FSOB and Real Estate forms: Lead-Based Paint Disclosure Legal; Third-Party Financing Addendum


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Lead-Based Paint Disclosure

The known presence of lead-based paint must be disclosed for all houses, especially those built prior to 1978. The paint that was used in houses built in 1978 or before often contained lead, a substance known to pose certain health risks that result from lead poisoning. The Environmental Protection Agency, or EPA, has issued the following statement pertaining to lead- based paint.

Even’ purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property might 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. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

If your house was built prior to 1978 and you have no knowledge of lead-based paint having been used, there is a place on the form for that. By checking this box, you are not stating that lead-based paint wasn’t used, but rather that you have no knowledge of lead-based paint being used. By the same token, if you are aware of and do have knowledge of lead-based paint being used at one time or another, federal law requires that you disclose this fact.

Third-Party Financing Addendum

The Third-Party Financing Condition Addendum requires that “a buyer shall apply promptly for all financing described and make every reasonable effort to obtain financing approval.” The addendum provides a greater level of detail for buyers seeking such third party financing as a bank loan or mortgage than does the sales contract. The addendum furthermore has provisions for buyers seeking a conventional loan, veteran’s housing assistance, FHA financing, or a VA guaranteed loan. Finally, the form sets forth the terms and conditions required by the buyer to meet his or her financing needs should a third party loan be desired. While this form may or may not be required to sell your house, you should nevertheless be familiar with it in the event additional detail is required for financing provisions.

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