As of March 20, 2024, significant amendments to the New York Property Condition Disclosure Statement (PCDS) have been implemented, marking a pivotal shift in how residential real estate transactions are conducted. These changes aim to provide buyers with enhanced information about various aspects of a property, empowering them to make informed decisions. In this blog post, we'll explore the implications of these modifications and what they mean for buyers and sellers alike.
Enhanced Disclosure Requirements
Under the revised PCDS, sellers are now obligated to disclose additional information pertaining to the property's flood condition, indoor mold history, and structural and mechanical systems. Specifically, sellers must disclose whether the property is located in a FEMA-designated 100-year or 500-year floodplain, its compliance with federal flood insurance requirements, and any history of flood insurance procurement. Moreover, questions within the PCDS now require more concise "yes" or "no" answers, streamlining the disclosure process.
Mandatory Compliance
Previously, sellers could opt out of providing a PCDS by offering a $500 credit to the buyer. However, this provision has been eliminated, making the PCDS mandatory for most residential real estate transactions. Sellers must now complete and deliver the PCDS to potential buyers, with few exceptions such as the sale of a residence by the estate of a deceased owner.
Role of Real Estate Brokers and Attorneys
Real estate brokers holding the listing are required to notify sellers of their obligation to provide the PCDS to potential buyers, while buyer's brokers must inform their clients of their right to receive the disclosure. However, it's important to note that there is no obligation for attorneys to ensure the accuracy of the PCDS, nor is there a provision prohibiting waiver of this obligation. Sellers may consider engaging their own home inspection report to facilitate completion of the PCDS and utilize it alongside the disclosure as a marketing tool to facilitate a smoother sales process.
Conclusion
In conclusion, the amendments to the New York Property Condition Disclosure Statement represent a significant change in residential real estate transactions. Buyers now have access to more comprehensive information about properties, allowing them to make informed decisions. Sellers must adhere to the new disclosure requirements, and it's essential for all parties involved to understand their obligations under the revised PCDS.
As these changes take effect, it's crucial for buyers and sellers to seek guidance from experienced real estate professionals. If you have any questions or require assistance navigating these amendments, our team at Connelly Law PLLC is here to help. Together, we can ensure a smooth and successful real estate transaction for you.