Purchasing a home is an exciting journey, but it can also be filled with uncertainties, especially when it comes to the condition of the property. In the state of New York, the Real Property Condition Disclosure Statement (RPCDS) serves to provide prospective buyers with essential information about the property they are considering. In this blog post, we will take a closer look at what the Real Property Condition Disclosure Statement is all about.
What is the Real Property Condition Disclosure Statement?
The Real Property Condition Disclosure Statement is a document designed to provide buyers with detailed information about the condition of the property, including any known defects, issues, or concerns. The goal is to promote transparency and help buyers make informed decisions. It is a statement of certain conditions and information concerning the property known to seller, but it is NOT a warranty of any kind by seller. Further, as the PCDS states, it is not a substitute for any inspection or tests and the buyer is encouraged to obtain their own professional to conduct an independent inspection and check the public records relating to the property.
Key Components of the RPCDS:
- Seller’s Obligation: In New York, property sellers are obligated to provide a completed RPCDS to prospective buyers before a contract of sale is signed and it must be attached to the contract. This statement must be based on the seller’s actual knowledge and experience with the property. If the seller does not provide the RPCDS, a credit of $500 must be given to the buyer.
- Property Condition: The heart of the disclosure statement focuses on the condition of the property. Sellers are required to disclose information about various aspects of the property, such as the roof, foundation, plumbing, electrical systems, appliances, and more. Sellers must report any known defects, repairs, or ongoing issues.
- Environmental Hazards: The RPCDS also covers information related to environmental hazards, such as lead-based paint, asbestos, radon gas, and underground storage tanks. Sellers must disclose any known presence or issues related to these hazards.
- Exemptions and Disclaimers: While the RPCDS is comprehensive, it does have certain exemptions and disclaimers. Sellers are not required to disclose information about defects they are unaware of or defects that have been remedied.
Importance of the RPCDS:
- Informed Decision-Making: The RPCDS empowers buyers by providing them with vital information about the property’s condition. Armed with this knowledge, buyers can make informed decisions about whether to proceed with the purchase or negotiate repairs or price adjustments.
- Transparency: Sellers who provide an accurate and complete RPCDS demonstrate transparency, which can build trust with potential buyers and reduce the risk of future disputes.
- Legal Protection: Buyers who receive a deficient or misleading RPCDS may have legal recourse if they discover undisclosed defects after the sale. This document serves as a valuable tool for protecting buyers’ interests.
Although the RPCDS is required under New York law, in our experience, most sellers simply provide the credit. We have had a few transactions where the Seller did provide one and in those instances, it is essential to carefully review it and seek clarification on any concerns or questions you may have. Additionally, consulting with a qualified real estate attorney can provide valuable guidance throughout the home-buying process, ensuring that you make the best decision for your future home. Since purchasing a home is the largest investment that many people will make in their lifetime, it is important to protect your interests and have a good team to bring you to the closing table.
Disclaimer: The information contained in this post is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls and communications. Contacting us, however, does not create an attorney-client relationship.
