(GAR FORM F316 AND GAR FORM F918)
The Lead-Based Paint Exhibit was revised in April to create an exhibit exclusively for sales transactions (GAR F316) and another one for lease transactions (GAR F918). As such, the new exhibits track more closely the federal forms prepared by the Environmental Protection Agency. Both forms now include boldface disclosures explaining that prior to the contract becoming a binding agreement, the lead-based paint exhibit needs to be completed by the buyer and seller and the buyer needs to receive a lead-based paint brochure.
What is covered by the Federal Rule?
The Residential Lead-Based Paint Hazard Reduction Act of 1992, also known as Title X, directs HUD and EPA to require the disclosure of known information on lead-based paint and lead-based paint hazards before the sale or lease of most housing built before 1978. Lead Based Paint Hazards can include fixtures that were built prior to 1978, even though the property itself was built after 1978. Think about antique doors, antique light fixtures or any other elements in the property that may have been created prior to 1978. If in doubt, disclose.
What is Required and When?
Before a Purchase Agreement or a Lease becomes binding, federal law requires the following:
Compliance is Easy
If you represent the Seller, the easiest way to comply with the requirements is for the Listing Broker to have the Seller complete the Exhibit at listing (along with the Seller Property Disclosure and the Community Association Disclosure). The Listing Agent can distribute it 2 ways: 1) have it in the property for agents to pick up and 2) upload it to FMLS /and GAMLS. The Exhibit can then be downloaded by the Buyer’s agent to sign before an offer is made. Remember, the requirement is that the LBP Exhibit be executed by both parties prior to a binding agreement.
If you represent the Buyer, make it a habit to include "Protect Your Family From Lead In Your Home" GAR CB 04, along with Protect Yourself When Buying a House, with every Brokerage Agreement. Be sure to check it as provided to the Buyer in the Brochures section of the Buyer Brokerage Agreement, so you can prove that it was delivered. (And avoid a big fine.)
What boxes should be initialed?
What if a contract is not in compliance?
The law carries huge fines for violations. Each violation carries a fine from $11,000 to $16,0000. Assume that investigators from the EPA are here in Georgia, spot checking for violations. Because they definitely are here.
It’s the Law
Don’t procrastinate and don’t let the Seller push back. The LBP disclosure is a mandatory federal law. It is not optional.