Don’t Scare, But Be Aware of Colorado’s Lead-Based Paint Disclosure Requirements
Are you looking to buy or sell a real estate in Colorado? Are you familiar with Colorado’s lead-based paint requirements? Do you need help reviewing or preparing a disclosure? GLO specializes in consulting with home buyers and sellers to ensure they understand the complicated process.
What are the Colorado Lead-Based Paint Disclosure Rules?
In 1996, The Lead-Based Paint Disclosure Regulation was put in place by the United States Environmental Protection Agency and the Department of Housing and Urban Development. The regulation requires owners of homes built in 1978 or earlier to disclose the presence of lead-based paint to potential Buyers or Renters.
The Colorado Real Estate Commission (“CREC”) has ensured that residential Sellers and Buyers abide by this federal regulation by including a lead-based paint provision in Section 10.10 of the CREC approved Contract to Buy and Sell Residential Real Estate (“Contract”). It is important to note that changes to the Contract were made effective on January 1, 2019. The changes to Section 10.10 of the Contract now allow Buyers to “waive the failure to timely receive the Lead-Based Paint Disclosure,” if the Buyer does not timely receive such disclosure.
Before this change was made, any sale of a home built in 1978 or earlier that did not exchange a Lead-Based Paint Disclosure before the signing of the Contract, technically voided the deal. This situation occurred too often, so CREC changed the provision in Section 10.10.
What should be included in the Lead-Based Paint Disclosure Form?
Section 10.10 of the Contract requires, “Sellers and all required real estate licensees to sign and deliver a completed Lead-Based Paint Disclosure (Sales) form on or before the Lead-Based Paint Disclosure Deadline.” The Lead Based Paint Disclosure (Sales) form is CREC form LP45-9-12 and can be found on CREC’s website. The Lead-Based Paint Disclosure Deadline is set by the Seller and agreed upon by both parties. It is suggested that this deadline be set as early as possible. There is plenty that can go wrong before a closing, but a Lead-Based Paint Disclosure is so simple, it should not be one of the problems at closing.
In the CREC form LP45-9-12, a Seller and the Seller’s real estate agent must (1) declare knowledge or not of lead-based paint in the residence, (2) provide any records to the Buyer pertaining to lead-based paint hazards in the residence, and (3) give a copy to the Buyer and the Buyer’s real estate agent before the Lead-Based Paint Disclosure Deadline. A copy of the United States Environmental Protection Agency pamphlet “Protect Your Family From Lead in Your Home” must also be given to the Buyer and the Buyer’s real estate agent. Once a filled out CREC form LP45-9-12 is given to the Buyer and the Buyer’s real estate agent, the Seller must remember to hold onto a copy for three (3) years after the closing of the deal.
As mentioned above, if the Seller does not fill out the CREC form LP45-9-12 and give a copy of the pamphlet to the Buyer and the Buyer’s real estate agent, this no longer means the deal is void. Instead, a Buyer now has the right to claim waiver and not worry about this disclosure. It is best not to get to this point in the first place, but it is nice to know that the CREC Contract put this protection in place.
How can GLO help?
If you are considering buying or selling a home and have questions about the process, GLO meets with clients to help them understand their rights and obligations.
If you are buying or selling a home in Colorado and want help reviewing or preparing a lead-based paint disclosure, GLO offers one hour consultations to help ensure a smooth transaction.
Please fill out an Intake Form to inquire about working with GLO.
GLO has prepared this blog to provide general information on legal issues that may be of interest. This blog does not provide legal advice for any specific situation, and this does not create an attorney-client relationship between any reader and GLO or its attorneys. GLO engages clients only through specific fee arrangements and signed engagement letters. GLO does not guarantee any results.