Dear Forms Committee: Can a buyer terminate based on the LBP contingency without having a risk assessment done?

Yes, the Lead-based Paint Hazard Rule doesn’t require an assessment. It requires disclosures. The three disclosures sellers must provide are (1) the EPA pamphlet “Protect Your Family from Lead in Your Home,” (2) the Lead-based Paint Disclosure (OREF 021), and (3) any information, records, or reports regarding paint hazards in the housing. Even the EPA’s version of the Lead-based Paint Disclosure Addendum allows buyers to waive the opportunity to conduct an assessment or inspection. The buyer should decide whether they want to check for lead-based paint or paint hazards. OREF 021 – Lead-based Paint Disclosure Addendum follows the EPA rule by not forcing buyers to get an assessment, and the buyer can terminate based on the LBP contingency whether or not they get an assessment. Buyers can terminate during the “LBP Contingency Period” described in the Sale Agreement or any time before sellers make the required disclosures, even just before closing.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.