Modern homes are built to comply with modern rules, which means that lead pipes or asbestos insulation shouldn’t be present inside a brand-new property.

Of course, homeowner-directed renovations can still pose a risk to buyers, but these risks typically relate to mistakes made in the course of a do-it-yourself project. Older homes, in contrast, often contain features and make use of materials that are subject to strict regulations today but were once incredibly commonplace. 

Asbestos, for instance, was once widely used to fireproof and reinforce homes. 

We know today that asbestos is a dangerous carcinogen, but that wasn’t always the case. According to some sources, more than 30 million homes nationwide—homes that are lived in, and homes that are on the market—are contaminated by asbestos-based building materials. 

Undisclosed renovations not only risk inadvertently upsetting old asbestos and other dangerously degraded toxins like lead and aluminum, but they could expose homeowners and real estate agents to the very real possibility of litigation.  

At the federal level, there is no single, one-size-fits-all definition of what constitutes a home renovation.

Instead, “home renovation” is a broad term that is often used to describe almost any alteration to an existing property, structure, or exterior feature. 

Any of the following types of projects could be considered renovations: 

  • The modification of property features, including expansions
  • The removal of building components such as walls, ceilings, and windows
  • Weatherization and code-compliance projects 

An expanded version of this definition is used by the U.S. Environmental Protection Agency to enforce the Lead Renovation, Repair, and Painting Rule. Similar rules apply to renovations that risk upsetting other toxins, like asbestos. 

However, in both cases—that of lead paint, and that of asbestos—regulations tend to apply to contractors rather than individual homeowners. Unless prohibited hy a state-specific law or local ordinance, most people don’t need permission to conduct minor renovations. 

The Renovation and Risk Disconnect in Real Estate Sales

The Latest Research on Asbestos and Home Sales

In a commissioned survey of adults and prospective homeowners, AsbestosClaims.law found that asbestos can be a big sticking point for buyers, of whom about: 

  • 36% said they’d only purchase an asbestos-impacted property if the seller or contractor paid for removal. 
  • 35% said they’d probably walk away from the deal entirely, even if the seller offers to remediate
  • 17% said they’re not sure how they’d respond 
  • 12% said they’d still probably purchase an asbestos-affected home and pay for monitoring and abatement out-of-pocket

Concerns about asbestos and other toxins are anything but rare, but most states don’t require testing, even after homeowners make extensive renovations or rebuild after a wildfire or other natural disaster. 

Of the homeowners surveyed, only: 

  • 19% said they tested for toxins before a minor renovation
  • 15% said they tested for toxins before a major renovation
  • 8% said they testified for toxins after their home was damaged by a wildfire, flood, or other natural disaster
  • 6% said they tested for toxins before rebuilding a damaged or destroyed home
  • 4% said they tested for toxins before demolishing their home or another prominent property feature 

The relatively small percentage of homeowners who do their due diligence in identifying and addressing toxin-related risks isn’t a byproduct of some sort of societal neglect: nearly half of all homeowners conceded they’d never realized testing could be necessary, whereas about 30% said they delegated responsibility for risk identification and mitigation to an insurance company or third-party contractor. 

The Big Problem with Undisclosed Renovations

Homeowners may not always have a legally-binding duty to report renovations to the government, but that doesn’t mean they get a free pass when it comes time to set sail and sell their property. 

In fact, most states, from California to Texas and Rhode Island, have statutes that very specifically detail the rights and responsibilities of homeowners throughout the sales process. 

If you’re selling a home, for instance, you’ll probably have to complete a disclosure documenting any known structural hazards. A good example of this principle can be found in Texas’s state property code. Under Tex. Prop. Code § 5.008(e), disclosures must include information on: 

  • The utilities and appliances being sold with the home
  • Defects to and malfunctions of the property’s interior walls, exterior walls, roof, and plumbing system
  • The presence of dangerous conditions that threaten structural integrity, such as wood rot and termite infestations 
  • The presence of conditions that could threaten occupants’ safety, including asbestos, lead-based paint, and old aluminum wiring

States that require seller’s disclosures don’t typically prosecute homeowners who deliberately omit or misrepresent information about their properties, but they can—and often do—allow buyers who’ve suffered injuries as the direct result of an omission or misrepresentation to take legal action against the person, or party, who caused their injuries. 

Of course, nobody, not even the government, expects ordinary homeowners to remove every possible source of danger on a for-sale property. You usually have to be upfront and honest, but you can’t be held liable for a buyer’s asbestos removal-related expenses if you explicitly told them about contamination before closing.   

The Duty to Disclose and Warn

A problem for many US Homeowners: It can be difficult to determine what information, if any, needs to go into a disclosure in the first place.

“If there’s lead paint, sellers are required to disclose it,” says asbestos litigation attorney Justinian C. Lane. “A 2020 CDC report found a worrisome increase in cases of asbestos-related mesothelioma among homemakers, so the data shows there is a problem. We need the real estate, construction, and inspection industries to close this gap. Right now, most people don’t even know what questions to ask.” 

The problem for homeowners, real estate brokers, and contractors is that not knowing what questions to ask can create a very real and very dangerous long-term risk of legal liability.