New York Property Condition Disclosure Law has a major change coming to real estate transactions in New York. New York State law requires sellers of residential real estate to provide potential buyers with a Property Condition Disclosure Statement. This statement aims to inform buyers about the condition of the property to the best of the seller’s knowledge.
So what changed?
There are seven new questions and categories related to the property’s flood condition. Starting on March 20, 2024, home sellers of 1 – 4 family homes will also no longer have the ability to opt out of completing the disclosure. The legislation removes the option in current law for the buyer of residential real property to receive a $500 credit in lieu of receiving the completed Property Condition Disclosure Statement (PCDS). In December 2022, the PCDS was amended to require sellers to disclose any indoor mold history. This took effect as of June 14, 2023.
Here are some key points about New York’s Property Condition Disclosure Law:
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Who Needs to Fill Out the Disclosure Form?
The law applies to sellers of one to four-unit residential properties. Certain types of properties are exempt from this requirement, such as newly constructed homes never occupied by the seller and properties transferred by court order or foreclosure. For a full list of exemptions, click here.
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Contents of the Disclosure Form:
The disclosure form includes information about the property’s structural integrity, environmental conditions, utilities, appliances, and other essential features. Sellers will be expected to disclose any known issues or defects. Special inspections are not required to uncover latent defects.
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Delivery of the Disclosure Form:
Sellers must provide the completed disclosure form to potential buyers before the signing of the contract of sale. Buyers then have the opportunity to review the information and potentially negotiate any concerns or issues before finalizing the sale.
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Legal Implications of the Disclosure Form:
Sellers will be obligated to answer the questions on the disclosure form truthfully and to the best of their knowledge. Intentionally providing false information or omitting known defects could lead to legal consequences, such as lawsuits from buyers for fraud or misrepresentation.
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Seller’s Responsibility for Updates:
Updating the disclosure form if new information about the property’s condition becomes available before the sale closes.
It’s important for both buyers and sellers in New York to understand their rights and obligations under the Property Condition Disclosure Law. Real estate transactions can be complex, and consulting with a qualified real estate attorney or agent can help ensure compliance and protect your interests. Keep in mind that laws and regulations may change over time, so it’s a good idea to verify any information with up-to-date legal sources or professionals familiar with New York real estate law. If your thinking about selling your home, check out my Tips for Home Sellers!
View the Property Condition Disclosure by clicking here
Have more questions with the new law? Click here to check out this article written by NY Real Estate Attorney John Dolgetta, Esq.
