Whether you’re buying or selling a home in New York, it’s essential to understand your rights and responsibilities when it comes to property condition disclosures. The New York State Property Condition Disclosure Act (PCDA) outlines specific obligations for home sellers and gives buyers important information to make informed decisions before closing a deal.
What Is the Property Condition Disclosure Act?
The PCDA requires most residential property sellers in New York to complete and deliver a Property Condition Disclosure Statement (PCDS) to the buyer before the signing of a binding contract. This document includes 48 questions about the property’s physical condition, systems, environmental concerns, legal issues, and more.
What Sellers Need to Know
If you’re a seller, you have two options:
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Complete and provide the disclosure form, or
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Choose not to complete it — and instead credit the buyer $500 at closing.
This $500 credit has become standard practice for many New York sellers, especially when they want to avoid the risk of future liability tied to inaccurate or incomplete disclosures. However, if you choose to fill out the form, you are legally bound by the statements you provide. Any intentional misrepresentation could expose you to legal claims later.
Sellers are not required to conduct inspections or research — just disclose what they know based on their experience owning the home.
What Buyers Should Be Aware Of
As a buyer, you should understand that:
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Most sellers opt to pay the $500 credit rather than complete the disclosure form.
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This means it’s critical to conduct your own home inspection with a licensed professional.
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Even if you receive a completed disclosure form, it doesn’t replace the need for due diligence.
Also, if a seller does provide the disclosure and it contains false information, buyers may be able to seek legal remedies, depending on the situation.
When You Should Talk to a Real Estate Attorney
Whether you’re buying or selling, working with a real estate attorney ensures you’re protected throughout the transaction. From reviewing the contract to advising on disclosure risks, an experienced attorney can help you avoid costly mistakes and give you peace of mind.
Protect Your Investment — Work With a Trusted Legal Expert
The property disclosure process in New York can be confusing — but it doesn’t have to be. If you’re entering the real estate market and want to make sure you’re fully compliant and protected, reach out to real estate attorney Anna Gerzon today. Contact us for trusted legal guidance on your next property transaction.
