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Required Disclosures When Selling Real Estate


 
Sellers Must Disclose Lead-Based Paint and Hazards

If you are selling a house built before 1978, you must comply with a federal law called the Residential Lead-Based Paint Hazard Reduction Act of 1992 (U.S. Code ยง 4852d), also known as Title X. You must:

  • disclose all known lead-based paint and hazards in the house
  • give buyers a pamphlet prepared by the U.S. Environmental Protection Agency (EPA) called Protect Your Family from Lead in Your Home
  • include certain warning language in the contract as well as signed statements from all parties verifying that all requirements were completed
  • keep signed acknowledgements for three years as proof of compliance, and
  • give buyers a ten-day opportunity to test the house for lead.

If you fail to comply with Title X requirements, the buyer can sue you for triple the amount of damages actually suffered. For more information on lead hazards, prevention, and disclosures, contact the National Lead Information Center -- by phone at 800-424-LEAD, or check their website at http://www.epa.gov/lead.

How You Must Disclose

Most states' laws mandate that disclosures be on special forms the seller must sign and date. Be sure the buyer acknowledges receipt of the disclosures by signing and dating the forms as well. If your state doesn't require a specific disclosure form, be sure the buyer otherwise affirms receipt of your disclosures -- in writing.

Check with your real estate broker or attorney or your state department of real estate for disclosures required in your state. Also, check with your city planning department for information on local ordinances and disclosures that affect your sale. Finally, be aware that real estate brokers are increasingly requiring that sellers complete disclosure forms, regardless of whether or not it's legally required.

Copyright 2007 Nolo


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