The Seller's Disclosure Process in New York: The Property Condition Disclosure Act Explained

If you are selling a house in the Capital Region, one of the first legal steps you will run into is the seller's disclosure process in New York. It is governed by the Property Condition Disclosure Act, and the rules changed in a meaningful way in 2024. If your last sale was before then, what you remember may be out of date. This post walks through what the disclosure covers, what your honesty obligation actually is, who is exempt, and why an "as-is" sale does not let you skip it. The goal here is to help you understand the process, not to hand you legal advice, so plan to confirm the current requirements with your own real estate attorney before you sign anything.

What the Property Condition Disclosure Act Requires

New York's Property Condition Disclosure Act sits in the Real Property Law and applies to most sales of residential property with one to four dwelling units. Under the Act, the seller completes a standardized Property Condition Disclosure Statement and delivers it to the buyer before the contract of sale is signed. The buyer signs to acknowledge receipt, and a copy is attached to the contract.

The statement is a long questionnaire. It is organized into broad sections covering general information about the property, environmental conditions, the structure itself, and mechanical systems and services such as heating, plumbing, electrical, and water and sewer. You answer each question with Yes, No, Unknown, or Not Applicable. It asks about things like the age of the roof, the source of drinking water, the type of sewer or septic system, known flooding or drainage issues, prior fire or smoke damage, and known material defects.

Sharon walks her sellers through this form line by line, because a rushed or sloppy answer is where problems start.

What Changed in 2024 (and Again in 2025)

This is the part many people get wrong. For years, New York let a seller skip the disclosure statement entirely by giving the buyer a flat $500 credit at closing. That option is gone. As of March 20, 2024, the $500 credit in lieu of disclosure was eliminated. If you are not exempt, you complete and deliver the actual statement. There is no longer a small fee to buy your way out of it.

The 2024 amendment also added a set of flood-related questions. Sellers now answer whether the property sits in a FEMA-designated floodplain, whether federal flood insurance is required, whether the home currently carries flood insurance, whether there is a FEMA elevation certificate, and whether the property has received FEMA flood assistance or had a prior flood insurance claim. New York added these because flooding history is something a buyer genuinely cannot see on a walkthrough.

A further amended version of the form became the required one as of July 1, 2025, including an added note pointing sellers to New York Department of Health information on septic system operation and maintenance. Because the form and the rules around it keep getting updated, your attorney should confirm you are using the current version.

Your Duty Is Honesty, Not Investigation

The standard for answering is your actual knowledge. You are required to answer truthfully and in good faith based on what you actually know about the property at the time you sign. You are not required to hire inspectors, dig through public records, or go hunting for problems you are unaware of. If you genuinely do not know, "Unknown" is a legitimate answer.

What you cannot do is mark something "Unknown" when you actually know the answer, or give a false answer to hide a defect. A seller who provides the statement can be held liable for actual damages caused by a willful failure to give truthful answers based on actual knowledge. In plain terms: an honest "Unknown" protects you, while a knowingly false answer exposes you. When in doubt, disclose.

"As-Is" Does Not Cancel the Disclosure

A common misunderstanding is that selling a home "as-is" removes the disclosure duty. It does not. An "as-is" clause means you are not agreeing to make repairs. It does not give you permission to misrepresent the condition of the property or conceal something you know about. New York courts have been clear that an "as-is" clause, and the standard merger language in a contract, generally will not shield a seller from a claim of fraud. You still complete the disclosure honestly even on an as-is deal.

Common Exemptions

Not every transfer triggers the disclosure requirement. The Act lists exemptions, and the categories have stayed consistent through the recent changes. Sales that are commonly exempt include:

• Transfers ordered by a court, including the administration of a deceased owner's estate through probate
• Foreclosure sales, and transfers by a lender that took the property back through foreclosure or a deed in lieu
• Transfers by a fiduciary handling an estate, trust, guardianship, or conservatorship
• Certain transfers between co-owners, or to a spouse or direct family member
• New construction that has never been occupied

If you think your sale might fall into one of these buckets, do not assume. The exact wording of each exemption matters, and your attorney can confirm whether it applies to your specific situation.

A Few Practical Tips for Capital Region Sellers

• Start the form early, before you are under deadline pressure, so you have time to remember details accurately.
• Keep records of repairs, system installations, and any insurance claims. They help you answer precisely.
• For the flood questions, check your current FEMA flood map status rather than guessing; FEMA is the authoritative source.
• For septic, well, tax, or legal questions, confirm specifics with the appropriate professional or official New York State or local office.
• Reread your answers before signing. This document follows the sale.

The disclosure process is not meant to trip you up. It exists so the buyer learns what you already know, which is exactly the kind of transparency that keeps a deal from falling apart late. For current Capital Region pricing and market conditions, see the site's market reports page at /market-reports.

Every sale is a little different, and the rules in New York genuinely do change. If you are thinking about listing your home in Albany, Saratoga, Schenectady, Rensselaer, or one of the surrounding towns, Sharon Fronk is glad to walk you through the disclosure process and the rest of the sale with no pressure. Reach out for a straightforward conversation about what selling looks like for your specific property, and confirm any legal specifics with your real estate attorney.