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Overview of Property Condition Disclosure Statements

The New York Property Condition Disclosure Statement (PCDS) is a document that sellers of residential real estate in New York State are required to complete and provide to potential buyers. Here's a summary of its key aspects:

Purpose and Requirements

  • The PCDS is mandated by New York State's Property Condition Disclosure Act

  • Sellers must complete the form disclosing known defects and conditions of the property

  • The statement must be provided to buyers before they sign a binding contract

Content of the Disclosure

The PCDS contains questions about various property aspects including:

  • General information (property age, ownership duration)

  • Structural elements (foundation, roof, walls)

  • Mechanical systems (plumbing, electrical, HVAC)

  • Water and sewer systems

  • Environmental conditions (flooding, lead, asbestos, radon)

  • Pest infestations and wood rot

  • Boundary disputes and easements

  • Homeowner association information

Legal Implications

  • The PCDS is not a warranty or guarantee

  • Sellers are only required to disclose known conditions

  • Misrepresentations can lead to legal liability

  • The disclosure doesn't replace professional home inspections

While sellers are obligated to provide signed disclosures to buyers, it is common for sellers’ attorneys to add riders to contracts of sale that either limit, entirely remove any rights a buyer might have pursuant to the PCDS, or restrict the statute of limitations, e.g., some attorneys attempt to reduce the 6-year statue of limitations to 60 days.

Whether or not such modification are agreeable to buyers depends on many factors, including but not limited to (a) the scope and results of any inspections they may have conducted, (b) whether they feel the purchase price is aggressive or not, (c) the age of the property, (d) what the sellers did or did not disclose in the PCDS, etc.

If you have questions about the PCDS, please email or call the experienced real estate team at The Donaldson Law Firm, PLLC.

Stephen Donaldson