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You can sell a house with lead paint, but there are several requirements. If you are aware that lead paint exists anywhere in the home, you must disclose that to potential buyers. Required home inspections will often uncover lead paint, especially for older houses where lead paint may still be a problem. If you have taken steps to encapsulate lead, you should provide buyers with full documentation of the project so it won’t cause any problems later on.

According to the Environmental Protection Agency (EPA), hazardous waste is generally classified into four main categories:

1. Characteristic Wastes: These exhibit at least one of four hazardous traits: ignitability (flammable, like gasoline), corrosivity (can rust or decompose materials, like car batteries), reactivity (unstable and can explode, like aerosol cans), or toxicity (harmful when ingested, like lead-based paint).

2. Listed Wastes: These are specific wastes from manufacturing and industrial processes that the EPA has officially designated as hazardous. They include byproducts from processes that use solvents, pesticides, and other chemicals.

3. Universal Wastes: These are commonly generated hazardous items that are subject to streamlined regulations. Examples include batteries, pesticides, mercury-containing equipment (e.g., bulbs), and some lamps.

4. Mixed Wastes: This category includes waste that contains both hazardous and radioactive components, making it subject to regulation by both the EPA and the Nuclear Regulatory Commission.

Lead toxicity comes from inhaling lead or consuming it. Before the 1980s, when the government banned lead from consumer use, it could be found in paint, plumbing, pipes, ceramics, and even gasoline. Lead paint is toxic for the same reason lead itself is toxic, which is why lead poisoning from paint presents the same as lead poisoning from water or food sources, with a slight increase in respiratory symptoms vs. digestive symptoms. Lead paint is most dangerous when it’s old and peeling, cracking, or otherwise disturbed. This increases the concentration in the air and, therefore, in breathable air. 

Iron sediments from rusty pipes are not likely to cause health problems. While a glass of yellow-hued water is off-putting, it is generally safe to drink yellow water in the short term. But you certainly want to address this problem. In the meantime, switching to bottled water until the yellow water issue is resolved is a good idea.