EnvironmentalIntermediateCalifornia Exam

What is the significance of lead-based paint in residential real estate transactions?

AIt increases property value for older homes, under California environmental disclosure law
BFederal law requires disclosure of known lead-based paint in homes built before 1978; buyers have a right to a 10-day inspection periodCorrect
CLead paint is only regulated in commercial buildings, as required under standard hazard disclosure practice
DIt must be disclosed only if the paint is visibly peeling, consistent with California environmental regulations

Why Federal law requires disclosure of known lead-based paint in homes built before 1978; buyers have a right to a 10-day inspection period Is Correct

Answer B: Federal law requires disclosure of known lead-based paint in homes built before 1978; buyers have a right to a 10-day inspection period

Under the Residential Lead-Based Paint Hazard Reduction Act, sellers and landlords of housing built before 1978 must disclose known lead-based paint hazards and provide buyers/tenants with an EPA lead pamphlet. Buyers of pre-1978 homes have a 10-day period (unless waived) to conduct lead inspections.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

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