Understanding New York’s Property Condition Disclosure Act

Updated September 13, 2026

New York’s Property Condition Disclosure Act requires many sellers of one-to-four-family residential property to provide a completed Property Condition Disclosure Statement before the buyer signs a binding contract. Major amendments that took effect March 20, 2024 eliminated the former $500 credit that sellers often used instead of delivering the form and expanded the disclosure questions concerning flood risk.

What the Disclosure Statement Covers

The current statutory form contains 56 questions addressing ownership, environmental conditions, structural components, and mechanical systems. It asks about matters such as easements, boundary issues, hazardous substances, water damage, pests, the roof, foundation, plumbing, heating, electrical service, sewage systems, and other known conditions.

The 2024 amendments added more detailed questions about FEMA flood zones, federal flood-insurance requirements, prior disaster assistance, existing flood insurance, elevation certificates, and previous flood claims. These questions are especially important for Long Island properties where coastal and drainage risks may not be obvious during a showing.

The $500 Opt-Out Is Gone

Before March 20, 2024, a seller could generally decline to provide the statement and give the buyer a $500 credit at closing. That option was repealed. A covered seller must now deliver the disclosure statement before the buyer signs the contract.

The Form Is Based on the Seller’s Actual Knowledge

The statement is not a warranty and does not require the seller to conduct an inspection to complete it. It asks for conditions and information actually known to the seller. If the seller later learns something that makes a prior answer materially inaccurate, a revised statement must be delivered as soon as practicable, but no revision is required after transfer of title or the buyer’s occupancy, whichever occurs first.

Willful Failure Can Create Liability

The law provides that a seller may be liable for actual damages caused by a willful failure to perform the disclosure requirements. It also preserves other legal causes of action and remedies. A careless or intentionally incomplete answer can therefore create consequences beyond the closing itself.

The Form Does Not Replace Due Diligence

Buyers should not treat the disclosure statement as a substitute for a home inspection, environmental testing, flood-zone research, title review, municipal searches, or a survey. The statute says the same thing: the form reports the seller’s actual knowledge and is not a guarantee of the property’s condition.

Some Properties and Transfers Are Exempt

The Act does not apply to every transaction. The statutory definitions and exemptions cover particular property types and transfers, including certain fiduciary, court-ordered, foreclosure-related, family, condominium, and cooperative transactions. The exemption should be confirmed for the specific deal rather than assumed.

For help preparing for a New York residential closing or evaluating disclosure issues, call Taub & Bogaty, PLLC at (516) 531-2500 or visit https://www.realestatelawny.com/contact