Lead Based Paint
Lead based paint disclosure and a little quiz related to it. Yeah, no one is going to be here to avoid some lawsuits here. What additional forms are required? We’re going to show off the actual form. Then we’re going to show you like a pamphlet and give you some description information. And Sean is going to ask you some questions in order to see how you do on a quiz. Ladies and gentlemen, let’s get started.
Let’s get started. So we’re going to take a look at the addendum. So if you are listing a property or you have a buyer purchasing a property, you can bring that over. That was built prior to nineteen seventy eight. It is very, very important that you have this addendum attached.
So we’re going to talk about it first if you are a listing agent. You should determine if the home was built before seventy eight and you should make sure that you get your seller to sign this lead based paint addendum up front, don’t wait until you have a contract. It should be part of your listing paperwork. OK, so if you have a buyer, one thing is to understand this disclosure is supposed to be provided prior to executing a contract.
So you see now why if you are a listing agent, why you really want to get this done up front. Right. And have it in the file. Have it in MLS, disclose, disclose, disclose. It’s very important. So we’re going to go through and kind of understand why it’s important. OK, so a flood warning statement. I’m hoping you guys have read this, but this kind of explains why this is a problem. And if you read through here, there’s a lot of risks associated with being exposed to lead, inhaling it, and digesting it.
So if you had a home that maybe has old paint and your child is going around and chewing on the face the makes boards or windowsills, it could be a problem. And we may think really that really doesn’t pertain to our area. Yes, it does. There are plenty of homes that were built before 78, and although they may have been renovated or repainted, whatever it may be, we still have to have this form. So. The next one is, oh, let’s go back up a so inspector, if you have someone that is going to inspect a property for lead based paint, they must be certified. They’re not the regular typical inspector.
You must ask your favorite inspector if they are certified to conduct lead based paint in inspections. OK, so it’s not the same inspector. So we’re going to go to B seller’s disclosure, this is where the seller is going to let you know if they have any known knowledge of lead, so be one presence of lead based paint. Or they’ll check be seller has no knowledge of lead based paint, so they must check one of these boxes. OK, and number two. And if they have records of lead based paint in their home, they must check one of these boxes, something has to be checked. Either they know about it or they don’t.
OK, so that’s B, C is the buyer’s response to that knowledge. So No one. If. They the seller has provided any information or documentation regarding lead based paint, they must provide that to the buyer and the buyer must see it. So let’s talk about this for a second, be one and two, OK? Think about this, put your thinking caps on. So Buyer waives the opportunity, no matter what they receive from the seller, if the seller says we don’t have any information on it. They may still want to do an inspection.
OK, so they need to acknowledge that either they’re going to have a an inspection or they’re not in C to within 10 days. So this allows them 10 days. Extra, so if you have an option, period of five days. This kind of surpasses that, right, so you have 10 days that you can do an inspection. OK, unless they check number one, if they waive the right to do an inspection.
Then they don’t have those days. But if they do, if they don’t, in number two, if they check number two, within 10 days of the effective date of the contract, they have the right to conduct an inspection. Do they have to? They can opt to. Not if they choose to. So I don’t know what that tells you guys, but I’m going to ask you quiz about that in a minute.
Yes. So if they do get an inspection, then they have 14 days after the inspection, after the effective date of the contract to terminate the contract and give the earnest money back. Well. OK, so it’s very important. This must be disclosed, it must be discussed with your clients, whether it’s a seller or a buyer. OK, so what they have to do in acknowledgement is have they received copies of information listed above? Well, if there is any, you as the buyer’s agent should make sure that they’ve received all the copies. Pay attention to this one deed to Buyer has received the pamphlet, Protect Your Family from left in your home.
I don’t know if you guys are doing this, I’m assuming all of you are, but when you tell a client to just check here or there or you send it in DocuSign and have them check here or there, they’re trusting you as their agent. Fast forward to this new buyer that you had moves into a home and their child gets sick and it’s because of lead based paint and they look back and they’re like, well, I just signed it because my agent, who I trusted and hired and sent that to me to sign. So you see where that could be an issue, so we need to make sure, again, disclose, discuss and provide this pamphlet along with this disclosure, no matter what, it’s in your zip forms.
It’s in the template. It should also be sent. And this is pulling that up now, should also be sent for them to acknowledge. I would like for you guys to have them initial this document as well, along with the amendment. Are they addendum for lead based paint in the seller’s disclosure that way they’ve acknowledged it in two different places and that protects you in the event something happens down the road. It also reminds you to do that and to disclose and discuss with them.
OK, so the next thing is, Omkar, if you could go back to the addendum, please. So the broker’s acknowledgement here. So this is a form that they are also requiring us to sign as the broker, so that kind of tells you the significance of this and that it is something of importance. Right? They want us to sign that, acknowledging it as well. So they’re making sure they’ve got everybody in check here, that this is an important document. So pay attention to it, do it correctly, and don’t just send it with everything else and let it get lost, amongst other things. All right, are you all ready for a quiz? Yeah, who’s ready?
I’m ready, Shana. OK.
Question number 1. When must be lead based paint disclosure be disclosed, when when should it be provided? To a buyer. I want you guys to interact here and answer this.
Number 2, what happens if you fail to disclose this? As a seller. If you fail to disclose this, what happens? OK, you can answer that one, too, who has to sign the document? OK, the next thing is.
Number 3 Can you do your own lead based or lead inspection, is there a way for you as a homeowner to check if you have lead based paint in your home? Do y’all know that? OK. Let’s see, Stacey’s not answering Rachel before signing a contract. Mike Shepherd doesn’t know the answer from Stacy Logan at beginning of transaction, that is correct. You guys, thank you for answering No. One. When does this have to be disclosed before executing a contract? So it’s before executing a contract. Period. Very simple. OK, let’s see who’s going to answer the next one, who has to oh, what was the next one? What must disclosure,
I think what happens if you fail to disclose. The seller has to eat the lead based paint themselves.
Do you guys know what happens if you fail to disclose this, you execute a contract and oh, shoot. Here you go. Forgot about this, actually built for seventy eight. What could happen there? You actually me could be sued for three times the damages. OK, so you may think that’s ridiculous. There’s no lead based paint in this home. Doesn’t matter. This is a huge, huge responsibility of you guys. OK, you can be sued. So we don’t want to be sued. Please, we do not want to be sued. Pay attention to this.
Ain’t nobody got time for that, I promise you, we don’t. All right, so does. What was the other one, does the R who has to sign? The disclosure. You guys know that. Good job, Martha. Good job, everyone, buyer or seller listing, broker, buyer, broker. Everyone has to sign this document. It is not valid if all signatures are on that document. So it must be filled out. It must be signed and it must be given prior to executing a contract. I hope you guys understand that because we’ve seen a few come over. They’re not checked out properly. I don’t think the pamphlets getting sent out in this is really important. Pay attention and do it correctly. OK.
Yeah, we like that. Yes, please.
All these lawsuits that are coming right and left from people, it’s really not most of the time has nothing to do with this. It has to do with this being the technicality. It has to do with something else that happened in the transaction. And people look for these LB’s all the time to happen. Right. So we don’t want to give anybody an out. And we want to protect our client, so.
Be careful. Oh, can you as a homeowner? Check for lead based paint. Yes, you can. We actually had a client actually earlier this year who lives an old home in downtown McKinney and they did a check of the lead in their home and they did have some. So it was very, very small and they say it’s like point 06 to there’s a range and it fell way under the range, but it did pop up. So it was an interesting conversation that we had with him.
Yeah, we should have the gadget here. We should have the gadget here. OK. OK, we’ll work On getting that. Thank you guys for participating. I hope you understand this is an important document and take it seriously and fill it out correctly. Please.