Legal update – Effective March 20th, 2024 a mandated Property Conditions Disclosure Statement (PCDS) will impact all sellers and buyers of New York residential real estate

On March 20th, 2024 a New York residential real estate law becomes effective and replaces a 2002 law regarding Property Conditions Disclosure Statements (known as PCDS), usually given to a buyer before signing a binding contract of sale. (Note, residential real estate means a 1-4 family dwelling used or intended to be used as a residence; unimproved land, condos, coops, and HOA sales are not covered).

Here is a link to the new form (DOS-1614-f (Rev 06/23)):

New York Property Conditions Disclosure Statement

In the past, sellers could decide not to present the form to the prospective buyer(s) pay and instead pay a $500 fee. There is no opt-out for the new disclosure statement, making it mandatory except in very limited situations … i.e. the sale of a residence by the estate of a deceased owner is exempted from the delivery of a PCDS.

The only types of residential property transfers that are exempt are transfers ordered by the court in a lawsuit such as probate, mortgage foreclosure, bankruptcy, legal partition, or divorce.  

The Property Condition Disclosure Act requires sellers to write out an answer or respond “yes”, “no”, “UKN” (unknown) or “NA” (non-applicable) to each of the 56 questions listed on the PCDS.

Truthfully completing a PCDS will prevent the seller(s) from being held liable for the actual damages suffered by a purchaser in connection with any disclosed item on a PCDS.