The NJ lead safe law is over two (2) years old with an initial deadline of July 22, 2024, the law extended the deadline to July 2025. The lead law only affects rental properties, and the typical sale agreement lacks language regarding lead safe certifications. Curren is finding that rental properties are being sold without the current owner providing a lead safe cert and the parties involved with the transaction are oblivious to the lead safe certification requirements.
The landlord (owner) is responsible for obtaining the lead safe cert.
The first inspection deadline is 7/22/25. All sites must have a lead safe cert by July 22, 2025.
The lead safe cert is good for three years and must be obtained by July 22, 2025, or earlier if a tenant vacates before that date.
The issue is that the law is so new that agreements of sale lack language regarding the responsibility of providing/obtaining the lead safe cert prior to settlement.
Curren has found numerous properties being sold and the lead safe certs are not obtained by the buyers, placing the burden on the new owner. While this is legal if tenant occupancy has not changed since July 22, 2022, buyers are not happy.
We have also found sites that had failed lead inspections and were sold without notification to the buyers. For example, a site had a lead inspection that failed and was sold. The buyers were not informed of the failure. But now own a property that is lead unsafe.
Who is responsible for addressing the reinspection? The owner is responsible. If the seller warrants that there were no outstanding violations, then the agreement of sale language requires the seller, who could also be the old owner, to address the failed lead inspection.
Obtaining the lead safe cert burdens the buyer with the cost of the inspection and addressing any fails, meaning addressing lead paint hazards and subsequent reinspection and dust wipe sampling. Buyers are acquiring fully leased apartment buildings, some with long-term tenants making the sale attractive as it provides immediate cash flow. Long-term occupied units have a higher tendency to fail lead inspections due to tenant wear and tear. Hence the value of buying a property with a lead safe cert.
Since the initial deadline for the cert was July 22, 2024 (since changed to July 22, 2025), I expect most on-the-ball owners would already have the cert. Countless landlords have expressed frustration with the law and the desire to sell the rental units before a triggering event.
If you are a real estate professional or attorney, consider amending the agreement of sale to require a lead safe certificate as part of the transaction. Simple wording can save your buyer thousands of dollars.
A savvy buyer can also perform their lead safe inspection during due diligence, if the failure occurs, they are held responsible for addressing the repair.
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New Jersey's Lead Paint Law FAQ (Frequently Asked Questions)