Part 2: Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards

The Disclosure of Information on Lead-Based is a legally required document for any residential property, that is built before 1978 and being sold. The purpose of the form is to inform Buyers of the potential risk(s) of lead-based paint or hazards and gives them the opportunity to test for lead-based paint or hazards during the transaction.

There are 4 main components of the form:

• Seller’s Disclosure: It’s important to note that with the update in 2024, the form now requires the Seller to initial (NOT check off) the sections explained below.

  • Presence of lead-based paint or hazards: The Seller has 2 options here – 1. Seller is aware of lead-based paint or hazards. If this applies, Seller must provide additional information as to what the Seller is aware of; or 2. Seller has no knowledge of lead-based paint or hazards.

  • Records and reports available: Again, the Seller has 2 options – 1. Seller has provided the Buyer with all records and/or reports and they must list the documents that have been provided; or 2. Seller has no records and/or reports.

• Purchaser’s Acknowledgement: There are 3 sections to be completed in this area, which now all require initials, just as with the Seller portion.

  • Purchaser has two options: 1. Received copies of all records and/or reports; or 2. Not received copies of all records and/or reports.

  • Purchaser has received the EPA’s “Protect Your Family from Lead in Your Home”. This is obtained from the Environmental Protection Agency’s (EPA) website and should be provided to the Buyer as early into the buying process as possible. As of the time this was written, the most recent updated copy (English version) is from January 2026. It’s important to check periodically that you are using the most current version.

  • Purchaser has two options: 1. Received a 10-day opportunity (or mutually agreed-upon period) to conduct a risk assessment or inspection; or 2. Waived their opportunity to conduct a risk assessment or inspection.

• Agent’s Acknowledgement:

  • Section (f) is for the Seller’s Agent to initial.

  • Section (g) is for the Buyer’s Agent to initial. But wait! This is a tricky one, as the Buyer’s Agent typically has no direct contact with the Seller to satisfy the terms of this statement. Additionally, the footnote at the bottom states that it’s only required if the Agent receives compensation from the Seller.

However, due to recent changes in how compensation is paid, the Buyer’s Agent is now technically receiving compensation from the Seller.

So, what do you do?

In my opinion, this is a gray area and doesn’t have a clear right answer. I’ve seen Buyer’s Agents initial it anyway—but what are the repercussions if the Seller didn’t complete it properly? I’ve also seen Buyer’s Agents not initial it or write “N/A.” But what are the repercussions if you don’t initial?

Personally, when asked to obtain the Buyer Agent’s initials in that section, I simply state (in email) something to the effect of “To my knowledge, the Buyer’s Agent has not had any contact with the Seller in order to inform them of their obligations under this disclosure.”

• Certification of Accuracy: This is the signature portion where the Sellers, Buyers and both Agents need to sign.

If this form is completed incorrectly or is missing entirely, there can be serious consequences. To avoid this, when drafting or countering an offer, the Agent should always make sure that the disclosure is added via the Addenda section of the Purchase Contract, when applicable. In my experience I find that on the Seller side, it’s best to have the Seller complete a copy of the disclosure at the time of listing so that it’s already on file and on the Buyer side, including a blank copy of the disclosure as part of the offer package. This helps to ensure that it doesn’t get missed.

There are a variety of ways to have the form completed incorrectly – missing initials or signatures in various places for example, however, I found that the most common issue I have seen is that the Buyer is initialing or signing the form when it has not yet been completed by the Seller. This is a big “no no”. The Seller must complete the form before the Buyer completes it. The best way I can describe it would be to have the Buyer sign a blank Seller’s Real Property Disclosure Statement before the Seller completes it. You wouldn’t right? The same principle applies here. I repeat: the Seller must complete the form before the Buyer completes it.

So what happens if the form is missing or done incorrectly? There could be several different outcomes. Some of which include the following:

• Legal & Financial Liability: The disclosure is required on all residential homes being sold that were built before 1978. This is a federal law. If the form that is completed is inaccurate, incomplete or done incorrectly, the Seller and/or Agents could be subject to legal action, including but not limited to, civil penalties. In addition to that, the EPA can impose fines of up to $10,000.00 per violation. Furthermore, if the failure to disclose is found to be intentional, the punishment(s) can be more severe, such as higher fines, criminal charges, damages to the Buyer which could include remediation costs or even healthcare costs.

• Agent Sanctions: Agents who fail to ensure the form has been completed accurately and correctly could face disciplinary action from their local board.

Agents involved in a transaction should work together to ensure that the form is completed correctly and in their respective files to avoid any issues down the road.