Effective as of March 20, 2024, New York’s Property Condition Disclosure Act (the “PCDA”), in effect since 2002, no longer permits a seller of residential real estate to opt out of delivering a Property Condition Disclosure Statement (the “Statement”) by giving the Purchaser a $500 closing credit.
The PCDA requires sellers to deliver the Statement which had included forty-eight questions and now, as amended, contains fifty-six questions about the property, covering items from structural issues and mechanical systems to environmental issues and flood related matters. Accordingly, unless exempt, a seller must provide a purchaser with the Statement prior to signing a contract of sale.
Many aspects of the original PCDA remain the same, such as the exemptions and exceptions to the type of transfer where the Statement is required. Exempt transactions include:
- A transfer by a fiduciary such as a trustee or executor
- The transfer of newly constructed property that has never been inhabited
- A transfer pursuant to a court order.
Transfers of condominium units, cooperative apartments and vacant land are not subject to the PCDA.
The Transactional Department at Cuddy & Feder is ready to help purchasers and sellers navigate the revisions to the PCDA along with any residential transfer matters.
