ATTACHMENT 2

Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards Upon Sale or 

Lease of Residential Property

40 CFR 745, Subpart F
TITLE 40--PROTECTION OF ENVIRONMENT

CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)

PART 745--LEAD-BASED PAINT POISONING PREVENTION IN CERTAIN 

RESIDENTIAL STRUCTURES

Subpart F--Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards Upon Sale 

or Lease of Residential Property

Sec. 745.100 Purpose.

 This subpart implements the provisions of 42 U.S.C. 4852d, which impose certain 

requirements on the sale or lease of target housing. Under this subpart, a seller or lessor of target 

housing shall disclose to the purchaser or lessee the presence of any known lead-based paint 

and/or lead-based paint hazards; provide available records and reports; provide the purchaser or 

lessee with a lead hazard information pamphlet; give purchasers a 10-day opportunity to conduct 

a risk assessment or inspection; and attach specific disclosure and warning language to the sales 

or leasing contract before the purchaser or lessee is obligated under a contract to purchase or 

lease target housing.

Sec. 745.101 Scope and applicability.

 This subpart applies to all transactions to sell or lease target housing, including subleases, with 

the exception of the following:

 (a) Sales of target housing at foreclosure.

 (b) Leases of target housing that have been found to be lead-based paint free by an inspector 

certified under the Federal certification program or under a federally accredited State or tribal 

certification program. Until a Federal certification program or federally accredited State 

certification program is in place within the State, inspectors shall be considered qualified to 

conduct an inspection for this purpose if they have received certification under any existing State 

or tribal inspector certification program. The lessor has the option of using the results of 

additional test(s) by a certified inspector to confirm or refute a prior finding.

 (c) Short-term leases of 100 days or less, where no lease renewal or extension can occur.

 (d) Renewals of existing leases in target housing in which the lessor has previously disclosed 

all information required under Sec. 745.107 and where no new information described in Sec. 

745.107 has come into the possession of the lessor. For the purposes of this paragraph, renewal 

shall include both renegotiation of existing lease terms and/or ratification of a new lease.

Sec. 745.102 Effective dates.

 The requirements in this subpart take effect in the following manner:

 (a) For owners of more than four residential dwellings, the requirements shall take effect on 

September 6, 1996.

 (b) For owners of one to four residential dwellings, the requirements shall take effect on 

December 6, 1996.
Sec. 745.103 Definitions.

 The following definitions apply to this subpart.

 The Act means the Residential Lead-Based Paint Hazard Reduction Act of 1992, 42 U.S.C. 

4852d.

 Agent means any party who enters into a contract with a seller or lessor, including any party 

who enters into a contract with a representative of the seller or lessor, for the purpose of selling 

or leasing target housing. This term does not apply to purchasers or any purchaser's 

representative who receives all compensation from the purchaser.

 Available means in the possession of or reasonably obtainable by the seller or lessor at the 

time of the disclosure.

 Common area means a portion of a building generally accessible to all residents/users 

including, but not limited to, hallways, stairways, laundry and recreational rooms, playgrounds, 

community centers, and boundary fences.

 Contract for the purchase and sale of residential real property means any contract or agreement 

in which one party agrees to purchase an interest in real property on which there is situated one 

or more residential dwellings used or occupied, or intended to be used or occupied, in whole or 

in part, as the home or residence of one or more persons.

 EPA means the Environmental Protection Agency.

 Evaluation means a risk assessment and/or inspection.

 Foreclosure means any of the various methods, statutory or otherwise, known in different 

jurisdictions, of enforcing payment of a debt, by the taking and selling of real property.

 Housing for the elderly means retirement communities or similar types of housing reserved for 

households composed of one or more persons 62 years of age or more at the time of initial 

occupancy.

 HUD means the U.S. Department of Housing and Urban Development.

 Inspection means:

 (1) A surface-by-surface investigation to determine the presence of lead-based paint as 

provided in section 302(c) of the Lead-Based Paint Poisoning and Prevention Act [42 U.S.C. 

4822], and

 (2) The provision of a report explaining the results of the investigation.

 Lead-based paint means paint or other surface coatings that contain lead equal to or in excess 

of 1.0 milligram per square centimeter or 0.5 percent by weight.

 Lead-based paint free housing means target housing that has been found to be free of paint or 

other surface coatings that contain lead equal to or in excess of 1.0 milligram per square 

centimeter or 0.5 percent by weight.

 Lead-based paint hazard means any condition that causes exposure to lead from 

lead-contaminated dust, lead-contaminated soil, or lead-contaminated paint that is deteriorated or 

present in accessible surfaces, friction surfaces, or impact surfaces that would result in adverse 

human health effects as established by the appropriate Federal agency.

 Lessee means any entity that enters into an agreement to lease, rent, or sublease target 

housing, including but not limited to individuals, partnerships, corporations, trusts, government

agencies, 

housing agencies, Indian tribes, and nonprofit organizations.

 Lessor means any entity that offers target housing for lease, rent, or sublease, including but not 

limited to individuals, partnerships, corporations, trusts, government agencies, housing agencies, 

Indian tribes, and nonprofit organizations.
 Owner means any entity that has legal title to target housing, including but not limited to 

individuals, partnerships, corporations, trusts, government agencies, housing agencies, Indian 

tribes, and nonprofit organizations, except where a mortgagee holds legal title to property 

serving as collateral for a mortgage loan, in which case the owner would be the mortgagor.

 Purchaser means an entity that enters into an agreement to purchase an interest in target 

housing, including but not limited to individuals, partnerships, corporations, trusts, government 

agencies, housing agencies, Indian tribes, and nonprofit organizations.

 Reduction means measures designed to reduce or eliminate human exposure to lead-based 

paint hazards through methods including interim controls and abatement.

 Residential dwelling means:

 (1) A single-family dwelling, including attached structures such as porches and stoops; or

 (2) A single-family dwelling unit in a structure that contains more than one separate residential 

dwelling unit, and in which each such unit is used or occupied, or intended to be used or 

occupied, in whole or in part, as the residence of one or more persons.

 Risk assessment means an on-site investigation to determine and report the existence, nature, 

severity, and location of lead-based paint hazards in residential dwellings, including:

 (1) Information gathering regarding the age and history of the housing and occupancy by

children under age 6;

 (2) Visual inspection;

 (3) Limited wipe sampling or other environmental sampling techniques;

 (4) Other activity as may be appropriate; and

 (5) Provision of a report explaining the results of the investigation.

 Secretary means the Secretary of Housing and Urban Development.

 Seller means any entity that transfers legal title to target housing, in whole or in part, in return 

for consideration, including but not limited to individuals, partnerships, corporations, trusts, 

government agencies, housing agencies, Indian tribes, and nonprofit organizations. The term 

``seller'' also includes:

 (1) An entity that transfers shares in a cooperatively owned project, in return for consideration; 

and

 (2) An entity that transfers its interest in a leasehold, in jurisdictions or circumstances where it 

is legally permissible to separate the fee title from the title to the improvement, in return for 

consideration.

 Target housing means any housing constructed prior to 1978, except housing for the elderly or 

persons with disabilities (unless any child who is less than 6 years of age resides or is expected to 

reside in such housing) or any 0-bedroom dwelling.

 TSCA means the Toxic Substances Control Act, 15 U.S.C. 2601.

 0-bedroom dwelling means any residential dwelling in which the living area is not separated 

from the sleeping area. The term includes efficiencies, studio apartments, dormitory housing, 

military barracks, and rentals of individual rooms in residential dwellings.

Sec. 745.107 Disclosure requirements for sellers and lessors.

 (a) The following activities shall be completed before the purchaser or lessee is obligated 

under any contract to purchase or lease target housing that is not otherwise an exempt transaction 

pursuant to Sec. 745.101. Nothing in this section implies a positive obligation on the seller or 

lessor to conduct any evaluation or reduction activities.

 (1) The seller or lessor shall provide the purchaser or lessee with an EPA-approved lead 
hazard information pamphlet. Such pamphlets include the EPA document entitled Protect Your 

Family From Lead in Your Home (EPA 747-K-94-001) or an equivalent pamphlet that has been 

approved for use in that State by EPA.

 (2) The seller or lessor shall disclose to the purchaser or lessee the presence of any known 

lead-based paint and/or lead-based paint hazards in the target housing being sold or leased. The 

seller or lessor shall also disclose any additional information available concerning the known 

lead-based paint and/or lead-based paint hazards, such as the basis for the determination that 

lead-based paint and/or lead-based paint hazards exist, the location of the lead-based paint and/or 

lead-based paint hazards, and the condition of the painted surfaces.

 (3) The seller or lessor shall disclose to each agent the presence of any known lead-based paint 

and/or lead-based paint hazards in the target housing being sold or leased and the existence of 

any available records or reports pertaining to lead-based paint and/or lead-based paint hazards. 

The seller or lessor shall also disclose any additional information available concerning the 

known lead-based paint and/or lead-based paint hazards, such as the basis for the determination 

that leadbased paint and/or lead-based paint hazards exist, the location of the lead-based paint and/or 

lead-based paint hazards, and the condition of the painted surfaces.

 (4) The seller or lessor shall provide the purchaser or lessee with any records or reports 

available to the seller or lessor pertaining to lead-based paint and/or lead-based paint hazards in 

the target housing being sold or leased. This requirement includes records or reports regarding 

common areas. This requirement also includes records or reports regarding other residential 

dwellings in multifamily target housing, provided that such information is part of an evaluation 

or 

reduction of lead-based paint and/or lead-based paint hazards in the target housing as a whole.

 (b) If any of the disclosure activities identified in paragraph (a) of this section occurs after the 

purchaser or lessee has provided an offer to purchase or lease the housing, the seller or lessor 

shall complete the required disclosure activities prior to accepting the purchaser's or lessee's offer 

and allow the purchaser or lessee an opportunity to review the information and possibly amend 

the offer.

Sec. 745.110 Opportunity to conduct an evaluation.

 (a) Before a purchaser is obligated under any contract to purchase target housing, the seller 

shall permit the purchaser a 10-day period (unless the parties mutually agree, in writing, upon a 

different period of time) to conduct a risk assessment or inspection for the presence of lead-based 

paint and/or lead-based paint hazards.

 (b) Not withstanding paragraph (a) of this section, a purchaser may waive the opportunity to 

conduct the risk assessment or inspection by so indicating in writing.

Sec. 745.113 Certification and acknowledgment of disclosure.

 (a) Seller requirements. Each contract to sell target housing shall include an attachment 

containing the following elements, in the language of the contract (e.g., English, Spanish):

 (1) A Lead Warning Statement consisting of the following language:

 Every purchaser of any interest in residential real property on which a residential dwelling was 

built prior to 1978 is notified that such property may present exposure to lead from lead-based 

paint that may place young children at risk of developing lead poisoning. Lead poisoning in 
young children may produce permanent neurological damage, including learning disabilities, 

reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also 

poses a 

particular risk to pregnant women. The seller of any interest in residential real property is 

required to provide the buyer with any information on lead-based paint hazards from risk 

assessments or 

inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. 

A risk assessment or inspection for possible lead-based paint hazards is recommended prior to 

purchase.

 (2) A statement by the seller disclosing the presence of known lead-based paint and/or 

lead-based paint hazards in the target housing being sold or indicating no knowledge of the 

presence of lead-based paint and/or lead-based paint hazards. The seller shall also provide any

additional information available concerning the known lead-based paint and/or lead-based paint 

hazards, such as the basis for the determination that lead-based paint and/or lead-based paint 

hazards exist, the location of the lead-based paint and/or lead-based paint hazards, and 

the condition of the painted surfaces.

 (3) A list of any records or reports available to the seller pertaining to lead-based paint and/or 

lead-based paint hazards in the housing that have been provided to the purchaser. If no such 

records or reports are available, the seller shall so indicate.

 (4) A statement by the purchaser affirming receipt of the information set out in paragraphs 

(a)(2) and (a)(3) of this section and the lead hazard information pamphlet required under 15 

U.S.C. 2696.

 (5) A statement by the purchaser that he/she has either:

 (i) Received the opportunity to conduct the risk assessment or inspection required by Sec. 

745.110(a); or

 (ii) Waived the opportunity.

 (6) When one or more agents are involved in the transaction to sell target housing on behalf of 

the seller, a statement that:

 (i) The agent has informed the seller of the seller's obligations under 42 U.S.C. 4852d; and

 (ii) The agent is aware of his/her duty to ensure compliance with the requirements of this 

subpart.
 (7) The signatures of the sellers, agents, and purchasers certifying to the accuracy of their 

statements to the best of their knowledge, along with the dates of signature.

 (b) Lessor requirements. Each contract to lease target housing shall include, as an attachment 

or within the contract, the following elements, in the language of the contract (e.g., English, 

Spanish):

 (1) A Lead Warning Statement with the following language:

 Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and 

dust can pose health hazards if not managed properly. Lead exposure is especially harmful to 

young children and pregnant women. Before renting pre-1978 housing, lessors must disclose the 

presence of lead-based paint and/or lead-based paint hazards in the dwelling. Lessees must also 

receive a federally approved pamphlet on lead poisoning prevention.

 (2) A statement by the lessor disclosing the presence of known lead-based paint and/or 

lead-based paint hazards in the target housing being leased or indicating no knowledge of the 

presence of lead-based paint and/or lead-based paint hazards. The lessor shall also disclose any 

additional information available concerning the known lead-based paint and/or lead-based paint 

hazards, such as the basis for the determination that lead-based paint and/or lead-based paint 

hazards exist, the location of the lead-based paint and/or lead-based paint hazards, and the 

condition of the painted surfaces.

 (3) A list of any records or reports available to the lessor pertaining to lead-based paint and/or 

lead-based paint hazards in the housing that have been provided to the lessee. If no such records 

or reports are available, the lessor shall so indicate.

 (4) A statement by the lessee affirming receipt of the information set out in paragraphs (b)(2) 

and (b)(3) of this section and the lead hazard information pamphlet required under 15 U.S.C. 

2696.

 (5) When one or more agents are involved in the transaction to lease target housing on behalf 

of the lessor, a statement that:

 (i) The agent has informed the lessor of the lessor as obligations under 42 U.S.C. 4852d; and

 (ii) The agent is aware of his/her duty to ensure compliance with the requirements of this 

subpart.

 (6) The signatures of the lessors, agents, and lessees, certifying to the accuracy of their 

statements, to the best of their knowledge, along with the dates of signature.

 (c) Retention of Certification and Acknowledgment Information.

 (1) The seller, and any agent, shall retain a copy of the completed attachment required under 

paragraph (a) of this section for no less than 3 years from the completion date of the sale. The 

lessor, and any agent, shall retain a copy of the completed attachment or lease contract 

containing the information required under paragraph (b) of this section for no less than 3 years 

from the commencement of the leasing period.

 (2) This recordkeeping requirement is not intended to place any limitations on civil suits under 

the Act, or to otherwise affect a lessee's or purchaser's rights under the civil penalty provisions of 

42 U.S.C. 4852d(b)(3).

 (d) The seller, lessor, or agent shall not be responsible for the failure of a purchaser's or 

lessee's legal representative (where such representative receives all compensation from the 

purchaser or lessee) to transmit disclosure materials to the purchaser or lessee, provided that all 

required parties have completed and signed the necessary certification and acknowledgment 

language required under paragraphs (a) and (b) of this section.
Sec. 745.115 Agent responsibilities.

 (a) Each agent shall ensure compliance with all requirements of this subpart. To ensure 

compliance, the agent shall:

 (1) Inform the seller or lessor of his/her obligations under Secs. 745.107, 745.110, and 

745.113.

 (2) Ensure that the seller or lessor has performed all activities required under Secs. 745.107, 

745.110, and 745.113, or personally ensure compliance with the requirements of Secs. 745.107, 

745.110, and 745.113.

 (b) If the agent has complied with paragraph (a)(1) of this section, the agent shall not be liable 

for the failure to disclose to a purchaser or lessee the presence of lead-based paint and/or 

lead-based paint hazards known by a seller or lessor but not disclosed to the agent.

Sec. 745.118 Enforcement.

 (a) Any person who knowingly fails to comply with any provision of this subpart shall be 

subject to civil monetary penalties in accordance with the provisions of 42 U.S.C. 3545 and 24 

CFR part 30. (b) The Secretary is authorized to take such action as may be necessary to enjoin 

any violation of this subpart in the appropriate Federal district court.

 (c) Any person who knowingly violates the provisions of this subpart shall be jointly and 

severally liable to the purchaser or lessee in an amount equal to 3 times the amount of damages 

incurred by such individual.

 (d) In any civil action brought for damages pursuant to 42 U.S.C. 4852d(b)(3), the appropriate 

court may award court costs to the party commencing such action, together with reasonable 

attorney fees and any expert witness fees, if that party prevails.

 (e) Failure or refusal to comply with Sec. 745.107 (disclosure requirements for sellers and 

lessors), Sec. 745.110 (opportunity to conduct an evaluation), Sec. 745.113 (certification and 

acknowledgment of disclosure), or Sec. 745.115 (agent responsibilities) is a violation of 42 

U.S.C. 4852d(b)(5) and of TSCA section 409 (15 U.S.C. 2689).

 (f) Violators may be subject to civil and criminal sanctions pursuant to TSCA section 16 (15 

U.S.C. 2615) for each violation. For purposes of enforcing this subpart, the penalty for each 

violation applicable under 15 U.S.C. 2615 shall not be more than $11,000 for all violations 

occurring after July 28, 1997; all violations occurring on or prior to that date are subject to a 

penalty not more than $10,000.

[61 FR 9085, Mar. 6, 1996, as amended at 62 FR 35041, June 27, 1997]

Sec. 745.119 Impact on State and local requirements.

 Nothing in this subpart shall relieve a seller, lessor, or agent from any responsibility for 

compliance with State or local laws, ordinances, codes, or regulations governing notice or 

disclosure of known lead-based paint or lead-based paint hazards. Neither HUD nor EPA 

assumes any responsibility for ensuring compliance with such State or local requirements.