Lead Law Update (FAQ Series): Did you know that the City of Philadelphia Lead Law can impact an Agreement of Sale?
The Philadelphia Code – Chapter 6-800. Lead Paint Disclosure and Certification An Ordinance – Bill No. 100011-A
1. Right to Terminate a Purchase Contract or Lease Based on an Inspection or Risk Assessment Report.
In all contracts for the purchase of residential housing constructed prior to 1978, the following must be provided in writing: (1) the buyer has a 10-day period to obtain a comprehensive lead inspection or risk assessment from a certified lead inspector at buyer’s own expense; (2) should the inspection reveal lead- based paint or lead-based paint hazards, the buyer has the right to terminate the purchase contract within five days of receipt of inspection report, with a refund of all deposit moneys paid; (3) buyer’s failure to timely act on (1) and/or (2) above will constitute a waiver of buyer’s right and contract will remain in full force and effect.
For many agreements the following language may be acceptable:
“should the inspection reveal lead- based paint or lead-based paint hazards, the buyer has the right to terminate the purchase contract within five days of receipt of inspection report, with a refund of all deposit moneys paid; buyer’s failure to timely act on and/or above will constitute a waiver of buyer’s right and contract will remain in full force and effect.”
Ensure your buyer is protected by arranging for a lead test within 10 days of the signing of the agreement of sale. This could save the buyer thousands of dollars in negotiating a final price for the property.
Sincerely,
Adam K, Certified Lead Inspector
Lead Testing Services
