Selling a home in New York comes with legal responsibilities, and one of the most important is telling buyers what you know about the property's condition. The State of New York requires sellers of residential real estate to complete a detailed Property Condition Disclosure Statement, and the old $500 opt-out is no longer an option. Getting this right is not just good practice. It is the law, and skipping it can land you in court.
If you are selling a home anywhere in Western New York, from Buffalo to Niagara Falls to the suburbs, here is what you need to know about disclosure requirements and the recent changes that affect every seller.
Key Takeaways
- New York requires sellers of 1 to 4 family homes to complete a Property Condition Disclosure Statement with 56 questions.
- The $500 opt-out option was eliminated on March 20, 2024. Sellers can no longer pay to skip the form.
- A revised disclosure form became mandatory on July 1, 2025, adding information about septic system maintenance.
- You only need to disclose what you actually know, not what you should have known.
- Federal law requires lead based paint disclosure for homes built before 1978.
- Condos, co-ops, new construction, and estate sales are exempt from the state requirement.
What Is the Property Condition Disclosure Statement
The Property Condition Disclosure Statement is New York's official disclosure form. It is a detailed questionnaire that asks sellers about the condition of their property. The form covers structural issues, mechanical systems, environmental hazards, water and drainage issues, pest infestations, past repairs and renovations, and flood risks.
Here is what is important. You are only required to disclose what you actually know. You do not need to hire an inspector or investigate issues you are unaware of. But if you do know about a problem, you have to tell the buyer.
The form asks you to answer each question with Yes, No, UKN for unknown, or NA for non applicable. A knowingly false or incomplete statement can subject you to claims by the buyer even after the sale closes.
The $500 Opt-Out Is Gone
This is the biggest change sellers need to know about. For two decades, New York sellers could avoid filling out the disclosure form by offering the buyer a $500 credit at closing. That option was eliminated on March 20, 2024.
If you see outdated advice online saying you can just pay $500 and skip the form, ignore it. That is no longer the law in New York. Sellers are now legally mandated to provide a full disclosure statement.
What You Must Disclose
New York law requires sellers to disclose any known material defects. These are issues that would affect the property's value or a buyer's decision to purchase.
Structural problems like foundation cracks, roof leaks, and wall damage must be disclosed. Water damage including past flooding, standing water, and drainage issues are also required. Environmental hazards like lead based paint, asbestos, mold, and radon fall under disclosure requirements. Problems with heating, plumbing, or electrical systems must be reported. Pest infestations like termites or rodents need to be disclosed. Flood risks, including whether the property is in a flood zone or has a history of flooding, must be disclosed. And boundary or legal issues like disputes with neighbors or zoning violations are also required.
Even if a defect is not easy to see, like foundation cracks or hidden water damage, you still have to report it if you know about it.
Recent Changes to the Disclosure Form
More Flood Questions
The form expanded from 48 to 56 questions, adding seven new flood related questions addressing FEMA floodplains, flood insurance, and prior flood claims. This reflects the state's commitment to climate resiliency after devastating floods across New York.
Septic System Update
A revised disclosure form became mandatory on July 1, 2025, adding information about septic system operation and maintenance. If you are selling a home with a septic system, pay special attention to this section.
Lead Based Paint
On top of New York's requirements, federal law requires sellers of homes built before 1978 to disclose any known lead based paint hazards and provide buyers with a lead hazard information pamphlet.
Who Does Not Have to Complete the Disclosure Form
Not every seller has to complete the disclosure statement. The law exempts several types of transactions.
Transfers by court order including probate, bankruptcy, and eminent domain are exempt. Foreclosure sales are exempt. Transfers by fiduciaries like estates, guardianships, and trusts are exempt. Transfers between co owners are exempt. Transfers to spouses or family members are exempt. Transfers as a result of divorce or separation are exempt. Transfers to or from government entities are exempt. Newly constructed residential property that has not been inhabited is exempt.
Condominium units and cooperative apartments are specifically exempt from the disclosure requirement. But that does not mean condo sellers have no disclosure obligations. They may still need to disclose known defects under common law.
What Happens If You Do Not Disclose
The risks are real. Most real estate lawsuits are linked to disclosure issues. Buyers who discover undisclosed defects after closing can sue for fraud or misrepresentation if you knowingly hid a defect. They can sue for breach of contract if your disclosures were incomplete. And they can sue for negligent misrepresentation even if you did not intend to mislead but failed to exercise reasonable care.
The amended Property Condition Disclosure Act allows for liability for actual damages if a seller provides an incomplete or false statement.
What About Selling As Is
Even in an as is sale, you still have to complete the disclosure statement. The law does not allow you to waive disclosure requirements just because you are selling as is. As is means you will not make repairs. It does not mean you can hide known defects.
Common Pitfalls Sellers Face
Sellers often make the same mistakes when it comes to disclosures.
Some sellers assume the $500 credit still exists and try to use it. It does not. Some sellers think as is sales waive disclosure requirements. They do not. Some sellers fail to update disclosures when new issues arise before closing. Some sellers rely on their agent to fill out the form. Your agent should not do this. And some sellers guess instead of marking unknown. If you do not know, mark UKN.
FAQ
Q: Do I have to fill out the Property Condition Disclosure Statement?
A: Yes, unless you qualify for an exemption. The law requires sellers of 1 to 4 family residential properties to complete and deliver the disclosure statement to the buyer before they sign a contract.
**Q: What happened to the $500 credit option?**
A: It is gone. As of March 20, 2024, sellers can no longer pay $500 to skip the disclosure form. Any advice telling you otherwise is outdated.
Q: What if I do not know the answer to a question?
A: You can check UKN for unknown information. The form is based on your actual knowledge. You are not required to investigate or hire inspectors.
Q: What is the deadline for providing disclosures?
A: The disclosure statement must be delivered to the buyer prior to the signing of a binding contract of sale. Best practice is to provide it as early as possible, ideally before offers come in.
Q: Do condos and co-ops require the disclosure statement?
A: No. Condominium units and cooperative apartments are exempt from the requirement. However, sellers may still have common law disclosure obligations.
Q: What if I am selling a house as is?
A: Even in an as is sale, you still have to complete the disclosure statement. The law does not allow you to waive disclosure requirements just because you are selling as is.
Q: What about lead based paint?
A: For homes built before 1978, federal law requires you to disclose any known lead based paint hazards and provide the buyer with a lead hazard information pamphlet.
Q: What is the penalty for not disclosing a known defect?
A: Buyers can sue for fraud, misrepresentation, or breach of contract. Most real estate lawsuits are linked to disclosure issues.
Q: When did the disclosure form change last?
A: A revised form became mandatory on July 1, 2025, adding information about septic system maintenance. The form also expanded from 48 to 56 questions in March 2024 with new flood related questions.
Q: Where can I get the disclosure form?
A: The form is available on the NYS Department of State website at dos.ny.gov. Your real estate agent or attorney can also provide it.
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