Every seller of residential property in New York State must sign a Property Condition Disclosure Statement and ensure a copy is delivered to the buyer, or buyer’s agent, prior to the signing (by the buyer) of a binding contract of sale. A copy of the Property Condition Disclosure statement, containing the signatures of both seller and buyer, must be attached to the New York Real Estate purchase contract.

Who fills out the form?

All sellers of existing 1-4 family homes and town-homes must complete and sign the Property Condition Disclosure Statement.

Are there any exemptions?  

Exemptions include:

• New construction (never inhabited)
• Condominium units and cooperative apartments
• Commercial properties
• Foreclosed properties
• Multi-family dwellings (i.e. 5 + units)
• Vacant land
• Transfer due to court order (i.e. estate, bankruptcy, eminent domain, divorce decree) HUD properties or government entities
  Vacant Land

What are the seller’s responsibilities?

The seller must truthfully complete and sign a Property Condition Disclosure Statement based on the seller’s actual knowledge of the condition of the property. As mentioned above, the disclosure statement must be delivered to the buyer or buyer’s agent before the buyer enters a purchase and sale contract in New York State.

What is actual knowledge?

Sellers must answer the questions based upon their actual knowledge at the time of signing the Property Condition Disclosure Statement. The seller is under no obligation to conduct any type of inspection of the property or to check public records in an effort to complete the Property Condition Disclosure Statement.

What are the agent’s responsibilities?

The listing broker is obligated to inform the seller of the seller’s requirement to complete the Property Condition Disclosure Statement.

In New York, an agent representing a buyer must inform the buyer of the buyer’s right to receive the Property Condition Disclosure Statement before the buyer enters a purchase and sale contract. If a buyer is not  represented by an agent, the seller’s agent must inform the buyer of the buyer’s right to receive the Property Condition Disclosure Statement before the buyer enters a purchase and sale contract. The seller and buyer must sign the Property Condition Disclosure Statement, and a copy of the disclosure statement must be attached to the purchase and sale contract.

Should this form take the place of a home inspection or other testing?

Absolutely not! On the contrary, the Property Condition Disclosure Statement strongly urges buyers to have a home inspection performed as well as other professional and environmental tests.

Does the Property Condition Disclosure statement create a warranty?

No, not at all. The New York Property Condition Disclosure Statement clearly explains that the statement does not serve as any kind of warranty by the seller or by any agent representing the seller in the transaction.

What if the seller discovers a defect after the seller has already completed the disclosure statement and has delivered it to the buyer?

If a seller in New York State acquires knowledge that renders inaccurate a previous disclosure statement, the seller must complete and deliver a revised to the buyer as soon as possible. Under no circumstances is the seller required to provide a revised Property Condition Disclosure Statement to the buyer after transfer of title or after the buyer takes occupancy of the property.

Is New York the only State with this requirement?

On the contrary, almost 30 states have mandatory seller’s Property Condition Disclosure Statement. The general experience in other States has been very positive. The consensus has been that it does not in any way hinder the transaction. All parties agree that their level of satisfaction with the transfer process has been enhanced through the use of the Property Condition Disclosure Statement.

What if I find out the seller supplied false information?

A knowingly false or incomplete statement by the seller may subject the seller to claims by the buyer prior to or after the transfer of title.

* For a copy of the property condition disclosure document click the link.  Dos-1614-f-property-condition-disclosure-statement_06.2023.pdf

Anyone wanting all the details of the Condition Disclosure Statement you can find all the information here: https://nysba.org/pcda-amended-500-seller-credit-deleted-and-additional-questions-added-to-pcds/  In short, the law changed in March 2024.

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