3.2 Lead Paint & Environmental Disclosures

Federal Lead-Based Paint Disclosure

The federal Residential Lead-Based Paint Hazard Reduction Act (Title X of 1992), enforced by EPA and HUD, governs lead disclosure nationwide — it preempts state silence. Lead-based paint was banned for residential use in 1978, so the rule attaches to housing built before 1978.

Why 1978? That is the year consumer lead paint was outlawed. 'Built in 1978 or later' = no federal lead duty. This exact year is a frequent exam item.

When the Rule Applies

The Four Required Elements

For a covered pre-1978 transaction the seller (and the agent) must:

What the Seller Is NOT Required to Do

Worked example: A 1965 Buffalo home is sold 'as is.' The seller need not test or abate, but must still sign the Lead Warning Statement, disclose the 1995 positive lead test the seller remembers, hand over that report, and give the EPA pamphlet — or the sale violates federal law regardless of the 'as is' clause.

The 10-Day Lead Inspection Period

Federal law gives the buyer 10 days (or another period agreed in writing) to conduct a lead inspection or risk assessment before becoming obligated under the contract.

Trap: The 10 days is the lead inspection window — do not confuse it with the general home-inspection contingency (often 10-14 days) negotiated separately in the contract.

Penalties for Lead Non-Disclosure

Lead disclosure is heavily enforced. Knowing violations expose the seller, landlord, and the agent.

New York Environmental Disclosures via the PCDS

Beyond lead, New York captures other hazards through PCDS questions the seller must answer if known:

Stigmatized Property Rule (NY)

New York RPL §443-a provides that no cause of action arises from a seller's or agent's failure to disclose that a property was the site of a homicide, suicide, or other death, or was reputedly haunted. These are 'psychologically impacted' facts, not physical defects.

Exam contrast: A buyer can ask, and an agent should answer honestly, but there is no affirmative duty to volunteer that a death occurred — unlike a known physical defect, which must be disclosed.

Who Is Liable: Seller, Landlord, and Agent

A point candidates miss: the federal lead rule reaches the agent, not just the owner. The listing or leasing licensee must ensure the seller/landlord complies and may be personally penalized for ignoring a known violation.

Disclosure vs. Inspection — Two Different Documents

Keep three timing windows straight, a classic trap question:

• 10-day lead inspection — federal; before the buyer is obligated.
• PCDS delivery — New York; before the contract is signed.
• General inspection contingency — negotiated in the contract (often 10-14 days); separate from lead.

Worked example: A 1972 Yonkers rental. The landlord gives the EPA pamphlet, signs the Lead Warning Statement, and discloses peeling paint in the basement. A tenant later sues over a child's lead exposure the landlord concealed elsewhere. The landlord faces civil penalties and treble damages; if the leasing agent knew and stayed silent, the agent shares exposure and DOS discipline.

The takeaway: environmental disclosure in New York is a layered duty — federal lead law on top of the state PCDS — and 'as is' or a quick closing never overrides it.