Seller Disclosure Requirements
in New York

Fundamentally, New York's approach to seller disclosure is a unique hybrid, codified in the Property Condition Disclosure Act (PCDA). Countless cases show transactions hinge on the strategic decision this law presents. Sellers of most residential properties (one-to-four family homes) must either provide a comprehensive, 48-question property disclosure statement to the buyer before they sign a binding contract, or offer a credit at closing. This statutory choice creates a fascinating dynamic. Opting for the credit is not an admission of hidden defects, but rather a calculated move to avoid the potential liability of an unintentionally inaccurate or incomplete statement. The New York State Department of State provides the official document, and a buyer's receipt of a completed form triggers a crucial review period. Understanding the implications of providing the form versus the credit is the first critical step in any discussion about seller disclosure in New York.

Within the exhaustive questions of the state's official document, the core of what must sellers disclose becomes glaringly clear. The New York seller disclosure form probes deeply into the property's history and condition, compelling sellers to reveal known material defects. Experts have litigated cases stemming from every section, from structural issues like a sinking foundation cleverly hidden behind new drywall in a Queens colonial to persistent water intrusion in a Buffalo basement that the seller chalked up to a "one-time event." The form demands honesty about pest infestations, such as a history of termites in a Westchester home, and asks pointed questions about shared amenities and property line encroachments—think of a fence in a Syracuse suburb that's been three feet over the line for a decade. It forces a reckoning with the property's unvarnished truth.

Considering our state's diverse geography, certain disclosure requirements carry immense weight. From the bedrock of the Hudson Valley to the coastal plains of Long Island, environmental factors are paramount. standard practice frequently sees disputes over undisclosed underground oil tanks on properties in Nassau County, a costly and environmentally sensitive remediation. Radon, a colorless, odorless gas emanating from soil and rock, is a significant concern in many upstate regions, and sellers must disclose knowledge of test results. For waterfront properties, from the Great Lakes shores to the storm-battered coasts of the Hamptons, disclosing past flooding, flood zone status, and any history of water damage is not just a requirement—it's a critical piece of the property disclosure that can prevent catastrophic buyer surprises and subsequent lawsuits for failure to disclose.

From industry experience in court, the consequences for failing to meet New York disclosure requirements can be severe. A deliberate omission or a knowingly false statement on the Property Condition Disclosure Statement can be construed as active concealment or fraudulent misrepresentation, piercing the traditional protections of an "as is" clause. I once represented a buyer who purchased a beautiful Finger Lakes property, only to discover the seller had meticulously painted over evidence of severe seasonal mold growth caused by a faulty roof. The seller's decision not to disclose this known latent defect—one not readily discoverable by a standard inspection—led to a lawsuit seeking not just damages for costly remediation, but potentially rescission of the entire sale. This illustrates the high stakes of honesty versus concealment when deciding what must sellers disclose.

To armor yourself against future litigation, a proactive and transparent approach to the property disclosure is your strongest shield. I consistently advise my seller clients to consider a pre-listing home inspection. This provides a neutral, third-party assessment that can help you accurately complete the New York seller disclosure form, turning your memory into a documented report. Rather than hoping a buyer's inspector misses a faulty GFCI outlet or a slow drip under the sink, you can disclose it upfront, along with a receipt for the repair. This level of honesty transforms the disclosure from a legal hurdle into a tool for building trust. A buyer who sees a thoroughly completed form, warts and all, is far less likely to suspect you are hiding a more significant problem, often leading to a smoother negotiation and a more resilient deal.

For any buyer, receiving the completed disclosure statement is not the end of the inquiry; it's the beginning of your focused due diligence. Treat the document as a roadmap created by the seller, pointing you toward areas that demand deeper investigation. If the seller checks "yes" for a history of roof leaks but notes it was repaired, you should instruct your home inspector to pay special attention to that area of the attic, looking for signs of residual moisture or staining. The seller disclosure in New York provides a powerful baseline of information, but it never replaces the critical need for your own independent inspections, which are your ultimate protection against unforeseen issues and a cornerstone of satisfying your own due diligence obligations.