Three federal rules follow every sale, and two of them put duties on the agent, not only on the seller: the lead-based paint disclosure for homes built before 1978, and the Fair Housing Act's limits on what you say, show, and advertise. The third, FIRPTA, decides when a buyer must hold back tax from a seller who is a foreign person.
Every fact links to its source. Checked Oct 3, 2026
Lead-based paint disclosure for homes built before 1978
The rule covers "target housing": housing built before 1978. Housing for the elderly or for persons with disabilities, and 0-bedroom dwellings such as studios, are not target housing, unless a child under 6 lives there or is expected to live there. (Source: eCFR)
Before the buyer is obligated under the contract, the seller must: disclose any known lead-based paint and lead-based paint hazards; give the buyer the available records and reports; give the buyer a lead hazard information pamphlet; give the buyer a 10-day opportunity for a risk assessment or inspection; and attach the required disclosure and warning language to the contract. (Source: eCFR)
The pamphlet is EPA's "Protect Your Family From Lead in Your Home", or an equivalent pamphlet that EPA approved for use in that state. (Source: eCFR)
If any disclosure step happens after the buyer makes an offer, the seller must complete the disclosure before accepting the offer, and must let the buyer review the information and possibly amend the offer. (Source: eCFR)
The seller must give the buyer a 10-day period to get a lead-based paint inspection or risk assessment. The parties may agree in writing on a different period. The buyer may waive the opportunity in writing. (Source: eCFR)
Each sales contract must include an attachment with: the Lead Warning Statement in the words the regulation gives; the seller's disclosure, or a statement that the seller has no knowledge; a list of the records given to the buyer; the buyer's statement that they received the information and the pamphlet; the buyer's statement that they had or waived the inspection opportunity; the agent's statement; and the signatures and dates of the sellers, agents, and buyers. (Source: eCFR)
Under this rule, an "agent" is any party who contracts with the seller, or with the seller's representative, to sell the target housing. A buyer's representative who receives all compensation from the buyer is not an "agent" under this rule. (Source: eCFR)
Each agent must ensure compliance. The agent must tell the seller about the seller's duties, and must make sure the seller did them or personally make sure they are done. (Source: eCFR)
The seller and any agent must keep a copy of the completed attachment for at least 3 years from the date the sale is completed. (Source: eCFR)
A person who knowingly violates the rule is jointly and severally liable to the buyer for three times the buyer's damages. (Source: eCFR)
The Fair Housing Act: who is protected and what an agent may not do
The federal Fair Housing Act bans housing discrimination because of race, color, national origin, religion, sex, familial status, and disability. (Source: HUD)
Familial status means one or more children under 18 who live with a parent, a person with legal custody, or that person's designee with written permission. The protection also covers a person who is pregnant or who is getting legal custody of a child under 18. (Source: Cornell LII)
Because of a protected class, it is unlawful to refuse to sell or rent after a bona fide offer, to refuse to negotiate, or to set different terms, conditions, privileges, services, or facilities. (Source: eCFR)
Because of a protected class, it is unlawful to tell a person that a dwelling is not available for inspection, sale, or rental when it is available. (Source: Cornell LII)
Blockbusting is unlawful: for profit, trying to make a person sell or rent by talking about people of a protected class moving into the neighborhood. (Source: Cornell LII)
Disability discrimination includes refusing reasonable accommodations in rules, policies, practices, or services, and refusing reasonable modifications of the premises at the disabled person's expense, when they may be necessary for that person to use and enjoy the dwelling. (Source: Cornell LII)
A person whose business includes selling, brokering, or appraising residential real property may not discriminate in those transactions because of a protected class. (Source: Cornell LII)
An owner who sells their own single-family house can be exempt from parts of the Act under conditions in the statute. The exemption does not apply when the owner uses the sales services of a real estate broker, agent, or salesperson. (Source: Cornell LII)
A person may file a complaint with HUD no later than one year after the discriminatory housing practice happened or ended. (Source: Cornell LII)
On September 17, 2025, HUD withdrew several fair housing guidance documents, including its April 29, 2024 guidance on advertising through digital platforms, its 2020 guidance on requests for an animal as a reasonable accommodation, and its 2021 notice on implementing Executive Order 13988. HUD says guidance documents do not create duties beyond the statutes, the regulations, and binding court decisions. (Source: HUD)
Discriminatory advertising and steering
It is unlawful to make, print, or publish, or cause to be made, printed, or published, any notice, statement, or advertisement for the sale or rental of a dwelling that shows a preference, limitation, or discrimination because of a protected class, or an intention to do so. (Source: eCFR)
The advertising rule covers all written and oral notices and statements by a person who sells or rents a dwelling. Written notices include applications, flyers, brochures, deeds, signs, banners, posters, and billboards. (Source: eCFR)
Words, phrases, photographs, illustrations, symbols, or forms that say a dwelling is or is not available to a group because of a protected class are discriminatory. (Source: eCFR)
It is discriminatory to express to agents, brokers, employees, prospective sellers or renters, or any other person a preference for or a limitation on any buyer or renter because of a protected class. (Source: eCFR)
It is discriminatory to select media or locations for housing ads that deny a part of the housing market information about housing because of a protected class. (Source: eCFR)
The owner's single-family exemption never covers the advertising ban in 42 U.S.C. 3604(c). (Source: Cornell LII)
Steering is unlawful: because of a protected class, restricting or trying to restrict a person's choices, by word or conduct, so as to keep or tend to keep housing segregated, or to discourage or obstruct choices in a community, neighborhood, or development. (Source: eCFR)
Steering includes discouraging a purchase or rental because of a protected class by exaggerating drawbacks or by not telling a person about desirable features of a dwelling, community, neighborhood, or development. (Source: eCFR)
Steering includes telling a prospective buyer that they would not be comfortable or compatible with the current residents of a community, neighborhood, or development because of a protected class. (Source: eCFR)
Because of a protected class, it is unlawful to use codes to segregate or reject buyers or renters, to refuse to take or show listings in certain areas, or to refuse to deal with certain brokers or agents because of their clients. (Source: eCFR)
FIRPTA withholding when the seller is a foreign person
When a foreign person sells or otherwise disposes of a U.S. real property interest, the Foreign Investment in Real Property Tax Act (FIRPTA) requires income tax withholding. (Source: IRS)
A foreign person is a nonresident alien individual, a foreign corporation that has not elected to be treated as a domestic corporation, a foreign partnership, a foreign trust, or a foreign estate. A resident alien individual is not a foreign person. (Source: IRS)
In most cases, the buyer is the withholding agent. The buyer must find out whether the seller is a foreign person. If the seller is a foreign person and the buyer does not withhold, the buyer may be held liable for the tax. (Source: IRS)
The withholding rate is generally 15% of the amount realized (10% for dispositions before February 17, 2016). The amount realized is the cash paid or to be paid (principal only), plus the fair market value of other property transferred, plus any liability the buyer assumes or the property is subject to. (Source: IRS)
Withholding is generally not required when the buyer acquires the property for use as a residence and the amount realized (the sales price) is not more than $300,000. The buyer must be an individual, and the buyer or a family member must have definite plans to live there for at least 50% of the days the property is used in each of the first two 12-month periods after the transfer. Notification requirements still apply. (Source: IRS)
When the buyer acquires the property for use as a residence and the amount realized is more than $300,000 but not more than $1,000,000, the withholding rate is 10% instead of 15%. (Source: Cornell LII)
Withholding is not required when the seller gives the buyer a certification, under penalties of perjury, that the seller is not a foreign person. The certification should contain the seller's name, U.S. taxpayer identification number, and home address. The seller may give it to a qualified substitute, such as the person responsible for closing. (Source: IRS)
If the seller's agent or the buyer's agent knows that the seller's certification is false, the agent must tell the buyer, or the agent is liable for the tax. The agent's liability is limited to the compensation the agent receives from the transaction. (Source: IRS)
The buyer reports and pays the withheld tax to the IRS on Form 8288, with Form 8288-A for each seller, generally by the 20th day after the date of the transfer. (Source: IRS)
A reduced withholding amount may be allowed when the IRS accepts an application for a withholding certificate on Form 8288-B. (Source: IRS)
Not in this lesson
State seller disclosure forms and other state disclosure duties: your state guide.
State and local fair housing laws: your state guide.
Lead-safe renovation, repair, and painting work: a certified contractor.
Whether a seller is a foreign person, withholding certificate applications, and the seller's own tax return: a tax adviser.
Whether a specific ad, statement, or practice breaks the Fair Housing Act: your broker and an attorney.
Agency, buyer agreements, brokerages, and taxes on the agent's own income: the other lessons.
The steps of a sale, the Loan Estimate and the Closing Disclosure, RESPA, and wire fraud: the lesson "How a home sale works, from first contact to closing".
Reddy University
Try it with Reddy
Reddy handles the paperwork side of real estate: deadlines, documents, drafts, and reminders. Ask it something like:
“Read my listing description and point out any words that state a preference about who should live there.”
“Make a document checklist for a listing built before 1978.”
