Do I Have to Give Buyers a Property Condition Disclosure Statement?

For more than twenty years, most New York sellers skipped the Property Condition Disclosure Statement and simply gave the buyer a $500 credit at closing. Since March 20, 2024, that option is gone.

What Is the Property Condition Disclosure Statement?

The Property Condition Disclosure Statement (PCDS) is a standard form required by New York law (Real Property Law Article 14, §462). The seller answers a series of questions about the home’s structure, roof, basement, plumbing, electrical and heating systems, environmental issues and flood risk.

After the 2024 amendments, the form has 56 questions, including several new flood questions, such as whether the home is in a FEMA floodplain, whether it has flooded or had flood insurance claims, and whether federal disaster assistance was received. Starting July 1, 2025, the septic question also refers readers to Department of Health information. Always use the current version on the New York Department of State website.

Which Sellers Must Complete It?

Sellers of one- to four-family homes generally must. It is not required for:

• Condo units and co-op apartments;
• Homeowners association property not owned in fee by the seller;
• Transfers by fiduciaries, such as executors, trustees and guardians, in the administration of an estate, trust or guardianship;
• Transfers under court order, such as foreclosure, bankruptcy or partition;
• Transfers between co-owners, between spouses, or to lineal relatives such as children;
• Newly built homes that have never been occupied;
• Other exemptions listed in the law.

If you are not sure whether you are exempt, ask your attorney first.

When and to Whom Is It Delivered?

It must be delivered to the buyer or the buyer’s agent before the buyer signs a binding contract of sale, and the buyer signs a receipt. A copy of the signed statement should be attached to the contract.

How Should It Be Completed?

• Answer from actual knowledge. The law does not require the seller to hire an inspector, only to answer truthfully about what the seller knows;
• If you don’t know, say “Unknown.” Don’t guess, and don’t turn “not sure” into “no” to make the home easier to sell;
• If there is an issue, describe it clearly, for example: “Roof leaked in 2019; roof replaced; invoice attached.” The more specific the explanation, the harder it is to claim later that something was hidden;
• Attach documents: repair invoices, warranties, permits and sign-offs;
• Update it if things change. If, after signing and before closing, you learn something that makes an earlier answer materially inaccurate, provide an updated statement as soon as practicable.

What If an Answer Is Wrong?

Under Real Property Law §465, a seller who willfully fails to meet the disclosure requirements is liable for the buyer’s actual damages, in addition to other legal remedies. In other words, failing to mention something you didn’t know generally does not create liability. Knowingly hiding or misstating a problem is where the risk lies. If the seller also actively concealed a defect, the buyer may sue for fraud.

Can I Still Sell “As Is”?

Yes. The law does not prevent the parties from agreeing to an “as is” sale, and the PCDS itself is not a warranty of the home’s condition. But note: an “as is” clause does not protect a seller who knowingly lies.

After the 2024 amendments, the law also does not clearly say whether the parties may contractually waive the disclosure statement, and practitioners differ on the question. The safest approach is to complete it truthfully and deliver it on time.

Attorney’s Insight

Many sellers see the PCDS as a nuisance, but it can also protect you. Our advice:

• Complete it with your attorney before listing. Rushing to fill it out just before contract signing is when mistakes happen;
• Handle the disclosure and known problems together. For issues you already know about, either fix them or disclose them honestly and reflect them in the price. That costs far less than being sued after closing;
• Keep what you say consistent with what you write. Telling a buyer at a showing that “it has never leaked” while answering “unknown” on the form is the kind of contradiction that hurts sellers badly in litigation.

Attorney’s perspective

We help sellers prepare the property condition disclosure under current law, to avoid disputes over disclosure later.

For advice about your own situation, call +1 718-218-5805 or schedule a consultation. We meet clients in Flushing and Manhattan, in English or Chinese.

Series overview

This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. For advice about your situation, please contact us.

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