New York’s Property Condition Disclosure Act (PCDA) has been part of real estate transactions for years — but changes to the law and ongoing questions about liability mean agents need to stay sharp on how it works.
What the PCDA Requires
Sellers of residential property in New York are required to complete a Property Condition Disclosure Statement and deliver it to buyers before the purchase contract is signed. The form covers the condition of the structure, mechanical systems, environmental conditions, and any known material defects.
The Credit Option — and Why It’s Complicated
Sellers who choose not to complete the disclosure can offer a credit to the buyer instead. Many sellers take this route — but it doesn’t eliminate their liability for known defects. It simply removes the formal disclosure requirement. Buyers should understand this distinction clearly.
Why the Inspection Is Even More Important When Disclosure Is Waived
When a seller opts out of the disclosure with a credit, the home inspection becomes the buyer’s primary source of condition information. Make sure your clients treat it that way. A thorough inspector — like The Inspection Boys on Long Island — is doing the diligence that disclosure would otherwise require.
For CE courses covering New York real estate law and disclosure obligations, visit Main St Success.