> At Home Around the Chesapeake Bay: "Covet Thy Neighbor's Stuff: Lead Paint Will Get You Money for Your Own Stuff"

Tuesday, April 1, 2014

"Covet Thy Neighbor's Stuff: Lead Paint Will Get You Money for Your Own Stuff"

Non-Compliant Landlords Take Heed: Lawyers Poised to Find Deep Pockets for Lead Paint Poisoning Blame

One Maryland law firm targets those coveting Cadillac Escalades and McMansions with dreams of big pay-offs under the lead paint law.

At least one Maryland law firm is banking on making money from the lead paint law by seeking potential victims through a highly visible advertising campaign. The series features a child looking out their chipped paint-covered window frame at their neighbor's symbols of status and money. As if the image alone is not enough, the tag line: "Your Future is Brighter than Lead Paint" cinches the message and creates a call to action.

Posters authorized by this law firm are plastered all over public transportation outlets as part of a major advertising campaign to target potential clients--residential property renters.

As many of you may already have read my prior post, Maryland State changed the laws regarding lead paint in rental properties back in 2012. (Read my prior post)

In the 2012 law change, several things changed:
  1. Maryland lifted the previous cap on total liability damages that could be imposed on a landlord from $17,000 to unlimited;
  2. The statute of limitations is open-ended. An individual (or family member) may sue the landlord from the date of learning of alleged complications from lead paint. Theoretically, this means that a child exposed to lead paint when 10 years old may become a plaintiff against the landlord at 25 years old after learning of developmental issues from potential exposure to lead paint during childhood. Unfortunately, this may be costly and difficult for a landlord to defend 15 years later and further prove that it was not the landlord's specific property exposing the plaintiff to lead paint poisoning. (Several cases are currently active that mirror this theoretical scenario.)
  3. Any and all parties to the rental may be named parties to the lawsuit long after ownership in the property and whether or not the parties are still in business and/or still actively licensed professionals.
    • The landlord (or estate) can be sued.
    • The property manager who participated in the rental can be sued.
    • The real estate agent who participated in the rental can be sued.
    • The real estate brokerage can be sued.
Obviously, the potential liability and cost to defend this type of lawsuit could be enormous. Furthermore, there is no insurance coverage available to protect an owner in a lead paint lawsuit nor does the broker's errors & omissions insurance provide coverage in this situation.

Should a landlord cast their cares to the wind and decide to take the risk to rent without a lead free certificate, it's a decision that they do so alone. Champion Realty, Inc. will not provide rental brokerage nor property management services for any property built before 1979 that has not been tested and received a Maryland Lead-Free Certificate. The risks are simply not worth the potential ramifications.

Landlords: Obtain a Lead-Free Certificate on all rental properties built in or before 1979

Due to these reasons, I strongly urge all my landlord clients to have their rental properties built in 1979 or earlier tested by a Maryland-approved lead paint inspector, have any lead paint found completely removed and then re-tested to obtain the Maryland Lead-Free Certificate. The costs related to do so are nominal compared to the unknown and open-ended liability not to do so.

Every day, I am completely amazed at the sheer number of rental properties still out here today--more than two years after passage of this revised law--represented by other brokers, agents and/or property management companies. These companies fail their clients, and fail to provide a fiduciary duty to protect and educate their clients of the potential ramifications. If they fail their client in something of this magnitude, in what other areas are they failing their clients?

Landlords: Provide safe housing to your tenants!

No one wants to find out that their lack of care or negligence resulted in ruining a child's life. Lead paint poisoning is serious and completely preventable. This is one situation where an ounce of prevention is the only way to avoid lead paint poisoning because there is no cure. Landlords and their representatives who provide housing without regard for the safety and well-being of their tenants deserve to be brought to task. Don't say you didn't know. Ignorance is never a good defense.