An insider at the Environmental Protection Agency in Washington says it is getting ready to file dozens of lead-based paint non-disclosure complaints around the country -- the first of hundreds of lawsuits expected to be filed because of what he said is "widespread" non-compliance with the law.

The indication of more lead-based paint disclosure actions follows the filing of complaints in early September against two Indiana real estate brokers. One of those complaints is moving toward settlement and negotiations have begun in the other.

Nationwide, the Washington source said, hundreds of inquiries currently are under review and several dozen cases will likely be filed in the next few months.

"From what we've seen, there is a lot of compliance" with lead-based paint disclosure rules, said the source, "but there is also widespread non-compliance. What we're getting is people calling us, saying never knew anything about the disclosure (requirement) until after they bought the house. They want to know what they should do."

Federal disclosure laws require real estate brokers and leasing agents to provide a lead-based paint information pamphlet to anyone considering the purchase or lease of a home or apartment built before 1978. The law also requires agents and owners to disclose any information they already have about lead-based paint in the dwelling. The law states that failure to provide the pamphlets and disclosures are violations of the law - regardless of whether there is any actual lead-based paint found in the home.

The disclosure rules were implemented on March 6, 1996, but enforcement nationwide is just beginning to gear up. Said the Washington insider, "We feel there's been ample time for (agents) to become informed about the law and get whatever education they need. It's time for enforcement."

Earlier this summer the EPA's Chicago regional office filed complaints against Bob Barber and Tom Lawson Century 21 of North Vernon, Ind.; and Ric Temple and Paul Nay & Associates of Seymour, Ind.

Scott Cooper, the Chicago-based EPA case worker who was instrumental in the Indiana case, said in that instance the home buyers were advised there was no lead-based paint in their home. Later investigation showed levels of lead-based paint that were 13 times acceptable levels.

The EPA has proposed an eight-count, $36,300 penalty against the seller's agents, Bob Barber and Tom Lawson Century 21, and a seven-count, $29,700 penalty against the buyer's agents, Ric Temple and Paul Nay & Associates.

Under the law, the civil liability for failing to meet the requirements is up to $36,000 per transaction. That does not begin to estimate, however, the possible court awards to owners after filing their own lawsuits to recover damages.

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Published: October 4, 1999

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