NY Property Disclosure Statement Requirement

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NY Disclosure Form Filled Our By Queens, NY Real Estate Lawyer

What is a Property Condition Disclosure Statement in New York

A Property Condition Disclosure Statement is a Statement that must be filled out and provided to the buyer about the property prior to the Sale. The now revised Statement includes fifty-six questions about the property, including but not limited to:

  • Details about the ownership period
  • Title interest
  • Environmental Factors (hazardous spillage of toxins, flood damage, plumbing problems, etc.)
  • Structural Damages (water damage, fire damage, termite infestation, material defects, etc.)
  • Material Defects in Home Appliance Systems

As of March 20th, 2024, New York’s Property Condition Disclosure Act no longer permits a seller of a residential Real Estate to opt out of delivering a Property Condition Disclosure Statement (the “Statement”) by giving the Purchaser a $500 closing credit. It is now mandatory that the Seller delivers the Statement to the Buyer prior to signing the Contract of Sale.

Can it be exempt?

Yes. A Property Condition Disclosure Statement can be exempt in accordance with the following:

  • A transfer by a fiduciary such as a trustee or executor
  • The transfer of newly constructed property that has never been inhabited
  • A transfer pursuant to a court order.

What sort of property does not require the Statement?

Transfers of condominium units, cooperative apartments and vacant land are not subject to the Property Condition Disclosure Statement; however, it is still best to check with your Real Estate Agent on all requirements necessary prior to the purchase or sale of a property.

What can happen if the Seller lies on the Statement?

In some cases, Sellers lie to a buyer to sell the property at a higher price than it would be, had all the issues been correctly addressed. If you find that the Seller lied on their form you have the right to pursue Legal Action in two different ways, as follows:

  1. Suing for Compensation and Damages: Usually a buyer would receive monetary compensation to fix any problems that the Seller did not disclose. However, if the damages to the property were serious, the buyer can request the court to undo the whole transaction.
  2. Suing for Fraud: Though hard to prove, if you can successfully show that the Seller lied with intent to deceive it may increase your financial compensation because you can be awarded punitive damages.

On top of the Financial and Legal repercussions, the Seller may face Reputational consequences, which can affect future real estate transactions and professional relationships.

How to protect yourself:

The best way to protect yourself is to hire a Real Estate Attorney to guide you through your disclosures. When working with an Attorney it is important to disclose all relevant information about the property, including any known defects or issues.

Link to the form: https://dos.ny.gov/system/files/documents/2024/03/dos-1614-f-property-condition-disclosure-statement_01.2024.pdf