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The contract calls for mutual specific performance. This means that after all of the conditions have been met, if one or the other party decides that they do not want to go through with the transaction, the damaged party can force that person to close the transaction or be asking for a law suit. This does not mean that if something is wrong with the house, or the buyer cannot get financing he is liable for suit. But, once the conditions in the contract have been met, or a party does not proceed with the requirements of the contract, then that person is liable.

In lieu of suit, the buyer can give to the seller the earnest money. If this is done, both parties have to agree to cancel the contract and sign an earnest money release. If neither party can agree, and the buyer wants the earnest money returned, the title company does not have to return the money until it is settled. The seller cannot resell the house until the earnest money is released since that would be like having a contract with two parties at the same time. For this reason it is difficult to collect earnest money even if the buyer is in default.

Seller’s Disclosure

This is the form where the seller tells the buyer what he knows about the property. If there are any defects, he must list them in the disclosure. If the drapes don’t stay in the house, he must let the buyer know. Both the buyer and the seller will sign this disclosure. It is very important that this is correctly filled out. I usually do this on my copy while the owner fills out his copy one check at a time. There are more law suits about property condition than any other portion of a real estate transaction in residential real estate. A copy of this form is enclosed.

Lead Based Paint

This form has just been added to the requirements. It states that homes build prior to 1978 may have some or all of the home painted with lead based paint. If further states that they may have an inspection to determine if the house has lead based paint. It asks the agent to give each person a pamphlet regarding lead based paint and sign to acknowledge that they have received the notice about lead based paint.

What is all the fuss about lead based paint? The problem about lead based paint is that it can cause serious health problems. This is particularly a problem with children and it primarily effects the neurological system. So, we want to protect our children and don’t want them damaged by toxic lead in their systems from paint.

How do they get lead in their systems. I am not a doctor nor claim to be an expert in this field. If you want more details on this, I suggest that you get in touch with the environmental protection association (EPA) however, I can give general comments that should be sufficient to make you aware that this problem exists and you need to protect yourself and your family.

Lead based paint is primarily in oil paint It is primarily found in the trim wood in the house and sometime in the outside paint. It is rarely in water based paint.

The paint, as it gets older will oxidize and form a sort of dust. This dust can fall down on the window sills or be washed into the dirt around the house in the case of outside paint. It can chip or deteriorate. If the child gets into the dirt or gets his hands on the dust in the window sill, and ingests the lead, he may be poisoned. It does not take very much toxic lead to damage a child severely.

I have included a copy of the form that a person must sign regarding lead based warning. You will be required to sign the same when you buy a home build prior to 1978. You will also be given a pamphlet that gives you detail about the lead based paint. I will not give a copy of this pamphlet. You may ask your agent for a copy EPA 747 - K - 94 - 001, May 1995.

If there is concern on your part you can have the house inspected. The cost is bout $ 350.00. They will x-ray the paint to find lead based paint. They will give a risk assessment of the home to tell you if there are any sources of serious lead exposure such as peeling paint and lead dust. It will also tell you what actions you should take to address there hazards.

The federal government is writing standards for inspectors and risk assessors. Make sure that you use a professional who comes up to these standards.

What can you do to protect your family?
• Clean up paint chips and repaint and seal peeling paint.
• Clean floors, window frames, window sills, and other surfaces weekly.
• Rinse sponges and mop heads after cleaning
• Keep play areas clean
• Keep children from chewing window sills or other painted surfaces.
• Clean or remove shoes before entering your home to avoid tracking in lead from soil.
• Never sand or use a heat gun where you suspect lead based paint.
• You can call 1-800-424-LEAD to get further information about lead poisoning.