Selling a Home in New York: The Property Condition Disclosure Statement After the 2024 Changes

If you are selling a one- to four-family home in New York, the Property Condition Disclosure Statement (PCDS) is one of the first documents you deal with, and the rules changed in 2024. The old $500-credit alternative is gone. Here is what the law now requires and how to prepare.

What Changed: Chapter 484 of the Laws of 2023

Chapter 484 of the Laws of 2023 (S.5400 / A.1967) was signed on September 22, 2023. It took effect on “the one hundred eightieth day after it shall have become a law,” which is March 20, 2024; the New York State Bar Association states that date expressly. The law:

• deleted the option of giving the buyer a $500 credit instead of delivering the PCDS;
• rewrote Real Property Law § 465 as a section titled “Liability” and repealed § 467, folding it into § 465; and
• added flood-related questions to the form. NYSBA reports that the form grew from 49 to 56 items.

Who Has to Provide the Form

The Property Condition Disclosure Act, Real Property Law Article 14 (§§ 460–466), applies to “real property improved by a one to four family dwelling” that is “used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons” (§ 461). The definition excludes:

• unimproved land on which such dwellings are to be built;
• condominium units and cooperative apartments; and
• property in a homeowners’ association that is not owned in fee simple by the seller.

So the PCDA does not apply to co-op or condo sales; see our article on co-op board approval.

When the Form Must Be Delivered

Under § 462(1), “every seller of residential real property” covered by the article “shall complete and sign a property condition disclosure statement” and cause it to be “delivered to a buyer or buyer’s agent prior to the signing by the buyer of a binding contract of sale.” A copy “containing the signatures of both seller and buyer” is attached to the purchase contract.

The statute does not require a seller to inspect the property. Section 462(3) provides that “Nothing in this article shall require a seller to undertake or provide for any investigation or inspection” of the property “or to check any public records.” The form itself opens: “THIS IS A STATEMENT OF CERTAIN CONDITIONS AND INFORMATION CONCERNING THE PROPERTY KNOWN TO THE SELLER.” It states that it is not a warranty and not a substitute for inspections.

The New Flood Questions

Items 10 through 17 now ask about flood risk and history, including whether the property is:

• in a FEMA-designated floodplain, a “SPECIAL FLOOD HAZARD AREA” (the “100-YEAR FLOODPLAIN”), or a “MODERATE RISK FLOOD HAZARD AREA” (the “500-YEAR FLOODPLAIN”);
• subject to any federal requirement to obtain and maintain flood insurance;
• the subject of FEMA, U.S. SBA, or other federal disaster flood assistance, to you or to previous owners you know of;
• covered by flood insurance (“IF YES, ATTACH A COPY OF THE POLICY”);
• covered by an available FEMA elevation certificate (“IF YES, ATTACH A COPY OF THE CERTIFICATE”); and
• the subject of any flood-damage claim with any insurer, “INCLUDING THE NATIONAL FLOOD INSURANCE PROGRAM (NFIP).”

Two other water items remain: item 38 (“FLOODING, DRAINAGE OR GRADING PROBLEMS THAT RESULTED IN STANDING WATER”) and item 39 (water penetration or damage “DUE TO SEEPAGE OR A NATURAL FLOOD EVENT”).

Other Items Sellers Often Overlook

The form also asks about a lease, easement, or “any other right to use or occupy” part of the property (item 4); includes a lead-paint note for structures built before 1978 (item 3); and asks about lead plumbing (item 23), radon testing (item 24), indoor mold testing (item 27), and the type of sewage system (item 36).

Exemptions Under § 463

Section 463 provides that the statement “shall not be required in connection with any of the following transfers of residential real property.” The 14 exemptions include court-ordered transfers; foreclosure sales, deeds in lieu, and related mortgagee transfers; sheriff’s sales; partition transfers; transfers by a fiduciary in the course of administering a decedent’s estate, a guardianship, a conservatorship, or a trust; co-owner to co-owner transfers; transfers to a spouse or to persons in the transferor’s lineal consanguinity (direct-line relatives such as children or parents), or between spouses or former spouses in a divorce or separation; transfers to or from government; and newly constructed, never-inhabited property.

Liability Under the Current § 465

Section 465 now provides that a seller “who provides a property condition disclosure statement or provides or fails to provide a revised property condition disclosure statement shall be liable only for a willful failure to perform the requirements of this article.” For a willful failure, the seller is liable for the buyer’s actual damages, in addition to other equitable or statutory remedies. The section also states: “Nothing contained in this article shall be construed as limiting any existing legal cause of action or remedy at law, in statute or in equity.” Whether a seller faces exposure in a given case depends on the facts.

A Practical Seller Checklist

1. Confirm the PCDA applies. Is this a one- to four-family house you own in fee, and not a co-op, condo unit, or exempt transfer under § 463?
2. Pull your flood paperwork early. Gather any flood insurance policy, FEMA elevation certificate, record of flood claims, and record of federal disaster assistance, since items 15 and 16 ask you to attach copies.
3. Answer accurately from what you actually know. The form describes conditions known to the seller, and you are not required to inspect or search public records, but a willful failure to meet the statute’s requirements can create liability under § 465.
4. Deliver it before the buyer signs. The signed statement goes to the buyer or buyer’s agent before the buyer signs a binding contract.
5. Get it countersigned and attached. A copy signed by both sides is attached to the contract.
6. Watch for changes before closing. Section 464 requires a seller who learns something that makes the statement materially inaccurate to deliver a revised statement to the buyer as soon as practicable, until title transfers or the buyer takes occupancy, whichever is earlier; if something changes, call your attorney promptly.

Our guide to selling a home in New York covers the rest of the sale, from contract to closing, and our article on New York transfer taxes and closing costs explains the taxes a seller may owe. The Real Estate & Closings page describes the firm’s seller representation, and you can request a flat-fee quote at any stage.

Related Reading

• NY Closing Costs & Transfer Taxes
• Do I Need a Lawyer to Buy a House?
• Deed Theft in New York