Seller’s Mandatory Property Condition Disclosure
Frequently Asked Questions
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.
Some exemptions to the rule are:
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 seller’s actual knowledge of the
condition of the property. The disclosure statement must be delivered to the buyer or buyer’s agent before the buyer enters a purchase
and sale contract.
What is actual knowledge?
The seller has the option to answer “yes,” “no,” “not applicable,” or “unknown.” Sellers must answer the questions based upon their
actual knowledge at the time of signing the 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 disclosure statement.
What happens if the seller refuses to sign the disclosure statement or does not do so in a timely manner?
If a seller fails to timely complete and sign the disclosure statement and deliver it to the buyer before the buyer enters a purchase and
sale contract, the buyer will receive, upon transfer of the title, a $500 credit against the agreed upon purchase price, which credit shall
not relieve seller of any other obligations to buyer concerning the condition of the property under the purchase and sale contract or
applicable law.
What are the agent’s responsibilities?
The listing broker must timely inform the seller of the seller’s obligation to complete the disclosure statement. An agent representing a
buyer must timely inform such buyer of buyer’s right to receive the disclosure statement before buyer enters a purchase and sale
contract. If a buyer is not represented by an agent, seller’s agent must inform buyer of buyer’s right to receive the disclosure statement
before buyer enters a purchase and sale contract. The seller and buyer must sign the 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 disclosure statement strongly urges buyers to have a home inspection performed as well as other
professional and environmental tests.
Does the disclosure statement create a warranty?
No. The property condition disclosure statement clearly states 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 acquires knowledge that renders inaccurate a previous disclosure statement, the seller must complete and deliver a revised
disclosure statement to the buyer as soon as possible. Under no circumstances is the seller required to provide a revised disclosure
statement to the buyer after transfer of title or after the buyer takes occupancy of the property, whichever is earlier.
Is New York the only state with this requirement?
On the contrary, nearly 30 states have mandatory seller’s property condition disclosure. The general experience in other states has
been very positive. The consensus has been that it does not hinder the transaction. Further, all parties report that their level of
satisfaction with the transfer process has been enhanced through the use of the disclosure statement.