How to Sell Your Home Without an Agent: A Complete Guide to Lead Based Paint Disclosure in California
What is the Lead-Based Paint Disclosure?
In California, as in the rest of the United States, federal law mandates that sellers of residential properties built before 1978 disclose any known information about the presence of lead-based paint and lead-based paint hazards. This requirement stems from the Residential Lead-Based Paint Hazard Reduction Act of 1992, commonly known as Title X.
Lead-based paint was commonly used in homes before 1978. Exposure to lead can cause serious health issues, especially in young children and pregnant women. Therefore, the disclosure aims to inform buyers of potential risks associated with older homes.
Who Needs to Provide the Disclosure?
As a seller of a residential property built before 1978, you are legally obligated to provide the Lead-Based Paint Disclosure to potential buyers. This applies whether you are selling the property yourself (FSBO) or through a real estate agent.
Key Components of the Disclosure
EPA-Approved Pamphlet: You must provide the buyer with the EPA's pamphlet titled "Protect Your Family From Lead in Your Home." This pamphlet offers valuable information on identifying and controlling lead-based paint hazards.
Disclosure Form: Complete the "Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards" form. This form requires you to disclose any known information about lead-based paint in the home, including its location and condition.
Acknowledgment of Receipt: Both you and the buyer must sign and date the disclosure form, acknowledging receipt of the information.
Opportunity for Inspection: You must offer the buyer a 10-day period to conduct a lead-based paint inspection or risk assessment. This period can be adjusted upon mutual agreement between you and the buyer.
Steps to Comply with the Disclosure Requirement
Provide the Pamphlet: Ensure the buyer receives the EPA-approved pamphlet before they sign a purchase agreement.
Complete the Disclosure Form: Fill out the disclosure form accurately, detailing any known lead-based paint hazards.
Offer Inspection Opportunity: Clearly state the 10-day period (or mutually agreed-upon timeframe) during which the buyer can conduct an inspection.
Maintain Records: Keep copies of the signed disclosure forms and any related documents for at least three years after the sale.
Consequences of Non-Compliance
Failure to provide the required lead-based paint disclosures can lead to legal actions, including:
Civil Penalties: Fines up to $10,000 per violation.
Criminal Penalties: Fines up to $10,000 and up to one year of imprisonment.
Liability for Damages: Potential liability for three times the amount of the buyer's damages.
Additional Considerations
Renovations: If you have recently renovated the property, ensure that the work was done by a certified lead-safe contractor and that proper procedures were followed.
State-Specific Requirements: While federal law sets the baseline, California may have additional requirements. It's advisable to consult with a real estate attorney or professional to ensure full compliance.
Conclusion
By understanding and fulfilling the Lead-Based Paint Disclosure requirements, you protect yourself from potential legal issues and provide transparency to the buyer, fostering a smoother and more trustworthy transaction.
