If an article tells you a New York seller can skip the property condition disclosure by handing the buyer $500, it is out of date. According to the New York State Bar Association’s account of the amendment, Chapter 484 of the Laws of 2023 deleted the credit, effective March 20, 2024 (NYSBA, Property Condition Disclosure Act Amended). The current text of section 465 contains no credit (Real Property Law §465), and the statement itself is now the thing a seller of a one- to four-family house, unless an exemption applies, must complete, sign and deliver before the buyer signs a binding contract of sale.
We are Inspecwise, a New York State–licensed, InterNACHI-certified home inspection business based in South Ozone Park, Queens. We are not lawyers, and nothing here is legal advice. This guide says what the statute and the Department of State’s form say, and where application is uncertain it tells you to ask your real-estate attorney.
What the property condition disclosure is, and where the law sits
The Property Condition Disclosure Act is Article 14 of the Real Property Law, sections 460 to 466. Section 460 gives the short title, 461 the definitions, 462 the statement, 463 the exemptions, 464 revisions, 465 liability and 466 the duties of real estate agents. A former section 467, which repeated the wording of section 465(1), was repealed by the 2023 amendment, according to the State Bar article. The statement is a form that the statute prescribes in section 462(2) and the Department of State publishes as form DOS-1614-f (Rev. 01/24). It has 56 numbered items. The amendment added seven questions about flood hazard areas, federal flood insurance, FEMA assistance, elevation certificates and flood claims, and deleted the credit.
The form says what it is in its first paragraphs: “a statement of certain conditions and information concerning the property known to the seller,” and “not a warranty of any kind by the seller or by any agent representing the seller” (Department of State form DOS-1614-f, copy hosted by the Rockland County Bar Association). Keep those two phrases in mind for the rest of this guide.
Who must give the property condition disclosure statement, and who is exempt
Section 462(1) says every seller of residential real property under a real estate purchase contract must complete and sign the statement and cause it to be delivered to the buyer or the buyer’s agent before the buyer signs a binding contract of sale. “Residential real property” is real property improved by a one- to four-family dwelling used or intended to be used as a home. The definition of “real estate purchase contract” also reaches a lease with an option to purchase, a lease-with-obligation-to-purchase agreement and an installment land sale contract (Real Property Law §461). Section 463 then lists transfers for which no statement is required.
| Seller or transfer | Statement required? | Where it comes from |
|---|---|---|
| Owner selling a one-, two-, three- or four-family house under a purchase contract | Yes | §462(1); definition in §461(5) |
| Co-op apartment or condominium unit | No: the definition leaves them out | §461(5) |
| Property in a homeowners’ association not owned in fee simple by the seller | No | §461(5) |
| Unimproved land on which dwellings are to be built | No | §461(5) |
| Newly built house that has never been inhabited | Exempt | §463(12) |
| Transfer under a court order, including probate; foreclosure sale; deed in lieu of foreclosure | Exempt | §463(1) to (6) |
| Transfer by a fiduciary administering an estate, guardianship, conservatorship or trust | Exempt | §463(7) |
| Transfer between co-owners, to a spouse or to lineal relatives, or between spouses on divorce | Exempt | §463(8) to (10) |
| Transfer to or from a government body, by a sheriff, or in a partition action | Exempt | §463(11), (13), (14) |
In New York City the first two rows matter most. A sale of a two-family house in Queens or a three-family in Brooklyn is covered, so the seller completes the statement. A co-op or condo sale is not covered by this Act. Co-op and condo buyers rely instead on the building’s own documents and their attorney, and where there is an offering plan the Attorney General “highly recommends” that a prospective purchaser read the entire plan and consult an attorney before signing a purchase agreement (Attorney General, Buying a Co-op or Condo). Our guide to co-op inspections in Queens and Brooklyn covers that side. Whether a specific transfer, such as a gift to a relative or a sale out of an estate, is exempt on your facts is a question for your attorney.
When it must be delivered, and what happens if the seller learns more
The timing rule is the most practical part of the Act. The statement goes to the buyer or the buyer’s agent “prior to the signing by the buyer of a binding contract of sale.” The Act defines that contract as a purchase contract or offer that, on the seller’s signature and subject to any contingencies, would require the buyer to accept a transfer of title. On its face, a contract that is subject to an inspection contingency can still fall within that definition, so the statement is due before the buyer signs, not after the inspection. Ask your attorney how this works in your contract. A copy signed by both seller and buyer is attached to the purchase contract.
Three further rules follow (Real Property Law §462 and §464):
- Revisions. If a seller acquires knowledge that makes a previously delivered statement materially inaccurate, the seller must deliver a revised statement to the buyer as soon as practicable. No revision is required after the transfer of title or the buyer’s occupancy, whichever is earlier.
- No duty to investigate. The Act does not require the seller to undertake or provide for any investigation or inspection of the property or to check public records. The statement reports what the seller knows.
- Agents must tell the parties. A listing agent must timely inform each seller of the seller’s obligations, and a buyer’s agent must inform the buyer, before the buyer signs a binding contract, of the buyer’s rights and obligations (§466).
What if the statement is never delivered? The State Bar article observes that, with the credit gone, the statute no longer addresses a remedy for a seller’s failure to provide a fully completed statement in the first place. That is one commentator’s reading, and it is exactly the kind of point to put to your attorney before you sign.
What the statement says: knowledge, not a warranty
Three features shape everything else. First, the statement is limited to the seller’s actual knowledge: the Act defines “knowledge” as “only actual knowledge of a defect or condition on the part of the seller.” The seller answers “based upon your actual knowledge,” completes the form personally, and may check “NA” for an item that does not apply or “Unkn” if the seller does not know. The seller certifies that the statement is “true and complete to the seller’s actual knowledge as of the date signed.” Second, the statement is the seller’s, not the agent’s: “the following are representations made by the seller and are not the representations of the seller’s agent.” Third, it is not a warranty, and the buyer acknowledges in writing that it is not a substitute for any home, pest, radon or other inspections or testing, or for an inspection of the public records.
The form also warns that “a knowingly false or incomplete statement by the seller on this form may subject the seller to claims by the buyer prior to or after the transfer of title.” Section 465 states the liability rule: a seller who provides a statement, or provides or fails to provide a revised one, is liable only for a willful failure to perform the Act’s requirements, and then for the buyer’s actual damages in addition to any other existing equitable or statutory remedy. The Act does not limit any existing legal cause of action or remedy. The State Bar article adds that, before the amendment, a seller could be sued for checking “unknown” when the seller had actual knowledge of a defect. Section 462(1) also leaves the parties free to agree on terms about the physical condition of the property, including “as is” sales. How these provisions fit together in your contract is for your attorney.
What the form asks, and where it connects to New York houses
The form is longer than many sellers expect. These are the groups of questions, with the guide that explains each topic:
| Topic | Items on the form | Read more |
|---|---|---|
| Certificates of occupancy | Item 9 asks whether certificates of occupancy exist and, if not, to explain. | Certificate of occupancy and permits |
| Flood | Items 10 to 17: FEMA floodplain, the 100-year and 500-year areas, a federal flood-insurance requirement, disaster assistance, flood insurance, an elevation certificate, flood claims. | Flood zones in New York City and Long Island |
| Fuel tanks and spills | Item 21: tanks above or below ground, now or ever, whether in use, whether they leak or have leaked. Items 25 and 26: spills and testing. | Oil tank inspection |
| Asbestos, lead plumbing, radon, mold | Items 22 to 24 and 27, including whether a radon or mold test was done (attach the report). | Radon by county · Add-on tests |
| Structure, roof, pests | Items 28 to 33: rot or water damage, fire damage, pest infestation or testing, roof type, age and defects, footings, beams and girders. | Roof inspection |
| Water, sewer, electric | Items 34 to 39: water source, sewage system, electric service and fuses or breakers, standing water, water penetration from seepage or a flood event. | Basement water after storms |
| Known material defects in listed items | Items 40 to 55: plumbing, carbon monoxide and smoke detectors, sump pump, foundation, chimney, heating, hot water heater and more. | Smoke and CO alarms |
One omission matters in New York City. The form contains no question about building permits, open violations or zoning; item 9, on certificates of occupancy, is the only one that touches the records. That is not a reason to treat permits as optional. A buyer’s attorney can search the city’s records whatever the form asks, and a seller who knows of unpermitted work should ask the seller’s attorney how it bears on the statement. Pull the records yourself, as our guide to the certificate of occupancy and permits explains.
Property condition disclosure vs home inspection
The two documents answer different questions, and neither replaces the other. The form says so itself: it “is not a substitute for any inspections or tests.”
| Disclosure statement | Home inspection | |
|---|---|---|
| Who prepares it | The seller, personally | A licensed home inspector hired by the client |
| Based on | The seller’s actual knowledge | A visual examination of readily accessible systems on the day |
| What it can include | History only an owner knows: past leaks, claims, tank removals, who has rights to use the property | Conditions the owner may not know of, such as a defect the owner has never noticed |
| What it cannot do | Report what the seller does not know; “unknown” is a permitted answer | Find concealed conditions or latent defects; the Standards say inspections are not technically exhaustive |
| Promise made | Not a warranty by the seller or the seller’s agent | The Standards do not require an inspector to offer a warranty of any kind |
| Required by the Act? | Yes, for covered sellers, subject to the exemptions | No. The Act does not require any inspection of the property |
| Who receives it | The buyer or the buyer’s agent, before the buyer signs | The client, within five business days of the inspection |
Each catches what the other misses. A seller can say “no” to water damage in good faith while a ceiling stain is visible to the inspector, and an inspector cannot see a tank removed fifteen years ago that the seller remembers. That second sentence is an illustration, not a case. Our guides to what a New York home inspection includes and the home inspection process explain the limits on the inspection side, and 19 NYCRR 197-5.16 lists them in full.
What a buyer should do with the statement
- Ask for the statement before you sign the contract, and give it to your attorney with the contract. The Act requires delivery before the buyer signs, so if it has not arrived, ask your attorney why.
- Read the “yes” and “unknown” answers first. A “yes” with an explanation tells you what to ask the inspector to look at. An “unknown” is an item no one has checked.
- Compare it with the inspection report. A statement that says “no water penetration” beside a report with staining is a conversation for your attorney, not a conclusion.
- Order the tests the statement points to. If it says no radon test was done, see which add-on tests you need. Radon and pests are outside a home inspection by statute.
- Check the public records the form tells you to check. The form encourages buyers to check records such as tax records, wetlands and FEMA maps.
- Keep every version. If a revised statement arrives, send it to your attorney.
A buyer reads the statement, the contract and the inspection report together. See who pays for a home inspection for how the inspection is arranged, and whether the seller should be at the home inspection for the seller’s side of the visit.
What a seller should do with the statement
- Complete it yourself, as the form instructs, and answer from what you actually know. Check “unknown” only when it is true.
- Use the explanation space. The form lets you attach pages, and an explained “yes” is usually clearer than a bare one. Ask your attorney how much detail is wise.
- Pull your records first: certificate of occupancy, permits, tank paperwork, flood insurance and claims, radon or mold reports, roof and boiler dates.
- Deliver it before the buyer signs the contract of sale, and keep proof of delivery. Your listing agent must tell you your obligations under the Act.
- Update it. If you learn something that makes a delivered statement materially inaccurate before the transfer of title or the buyer’s occupancy, deliver a revised one as soon as practicable.
- If you are considering a pre-listing inspection, ask your attorney first how information from the report relates to the statement, because the statement rests on what you know. The inspection itself is your choice; the Act does not require one. See our pre-listing inspection page for Queens.
Painting over a stain does not change what you know. The statement asks what you know, not only what is visible today.
Why the $500 credit no longer appears
Before the 2024 amendment, section 465 said that if a seller failed to deliver the statement before the buyer signed a binding contract of sale, the buyer would receive, on the transfer of title, a credit of $500 against the purchase price. The State Bar article reports that many downstate attorneys for sellers advised their clients to give the credit instead of the statement, because they considered many of the questions vague. According to the same article, Chapter 484 of the Laws of 2023 deleted that requirement, retitled section 465 “Liability,” and added the flood questions, and section 467 was repealed.
Today the first step in a covered sale is the statement itself. If a listing, an old article or an agent’s habit suggests a $500 credit in its place, ask your attorney whether any such option exists in your transaction. Do not assume it does. The current text of section 465 has no credit.
Other disclosures that run alongside
Two other rules often come up in the same weeks. For most housing built before 1978, a federal rule requires sellers to give buyers specific information about known lead-based paint and hazards before the buyer signs a contract, and to provide a 10-day period for a paint inspection or risk assessment, which the buyer may waive (EPA, Real Estate Disclosures about Potential Lead Hazards). And on a sale of a one- or two-family house, the seller gives the buyer an affidavit of smoke alarm compliance at closing; see smoke and carbon monoxide alarms in New York homes. The form also tells buyers of pre-1978 houses to investigate lead-based paint. Neither of these replaces the state statement.
Does a co-op or condo seller have to give a property condition disclosure statement?
No. The Act’s definition of residential real property leaves out condominium units and cooperative apartments, so the state form does not apply to them. Co-op and condo buyers rely on the building’s own documents and their attorney.
Can a New York seller still give a $500 credit instead of the statement?
The credit was deleted from the statute effective March 20, 2024, according to the State Bar article, and the current section 465 has no credit. Ask your attorney whether anything like it can apply to your sale before you rely on it.
Does the disclosure statement promise the house is free of defects?
No. The form says it is a statement of conditions known to the seller and is not a warranty of any kind by the seller or the seller’s agent. It also says it is not a substitute for inspections or tests.
What happens if the seller’s statement turns out to be wrong?
It depends on what the seller knew and whether the failure was willful. A seller who provides a statement is liable only for a willful failure to perform the Act’s requirements, and then for the buyer’s actual damages, and existing legal remedies are preserved. Ask your attorney how that applies to your facts.
Does a property condition disclosure replace a home inspection?
No. The statement reports what the seller knows; an inspection reports what a licensed inspector can see. The form tells the buyer it is not a substitute for any inspections or tests. Read both against the contract.
Who is exempt from giving the statement?
Sellers in the transfers listed in section 463, including court-ordered transfers, foreclosure sales, transfers by fiduciaries, transfers between co-owners, to a spouse or to lineal relatives, to or from a government body, and transfers of newly built houses that were never inhabited. Whether yours qualifies is for your attorney.
When does the buyer have to receive the statement?
Before the buyer signs a binding contract of sale. The Act defines that contract by reference to the seller’s signature and any contingencies, so a contract subject to an inspection contingency can still be covered. Ask your attorney how the timing applies to your contract.
Booking an inspection with Inspecwise
The statement tells you what the seller knows. An inspection tells you what a licensed inspector can see, within the limits of the State’s Standards of Practice. If you want the second one, we can schedule it.
We inspect in the five boroughs, Nassau, Suffolk and Westchester, and elsewhere on request, and we can explain the report in English, Urdu, Punjabi or Hindi.
Questions first? Call 718-925-7071.