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The New York State Property Condition Disclosure Statement is an essential document designed to foster transparency between sellers and buyers in residential real estate transactions. This form, mandated by the Property Condition Disclosure Act, requires sellers to provide detailed information about the condition of their property prior to the signing of a binding contract. It covers a range of topics, including the general condition of the property, environmental concerns, structural integrity, and mechanical systems. Sellers must answer questions based on their actual knowledge and disclose any known issues, such as pest infestations, water damage, or the presence of hazardous materials. Importantly, the form emphasizes that it is not a warranty; instead, it serves as a tool for buyers to make informed decisions. If a seller fails to deliver this statement, the buyer is entitled to a $500 credit at closing. This proactive approach not only protects buyers but also encourages sellers to be forthright about their property’s condition, ultimately promoting a smoother transaction process.
Similar forms
The New York State Property Condition Disclosure Statement shares similarities with several other important documents in real estate transactions. Here are five documents that are comparable:
- Seller's Disclosure Statement: Like the Property Condition Disclosure Statement, this document requires sellers to disclose known issues about the property. Both forms aim to inform buyers about potential problems before a sale is finalized.
- Lead-Based Paint Disclosure: This document is specifically for properties built before 1978. It requires sellers to inform buyers about the potential presence of lead-based paint, similar to how the Property Condition Disclosure Statement addresses environmental hazards.
- Home Inspection Report: A home inspection report provides a detailed evaluation of the property's condition, including structural and mechanical systems. While the Property Condition Disclosure Statement is filled out by the seller, the inspection report is prepared by a professional inspector, offering an independent assessment.
- Real Estate Purchase Agreement: This agreement outlines the terms and conditions of the sale. Both this document and the Property Condition Disclosure Statement are essential in ensuring that buyers are aware of the property's condition before entering into a legally binding contract.
- Title Report: A title report details the ownership history and any claims against the property. Similar to the Property Condition Disclosure Statement, it helps buyers understand any potential issues that could affect their ownership rights.
Form Preview
New York State
Department of State
Division of Licensing Services
P.O. Box 22001
Albany, NY
Customer Service: (518)
www.dos.ny.gov
Property Condition Disclosure Statement
Name of Seller or Sellers:
Property Address:
General Instructions:
The Property Condition Disclosure Act requires the seller of residential real property to cause this disclosure statement or a copy of thereof to be delivered to a buyer or buyer’s agent prior to the signing by the buyer of a binding contract of sale.
Purpose of Statement:
This is a statement of certain conditions and information concerning the property known to the seller. This Disclosure Statement is not a warranty of any kind by the seller or by any agent representing the seller in this transaction. It is not a substitute for any inspections or tests and the buyer is encouraged to obtain his or her own independent professional inspections and environmental tests and also is encouraged to check public records pertaining to the property.
A knowingly false or incomplete statement by the seller on this form may subject the seller to claims by the buyer prior to or after the transfer of title. In the event a seller fails to perform the duty prescribed in this article to deliver a Disclosure Statement prior to the signing by the buyer of a binding contract of sale, the buyer shall receive upon the transfer of title a credit of $500 against the agreed upon purchase price of the residential real property.
“Residential real property” means real property improved by a one to four family dwelling used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons, but shall not refer to (a) unimproved real property upon which such dwellings are to be constructed or (b) condominium units or cooperative apartments or (c) property on a homeowners’ association that is not owned in fee simple by the seller.
Instruction to the Seller:
a.Answer all questions based upon your actual knowledge.
b.Attach additional pages with your signature if additional space is required.
c.Complete this form yourself.
d.If some items do not apply to your property, check “NA”
Seller’s Statement:
The seller makes the following representations to the buyer based upon the seller’s actual knowledge at the time of signing this document. The seller authorized his or her agent, if any, to provide a copy of this statement to a prospective buyer of the residential real property. The following are representations made by the seller and are not the representations of the seller’s agent.
GENERAL INFORMATION
1.How long have you owned the property? ......................................................................................................
2.How long have you occupied the property? ………………………………………………….....................
3.What is the age of the structure or structures? ……………………………………………………………
Note to buyer – If the structure was built before 1978 you are encouraged to investigate for the presence of lead based paint.
4.Does anybody other than yourself have a lease, easement or any other right to use or occupy any part of your property other than those stated in documents available in the public record, such as
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rights to use a road or path or cut trees or crops? ……………………………………………………….. Yes |
No |
Unknown |
NA |
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5. |
Does anybody else claim to own any part of your property? If yes, explain below ………………….. Yes |
No |
Unknown |
NA |
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6. |
Has anyone denied you access to the property or made a formal legal claim challenging your title |
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to the property? If yes, explain below …………………………………………………………………….. Yes |
No |
Unknown |
NA |
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Property Condition Disclosure Statement
7. |
Are there any features of the property shared in common with adjoining landowners or a home- |
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owner’s association, such as walls, fences or driveways? If yes, describe below …………………..... Yes |
No |
Unknown |
NA |
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8. |
Are there any electric or gas utility surcharges for line extensions, special assessments or home- |
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owner or other association fees that apply to the property? |
If yes, describe below ………………….. Yes |
No |
Unknown |
NA |
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9. |
Are there certificates of occupancy related to the property? |
If no, explain below ……………………. Yes |
No |
Unknown |
NA |
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ENVIRONMENTAL
Note to Seller:
In this section, you will be asked questions regarding petroleum products and hazardous or toxic substances that you know to have been spilled, leaked or otherwise been released on the property or from the property onto any other property. Petroleum products may include, but are not limited to, gasoline, diesel fuel, home heating fuel, and lubricants. Hazardous or toxic substances are products that could pose short or
Note to Buyer:
If contamination of this property from petroleum products and/or hazardous or toxic substances is a concern to you, you are urged to consider soil and groundwater testing of this property.
10. Is any or all of the property located in a designated floodplain? If yes, explain below …………….. Yes No Unknown NA
11. |
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Is any or all of the property located in a designated wetland? If yes, explain below ……………….. Yes |
No |
Unknown |
NA |
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12. |
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Is the property located in an agricultural district? If yes, explain below ……………………………... Yes |
No |
Unknown |
NA |
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13. Was the property ever the site of a landfill? If yes, explain below …………………………………….. Yes |
No |
Unknown |
NA |
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14. |
Are there or have there ever been fuel storage tanks above or below the ground on the property? Yes |
No |
Unknown |
NA |
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● If yes, are they currently in use? ………………………………………………………………………. Yes |
No |
Unknown |
NA |
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● Location(s) |
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● Are they leaking or have they ever leaked? If yes, explain below …………………………………. Yes |
No |
Unknown |
NA |
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15. |
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Is there asbestos in the structure? If yes, state location or locations below ………………………... Yes |
No |
Unknown |
NA |
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Property Condition Disclosure Statement
16. Is lead plumbing present? If yes, state location or locations below ………………………………… .. Yes No Unknown NA
17. Has a radon test been done? If yes, attach a copy of the report ……………………………………... Yes No Unknown NA
18.Has motor fuel, motor oil, home heating fuel, lubricating oil or any other petroleum product, methane gas, or any hazardous or toxic substance spilled, leaked or otherwise been released on
the property or from the property onto any other property? If yes, describe below ………………… Yes No Unknown NA
19.Has the property been tested for the presence of motor fuel, motor oil, home heating fuel,
lubricating oil, or any other petroleum product, methane gas, or any hazardous or toxic
substance? If yes, attach report(s) ……………………………………………………………………….. Yes No Unknown NA
STRUCTURAL
20. Is there any rot or water damage to the structure or structures? If yes, explain below …………….. Yes No Unknown NA
21. Is there any fire or smoke damage to the structure or structures? If yes, explain below …………… Yes No Unknown NA
22. Is there any termite, insect, rodent or pest infestation or damage? If yes, explain below ………….. Yes No Unknown NA
23. Has the property been tested for termite, insect, rodent or pest infestation or damage? ………….. Yes No Unknown NA
If yes, please attached report(s)
24.What is the type of roof/roof covering (slate, asphalt, other)? ………………………………………….
●Any known material defects? …………………………………………………………………………..
●How old is the roof? ………………………………………………………………………………………
●Is there a transferable warrantee on the roof in effect now? If yes, explain below ……………….
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Property Condition Disclosure Statement
25. Are there any known material defects in any of the following structural systems: footings, beams,
girders, lintels, columns or partitions? …………………………………………………………………… Yes No Unknown NA
MECHANICAL SYSTEMS AND SERVICES
26.What is the water source? (Check all that apply) ……………………………………………………… Well Private Municipal
Other:
●If municipal, is it metered? ………………………………………………………………………………. Yes No Unknown NA
27.Has the water quality and/or flow rate been tested? …………………………………………………… Yes No Unknown NA
28.What is the type of sewage system? (Check all that apply) …………………………………………… Public Sewer Private Sewer
Septic |
Cesspool |
●If septic or cesspool, age? ……………………………………………………………………………...
●Date last pumped? ……………………………………………………………………………………...
●Frequency of pumping? ………………………………………………………………………………...
●Any known material defects? If yes, explain below ………………………………………………… Yes No Unknown NA
29.Who is your electric service provider? ……………………………………………………………………
●What is the amperage? ………………………………………………………………………………....
●Does it have circuit breakers or fuses? ……………………………………………………………….
●Private or public poles? ………………………………………………………………………………..
●Any known material defects? If yes, explain below ………………………………………………… Yes No Unknown NA
30.Are there any flooding, drainage or grading problems that resulted in standing water on any
portion of the property? If yes, state locations and explain below …………………………………..... Yes No Unknown NA
31. Does the basement have seepage that results in standing water? If yes, explain below ………… Yes No Unknown NA
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Property Condition Disclosure Statement
Are there any known material defects in any of the following? If yes, explain below. Use additional
Sheets if necessary ……………………………………………………………………………………………….
32.Plumbing system? ………………………………………………………………………………………….. Yes No Unknown NA
33.Security system? ……………………………………………………………………………………………. Yes No Unknown NA
34.Carbon monoxide detector? ………………………………………………………………………………. Yes No Unknown NA
35.Smoke detector? …………………………………………………………………………………………… Yes No Unknown NA
36.Fire sprinkler system? ……………………………………………………………………………………… Yes No Unknown NA
37.Sump pump? ……………………………………………………………………………………………….. Yes No Unknown NA
38.Foundation/slab? …………………………………………………………………………………………… Yes No Unknown NA
39.Interior walls/ceilings? ……………………………………………………………………………………… Yes No Unknown NA
40.Exterior walls or siding? …………………………………………………………………………………… Yes No Unknown NA
41.Floors? ………………………………………………………………………………………………………. Yes No Unknown NA
42.Chimney/fireplace or stove? ……………………………………………………………………………… Yes No Unknown NA
43.Patio/deck? …………………………………………………………………………………………………. Yes No Unknown NA
44.Driveway? …………………………………………………………………………………………………… Yes No Unknown NA
45.Air conditioner? …………………………………………………………………………………………….. Yes No Unknown NA
46.Heating system? …………………………………………………………………………………………… Yes No Unknown NA
47.Hot water heater? ………………………………………………………………………………………….. Yes No Unknown NA
48. The property is located in the following school district
NOTE: Buyer is encouraged to check public records concerning the property (e.g. tax records and wetland and floodplain maps).
The seller should use this area to further explain any item above. If necessary, attach additional pages and indicate here the number of additional pages attached.
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Property Condition Disclosure Statement
SELLER’S CERTIFICATION:
Seller certifies that the information in this Property Condition Disclosure Statement is true and complete to the seller’s actual knowledge as of the date signed by the seller. I f a seller of residential real property acquires knowledge which renders materially inaccurate a Property Condition Disclosure Statement provided previously, the seller shall deliver a revised Property Condition Disclosure Statement to the buyer as soon as practicable. In no event, however, shall a seller be required to provide a revised Property Condition Disclosure Statement after the transfer of title from the seller to the buyer or occupancy by the buyer, whichever is earlier.
Seller’s Signature
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Seller’s Signature
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BUYER’S ACKNOWLEDGMENT:
Buyer acknowledges receipt of a copy of this statement and buyer understands that this information is a statement of certain conditions and information concerning the property known to the seller. It is not a warranty of any kind by the seller or seller’s agent and is not a substitute for any home, pest, radon or other inspections or testing of the property or inspection of the public records.
Buyer’s Signature |
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Buyer’s Signature |
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Common mistakes
Filling out the New York State Property Condition Disclosure Statement can be straightforward, but many sellers make common mistakes that can lead to complications. One frequent error is not answering all questions based on actual knowledge. Sellers sometimes leave questions blank or provide vague responses. This can create uncertainty for buyers and may lead to disputes later on.
Another mistake involves failing to check the appropriate boxes for items that do not apply. If a seller does not know the answer to a question, they should select “Unknown” instead of leaving it blank. This clarity helps buyers understand what information is confirmed and what is uncertain.
Completing the form without adequate attention to detail is also a common pitfall. Sellers may overlook the requirement to attach additional pages if they need more space for explanations. This can result in incomplete information that may confuse buyers or lead to misunderstandings about the property's condition.
Additionally, some sellers might not realize the importance of providing accurate representations. Misrepresenting the property's condition, whether intentionally or unintentionally, can expose sellers to legal claims. It is crucial to be honest and thorough when filling out the form.
Many sellers also neglect to consider the implications of their disclosures. For instance, failing to mention known issues like water damage or pest infestations can lead to significant issues after the sale. Buyers rely on this form to make informed decisions, and sellers should take this responsibility seriously.
Lastly, sellers often forget to sign and date the form. This oversight may seem minor, but it can invalidate the disclosure. A signature confirms that the seller has provided the information to the best of their knowledge, establishing accountability in the transaction.
More About Nys Property
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What is the purpose of the New York State Property Condition Disclosure Statement?
The Property Condition Disclosure Statement is designed to inform potential buyers about certain conditions and information regarding a residential property. This statement must be provided by the seller or their agent before the buyer signs a binding contract of sale. It is important to note that this statement does not serve as a warranty and is not a substitute for independent inspections.
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Who is required to fill out this form?
Any seller of residential real property in New York State must complete this form. This includes properties improved by one to four family dwellings that are intended for use as a home or residence. However, it does not apply to unimproved land, condominiums, cooperative apartments, or properties within homeowners' associations that are not owned in fee simple by the seller.
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What happens if the seller does not provide this disclosure statement?
If a seller fails to deliver the Property Condition Disclosure Statement before the buyer signs a binding contract, the buyer is entitled to receive a credit of $500 against the purchase price at the time of title transfer. This is a significant incentive for sellers to comply with the disclosure requirement.
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What kind of information does the seller need to disclose?
Sellers must disclose various details about the property, including ownership duration, occupancy duration, any known issues with the property, and environmental concerns. Questions cover areas such as structural integrity, mechanical systems, and any history of hazardous substances. Sellers are encouraged to answer all questions based on their actual knowledge and to indicate if they do not know the answer.
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Can the seller attach additional pages to the form?
Yes, if the seller needs more space to provide complete answers, they can attach additional pages. It's essential that these pages are signed by the seller to ensure authenticity and clarity.
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What should buyers do with the information provided in the disclosure?
Buyers should use the information in the Property Condition Disclosure Statement as a starting point for their own due diligence. It is highly recommended that buyers conduct independent inspections and environmental tests to confirm the property's condition. Checking public records related to the property is also advisable.
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What are the implications of providing false or incomplete information?
Providing false or incomplete information on the Property Condition Disclosure Statement can lead to legal claims from the buyer. This could happen both before and after the transfer of title. Sellers must take care to provide accurate information to avoid potential disputes.
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Are there any specific environmental concerns that sellers need to disclose?
Sellers must disclose any knowledge of petroleum products or hazardous substances that have been spilled, leaked, or otherwise released on the property. This includes a wide range of materials, from gasoline and diesel fuel to pesticides and cleaning solvents. If buyers have concerns about contamination, they are encouraged to consider soil and groundwater testing.
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How does the age of the property affect the disclosure?
The age of the property is crucial, especially if it was built before 1978, as this may indicate the presence of lead-based paint. Buyers are encouraged to investigate further if the property is older, as this could pose health risks. Sellers should be transparent about the property's age and any related concerns.
Misconceptions
- Misconception 1: The Property Condition Disclosure Statement is a warranty.
- Misconception 2: The seller must disclose every possible issue with the property.
- Misconception 3: The buyer does not need to conduct their own inspections.
- Misconception 4: Failing to provide the disclosure statement has no consequences.
Some individuals believe that this statement serves as a warranty for the condition of the property. In reality, the disclosure is not a guarantee of any kind. It is merely a statement of known conditions and information that the seller is required to provide to the buyer.
Another common misconception is that sellers must disclose all potential issues, regardless of their knowledge. However, the form requires sellers to report only what they know. If a seller is unaware of a problem, they can mark it as "Unknown."
Some buyers assume that the disclosure statement alone is sufficient to assess the property's condition. This is not the case. Buyers are strongly encouraged to obtain independent inspections and tests to uncover any issues that may not be disclosed.
Many believe that there are no repercussions for not delivering the disclosure statement before signing a contract. In fact, if the seller fails to provide this document, the buyer is entitled to a $500 credit against the purchase price upon transfer of title.
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Key takeaways
1. The Property Condition Disclosure Statement must be delivered to the buyer or their agent before signing a binding contract of sale.
2. This statement is intended to inform the buyer about the property's condition based on the seller's knowledge, but it does not serve as a warranty.
3. Sellers are encouraged to answer all questions truthfully. If certain items do not apply, they should mark them as "NA" (Non-applicable) or "Unknown" if they do not know the answer.
4. A seller's incomplete or false statement may lead to legal claims from the buyer, either before or after the title transfer.
5. If a seller fails to provide the Disclosure Statement before the contract signing, the buyer is entitled to a $500 credit at the time of title transfer.
6. Buyers are advised to conduct their own inspections and check public records related to the property for any undisclosed issues.
7. The form includes sections on environmental concerns, structural issues, and mechanical systems, which require careful consideration and accurate reporting by the seller.
8. Sellers should provide additional pages for explanations if necessary, ensuring clarity and completeness in their disclosures.
Nys Property: Usage Guide
Completing the New York State Property Condition Disclosure Statement is a crucial step for sellers of residential real estate. This form ensures that buyers are informed about the property's condition before entering into a binding contract. Below are the steps to accurately fill out the form.
- Start by filling in the Name of Seller or Sellers at the top of the form.
- Next, enter the Property Address where the property is located.
- Answer the questions regarding your ownership and occupancy of the property, including how long you have owned and occupied it.
- Provide the age of the structure or structures on the property.
- Indicate if there are any leases, easements, or other rights affecting the property by selecting Yes, No, Unknown, or NA as appropriate.
- Continue answering the questions in the General Information section, ensuring you provide accurate information about any claims or legal challenges related to the property.
- Move to the Environmental section and answer questions regarding any potential environmental hazards or issues.
- In the Structural section, provide information about any damage or defects in the property.
- Fill out the Mechanical Systems and Services section, detailing the water source, sewage system, and any known issues with utilities.
- Address any known material defects in various systems, such as plumbing, electrical, and heating systems, as well as structural elements like walls and roofs.
- Finally, if additional space is needed, attach extra pages and indicate the number of pages attached at the end of the form.
After completing the form, review all answers for accuracy. Once satisfied, sign the document to affirm that the information provided is true to the best of your knowledge. This form must be delivered to the buyer or their agent before they sign a binding contract of sale. Proper completion and timely delivery of this form can protect both the seller and the buyer in the transaction.