Many children are poisoned each year by eating lead-based paint. In an attempt to address this problem, the federal government has issued regulations imposing strict requirements on the sale or lease of residential property constructed prior to 1978. There are no exceptions for churches or other nonprofit organizations. Church leaders need to be aware of these requirements whenever they sell or lease church-owned residential property. Failure to comply with these requirements can result in substantial liability, including “triple damages.”

Here is a checklist of steps that church leaders can take to reduce the risk of liability based on the Residential Lead-Based Paint Hazard Reduction Act.

1. Buying residential property. Church leaders should be certain that the seller is complying with the Residential Lead-Based Paint Hazard Reduction Act whenever the church is buying residential property constructed prior to 1978. It is important to note that the Act does not require sellers to remove lead-based paint from their property, or inspect their property for the existence of lead-based paint. Rather, they are only required to notify a buyer of any known lead-based paint or lead-based paint hazards on the property so that the buyer can make an informed decision regarding acquisition of the property and be alerted to any potential health problems in the future.

The fact that a seller is not aware of the presence of any lead-based paint on his or her property does not mean that the property is free of this hazard. The Act gives buyers a 10-day right of inspection to look for the presence of lead-based paint or lead-based paint hazards before becoming obligated under a contract to purchase residential property. A buyer can waive this right. Church leaders should be sure the seller is complying with the Act. Also, it is wise to review the seller’s disclosures, exercise the right of inspection, and consult with an attorney.

Be sure to consult with an attorney concerning your rights, and the potential risks the church faces if lead-based paint is found on the property. This is very important if the church will be renting the property, or making it available as a parsonage.

2. Selling residential property. Church leaders should be certain that they are complying with the Residential Lead-Based Paint Hazard Reduction Act whenever the church is selling residential property constructed prior to 1978. Note the following:

3. Renting residential property. Church leaders should be certain that they are complying with the Residential Lead-Based Paint Hazard Reduction Act whenever the church is renting residential property constructed prior to 1978. It is important to note that the Act does not require lessors to remove lead-based paint from their property, or inspect their property for the existence of lead-based paint. Rather, they are only required to notify a lessee of any known lead-based paint or lead-based paint hazards on the property so that the lessee can make an informed decision regarding rental of the property and be alerted to any potential health problems in the future. As with selling a residential property, church leaders should use a real estate agent, comply with the act, and consult with an attorney concerning your responsibilities under the Act.

4. Insurance. Discuss with your insurance agent the availability of insurance coverage in the event that the church is sued as a result of lead paint poisoning, or violating the Residential Lead-Based Paint Hazard Reduction Act.

5. Rental of church property by outside groups. Churches may be liable for lead-based paint poisoning when they rent non-residential church property to outside groups, such as a preschool or head start program. Be sure to check with your insurance agent about coverage for such a risk.

6. State and local regulations. Many state and local governments have enacted their own regulations addressing lead-based paint hazards, and it is important for church leaders to consider the application of these additional regulations whenever they buy, sell, or lease property.

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