There's a new law the real estate industry needs to be aware of, and it has a HUGE bite to it! $32,500 fines (and that's even for the first offense), licenses revoked and suspended, lawsuits, neighborhood watchdogs on the prowl, OUCH! We are not talking about slaps on the wrist. You think the EPA is serious when they passed the new law concerning renovations on pre-1978 properties which took effect on April 22, 2010? How does this affect the real estate industry including Realtors, buyers, sellers, investors, homeowners, contractors, etc.?
Well, in case you have not heard, the EPA is now enforcing a new law concerning the renovation, repair, and disturbance of properties with potential lead based paint (pre-1978 houses). There are specifics to the law you can find on the EPA site, but basically, the law requires that anyone compensated for repair or renovation on pre-1978 houses needs to be a certified lead based paint renovator. Bristol Restoration went through the certification courses earlier this month. We did not think twice about getting the certification. It's a $32,500 fine if we are hired to work on a pre-1978 house and are not certified. Not only do we avoid the fine, but in reality, the procedures now required to renovate lead based paint surfaces correctly are in the best interest of the public.
Why pass the law? Apparently, the EPA feels lead is extremely harmful and wants to assure public safety in this matter. You think $32,500 fine is a random number? The EPA spun the Price is Right wheel and it landed on $32,500? The EPA is serious about this one. The EPA backs up their concern in detail on their website about the health effects of lead. Read the rest of this article, then check out the links below if you want more background on lead.
Real estate "professionals" are already finding ways around the law. I actually heard a Broker at a meeting tell her agents to inform their clients that they are free from liability if they are not "compensating" anyone for the work. In other words, "pay someone under the table" or "do it yourself" (head turned to the side). Ummm, excuse me. Really? Keep in mind, we are talking about renovation (windows, structural repairs, etc). What percentage of homeowners are qualified to do their own work? Also, the homeowner is STILL liable and responsible to prove that the house is free from lead with an acceptable test. How easy is it to pass if procedures are not followed precisely? Why would a licensed contractor, a fully qualified construction specialist, be mandated by law to attend classes and training on how to properly repair lead based paint surfaces, but a homeowner who's training consists of "move that truck" and "design on a dime" be trusted to provide a safe working environment and acceptable workmanship that meets all safety and code guidelines?
Why are people trying to find ways around the law? The same reason why people would hire an unlicensed handyman. Money. It costs more to renovate under the strict guidelines set forth by the EPA in regards to lead based paint. The lead area has to be contained under very specific procedures and materials have to be disposed of properly. It simply costs more, and there is really no way around that.... unless, you "hire" someone not certified to do the work and they do the repair not according to proper procedures.
Is there a legal way around the necessity in hiring a certified renovator? Yes, perform a test on your house and check levels of lead prior to the renovation. Areas where you will most likely find lead will be around windows and doors. If you don't have elevated levels, then that information can be disclosed to the buyers and might help in marketing the house. BUT, if the house does have elevated levels, full disclosure is still required and proper renovation procedures (if performed) must be adhered to.
We should all do our job by doing the right thing when having work performed on homes with lead based paint. There are serious ramifications for skirting the law, both ethically and legally.
Want more info: Here are some good videos for Realtors put together by the EPA.
If you have any questions about lead based paint renovations, call us directly at 866.755.8169 or visit our site at bristolrestoration.com. Will be happy to talk with you!
661.294.1812
25020 Avenue Stanford #110
Santa Clarita, CA 91355
Lead based paint regulations and disclosure are not anything to mess around with. The fines will quickly put an agent in the poor house for life.
Thanks Jerry for the information. I don't where my head has been buried but I wasn't aware of this becoming a new regulation/law. I've copied the info to check more into later.
Sue of Robin and Sue
In NY, some Realtors are in the habit of relying on the lawyers to provide the lead paint disclosure. Under the revised law, it must be provided to any buyer prior to (what is done here) a "binder" or offer/acceptance. Waiting for the lawyers to get to it is giving up control that could end up being a very bad plan for the listing company, because the seller has to sign off that they are aware/not aware before the buyer commits to a thing. We've decided to simply provide the disclosure, and pamphlet, to all showings on pre-1978 houses- CYA in NY (and, everywhere- more complicated if we are reliant on ANYONE to assure certainty that the big fines are avoided). Great post.
Just one more way our "nanny state" has found to cost all of us citizens more money! Perhaps this is designed to be a little mini-bailout for the construction industry? To keep people hiring professionals rather than doing work themselves on their own homes???
You're right. Just do it... right.
Great information. Thanks Bristol!
Nobody wants to deal with lead - the disclosures are usually signed as "seller has no knowledge" and buyers accept that. Is it a liability when the house is well kept and paint has been replied several times over? At least that's the general perception in this area.
What I need to investigate is how the EPA and Fed define 'disturb' LBP. To paint over it? Or to remove panels of it?
At any rate, I agree with my esteemed colleague Gary W above. It is an additional assurance and a risk reduction technique for sellers and their brokers. And no one wants to mess with the Fed, especially since they're broke and scraping for bucks. :)
Certification will NOT correct the problem. Only give the powers to be the ability to CONTROL the businessman. Again... I said: it is about control, not correction!
Thanks for the post and more info on this. When this first came out, there were many unanswered questions. The video link you provided helped answer some of those. I think it's important to note that not all Licensed Contractors will have this certification...so we better remember to ask upfront!
Thanks again for your post!
My husband is in a certification class at this very minute...it takes one day & will help teach him how to keep safe while he works as well as keeping the tenants safe.
Find a renovator with enough ethics to take a one day course rather than one that likes to duck responsibility. Lord knows what else a renovator might be doing wrong if they think lead is something to mess with.
Sign me:
Happy to live in a nanny state on this issue.
Thanks for the update - good information to be aware of.
Here in Connecticut, a very large percentage of our homes are pre-1978. It makes good sense to ask our contractors if they are certified, for everyone's safety.
Thanks for the post. I agree with Don, it really is about control. However we have to protect our clients and our pocket books!
Hi Jerry~ The law is the law, so NO, there is no way around it for Realtors! Most Realtors DO FOLLOW THE LAW! We have always had to do a lead base paint disclosure for homes built prior to 1978. It had to be signed by both the buyers and the sellers. Is that part still the same?
We just had new windows installed at an old house and the contractor made us sign the document showing that the contractor was licensed to deal with lead paint even in that instance (surely the old paint around the window would be disturbed during installation).... It is for real!!!
Totally informative, I am re-blogging your post and congrats for the gold star!
How do we get around laws we don't like? We challenge them in court or go to the polls to vote in folks who will advocate for change. Maybe that's the problem and not that we have to be 'creative' about getting around them. Lead paint is not something I would pay someone under the table to mitigate NOR will I be fixing it. If folks put HALF the energy they put into skirting laws into respecting the spirit of the law we would all be better off! Thanks for bringing this up!
Jerry - Thank you for a fabulous presentation. I am bringing this up at my next team meeting.
Me neighborhood was built in the mid 60's. I recently went for a walk and there was caution tape surrounding the entire yard of a neighbors home. Once I got to the house, I started a conversation with one of the guys working there. Turns out they were just putting in new windows. I thought the caution tape was overkill, but I guess they were taking it seriously. Now I know why. Thanks.
Great information for our business and personal lives. My own home was built in 1972. Most of my business is older country homes - this could have a large impact for many.
Great information, I will reblog, as I haven't had time to write lately. Thanks for allowing the re-blog
I am a little confused about what the realtor has do. Is it just providing the disclosure of whether the house was renovasted by a certified contractor who has taken the class?
Marcy
This is a new complication in an already complicated sales contract. Sellers must disclose and must hire only LICENSED remediators.
What would be great is if there were a website or link with a list of those renovators who have been properly certified. There's no way that I would dare to risk my license by not being diligent in this.
Hello: Get the lead out. Get the word out. Bravo to you; I think real estate agents are safe here as long as they remember the disclosures.
Jerry, when you're selling in a city where a house built in 1940 is new construction, this new law has a huge impact. Nor sure how I feel about it yet.
Thanks for the heads up and all the helpful info.
I believe in North Carolina, there were only a few hundred certified painters in the entire state that could work on pre-1978 homes. Unreal!
Cleveland has a ton of older housing stock and I have personally known past clients whose small children have had elevated lead levels -- and this was with NO renovations being done in the home. Even walking through the home with shoes on that were outside and brought lead dust in, etc. Serious stuff.
I agree this is a slippery slope. I would never recommend trying to skirt a federal law. It only takes one fine of that size to put you out of business.
I was just discussing this with a co-listing agent on a circa 1890 house we have listed that most definitely has lead-based paint on the exterior walls. Perhaps it's best the owners gutted it and it's in frame stage now - less paint to remove, but there is still some on the exterior.
Can this not ne covered with the Property Disclosure Statement? Ask the question..."To the best of your knowledge..."
How did we survive all these years? Shudder. Good thing the government is stepping in and making it all better.
Jerry,
The blog and the videos were very informative.
Thanks,
Paul
Lots of comments on both sides but just wanted to add in that you may consider just getting certified to better explain to your clients what it is all about. I actually have one (or did, not sure if it expires) and basically it tells you how to test for lead with a kit and how to cordon off the area you are repairing/patching etc.
Yeah it is more work but it should not really cost all that much more to do it right. Any professional or even semi-pro should already have this anyway. It is not as difficult as you may think and you would probably do much of the procedure anyway (wearing a mask, gloves, goggles, putting down tarps to collect the paint chips, properly disposing of it and a few other things depending on location of the work).
One of the comments above mentioned that there were elevated lead levels just from walking outside. That is because paint chips off and settles in the dirt and can linger for a looong time.
Jerry - great info on such an important topic, thanks for sharing!
Jerry, disclosure is no longer enough to protect the public. Thanks for the update.
Jerry,
Very good piece! Anyone who even dreams of sidestepping this is walking on a non-existent tight rope!
Great information Jerry. I appreciate the detail and links. Reblogging!
Just one more way our "nanny state" has found to cost all of us citizens more money! Perhaps this is designed to be a little mini-bailout for the construction industry? To keep people hiring professionals rather than doing work themselves on their own homes???
Laura;
Just a few weeks ago, a nurse practitioner, (read- unlicensed doctor) was arrested for prescribing the wrong medicine to some unwary consumers. Bummer..they died. Why, because of neglect from an inexperienced "nonprofessional". Oops!
Can I self medicate when I'm sick. Or better yet, can I represent myself in a real estate transaction. The answer is YES and YES. But wouldn't it be far more prudent to leave those jobs for trained professionals? If I was just a little sick, I'd take medicine from the market. If I was selling my house to my mother..I'd probably handle the transaction myself. If I suspected lead based paint, I would get it tested before I did the renovation myself, or hired anyone outside to do the work. In the case of taking a chance on something that could seriously affect my families health, financial future, or the health and safety of others- I'm always going to err on the side of caution. I'll hire a professional. Don't like the new laws- You can always test first. At least you have covered your backside.
"How did we survive all these years? Shudder. Good thing the government is stepping in and making it all better."
Carla;
The rest of the world banned lead in paint starting back in 1909. Aparantly everyone else in the world knew there was a serious problem.
In 1978, the Consumer Product Safety Commission banned the sale of lead-based paint in the United States. During the period of 1910-1978 over 4,000 tons of lead pigment was used in the United States. Millions of homes were painted with lead based paint during this period of time. Although the sale of lead-based paint is now prohibited, the tragic effects continue to haunt us today. Where does lead come from? Paint- 75% of houses and other buildings built before 1978 have lead-based paint. When the paint is in good condition it does not pose a threat.When it chips and peels however, it can make a child very ill. One source of lead poisoning is from children putting small chips of paint in their mouths. Toys, furniture, porches, fences, window sills and window wells, doors and door frames can potentially be painted with lead based paint. Where there is lead, there is lead dust. Encapsulation by over-painting with latex based paint is only a temporary fix. The best remedy is complete removal.
http://www.googobits.com/articles/p0-1162-lead-poisoning-its-not-an-illness-of-the-past.htmlAp
We in the good old U.S didn't ban the stuff until seventy years later, hmmmm. Seems there are strong lobbyist that pressured our Congress to allow them to damage the brains of our children for quite a long time after lead was found to cause serious health issues. Do we want out government sticking their noses in our business? Generally NO, unless there is a serious threat to our safety or way of life....in this case there was. I welcome their ruling. Now I just need to work on my "dain bramage"issue from chewing on my crib back when I was a wee-un.
My husband and I are knocking out a wall between our kitchen and dining room in our home built in 1915. We are fairly certain that the contractor will have to DIG under layers of paint to find lead paint, but our contractor is certified and has figured worse-case scenario into our cost.
I am a little confused about what the Realtor has do. Is it just providing the disclosure of whether the house was renovated by a certified contractor who has taken the class?- Marcy
Marcy;
Per the EPA ruling, its a bit of both. You need to know all the issues that can affect your ability to continue your business. Don't just rely on someones word. Get it in writing! If renovation work was completed, then by who? Was it the homeowner or a handyman or a professional, and get it in writing. Now you're covered. You may not "get the sale" if the buyer has issues, but you are not going to be liable for anything here!
We recently had a local escrow fall out because the buyer was not satisfied with the answers from the listing agent regarding "encapsulation" of lead based paint on the doors, window sills and kitchen cabinets in a pre-1978 property. The buyer asked if the new paint applied over the lead based paint was designated "approved" for lead base encapsulation, and if the renovator was an EPA approved contractor. The listing agent could not answer any of these questions. It was only disclosed by the home inspector that the property may contain lead based paint- 20 days into escrow. THE BUYER MOVED ON TO ANOTHER PROPERTY. Neither the buyers agent or the contractor got a paycheck on that one.
Home buyers today are becoming far more savvy about their purchasing choices and rights under the current laws of the land. Attorney's are advertising for clients who "perceive" they have been duped by Realtors and contractors alike. Right or wrong, it still costs money to defend ones self. What side do you want to stand on this issue?
As far as i'm concerned, the EPA is just another communist department that is being bolstered by the Obama administartion. This law is complete OVERKILL and everybody knows it. I get the point about lead paint and the dangers, but geez, $32,000??????
So i guess contractors have to go to the EPA's "approved buddies list" and pay 1,000's to get training and then charge YOUR clients more to do work.
Once again, congratulations to all who support Barney Frank, Christopher Dodd, Andrew Cuomo, and countless others who are destroying your future as Realtors. I'll be seeing you at Wal-Mart as a fellow collegue.
Hi Jerry,
Thanks for writing this! I am going through this now trying to close a deal! I have one contractor who is licensed and ready to teach these classes. He is educating me on all the requirements and it is unbelievable! I feel a blog coming on!
Evidenty this law was passed at the end of Bush's term. It was pretty quiet and not even members of the trade were really aware of it. However, the rules are very specific, the consequences are very specific up to $32000 in fines but how they are going to monitor this is VERY vague. EPA representatives actually told this contractor that the way they would monitor this is by having other contractors "turn in" those contractors who were unlicensed.
It is going to raise significantly the price of repairs and according to the contractor educating me the homeowner will probably be getting the lead based paint test done prior to listing or else with the time involved for inspections the transactions will never be able to close in a timely manner!
We all are going to need to educate ourselves on this one!
Inspectors can help ensure that renovation is performed in accordance with lead-safe work practice requirements required by the EPA and HUD
Are you getting ready to paint or renovate your home or property? Was your property built prior to 1978? You should get familiar with the new EPA rules and regulations that became affective April 22th 2010 (40 CFR 745.223) All covered renovations must be performed by Certified Firms, using Certified Renovators and other trained workers. All homes built prior to 1978 shall be tested for LEAD by an EPA certified RRP renovator, the law establishes that no work shall be done unless a certified renovator has properly tested for Lead. About 86% of the homes built before 1940 contained lead, 66% of the homes built between 1940 and 1960 contained lead, and about 25% of the homes built between 1960 and 1978 contained lead, if your home was built prior to 1978, the paint that was used then, more likely will contain pigments of lead.
Fred Sweezer Sr is a Certified Renovator Inspector
FHA Approved Inspector T477
http://www.thelongbeachhomeinspector.com
fsweezer@gmail.com
1-562-234-2689