Sellers beware, if you have “defective paint” in areas of your home, FIX IT before its to late, otherwise you could be risking the closing of your home!
Last week an FHA appraisal was completed for a subject property our buyers came to terms on located on the eastside of Cincinnati. 24 hours after the appraisal report was submitted to the lending institution and reviewed by the loan processor, a note containing the below language was submitted to my office:
URAR : Improvements – Physical Deficiencies or Adverse Conditions
DETERIORATED PAINT SURFACES OBSERVED IN SEVERAL AREAS OF THE PROPERTY.
DWELLING WAS CONSTRUCTED PRIOR TO
1978 AND THEREFORE, DETERIORATED PAINT SURFACES ARE CONSIDERED TO BE A
POTENTIAL LEAD BASED PAINT HAZARD.
ALL DETERIORATED PAINT MUST BE REMOVED AND SURFACES MUST BE SUBSEQUENTLY
RESEALED. EXAMPLES OF
DETERIORATED PAINT SURFACES NOTED ARE AS FOLLOWS: GUTTER/FASCIA BOARDS OF
DETACHED WORKSHOP, EXTERIOR
WINDOW PANES, GARAGE DOOR, KICK PLATE OF REAR DOOR, DOORS OF WORKSHOP,
EXTERIOR OF BASEMENT WINDOWS. SEE
ATTACHED PHOTOS FOR EXAMPLES OF DETERIORATED PAINT SURFACES OF SUBJECT
PROPERTY. PLEASE NOTE THAT NOT ALL
AREAS HAVE BEEN PHOTOGRAPHED, BUT A REPRESENTATIVE NUMBER OF AFFECTED AREAS
ARE SHOWN. ALL AREAS ARE
RECOMMENDED TO BE ADDRESSED IN COMPLIANCE WITH EPA GUIDELINES FOUND AT
Without a moment of hesitation we started building the solution, we pride ourselves on resources, problem solving and limiting hassle. Simply painting the areas seems like the common sense approach from a sellers position, however the point of health and safety standards for you clients in addition to what the appraisers expectations are should be the primary focus. If you read the EPA standards on solving such an issue, purchasing a gallon of paint, brushes and a ladder just wont correct the requirements for the EPA or FHA. Leaving the paint chips on the ground below the noted areas is cause for even a greater issue “FHA will require me to note the paint chips on the ground, and they will follow that note with a mandate for soil testing”, and yea- he was serious!
Seller and agents: Take note of areas requiring paint, especially on home built prior to 1978, and correct them BEFORE you list the property. Correcting the distressed areas will save you the sale of your home and potentially thousands of dollars. Realtors, be sure to survey exterior painted areas prior to drafting a contract, use this reference for negotiations if needed, the above content is the law and you will look like a hero!
We are currently working together to correct the issue on our subject property, I see nothing more then perhaps a delay in closing day however these are guidelines that can cause bigger issues if you don’t know about them! Avoid being blindsided by a report that could have been corrected prior.