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Vermont Lead Law Real Estate Transaction Disclosures Healthvermont Demand Assistance

everyone paulvitch eski your real estate.instructor my goal in life is to keep.you out of real estate jail alright this.video is going to be covering the.lead-based paint.documents a lead-based paint disclosures.are required for any home that's for.sale or for rent for options in any.involved in any transaction where the.home is built prior to 1978 okay I have.just a little bit of sidebar here before.we get into this and to illustrate how.important this form is as an investor as.a real estate managing broker I can tell.you there's no form in real estate there.is nothing in real estate that scares me.except lead-based paint issues and I'll.tell you why as tragic as it is if I.owned a rental property and there's a.fire fire and my tenant dies it is.tragic however I have insurance I have.enough insurance that's going to be able.to cover any losses financially that I.may sustain or otherwise the problem.with lead-based paint is number one most.states your errors and omissions.insurance will not cover any any aspect.of enforcement number two is the the.there's a they call it the cert la la.CER si la I'll spare you what the the.acronym stands for but it allows the the.federal courts to dissolve things like.LLC's and S corporations and those type.of things.to go after people's personal finances.to punish them for children for example.that may have turned up they've suffered.sustained some kind of injury due to.lead-based paint now I don't want to.minimize how important this topic is.lead-based paint is very important it's.very deadly it is very very harmful to.humans and pets.it takes very little amount for that to.happen I understand all that we're not.going to get into the risk the the the.lead remedies and those are remediations.and those type of things we're only.going to get into what's required from.you as a real estate agent or property.manager or land.regarding this form how to complete it.and and so I want to start with this.this is the easiest form that I have.found in most real estate packets to.complete it is very simple follow the.directions precisely as they are on the.form if you do that there is absolutely.no issues if the auditor comes knocking.okay now what we're seeing here is that.there's a couple of different forms.throughout this video that we're going.to be looking at the first one is the.lead based paint disclosure for the.buyer-seller we're gonna be looking at.the lead based paint disclosure for the.landlord and the tenant we're gonna look.at the protect your family from lead.brochure and then also what you need to.have in your lease agreement okay so.let's get started first of all I want.you to understand how an audit happens.whether you're a landlord whether your.real estate broker it doesn't matter.one day unannounced the auditor is going.to show up from the EPA they're going to.show you identification and and they'll.say I want to see all your real estate.transactions on the rental side the sale.side whatever for the last three years.the EPA only can go back three years.okay the first notion typically is four.I mean the first instinct is to say.sorry talked to my attorney well if you.do that they're gonna hand you this nice.little business card to their office of.counsel in Chicago where you're gonna be.able to call an attorney there and say.you know what's up with this and they're.gonna inform you that quite frankly if.you don't comply you're risking.obstruction of justice you have a right.to your day in court you have a right to.due process but it is post investigation.meaning you must comply what the.auditors show them what they want then.if you disagree with any findings that.they may put on the Notice of Violation.if you get one then you have your right.to due process and go to court it's sort.of like if you get arrested it's not the.cops job to adjudicate guilt or innocent.their job is to write you the ticket and.then if you don't agree with it you can.go to court and fight it okay that's the.first thing you have to understand.so if the auditor knocks at the door and.shows up comply that's the first thing.the second thing is is as they go.through the files we want to make sure.that from a risk management point of.view there are no issues that they can.write you up for now having said that I.need you to be very very clear here I.have a ton of experience through my.consulting business deal dealing with.EPA auditors every auditor has their own.interpretation of what things should.look like and how they should be filled.out okay.so have I'm gonna I'm giving you the.general baseline here all right so keep.that in mind and as I'm gonna illustrate.this as this goes on so here's the first.thing we're gonna deal with the lead.based paint disclosure for the buyer and.the seller this entire form comes from.the code of federal regulation you.cannot change it in any way you want to.make sure that you're using the most.up-to-date disclosure form that's the.first thing I typically get mine right.from the EPA website all right if you're.doing a sales transaction make sure.you're using the right form if you're.doing the rental transaction make sure.you're doing the right form failure to.use the right form can be an $11,000.Notice of Violation.now here is the lead warning statement.which is required to be on this document.okay oh one other thing under the code.and most auditors have this opinion and.that is you cannot write on this.whatsoever.anything that's not already basically.fill in the blank you cannot put a form.number down here or nothing if you do.that is a potential Notice of Violation.I actually there was a big deal with the.office in Kansas City a few years ago.where they didn't even want you writing.the property address on this form.obviously we all know the issues with.that but I will tell you that as a.general you're usually allowed to put.the I I recommend you put the the.address on here so so then you can.obviously match the form with the.property so let's go through here this.is the cell.the seller has under the Code of Federal.Regulations certain duties the purchaser.has certain duties as well the listing.agent has duties and then the.certification of accuracy we're gonna.talk about each one of these.step-by-step excuse me let's talk about.the seller what's the sellers duty.the sellers duty is to answer a and B.and then provide any documentation or.known hazards that's their duty so the.seller is going to and let's read that.this is very important let's look at a.presence of lead-based paint and or.lead-based paint hazards what does it.say to do it says to check i or ii i.below so that means we need to check.here or we need to check here i have.actually seen numerous notice of.violations for monitors that said did.that had where the the landlord err that.the seller had put in x or they put an.initial and they were giving a Notice of.Violation.because they did not complete the.instructions okay so the point I'm.trying to tell you is this form needs to.be completed exactly as it says here if.it says put a check we put a check if it.says put it initial we put an initial.all right so the sellers disclosure.let's look at I a I known lead-based.paint and or lead based paint hazards.are present that is not a presumption do.you have actual knowledge that there is.lead-based paint in their actual.knowledge comes through testing if.you've never had it tested you only have.hearsay there is no actual knowledge and.the fact that it was built prior to 78.does not reach the threshold of.disclosure in and of itself let's look.at the second one or the seller has no.knowledge of lead-based paint typically.that's the one that is checked B records.and reports available to the seller what.do we do again we check the seller has.provided the purchaser of all available.records or the seller has no records.again the seller puts to check there.I want to jump down here if you're the.listing agent you represent the seller.your obligation and this this part here.is for the listing agents initials.because what does it say to do right.here it says initial the listing agent.their duty it basically says that they.are they are confirming that they have.informed the seller of their obligation.under 42 United States Code section 48.52 what is that obligation to fill out.this part and provide any reports that's.really it so your job is the listing.agent to say hey mr. and mrs. seller we.need to complete this all right real.quickly if if you co list so me this is.all about what's on your listing.contract so if there are two listing.agents then there has to be two initials.here otherwise you risk an $11,000.Notice of Violation as of today those.fines can change as of right now it's 11.grand all right.two listing agents two initials all.right let's go up to the purchaser side.no notice we're here it kind of switches.the purchasers acknowledgement what's.the purchaser have to do they have to.initial so we went from checking up here.back to initially the purchaser has.received copies of all the information.listed above what does that mean the.purchaser has received any and all.information provided by the seller here.the number one question I get on that.form is what should go here should the.what do they mean by that well I can't.answer that for you as a broker as a.property manager landlord you're gonna.have to make a decision.I've seen some auditors and I've talked.to some auditors and I've taught I've.talked to to a director of enforcement's.in two different EPA regions some take.the position that whether there are.reports or not they still are.acknowledging that they've received this.information above that there is no.reports other auditors say you put in a.or leave a blank if there are no report.it really is that subjective.unfortunately I can't give you an answer.so you're gonna have to talk to your.broker or whatever you do be consistent.with it D the purchaser has received the.pamphlet protect your family from lead.in your home that is this pamphlet right.here now a couple of things number one.is this the the versions change all the.time so you want to make sure that.you're providing your client your a.buyer with the latest version if you.give them the wrong version that's a.notice of violation that's the first.thing.all right secondly is we want to make.sure no I'm sorry here let's get to.those buyer seller there we go we want.to make sure that we give it to them and.notice it says purchaser has received if.there are two purchasers on the purchase.agreement there must be two initials two.purchasers so if there's three.purchasers on the purchase agreement.then there has to be three purchasers.and I'll tell you why I have actually.seen notice of violations from clients.from the EPA that there was only one.purchase or one one initial here and.there were two purchasers on the.purchase agreement and they were given a.notice of violation because there they.were missing and initial and here's the.kicker they were missing an initial on.see that's one notice of violation they.were missing a notice of violation I.mean an initial on D that's two notice.of violations see how that works and.it's all at the discretion of the.auditor you can literally on one.transaction literally could have.hundreds of thousands of dollars in.notice of violations I've actually seen.it alright so let's go to e.e now nodes notice we're back to check.not initial the purchaser must check.whether or not they want to have the.10-day opportunity to have a risk.assessment done or they're going to.waive it a couple of things here number.one it's one check if there's three.purchasers we don't need three checks.only one check.that that's one thing I can tell you.secondly is it is not an option.if the buyer has the sole and exclusive.right under the code to to do this now.what can be negotiated is that ten-day.opportunity you can negotiate a.three-day seven-day the buyer and seller.can negotiate it I just want you to.understand this you a buyer or a seller.cannot cannot under federal law turn.down a purchase agreement from a buyer.because they are asking for a risk.assessment let me repeat that federal.law protects the buyer they cannot a.seller cannot reject a purchase contract.from a buyer solely because they want to.have a risk assessment all right what.you have to do then if you're on the.list side has come up with another.legitimate reason to reject the offer.the law does say that if it's a multi.offer situation and one does have a.request for a risk assessment and one.does not that the seller can legally.take the one without but if it's only.one offer and they are asking for it.they cannot so keep that in mind very.important all right we already talked.about the agents acknowledgement now.let's go down here the the certification.certification is very important it's.this is where everybody signs and this.is typically where I find the mistakes.if there are any everybody how many.sellers sell sign this document all the.sellers so if there are two sellers on.the listing contract then we need to.have two sellers here if that LLC has.five members and there's not one member.that is the signature Authority so all.five have to sign we have to have five.signatures here failure to have those.signatures each one that's missing can.be an individual notice of violation if.there are two listing agents there has.to be two listing agent signatures and.then obviously the the buyer's agent has.to.sign this the point is is be very very.detailed on this form I cannot think I.cannot emphasize that enough it's very.important that's all we're going to talk.about here that is the lead based paint.disclosure form for the buyer and the.seller my next video is going to be the.lead based paint form for the.landlord-tenant so once again I'm Paul.the Chesky thanks for joining us until.next time.

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