9. Real Estate Disclosure Recommendations

Over the course of its deliberations, the Task Force discussed Washington State real estate disclosure practices related to lead-based paint (in part as a response to the Residential Lead-Based Paint Reduction Act of 1992-Title X) as well as similar types of environmental disclosure forms used elsewhere around the country. Current Washington State disclosure practices are centered around the mandatory use of the Real Property Transfer Disclosure Statement (WAR Form D-5 and NWMLS Form 17) for one to four single-family properties and the Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards for homes built prior to 1978. The Real Property Transfer Disclosure Statement requires sellers to disclosure any knowledge of the presence of hazardous substances (including soils with concentrations of hazardous substances above cleanup levels). Although it is not typical for sellers and real estate professionals to use the Lead-Based Paint and Lead-Based Paint Hazards booklet to address elevated levels of lead in soil, the definition of "lead-based paint hazard" in the Residential Lead based Paint Reduction Act of 1992-Title X includes "any condition that causes exposure to lead from lead-contaminated dust, lead-contaminated soil, and lead-contaminated paint that is deteriorated or present in accessible surfaces. . .that would result in adverse human health effects as established by the appropriate Federal agency."

Recommendations

Real estate transactions create another important opportunity to educate Washington State residents about low-to-moderate arsenic and lead soil contamination and ways to protect themselves, their families, and others from potential exposure to such contamination. The Task Force supports the use of real estate disclosure practices to raise Washington State residents' awareness of potential lead and arsenic contamination on properties. To help enact these practices, the Task Force recommends that the Agencies take the following specific steps:

• Encourage the Washington Association of Realtors to work with interested legislators to enact legislation requiring a real property transfer disclosure statement for open land (in addition to the existing requirements for residential properties) and encourage the voluntary use of the existing seller's property condition report for open land until such legislation is adopted. For example, in Chelan County, a voluntary environmental disclaimer form is used during real estate transactions to inform sellers and buyers of potential local environmental conditions including orchards, mold, and radon.
  
• Work with and through the Washington Association of Realtors to strongly encourage real estate agents to use the lead-based paint disclosure form and the EPA lead pamphlet for all transactions (not simply sales of homes built before 1978) or use similar disclosure documentation for the potential presence of contaminated soils where area-wide soil contamination is likely.
  
• Support the Washington Association of Realtors to create an education course for real estate agents about area-wide soil contamination or to incorporate relevant Task Force findings and recommendations (such as those contained in the Area-Wide Soil Contamination Toolbox [Appendix K]) into realtors' existing course materials.
  
• Encourage the Washington Association of Realtors to draft an article highlighting the Task Force's findings and recommendations, including key elements of individual protection measures, for the Washington Realtor.
  

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