The "Asbestos Exposure in Housing Reduction Act of 2025" aims to protect individuals from asbestos exposure by requiring comprehensive disclosures during the sale or lease of residential dwellings. Within two years of enactment, the Secretary of Housing and Urban Development and the Administrator of the Environmental Protection Agency must jointly issue regulations to implement these requirements. These regulations will apply to dwellings constructed before 2019.

Under these regulations, sellers and lessors will be obligated to disclose any known asbestos and asbestos-based hazards present in a dwelling. They must also provide any available asbestos hazard evaluation reports to prospective purchasers or lessees. Furthermore, the bill grants purchasers a 10-day period, unless otherwise mutually agreed, to conduct a risk assessment or inspection for asbestos hazards before finalizing a contract.

All contracts for the purchase or lease of a dwelling must include a specific Asbestos Warning Statement, printed in large type on a separate sheet. This statement informs occupants of potential exposure risks, including lung disease and mesothelioma, and recommends a risk assessment. Purchasers or lessees must sign an acknowledgment confirming they have read and understood this warning and had the opportunity for an inspection.

To ensure compliance, agents involved in the sale or lease of dwellings are responsible for fulfilling these disclosure requirements on behalf of sellers or lessors. Violations of these provisions carry substantial penalties, including civil money penalties, injunctions, and civil liability for up to three times the damages incurred by the purchaser or lessee, along with court costs and attorney fees. The bill also classifies non-compliance as a prohibited act under the Toxic Substances Control Act, with penalties up to $10,000.