The new Maryland Lead Paint Laws went into effect on January 1, 2012. Since many of the homes in Maryland were built prior to 1979, changes to this law are expected to have a substantial impact to owners, landlords, property managers and leasing agents of those that are rentals.
These changes arose from a recent Maryland ruling concluding that existing Lead Paint remedies and owner limitations related to permanent brain damage incurred from a child ingesting lead paint were unconstitutional and violated Article 19 of the Maryland Declaration of Rights. Article 19 provides (1) a right to remedy for an injury to one’s person or property and (2) a right of access to the courts.
The provisions of the Reduction of Lead Risk in Housing Act (“the Act”) had previously provided immunity to landlords from tort liability who were in compliance with the Act’s requirements. An injured person could sue an owner up to a maximum remedy of $17,000.
However, the recent law change has lifted the liability cap and eliminated the statute of limitations.
What this Means to Maryland Real Estate Agents, Property Managers & Leasing Agents
The term “owner” now includes the actual property owner and any person or firm, property manager, leasing agent and/or authorized agent of the owner. Agent of the owner is defined as the listing agent, the leasing agent and/or property managers. This means that any "agent of the owner" now can also be included in a lead paint damage lawsuit.
Since there is no statute of limitations, the current wording indicates that a lawsuit could effectively be brought against all involved parties at any time in the future -- even if the agents have retired from the business.
It is also likely that your Errors & Omissions insurance will not cover this type of lawsuit. However, you should check with your E&O insurance company for further details regarding coverage on this matter.
Meanwhile, I'd advise all Maryland agents and property managers to be vigilant when considering taking a listing or an application for any property older than 1979 without due diligence.
Due diligence includes making sure that the owner has registered, done the necessary work to be in compliance with the MDE regulations and obtained a lead-free certificate from the MDE.
Before you list a property for rent built prior to 1979, be sure the owner contacts the Maryland Department of the Environment (MDE) to obtain an MDE Lead-Free certificate not just a Lead-Safe certificate.
To obtain a Lead-Free certificate, owners are required to have the property inspected by an MDE qualified lead inspector to identify lead risks. If the property is found to have lead, all sources must be eliminated and the property deemed free of lead before issuance of the MDE Lead-Free certificate. Lead hazard reduction treatments must be performed by an MDE accredited contractor.
As an additional step as a listing or as a leasing agent, I would further recommend that you contact the MDE yourself to verify that any documents provided by the owner are still valid and no issues have been identified since issuance.
If the owner has not and refuses to comply with the MDE lead paint laws, walk away. It's too risky to put your professional license and future on the line.
For more information, call the MDE at 410-537-3000 or visit their website at http://www.mde.state.md.us/.
