Mandatory Property Condition Disclosure Statement

Mandatory Seller’s Disclosure became law in New York State effective March 1 2002.  EVERY SELLER of one to four family residential housing-whether they be broker-assisted of for sale by owner-will be required to provide a completed Property Condition Disclosure Statement to potential buyers under the new Seller’s Property Condition Disclosure’s Law.

Such disclosures have proven to be beneficial to sellers, buyers, and agents.  The benefits include:

• Fewer disputes
• Easier transactions and less litigation for sellers and agents
• More information at the time they need it most for buyers

A completed form MUST be provided to the buyer before the buyer is bound by a contract of sale.  The seller must complete the disclosure form WITHOUT ASSISTANCE FROM A REAL ESTATE AGENT.

A copy of the completed form MUST be attached to the contract. A $500 credit is given to the buyer at closing for the seller’s failure to provide the completed form.  The law does not apply to new construction, condos, and co-ops.

Property Condition Disclosure Statement