New York Home Seller Disclosure Requirements

New York spent decades as one of the easiest states to sell a home in without telling buyers much of anything. That changed in 2024. The long-standing $500 credit loophole was eliminated, the Property Condition Disclosure Statement (PCDS) was expanded with serious flood history questions, and sellers who used to hand over a check at closing instead of a form now have to actually fill out the form. This page walks through what New York sellers are required to disclose, what the recent amendments changed, and what happens if you get it wrong.

General information only, not legal advice. New York disclosure rules are enforced under Article 14 of the Real Property Law. Work with a New York real estate attorney on any specific situation.

The Property Condition Disclosure Statement (the central rule)

New York Real Property Law sections 460-467 (the Property Condition Disclosure Act) requires sellers of residential one-to-four-family homes to deliver a completed Property Condition Disclosure Statement to the buyer before the buyer signs a binding contract. The PCDS is a standardized state form with questions about the seller's actual knowledge of the property's condition.

The form covers six categories:

• General information: age of home, occupancy history, ownership.
• Environmental: flood history, drainage, fuel oil tanks, asbestos, lead, radon, hazardous waste.
• Structural: foundation, walls, roof, drainage, additions, permits.
• Mechanical systems and services: water source, sewer, plumbing, electrical, HVAC, water heater.
• Title and legal: easements, encroachments, surveys, boundary disputes, certificates of occupancy.
• Flood-related history (added 2024): FEMA flood zone, flood insurance, prior flood damage, federal disaster assistance.

Each question is answered Yes, No, Unknown, or Not Applicable. Sellers are answering based on actual knowledge, not opinion or inspection results.

What the March 2024 amendments changed

The amendments to RPL 462, effective March 20, 2024, made three substantive changes every New York seller needs to understand:

1. The $500 credit option is gone

For decades, New York sellers could legally skip the PCDS by giving the buyer a $500 credit at closing. Almost everyone took that route. The form was treated as optional and rarely completed. As of March 20, 2024, the $500 credit option has been eliminated. Disclosure is now mandatory for any covered residential sale, regardless of whether the seller wishes to offer a credit.

2. Flood history disclosure added

The 2024 amendments added seven new flood-related questions to the PCDS, including whether the property is in a FEMA Special Flood Hazard Area, whether flood insurance is currently maintained or required, whether the property has experienced past flood damage, whether claims have been paid by insurers, and whether federal disaster assistance has been received. This was a direct response to repeated post-Sandy and post-Ida cases where buyers discovered flood histories that sellers had legally avoided disclosing.

3. Liability for false answers clarified

The 2024 amendments confirmed that knowingly false answers on the PCDS expose sellers to actual damages, and the buyer's remedy is no longer limited to the previous $500 credit. Buyers can now recover the actual cost of repairing the undisclosed condition plus consequential damages, attorney's fees if the contract provides for them, and in fraud cases, punitive damages.

Delivery timing — must be before the contract is signed

The completed PCDS must be delivered to the buyer before the buyer signs a binding purchase contract. Delivery after contract signing does not satisfy the statute. In practice this means:

• The PCDS is provided to the buyer's attorney with the proposed contract.
• The buyer signs the PCDS receipt, then signs the contract.
• The signed PCDS becomes an addendum to the contract.

If the seller delivers the PCDS after the buyer has already signed, the buyer can cancel the contract within three business days of receipt without penalty. Late delivery is not a way to cure missed disclosure; it just gives the buyer an exit.

Federal lead-based paint disclosure

Federal law (42 USC 4852d) requires lead-based paint disclosure for any home built before 1978, on top of the New York PCDS. The lead disclosure must be signed by both parties and the buyer must receive a 10-day inspection period to test for lead paint unless this is waived in writing.

Megan's Law notice

New York real estate contracts must include a Megan's Law notice informing the buyer that information on registered sex offenders is available from the New York State Division of Criminal Justice Services. Most form contracts pre-populate this notice; sellers should not need to add it manually but should not delete it from a contract that already contains it.

HOA and condo disclosure

New York condominium and cooperative sales require disclosure of the offering plan, bylaws, financial statements, and current operating budget. Co-op sellers must additionally disclose board approval requirements, transfer taxes (flip taxes), and any pending assessments or capital projects. HOA single-family communities require disclosure of governing documents and current assessment status.

Exemptions — when the PCDS is not required

Several transfers are exempt from the PCDS requirement under RPL 463:

• Court-ordered transfers (probate, divorce, bankruptcy).
• Transfers to a co-owner, spouse, lineal descendant, or ancestor.
• Transfers between government agencies.
• Foreclosure sales and transfers to lenders in lieu of foreclosure.
• Transfers of newly constructed homes that have never been occupied.
• Transfers from an estate where the executor never occupied the property.

An exemption from the PCDS does not exempt sellers from common-law fraud claims if they actively concealed material defects. Estate sales in particular are a frequent source of litigation because executors often check "Unknown" to every question and assume that ends the matter; it doesn't if there's evidence the executor actually knew something.

Consequences of non-disclosure or false answers

Under the post-2024 framework, New York sellers who provide false PCDS answers face:

• Actual damages: full cost to repair the undisclosed condition plus consequential damages (temporary housing, lost use, diminished value).
• Rescission: in significant cases, courts can unwind the sale.
• Attorney's fees: if the contract contains a fee-shifting clause (most do); the losing party often pays both sides.
• Punitive damages: available in cases of active fraud or willful concealment.

The pre-2024 cap of $500 has been removed. Damages are now the actual harm the buyer suffered.

The disclosure folder you should build before listing

New York sellers who arrive at the closing with documentation already organized substantially reduce PCDS completion time and post-sale litigation risk. Items to gather:

• Certificate of occupancy and any open or expired permits.
• Survey showing property lines, easements, and any encroachments.
• Flood elevation certificate if in a flood zone, plus claim and insurance history.
• Fuel oil tank documentation (above-ground or underground, tested or removed).
• Roof install date, contractor, and warranty paperwork.
• HVAC, water heater, and major appliance records.
• Septic and well records if applicable, including inspection reports.
• Pest control treatment records, especially termite and carpenter ant.
• Asbestos, lead, and radon test results if any have been performed.
• Condo offering plan and bylaws, or HOA governing documents.
• Co-op proprietary lease, house rules, and flip tax schedule.

For a deeper look at what records buyers and their inspectors specifically ask for at closing, see What Maintenance Records Do Home Buyers Ask For at Closing? For the comparable California, Texas, and Florida frameworks, see California, Texas, and Florida seller disclosure articles.

The bottom line for New York sellers

The $500 credit shortcut is dead. Every covered New York residential seller must now complete and deliver the PCDS before the buyer signs a contract, must answer the expanded flood history questions truthfully, and faces actual-damages liability rather than a capped credit if the answers are false. The cost of full disclosure is low. The cost of a missed flood claim from 2017 surfacing in litigation in 2027 is not.