April 24th, 2017 at 5:25 pm

Question: My client and I were previewing a condominium for lease. My client saw a notice posted in the parking garage stating that the building complex contains chemicals that cause cancer, birth defects, and other reproductive harm. Neither the listing agent nor landlord were aware of the sign or the carcinogens. Was this sign posted because of an actual danger or is it just a preemptive warning?

Answer: We don’t know. You’ve succinctly laid out a major problem with Proposition 65. In 1986, California voters approved the Safe Drinking Water and Toxic Enforcement Act, more commonly known as “Prop 65.” The law aimed to protect people by, among other things, requiring businesses with 10 or more employees to provide a warning about a significant exposure to certain chemicals known to cause cancer, birth defects, or other reproductive harm.

The list of harmful chemicals is compiled by the California’s Office of Environmental Health Hazard Assessment (OEHHA). Over the years, that list has grown to over 900 carcinogens and toxins. Additionally, the penalty for a business’s failure to comply with Prop 65 can be $2,500 per day per violation. Given these circumstances, businesses often err on the side of caution by posting preemptive warnings. This practice is commonly encouraged by sign companies who actively solicit businesses to purchase their ready-made warning signs.

To add to the complexity, Prop 65 has been revised effective August 30, 2018. Existing warning signs may still be permissible, but the safe harbor requirements for a clear and reasonable sign will change. Under the new safe harbor requirements, the sign must generally include the name of one or more chemicals. The sign must also have the word “Warning” in all caps and bold print. It must also contain a black exclamation point in a white or yellow equilateral triangle.

For more information about Prop 65, visit OEHHA’s website . More information about the 2018 revisions is available here.

-Thank you to Michael Tunick (Los Feliz Office) for suggesting this week’s legal tip.

Copyright© 2017 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of April 24, 2017. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.

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