The lead based paint and lead based paint hazards disclosure is also known as the lead based paint disclosure and for some as the “FLD” C.A.R. form.
The two paged disclosure is provided by the California Association of Realtors and was revised in November 2010.
The lead based paint disclosure applies only to all residential properties that are built prior to 1978. This disclosure was put into place after a settlement with the EPA due to the risks of lead found in paint. The EPA found that homes built before 1978 are much more likely to have lead based paint and therefore sellers and landlords would need to disclose that it can be potentially found within the home.
Table of Contents
- Lead Based Paint Disclosure Breakdown
- When is the Lead Based Paint Disclosure (FLD) used?
- Who Signs the Lead Based Paint Disclosure (FLD)?
- Document Tips
Lead Based Paint Disclosure Breakdown
Lead Warning Statement (Sale or Purchase)
Every potential buyer for residential property that was built prior to 1978 is being notified that the property may have present exposure to lead from lead based paint that could have been used.
This poses a risk to young children because it can potentially lead to developing lead poisoning.
Lead poisoning can contribute to permanent neurological damage like learning disabilities, reduced intelligence, behavioral issues and impairment of memory.
Lead poisoning also poses serious risks to pregnant women.
Any seller that has an interest in residential property is required to give the buyer any information on lead based paint hazards. They are required by law to notify the buyer of any known lead based paint hazards.
It is recommended that buyers get an inspection for possible lead based paint hazards for any purchase of a home that is built prior to 1978.
Lead Warning Statement (Lease or Rental)
Homes built prior to 1978 can contain lead based paint. Lead can be found in paint, paint chips and dust from old paint that can pose serious health hazards if not handled properly. The exposure from lead is harmful to young children and pregnant women.
Before any potential tenants decide to rent any pre-1978 homes, Landlords must disclose the presence of any lead based paint and/or other lead based hazards in the home. Potential tenants must also receive the federally approved documentation on lead poisoning prevention.
EPA’s Lead-Based Paint Renovation, Repair and Painting Rule
The EPA’s new rule requires that all contractors and maintenance professionals working on homes built before 1978, child care facilities, and schools with lead based paint to be certified.
They also require that their employees be trained and ensure that they follow protective work practice standards when working on these types of properties. This rule applies to any home that is undergoing renovation, repair, or painting. The following is the minimum area that this rule applies to:
- Interior – More than 6 square feet.
- Exterior – More than 20 square feet.
The enforcement of this rule began on October 1, 2010. See the EPA website for more information.
1. Seller’s or Landlord’s Disclosure
This section allows the Seller and Landlord to write in any known knowledge of any use or presence of lead based paint and or other lead based hazards.
In addition, there is a section for the Seller and Landlord to write in and disclose any reports that indicate the presence of lead based paint hazards in certain areas of the home.
Seller and/or Landlord agree that they have provided the buyer or tenant with the “Protect Your Family From Lean In Your Home” guide or the other approved guide called the “The Homeowner’s Guide to Environmental Hazards and Earthquake Safety”.
For Sale Transactions: Buyer has 10 days to conduct an inspection for the presence of any lead based paint or other lead based hazards within the home. Unless otherwise agreed to in the purchase agreement.
2. Listing Agents Acknowledgment
The listing agent is acknowledging they have informed the Seller or Landlord per their legal obligation and is aware of their responsibility to ensure compliance of this new rule.
3. Buyer’s or Tenant’s Acknowledgment
Buyer or Tenant agrees that they have received copies of the “Protect Your Family From Lead In Your Home” or the approved “The Homeowner’s Guide to Environmental Hazards and Earthquake Safety.” guides.
If any of the disclosures or documents noted above occurs after acceptance of the purchase contract, the Buyer has the right to cancel per the purchase contract.
For Sale Transactions: Buyer acknowledges that they have 10 days to conduct any desired inspection for the presence of any lead based hazards. Unless otherwise agreed to in the purchase contract.
The Buyer may waive any inspection for the presence of lead based hazards by checking the provided checkbox.
4. Cooperating Agent’s Acknowledgment
The Buyer agent has informed the Seller or Landlord, via the listing agent of their legal obligation and is also aware of their responsibility to ensure compliance of this new rule.
When is the Lead Based Paint Disclosure (FLD) used?
In December of 1996 the EPA instituted the lead residential lead based paint disclosure program (Section 1018 of Title X) that requires potential buyers and renters of homes built before 1978 to receive important information about lead and lead hazards that can be found in the home prior to becoming obligated to buy or rent.
This disclosure gives the opportunity for buyers or renters to perform an independent lead inspection.
“Lead paint is one of the most common sources of lead poisoning in children. EPA’s diligent enforcement of federal lead paint laws is not only necessary to protect communities across the country, but also ensures those who break the law are held accountable.”EPA’s Acting Regional Administrator for the Pacific Southwest
As a real estate agent or broker you are required to inform the seller of their obligation under the Real Estate Notification and Disclosure Rule. The agent or broker is responsible if the seller fails to comply. C.A.R. encourages all real estate agents and brokers to comply by using their lead based paint disclosure.
Who Signs the Lead Based Paint Disclosure (FLD)?
Sellers/Landlords and Buyers/Tenants along with the listing agent and the buyers agent are required to sign and date the form.
The lead based paint disclosure’s two pages is fairly easy to complete. Once you ensure all the property details are filled out at the top of the page you will just need to ensure all signatures, initials and broker names are on the disclosure.
The main areas that are commonly missed and left blank is the bottom of page one where buyers must initial the page, the listing agent’s signature and the buyer agent’s signature on page two.
Disclaimer: This article is meant to educate, inform, and comment on a document that is protected by the United States copyright law. This article is only our interpretation of the subject document. We advise the reader to consult their broker or agent on any questions they may have. The reader is also advised to reach out to the California Association of Realtors for any additional information.