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OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®



  SALES MEETING TOOL KIT: PROPERTY DISCLOSURE
 

Component 1: Facilitator Talking Points

Component 2: Property Disclosure Agenda

Component 3: Handout 1, What Is Liability

Component 4: Activity 1, Recognizing Improper Disclosure

Component 5: Activity 1, Explanations for Disclosure Scenarios

Component 6: Handout 2, Tips for Reducing Your Risks

Component 7. Handout 3, Disclosure Primer and Your Company’s Property Disclosure Form

Component 8: Activity 2, Identifying Defect Red Flags

Component 9: Activity 2, Answers to Red Flags

Component 10: Activity 3: Lead Out Quiz

Component 11: Activity 3, Answers to Lead Quiz

Component 12: Handout 4, A summary of your state’s disclosure requirements under Megan’s Law

Other Resources		   Component 11: Answers to Get the Lead Out Quiz

1. False. The Act covers virtually all residential property units built before 1978, when lead paint was banned in the United States. Exemptions from the “target housing” covered by the Regulations include a foreclosure, rental property found to be lead-free, zero-bedroom units where the living and sleeping areas are not separate, and housing for the elderly and disabled where children under the age of six are not expected to reside.

2. False. Real estate practitioners are required to give a copy of the federally approved lead-based paint hazard information pamphlet to every buyer or tenant of a residential unit covered by the Act and to disclose any knowledge that the seller or lessor has about the presence of lead-based paint hazards. All disclosures must be made prior to the seller’s acceptance of the purchaser’s offer.

3. True (generally). The law provides for a ten-day period in which to inspect. However, buyers may negotiate for a longer period or agree to a shorter period if they wish. Sales contracts and leases should include specific language addressing lead-based paint testing, as negotiated by the parties and the salesperson should obtain a signed acknowledgement from the purchaser either waiving or reserving the right to have an inspection.

4. False. Federal law does not require an inspection for lead paint. However, if an inspection was done, buyers must receive copies of any resulting reports.

5. False. Real estate salespeople should determine if the property is covered by the act at the time the listing is taken. The salesperson should advise the seller or lessor about disclosure obligations under the Act and get the seller or lessor to sign the appropriate portion of the Information Disclosure and Acknowledgement form.

6. True. The Disclosure of Information and Acknowledge Form signed by the purchaser or lessee must be kept for three years from the date of closing or the date the lease begins. This acknowledgement should indicated that the purchaser had received copies of the federal lead pamphlet, Protect Your Family From Lead in Your Home, any information that the seller or lessor knows about lead hazards in the property, as well as any other reports on lead-based paint inspections or other pertinent information.

7. False. The duties established by the regulations are imposed on sellers and lessors, but a real estate agent of the seller or lessor is required to inform the seller or lessor of those duties and insure that the regulations are followed.

8. True. The law contains specific lead-based paint “warning language,” which must be included as an attachment to every contract for sale or lease of residential housing covered by the law. This language is generally incorporated in the Disclosure of Information and Acknowledgement Form.

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Note: This information provides general legal information and should not be relied upon as legal guidance. Before acting, both the relevant laws and legal counsel should be consulted. This information should not be construed as specific legal advice nor as an opinion on particular facts, cases, or situations.