Cal. Civ. Code § 197D
Secured lenders; liability
Operative Text
Section 197D. (a) No secured lender shall be considered an owner for purposes of sections one hundred and eighty-nine A to one hundred and ninety-nine B, inclusive, unless and until such secured lender has acquired legal title pursuant to applicable law, and takes actual physical possession, at which point he shall be considered an owner; provided, however, that a secured lender who has acquired legal title pursuant to applicable law shall be liable in any action brought pursuant to section one hundred and ninety-nine only to the following extent:— Within ninety days after acquiring legal title to a premises in which a child under the age of six resides, such secured lender shall either (i) obtain a letter of interim control pursuant to subsection (b) of section one hundred and ninety-seven, (ii) obtain a letter of full compliance pursuant to subsection (c) of said section one hundred and ninety-seven, or (iii) transfer the property following the procedures required by section one hundred and ninety-seven A. A secured lender who does not take one of such actions within the specified time period shall be fully liable for all damages, including punitive damages, under section one hundred and ninety-nine. (b) A secured lender who has acquired legal title pursuant to applicable law of premises in which any paint, plaster or other accessible structural material contains dangerous levels of lead may recover from the mortgagor any monies expended in bringing the premises into compliance with sections one hundred and eighty-nine A to one hundred and ninety-nine B, inclusive; provided, however, that the mortgagor shall not be liable for such contribution if the mortgagor establishes that no child under six years of age resided in the residential premises while the premises were owned by the mortgagor. (c) For the purpose of this section, the term ''secured lender'' shall mean (1) a person, corporation or other entity which holds indicia of ownership in a residential property primarily to protect that person's security interest in said residential property; (2) two or more persons, corporations or other entities when one holds indicia of ownership in a residential property primarily to protect the other person's security interest in that residential property, if the person, corporation or other entity, holding the indicia of ownership is (a) wholly owned by the person, corporation or other entity holding the security interest, or (b) an affiliate of the person, corporation or other entity holding the security interest and both are wholly-owned, directly or indirectly, by the same person, corporation or other entity and (3) persons, corporations or other entities which hold contractual participation rights in a security interest, and any of the following which hold indicia of ownership in a residential property primarily to protect that security interest: a wholly-owned subsidiary of any such person, corporation, or other entity; an affiliate of any such person, corporation, or other entity if both are wholly-owned, directly or indirectly, by the same person, corporation or other entity; and any entity formed among such persons, subsidiaries, or affiliates.
Mass. Gen. Laws c. 111 § 197D establishes when a secured lender—such as a bank or mortgage holder—becomes legally responsible as an "owner" under Massachusetts lead paint law. A secured lender does not carry owner-level obligations simply by holding a security interest; that status attaches only once the lender has both obtained legal title and taken actual physical possession of the property. Once legal title is acquired and a child under six lives on the premises, the lender has a 90-day window to pursue one of three specified compliance paths under the lead paint statutes, or face full liability including punitive damages.
Plain English — not legal advice.
Secured lenders operating under Mass. Gen. Laws c. 111 § 197D who acquire legal title to a residential property where a child under six resides generally act promptly to determine whether a letter of interim control, a letter of full compliance, or a property transfer following the required procedures can be completed within the 90-day window. Lenders who have expended funds bringing a property into lead-paint compliance under §§ 189A–199B may seek contribution from the prior mortgagor, though that recovery path is limited when the mortgagor can show no child under six lived there during their ownership. Compliance-oriented lenders typically document the date of title acquisition, the occupancy status of the property, and the steps taken within the statutory period to demonstrate adherence to § 197D.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Mass. Gen. Laws c. 111 § 197D, tenants—particularly those with children under six—have an interest in knowing that a secured lender who has taken legal title to their home is subject to lead-paint compliance obligations within 90 days. If a lender fails to obtain the required interim control letter, full compliance letter, or complete a proper transfer within that period, the statute exposes the lender to full damages, including punitive damages, under § 199. Tenants who believe a lender-owner has not met these obligations may consider contacting their local board of health, reaching out to a tenant-rights organization familiar with Massachusetts lead paint law, or exploring whether a violation of § 197D can be raised in any relevant legal proceeding.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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