Key Takeaways
- New York requires sellers to provide a Property Condition Disclosure Statement (PCDS)
- If the seller does not provide the PCDS, the buyer receives a $500 credit at closing
- The PCDS covers 48 items including structural, environmental, and mechanical conditions
- Sellers must disclose known defects—"as is" sales do not eliminate disclosure duties
- The PCDS is required for 1-4 family residential properties
Property Condition Disclosure Statement
New York requires sellers to disclose property conditions through the Property Condition Disclosure Statement (PCDS).
Important: This section covers New York-specific content only. For national disclosure concepts, see our Real Estate Salesperson exam prep.
When Required
| Property Type | PCDS Required? |
|---|---|
| 1-4 family residential | YES |
| Condos | YES |
| Co-ops | YES |
| Commercial | NO |
| New construction | NO (implied warranty) |
The $500 Credit Option
KEY NY RULE: Sellers can choose NOT to provide the PCDS:
| Option | Consequence |
|---|---|
| Provide PCDS | Full disclosure |
| Decline PCDS | $500 credit to buyer at closing |
On the Exam: Many sellers choose the $500 credit rather than risk disclosure liability.
What Must Be Disclosed
The PCDS covers 48 items in these categories:
| Category | Examples |
|---|---|
| General information | Age, ownership history |
| Environmental | Asbestos, lead paint, radon |
| Structural | Foundation, roof, walls |
| Mechanical | HVAC, plumbing, electrical |
| Water/sewage | Well, septic, water quality |
| Flooding | History, flood zone |
Disclosure Requirements
What Must Be Disclosed
| Must Disclose | Details |
|---|---|
| Known defects | Material conditions seller knows |
| Material facts | Information affecting value |
| Environmental hazards | Lead, asbestos, radon |
| Flooding history | Past water damage |
| Structural issues | Foundation, roof problems |
"As Is" Sales
IMPORTANT: Even in "as is" sales, disclosure duties remain:
| Situation | Disclosure Required? |
|---|---|
| As is sale | YES - still must disclose |
| PCDS waived | YES - $500 credit applies |
| REO/foreclosure | Often exempt |
Buyer's Rights
| Right | Details |
|---|---|
| Receive PCDS | Before signing contract |
| Request revisions | If information changes |
| $500 credit | If PCDS not provided |
| Legal remedies | For fraud/misrepresentation |
Agent Responsibilities
| Duty | Description |
|---|---|
| Explain PCDS | To seller and buyer |
| Ensure delivery | Before contract signing |
| No independent investigation | Not required to verify |
| Disclose known facts | Agent's own knowledge |
Note: Agents are not required to investigate property conditions but must disclose what they know.
If a seller in New York does not provide the Property Condition Disclosure Statement, what happens?
In an "as is" sale in New York, does the seller still have disclosure obligations?