Sellers: What Do You Have to Disclose When Selling a Home in New York?

Selling a home comes with plenty of questions, and one of the biggest for sellers is: What do I actually have to disclose?

As Shannon McCarthy explains, the rule of thumb is simple: disclose, disclose, disclose.

New York has a Property Condition Disclosure Statement that sellers of applicable residential properties are required to provide before a buyer signs a binding contract of sale. The form is designed to document certain conditions and information about the property that are known to the seller.

What Is the Property Condition Disclosure Statement?

The Property Condition Disclosure Statement asks sellers a series of questions about their home. Sellers answer based on their actual knowledge, with responses such as Yes, No, Unknown, or Not Applicable.

The questions cover a variety of areas and can include known material defects involving things such as the plumbing, heating system, foundation, roof, electrical system, interior and exterior walls, floors, driveway, air conditioning and more.

If a seller knows about an issue, it is important to disclose it accurately and completely.

Why Is Disclosure Important?

Disclosure is about transparency. Buyers deserve to have relevant information about a property before making one of the biggest purchases of their lives.

The New York State Department of State notes that a knowingly false or incomplete disclosure can potentially subject a seller to claims from the buyer.

That doesn't mean sellers need to know everything about their home or guarantee that the property is free of defects. The disclosure is based on what the seller actually knows at the time they complete the statement.

What Should Sellers Do?

If you're getting ready to sell, start thinking about any issues or conditions you know about in your home. Be honest and thorough when completing the disclosure statement, and don't be afraid to ask questions.

Your real estate agent can help you understand the process, while your attorney can advise you on your specific legal obligations.

When it comes to disclosure, remember Shannon's advice: disclose, disclose, disclose.

This content is for general educational purposes and is not legal advice. Sellers should consult their real estate professional and attorney regarding their specific circumstances.