms and procedures to ensure they meet current legal standards. It’s a good practice to check with your state’s lead hazard program for any recent updates.
6. Misunderstanding of Renovation Rules
Lead disclosure laws don’t just apply to sales and leases; they also affect renovations in homes built before 1978. Contractors and property owners may not realize that they need to follow lead-safe practices and provide disclosures when disturbing paint during renovations.
Tip: If you’re doing any renovation work in a home built before 1978, make sure to follow the EPA’s Renovation, Repair, and Painting (RRP) Rule. This includes using certified contractors and providing the “Renovate Right” pamphlet to the homeowner or tenant.
7. Failure to Keep Records
Property owners, managers, and real estate professionals are required to keep records of their lead disclosures for at least three years. Failure to maintain these records can result in penalties if you’re audited or investigated for non-compliance.
Tip: Implement a record-keeping system that stores all lead disclosure documents securely for the required three-year period. Digital records are often easier to manage and retrieve when needed.
8. Assuming Exemption
Some property owners incorrectly assume their property is exempt from lead disclosure requirements, especially if they’ve completed a lead abatement or believe no lead is present in their building. However, without proper documentation from a certified inspector, these properties are still subject to disclosure rules.
Tip: Never assume a property is exempt from lead disclosure requirements without official documentation from a certified lead inspector or risk assessor. If your property is truly lead-free, ensure that you have the correct certificates to prove it. See our blog: Does Colorado’s Pre-Renovation Lead Rule Apply to You?
9. Rushed Transactions
In competitive real estate markets, sellers and agents may feel pressure to rush through transactions. In this haste, they may skip or breeze through important steps in the lead disclosure process, putting themselves and their clients at risk of non-compliance.
Tip: Even in a fast-paced market, take the time to complete every step of the lead disclosure process. Rushing through it can lead to serious legal consequences down the road, and it’s never worth skipping compliance to close a deal faster. We offer instant lead testing for our Colorado customers.
10. Cost Concerns
Some property owners and landlords fear that properly disclosing lead hazards will decrease their property value or make it harder to rent or sell their property. As a result, they may avoid full disclosure to protect their financial interests.
Tip: While it’s understandable to be concerned about property values, failure to disclose lead hazards can result in much higher costs in the form of fines, lawsuits, and potential health risks to tenants or buyers. Being transparent about lead risks and addressing them proactively can ultimately protect your property and reputation in the long run.
Avoid Non-Compliance
Lead disclosure laws are in place for good reason — they protect public health and ensure that tenants and buyers are informed about potential lead hazards. However, compliance can sometimes feel overwhelming.
The key to avoiding non-compliance is to stay informed, organized, and proactive. Regularly updating your knowledge about lead disclosure regulations and keeping proper records are essential steps in ensuring you stay on the right side of the law.
If you’re unsure about your compliance with lead disclosure laws or need testing and documentation for your property, contact Integrity Environmental Testing. Our experienced team can help you navigate the regulations and provide necessary testing.