If the Property was built before 1978, the seller must disclose any information known about lead-based paint and lead-based paint hazards before selling the house, in accordance with the HUD-EPA Lead Disclosure Rule (24 CFR 35, subpart A, and the identical 40 CFR 745, subpart F). For such Properties, the Mortgagee (Lender) must ensure that:
• the Borrower has been provided the EPA-approved information pamphlet on identifying and controlling lead-based paint hazards (“Protect Your Family From Lead In Your Home”);
• the Borrower was given a 10-Day period before becoming obligated to purchase the home to conduct a lead-based paint inspection or risk assessment to determine the presence of lead-based paint or lead-based paint hazards, or waived the opportunity;
• the sales contract contains an attachment in the language of the contract (e.g., English, Spanish), signed and dated by both the seller and purchaser:
- containing a lead warning statement as set forth in 24 CFR § 35.92(a)(1);
- providing the seller’s disclosure of the presence of any known lead-based paint and/or lead-based paint hazards in the property being sold, or indication of no knowledge of such presence;
- listing any records or reports available to the seller pertaining to lead-based paint and/or lead-based paint hazards in the property being sold, or indication by the seller that no such records or reports exist; and
- affirming that the Borrower received the pamphlet, disclosure, and records or reports, above; and
• when any agent is involved in the transaction on behalf of the seller, the sales contract includes a statement that the agent has informed the seller of the seller’s Lead Disclosure Rule obligations, the agent is aware of his/her duty to ensure compliance with the requirements of the Rule, and the agent has signed and dated the contract.
Mortgagees are required to provide form HUD-92564-CN, For Your Protection: Get a Home Inspection, to prospective homebuyers at first contact, be it for pre-qualification, pre-approval, or initial application.
For additional information see:
• Handbook 4000.1 Section II.A.1.a.ii.(A)(3)-(4) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
• Form HUD-92564-CN can be accessed at: https://www.hud.gov/sites/dfiles/OCHCO/documents/92564CN.pdf
• the Lead-Based Paint Disclosure Rule at: https://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/enforcement/disclosure; and
• the EPA “Protect Your Family from Lead in Your Home” pamphlet at: https://www.epa.gov/lead/protect-your-family-lead-your-home-real-estate-disclosure