On September and October 2023, we published a blog post regarding the Real Property Condition Disclosure Statement in New York. On September 22, 2023, Governor Hochul signed legislation that struck the portion of the statute permitting a seller to give a purchaser a credit of $500.00 in lieu of the Real Property Condition Disclosure Statement. The legislation went into effect on March 20, 2024.
As we stated previously, there are a few key components of the RPCDS. The key components of the RPCDS are:
- 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.
- 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.
The RPCDS includes forty-eight (48) questions that must be answered by sellers. The form must be signed by purchasers, as well. It is not a warranty of any kind by the seller, or by any agent representing the seller, but is meant to provide certain information to a purchaser about the property. A knowingly false or incomplete statement by the seller, however, may subject the seller to claims by the purchaser prior to or after the transfer of title. Previously, seller could simply provide the $500.00 credit and not have to worry about any potential liability arising from the RPCDS. This is no longer the case and will be a big change for sellers in New York as, in our experience, they have traditionally provided the credit as opposed to filling out the RPCDS.
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.
