California Real Estate Broker ExaminationReal Estate PracticeHard
A real estate transaction involves a property built in 1975. The seller's agent is aware that the property's original paint may contain lead-based paint. Under federal law, what is the seller's primary obligation regarding lead-based paint disclosure?
- ATo remove all lead-based paint from the property before closing.
- BTo provide the buyer with a 10-day period to conduct a lead-based paint inspection or risk assessment.
- CTo simply state, 'Buyer beware,' as it is the buyer's responsibility to investigate.
- DTo test the property for lead-based paint and provide the results to the buyer.
Show answer & explanationAnswer & explanation
Correct answer: B. To provide the buyer with a 10-day period to conduct a lead-based paint inspection or risk assessment.
For properties built before 1978, federal law (Lead-Based Paint Hazard Reduction Act) requires sellers to disclose any known lead-based paint hazards, provide an EPA-approved lead hazard information pamphlet, and give buyers a 10-day opportunity to conduct a risk assessment or inspection for lead-based paint or lead-based paint hazards. Removal is not required.
Why the other options are wrong
- A. Federal law does not mandate lead-based paint removal, only disclosure and the opportunity for inspection.
- C. This is incorrect; federal law imposes specific disclosure requirements, making it more than just 'buyer beware.'
- D. Sellers are not required to test for lead-based paint, only to disclose known information and provide the opportunity for the buyer to test.
Lead-Based Paint Disclosure
Federal law (for properties built before 1978) requiring sellers and landlords to disclose known lead-based paint hazards and allow buyers/tenants an opportunity to test.
- Applies to residential properties built before January 1, 1978.
- Seller/landlord must disclose known hazards and provide EPA pamphlet.
- Buyer gets 10-day inspection period (can waive).
- No requirement to test or remove lead-based paint.
Memory trick: Old 'paint' is a 'warning', so 'disclose' and allow '10 days' for inspection.