During a recent training class, the Greenbrier Valley Board of Realtors had a chance to hear about a real estate company's non-compliance with the real estate notification and disclosure rule for lead base paint. The three-hour training class was very informative and provided attendees with enough ammunition (information, that is) to protect them if EPA decides to audit their office.
Cheryl Skiles, WVAR President, and Director of Training and Education for Old Colony Real Estate presented the training. Cheryl is a licensed WV broker with over 18 years of sales experience and ten years of management and training experience.
Cheryl started the class saying "I am here today, on behalf of Old Colony Company, to present this educational outreach program. The purpose of our program today is to present a clear understanding of the Toxic Substance Control Act and the Real Estate Notification and Disclosure Rule for Lead Base Paint."
She went on to say that "while Old Colony Company does and has always respected the disclosure of Lead Base Paint, or any other defect or hazardous condition known about any real estate involved in a transaction",.....she was presenting this FREE class today as a result of the Old Colony Company's failure to fully and accurately comply with the Real Estate Notification Disclosure Rule for Lead Base Paint.
The real "heads up" is that Old Colony thought they were doing it right ... with training sessions available for new agents, talking about it in sales meetings, and even doing some "spot" checking....BUT, what a surprise Old Colony received.....!
A few years ago, Old Colony was paid an unexpected visit by the EPA. The purpose of this visit was an audit of our files to ensure that old Colony was in compliance with "the Rule." Unfortunately for the owners of Old Colony, the audit did not go well. Needless to say, some major lessons were learned during the ensuring months. Going through the Old Colony's files, EPA found disclosure forms incomplete....blanks not filled in, i,e., check marks, initials, signatures, and dates. There are ONLY four sections on this form that MUST be completed...easy YES....but quickly overlooked...
- Sellers Disclosure, (This section MUST be checked or initialed)
- Purchaser's Acknowkedgment (This section MUST be initialed)
- Agents Acknowledgment (MUST be initialed)
- Certification of Accuracy (MUST be signed AND dated by ALL parties)
One major fact Cheryl shared with the class is "if you are audited, your cooperativeness and willingness to work with the EPA auditors will weigh heavily in the determination of your penalities, if you are found not to be in full compliance. At the time of the initial visit, the owners of Old Colony were all out of town. The member of management available to meet with the EPA auditors did not react in the same manner as any of the three major owners would have, had they been available.
- They had to go to court, pay fines and agreed to present today's program, as well as others across the state of West Virginia as part of their restitution."
To protect families from exposure to lead from paint, dust, amd soil, Congress passed the Residential Lead-Based Paint Hazard Reduction Act of 1992, also known as Title X. Section 1018 directed 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.
A review of the "disclosure of Information on Lead-Based
Paint and/or Lead-Based Paint Hazards was discussed, with a fun
exercise for attendees. It was noted during the exercise, that the form did not have a place for the property address, and that the form needed some format and verbage changes. The form MUST be completed, signed and/or initialed in the appropriate line. Fines can be up to $11,000 for missing initials or signatures.
Attendees received a pamphlet, "Protect Your Family From Lead In Your Home".........the pamphlet and disclosure form should be handed to the purchaser with any other documentation from the sellers. This EPA requirement is for all real estate agents, rental property owners and for sale by owners.
Cheryl suggested the following company policy to ensure compliance:
- Education - Offices should provide training on a regular basis to both new and existing agents to ensure they know the rules.
- Company policy - should include a lead-based policy.
- Regular audit of files - Offices should ALWAYS do spot checks; and, hire someone to check all documents.
- Be prepared for an EPA Audit and take it seriously.
For more information, go to EPA's lead website and read the residential lead-based paint disclosure requirements.....and stay in complaince, you never know when EPA may be knocking on your door. This was a great training class and most, if not all the agents, will be checking their folders to ensure that they are in full compliance with the law.
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West Virginia Homes - If I can assist you in any way with your real estate needs in Lewisburg, WV Greenbrier County or the surrounding areas, please feel free to contact me by phone at (304) 520-2133, email me at RebeccaGaujot@gmail.com or visit my website
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