When a Santa Clara County Superior Court judge ruled recently requiring three major companies to pay $1.15 billion in lead paint remediation, the Los Angeles real estate industry took a collective breath. Roughly 2.6 million LA County homes could be affected by the ruling, and about 5 million statewide. The implications to the real estate market are still unknown, but some experts feel the worst.
The National Mortgage News reported that the remediation efforts could lead to massive disruption to the market as homes built before 1978 (when lead paint stopped being used) would suffer from disinterested buyers when placed on an open market. There is also concern among homeowners and realtors that lenders, insurers and title companies may label such dwellings “public nuisances.”
Though the real impact to the market still remains unknown, LA County braces for the waves of inspectors that will descend soon, spending the $400 million the judge allocated for investigation of lead paint in pre-1979 homes.
Are you living in LA County? Will your home be affected by the ruling? Let us know your thoughts in the comments below.
Credit: National Mortgage News
