Property Condition Disclosure Act (As Amended)………..
Assembly Bill A. 1967, together with Senate Bill S. 5400, were both presented to Governor Elizabeth Hochul for consideration as Chapter 484 on September 22, 2023, which she then signed into Law. This new Legislation effectively abolishes the Property Condition Disclosure Act which afforded a Seller of Residential Real Estate (as defined therein) the option to elect to not complete the Property Condition Disclosure Statement, and in lieu thereof, give to the Purchaser a sum certain credit of $500.00 for failing to complete the Disclosure Form.?The effective date of this Legislation is March 20, 2024.?With that, this disposes of the Seller’s option to provide the $500.00 credit and makes mandatory a Seller’s obligation to complete the Disclosure Form. Further compounding the issue of disclosure, is that the Real Property Law was amended to require a Seller of Residential Real Property to disclose indoor mold history, effective June 14, 2023, while a Second Amendment was signed by the Governor on September?22, 2023, with the?effective date of March 20, 2024, which now requires the disclosure by a Seller as to whether or not the Residential Real Property is in a FEMA flood zone.
Now that simply reports the news.? So now let’s consider the consequences of this new Legislation. A Real Estate Broker provides the newly modified Property Condition Disclosure Form to their Seller and advises their Seller to meet with their Attorney who will assist them in properly completing the Disclosure Form. Good news? No, bad news.? And why? What special knowledge and/or expertise does an Attorney possess that will allow for the Attorney to assist a Seller in properly completing the new Property Condition Disclosure Statement as to matters pertaining to a particular Seller's Residential Real Property? None that I can think of.? In fact, most Attorneys who I know of, myself included, can barely screw in a light bulb.
So when the Broker advises the Seller to contact their Attorney to assist them in properly completing the new Disclosure Form, and the Attorney responds and asserts “what do I know about your house, this ain’t my thing”, no doubt, the Seller will think that the Attorney just doesn’t want to be bothered, which in reality, by not assisting in the regard, is the Attorney properly “staying in his or her lane”, although, guaranteed, it won’t be looked at that way.? Another landmine waiting to explode. ??
Founder at Empire Advisors, LLC
1 年Unbelievable.
Special Counsel at Falcon Rappaport & Berkman PLLC and General Counsel at The Wydra Group
1 年I recommend that Seller's attorneys read the PCDS form carefully. Would you sign it if you were selling you own house? The PCDS is Realtors' protection legislation and without the $500 waiver, is likely to result in a flood of litigation. Effective in March 2024, real estate attorneys need to lobby for reinstatement of the waiver, even if it requires a disclosure in BOLD that Seller makes no representations except as specifically made in writing in the purchase agreement. This is a matter for the New York State Bar Association.
Attorney specializing in business, real estate, wills, trusts, and estates as well as criminal law esp DWI cases
1 年Absolutely. It has to be clear the attorney has had no role in the document?
Attorney at Law/General Counsel
1 年I can screw in a light bulb, but I will definitely not be completing the PCDS on behalf of a seller client. Although not routine downstate, I understand that many sellers upstate complete and provide a PCDS. I’m curious as to that practice and who is actually completing the form - seller? Broker? Home inspector? Seller’s Attorney?
Broker/Owner at Marilyn Cangiano Realty
1 年And if I’m not mistaken Unlike the credit which ends with closing this disclosure would survive the closing if and when purchaser finds something not disclosed? Am I wrong? Please advise??