New York Property Condition Disclosure Statement: A Guide for NYC Home Sellers
New York’s Property Condition Disclosure Statement is now a real pre-contract task for many Brooklyn and Queens home sellers—not a $500 closing credit to treat as an opt-out. In a typical sale of a one- to four-family house, a covered seller must complete and sign the current form and deliver it before the buyer signs a binding contract. The form reports conditions within the seller’s actual knowledge; it is not a warranty or a substitute for the buyer’s inspection. Condos, co-ops and several specified transfers are outside the requirement or exempt. Confirm coverage early with your attorney, because property type, ownership and transfer structure can change the answer.
The short answer: handle disclosure before the contract
For a covered New York home sale, use this sequence:
| Stage | Seller action | Key point |
|---|---|---|
| Confirm coverage | Identify the property and transfer type | A normal one- to four-family sale is generally covered |
| Complete | Answer every item from actual knowledge | “Unknown” and “N/A” are available where appropriate |
| Deliver | Send the signed statement to the buyer or buyer’s agent | It must arrive before the buyer signs a binding contract |
| Preserve and update | Keep the acknowledged form and report a material change | A signed copy attaches to the contract; revisions may be required |
The form should enter the sale-preparation process before contract timing becomes urgent—not after everyone assumes the paperwork is finished.
Which NYC properties and transfers are covered?
New York Real Property Law §461 defines residential real property here as property improved by a one- to four-family dwelling used, occupied or intended as a home. It excludes unimproved land, condominium units, cooperative apartments and certain homeowners-association property not owned by the seller in fee simple.
The transaction itself also matters.
| Sale or transfer | General treatment under the Act |
|---|---|
| Ordinary arm’s-length sale of a one- to four-family house | Generally covered |
| Condominium, co-op or unimproved land | Outside this statutory definition |
| Newly constructed residence that has never been inhabited | Exempt transfer |
| Transfer by a fiduciary administering an estate, guardianship, conservatorship or trust | Exempt transfer |
| Court-ordered, foreclosure, sheriff or partition transfer | Exempt transfer |
| Transfer between co-owners, qualifying relatives, or spouses or former spouses in specified circumstances | Exempt transfer |
This matrix is a screening tool, not a substitute for the seller’s attorney. For example, a fiduciary’s transfer during estate administration is listed as exempt, but a beneficiary who later sells a house personally may be in a different position. Owners dealing with an estate should coordinate the form question with the attorney handling the inherited-property sale.
Use the current form and deliver it on time
The New York Department of State identifies its form effective July 1, 2025 as the form currently required. Do not reuse an old saved copy from a prior transaction.
The seller—not the broker, buyer or home inspector—must complete the form. The instructions say to answer from actual knowledge and use “Unknown” or “N/A” when appropriate. It may go to the buyer or buyer’s agent, but delivery must occur before the buyer signs a binding contract. A copy bearing both parties’ signatures is then attached to the contract.
A broker can help organize the timeline. Coverage, wording and exemption questions belong with the seller’s New York real estate attorney.
What does the seven-page form ask about?
The current statement contains 56 numbered questions. It goes well beyond a simple list of visible defects.
| Form area | Examples of requested information |
|---|---|
| General information | Ownership, occupancy, building age, use rights, shared features and certificates of occupancy |
| Flood and environmental conditions | FEMA zones, flood insurance and claims, disaster aid, tanks, asbestos, lead plumbing, radon, petroleum and mold testing |
| Structure | Water, fire or pest damage; roof details; structural components |
| Systems and services | Water, sewer, electric, drainage, plumbing, foundation, heating and other listed systems |
For a two-family house, answers concerning occupancy rights, shared features and certificates of occupancy should remain consistent with the property records and marketing. The separate guide to selling a two-family house in Queens explains why physical layout alone does not establish legal use.
“Actual knowledge” does not mean “make your best guess”
New York defines knowledge for this Act as actual knowledge of the condition or defect. RPL §462 does not impose a duty to perform a new inspection, investigate the property or search public records solely to complete the statement. The official form also allows “Unknown” and “N/A” answers.
“Unknown” is not a substitute for facts the seller already knows. Review records already in your possession—such as repair invoices, claims, flood documents, reports and warranties—and discuss uncertain responses with your attorney. Use the explanation area or a signed additional page when a checkbox needs context.
The disclosure is not a warranty, and it does not replace the buyer’s inspections, environmental testing or public-record review.
An “as is” sale does not create a disclosure exemption
The Act permits buyers and sellers to agree on the physical condition of the property, including an “as is” sale. But “as is” does not appear among the statutory exemptions. A covered seller still has to address the Property Condition Disclosure Statement.
The disclosure provides known information before contract; an “as is” clause addresses contractual responsibility for condition. The seller’s attorney should explain that language. Neither an “as is” label nor an inspection excuses a knowingly false or incomplete statement.
Update the statement when material information changes
A seller’s responsibility does not necessarily end on the date the form is signed. If the seller later acquires knowledge that makes a previous statement materially inaccurate, a revised statement must be delivered as soon as practicable.
That could follow a new roof leak, flood loss, claim or other discovery covered by the form. Tell the attorney promptly. The revision duty ends after title transfers or the buyer takes occupancy, whichever happens first.
The former $500 credit is gone
New York eliminated the old provision that allowed a $500 credit to the buyer when a seller failed to deliver the statement. That amendment took effect March 20, 2024 and also expanded the form’s flood-risk questions. Treating $500 as the price of skipping disclosure is no longer a current option.
The current liability section preserves existing causes of action and remedies. A willful failure to perform the Act’s requirements can also expose a seller to the buyer’s actual damages. Liability depends on the facts and law.
Remember that this is not the only disclosure
The state form is only one part of the transaction. Most pre-1978 housing also has separate federal lead-based-paint disclosure requirements. Title, tenancy, environmental and local-law issues may create other duties. Ask the attorney to identify the complete set for the property.
A practical seller checklist
Before the property reaches contract:
- Ask the seller’s attorney to confirm whether the property and transfer are covered or exempt.
- Download the current Department of State form instead of using an old template.
- Gather the relevant records already in your possession using this NYC home-sale document checklist.
- Complete every question yourself from actual knowledge; use “Unknown” or “N/A” only where appropriate.
- Coordinate delivery, acknowledgment and contract attachment with the attorneys.
- Preserve the form and report later information that may require a revision.
Prepare the sale before the contract clock starts
Disclosure is easier when the property file, condition history and marketing plan are organized before offers arrive. Sheldon Myers, Licensed Associate Broker, can help prepare the real estate side while legal advice remains with the appropriate attorney. Request a confidential sale-readiness and home-value consultation.
Serving Brooklyn and Queens property owners since 2004.
This article provides general real estate information, not legal, tax, environmental or engineering advice. Coverage, exemptions and disclosure obligations depend on the property, ownership, transfer and current law. Consult a qualified New York real estate attorney about a specific sale or form response.
