EPA Fines Real Estate Firm $1,300 for Lead Paint Disclosure Failures
Marchant Real Estate, Inc. failed to warn homebuyers about lead hazards in two pre-1978 homes in Greenville, South Carolina, violating federal safety laws designed to protect children from toxic exposure.
Marchant Real Estate, Inc., a Greenville, South Carolina real estate brokerage, violated federal lead disclosure laws by failing to provide required safety warnings and acknowledgments to buyers of two homes built before 1978. An EPA inspection in June 2024 uncovered missing disclosures for properties at 8 Lindberg Avenue and 107 Elm Street, both built in the 1940s and 1950s when lead paint was common. The firm agreed to pay a $1,300 penalty without admitting fault.
Federal lead safety laws exist to protect families. This case shows why enforcement must go further.
The Allegations: A Breakdown
| 01 | Marchant Real Estate sold two pre-1978 homes without including required lead hazard disclosures in the purchase contracts. The properties at 8 Lindberg Avenue (built 1950) and 107 Elm Street (built 1945) were contracted for sale in January 2025 and December 2022 respectively. | high |
| 02 | The firm failed to include a statement by the purchaser affirming receipt of lead hazard information and the required EPA lead hazard pamphlet. This violated 40 C.F.R. Section 745.113(a)(4). | high |
| 03 | Marchant Real Estate omitted a mandatory statement that the agent had informed the seller of their lead disclosure obligations and was aware of the duty to ensure compliance. This violated 40 C.F.R. Section 745.113(a)(6). | high |
| 04 | EPA inspectors requested compliance records on June 5, 2024, giving the firm until July 10, 2025 to submit documents. Marchant Real Estate provided records on July 2, 2024, which revealed the violations. | medium |
| 05 | The company acted as an agent for sellers, entering into contracts to sell residential dwellings classified as target housing under federal law. Target housing includes any home built before 1978, when lead paint was commonly used. | medium |
| 06 | Marchant Real Estate agreed to settle without admitting or denying the factual allegations. The firm consented to pay the penalty and waived its right to contest the violations or appeal the final order. | medium |
| 01 | The Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) requires sellers and agents to disclose known lead hazards and provide an EPA-approved information pamphlet before buyers become obligated under a contract. Congress passed this law to protect children from lead poisoning. | high |
| 02 | Federal regulations at 40 C.F.R. Part 745, Subpart F impose specific requirements on agents who sell pre-1978 housing. Agents must inform sellers of their disclosure duties and personally ensure compliance or verify that sellers have met all requirements. | high |
| 03 | Each contract to sell target housing must include an attachment with the seller’s disclosure statement, a list of available lead hazard records or reports, and a purchaser acknowledgment of receipt. Marchant Real Estate’s contracts lacked these attachments. | high |
| 04 | The EPA has authority under Section 16(a) of the Toxic Substances Control Act to assess civil penalties for violations. Section 409 of TSCA makes it a prohibited act to fail or refuse to comply with Title X or its implementing regulations. | medium |
| 05 | Marchant Real Estate certified at the time of settlement that it was currently in compliance with all relevant requirements of 40 C.F.R. Part 745, Subpart F and the Act. This certification came only after the EPA enforcement action. | medium |
| 01 | Lead-based paint was widely used in residential housing until 1978. Homes built before that year pose a significant risk of lead exposure, particularly to children under six years old who are most vulnerable to lead poisoning. | high |
| 02 | The two properties involved were built in 1945 and 1950, placing them in a high-risk category for lead paint hazards. Buyers purchased these homes without the legally required warnings about potential lead contamination. | high |
| 03 | Federal disclosure requirements exist because lead dust from deteriorating paint can cause irreversible health effects. Children exposed to lead can suffer brain damage, learning disabilities, behavioral disorders, and developmental delays. | high |
| 04 | The law requires agents to provide the EPA lead hazard information pamphlet, which explains testing options, hazard reduction methods, and health risks. Marchant Real Estate failed to ensure buyers received this critical safety information. | high |
| 05 | By omitting purchaser acknowledgment statements, the firm eliminated any documented proof that buyers were informed of lead risks. This deprives families of the opportunity to make informed decisions about testing, remediation, or purchase cancellation. | medium |
| 01 | Marchant Real Estate paid a civil penalty of $1,300 total for two violations affecting two separate families. The settlement required payment within 30 days of the effective date of the consent agreement. | medium |
| 02 | The consent agreement explicitly states that Respondent neither admits nor denies the factual allegations. The firm avoided any formal admission of wrongdoing while accepting the penalty. | medium |
| 03 | Marchant Real Estate waived its right to contest the allegations, waived its right to appeal the final order, and waived any right to challenge the EPA’s authority to bring a civil action in federal court. The settlement became final upon execution by the Regional Judicial Officer. | low |
| 04 | The consent agreement does not require the firm to notify the affected homebuyers about the violations or offer any remediation. There is no provision for outreach to purchasers who may now be living in homes with undisclosed lead hazards. | high |
| 05 | The agreement acknowledges that this enforcement action will be considered part of Marchant Real Estate’s compliance history in any subsequent enforcement actions. The case is now part of the public record. | low |
| 06 | If the firm fails to pay the penalty on time, interest accrues at the U.S. Treasury tax and loan rate. After 90 days, a non-payment penalty of up to 6% per annum applies, plus monthly handling charges for administrative costs. | low |
| 07 | The EPA retains the right to revoke the settlement if it later discovers that Marchant Real Estate provided materially false or inaccurate information. The agency can then reassess civil penalties for the violations described in the consent order. | medium |
| 01 | This case reveals a systemic enforcement gap in the real estate industry. The $1,300 penalty is less than a typical real estate commission on a single home sale, raising questions about whether fines provide meaningful deterrence. | high |
| 02 | Federal law places clear obligations on real estate agents to ensure lead disclosure compliance, not just sellers. Agents must inform sellers of their duties and personally verify compliance or ensure it happens. Marchant Real Estate failed both duties. | high |
| 03 | The settlement closes the case without requiring the firm to identify or contact affected buyers. Families who purchased these homes may never learn that they were denied federally required safety information. | high |
| 04 | EPA Region 4 conducted the inspection at Marchant Real Estate’s Greenville office on June 4, 2024. The final consent agreement and order were filed on September 22, 2025, more than a year after the initial inspection. | low |
| 05 | The consent agreement states that full compliance resolves Marchant Real Estate’s liability only for the specific violations alleged. It does not affect the EPA’s right to pursue injunctive relief, equitable remedies, or criminal sanctions for other violations. | medium |
| 06 | Penalties paid under this agreement are not tax-deductible. The firm certified that it provided true, accurate, and complete information to the EPA, with acknowledgment that false statements carry criminal penalties under 18 U.S.C. Section 1001. | low |
Timeline of Events
Direct Quotes from the Legal Record
“The EPA alleges that Respondent, as agent for the seller of the residential dwellings listed in Paragraph 22, failed to: Include as an attachment to the contracts to sell target housing, a statement by the purchaser affirming receipt of the information required under 40 C.F.R. Β§ 745.113(a)(2) and (a)(3), and the lead hazard pamphlet required under 15 U.S.C. Β§ 2686, in violation of 40 C.F.R. Β§ 745.113(a)(4); and Include as an attachment to the contracts to sell target housing, a statement that the agent had informed the seller of the seller’s obligations under 42 U.S.C. Β§ 4852d; and that the agent was aware of his/her duty to ensure compliance with the requirements of 40 C.F.R. Part 745, Subpart F, in violation of 40 C.F.R. Β§ 745.113(a)(6).”
π‘ This quote specifies exactly what Marchant Real Estate failed to do: provide buyer acknowledgments and agent certifications required by federal law.
“After review of the records, the EPA determined that Respondent had represented the seller for the purpose of selling the residential dwellings that are target housing at the following locations on the specified dates listed below: a. 8 Lindberg Avenue, Greenville, South Carolina 29601, built in 1950, contracted for sale in January 2025; and b. 107 Elm Street, Greenville, South Carolina 29605, built in 1945, contracted for sale in December 2022.”
π‘ Both homes were built decades before the 1978 ban on lead paint, making them high-risk properties where disclosure is legally required.
“Pursuant to 40 C.F.R. Β§ 745.115(a), each agent shall ensure compliance with all requirements of 40 C.F.R. Part 745, Subpart F. To ensure compliance, the agent shall: Pursuant to 40 C.F.R. Β§ 745.115(a)(1), inform the seller of his/her obligations under 40 C.F.R. Β§Β§ 745.107, 745.110, and 745.113. Pursuant to 40 C.F.R. Β§ 745.115(a)(2), ensure that the seller has performed all activities required under 40 C.F.R. Β§Β§ 745.107, 745.110, and 745.113, or personally ensure compliance with the requirements of 40 C.F.R. Β§Β§ 745.107, 745.110, and 745.113.”
π‘ This establishes that real estate agents have direct legal responsibility for lead disclosure compliance, not just sellers.
“The term ‘target housing’ is defined at 40 C.F.R. Β§ 745.103 to mean any housing constructed prior to 1978, except housing for the elderly or persons with disabilities (unless any child who is less than six years of age resides or is expected to reside in such housing) or any 0-bedroom dwelling.”
π‘ Both properties in this case fall squarely within the definition of target housing, triggering all federal disclosure requirements.
“Pursuant to 40 C.F.R. Β§ 745.113(a)(4), each contract to sell target housing shall include an attachment containing the following element, in the language of the contract (e.g., English, Spanish): a statement by the purchaser affirming receipt of the information set out in 40 C.F.R. Β§Β§ 745.113(a)(2) and (a)(3) and the lead hazard information pamphlet required under 15 U.S.C. Β§ 2686.”
π‘ This is one of the two specific requirements Marchant Real Estate failed to include in its sales contracts.
“Pursuant to 40 C.F.R. Β§ 745.113(a)(6), each contract to sell target housing shall include an attachment containing the following element, in the language of the contract (e.g., English, Spanish): a statement that the agent has informed the seller of the seller’s obligations under 42 U.S.C. Β§ 4852d; and that the agent is aware of his/her duty to ensure compliance with the requirements of Subpart F of 40 C.F.R. Part 745.”
π‘ This is the second requirement Marchant Real Estate failed to include, eliminating any record that the agent fulfilled their legal duty.
“For the purpose of this proceeding, as required by 40 C.F.R. Β§ 22.18(b)(2), Respondent: admits that the EPA has jurisdiction over the subject matter alleged in this CAFO; neither admits nor denies the factual allegations set forth in Section IV (Findings of Facts) of this CAFO; consents to the assessment of a civil penalty as stated below; consents to the conditions specified in this CAFO; waives any right to contest the allegations set forth in Section V (Alleged Violations) of this CAFO; and waives its rights to appeal the Final Order accompanying this CAFO.”
π‘ The firm avoided admitting wrongdoing while accepting a penalty and waiving all appeal rights.
“Respondent consents to pay a civil penalty, which was calculated in accordance with the Act, in the amount of ONE THOUSAND THREE HUNDRED DOLLARS ($1,300.00), which shall be paid within thirty (30) days of the Effective Date of this CAFO.”
π‘ The total penalty for two violations affecting two families is $1,300, less than a typical real estate commission.
“In accordance with 40 C.F.R. Β§ 22.18(c), Respondent’s full compliance with this CAFO shall only resolve Respondent’s liability for federal civil penalties for the violations and facts specifically alleged above.”
π‘ The settlement resolves only the penalty; it does not require the firm to notify affected buyers or offer remediation.
“The EPA also reserves the right to revoke this CAFO and settlement penalty if and to the extent that the EPA finds, after signing this CAFO, that any information provided by Respondent was materially false or inaccurate at the time such information was provided to the EPA. If such false or inaccurate material was provided, the EPA reserves the right to assess and collect any and all civil penalties for any violation described herein.”
π‘ The EPA retains enforcement authority if it discovers the firm misrepresented facts during the settlement process.
“by executing this CAFO, certifies to the best of its knowledge that Respondent is currently in compliance with all relevant requirements of 40 C.F.R. Part 745, Subpart F, and the Act; and agrees to comply with the terms of the CAFO.”
π‘ The firm certified compliance only after the EPA enforcement action uncovered the violations.
“Pursuant to Section 1018 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, 42 U.S.C. Β§ 4852d, also known as Title X of the Housing and Community Development Act of 1992, the EPA promulgated regulations at 40 C.F.R. Part 745, Subpart F (40 C.F.R. Β§Β§ 745.100-119) pertaining to the sale of ‘target housing.’ Pursuant to Title X, it is a prohibited act under Section 409 of TSCA, 15 U.S.C. Β§ 2689, for any person to fail or refuse to comply with a provision of Title X or any rule or order issued under Title X.”
π‘ Congress passed Title X specifically to protect children from lead poisoning in pre-1978 housing.
“40 C.F.R. Part 745, Subpart F imposes certain requirements on the sale of target housing. Generally, among other obligations under this Subpart, a seller of target housing shall disclose to the purchaser the presence of any known lead-based paint and/or lead-based paint hazards; provide available records and reports; provide the purchaser with a lead hazard information pamphlet; and attach specific disclosure and warning language to the purchase contract before the purchaser is obligated under a contract to purchase target housing.”
π‘ These requirements give buyers critical information to protect their families from lead exposure before finalizing a purchase.
“This is an administrative penalty assessment proceeding brought under Section 16(a) of the Toxic Substances Control Act (TSCA or the Act), 15 U.S.C. Β§ 2615(a), and Sections 22.13(b) and 22.18 of the Consolidated Rules of Practice Governing the Administrative Assessment of Civil Penalties and the Revocation/Termination or Suspension of Permits, as codified at Title 40 of the Code of Federal Regulations (C.F.R.), Part 22.”
π‘ The EPA has clear statutory authority to assess civil penalties for lead disclosure violations under TSCA.
“This CAFO shall become effective after execution of the Final Order by the Regional Judicial Officer, on the date of filing with the Regional Hearing Clerk.”
π‘ The consent agreement became legally binding on September 22, 2025, when filed with the Regional Hearing Clerk at 9:41 am.
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