A new real estate law went into effect March 20th that is a major change in the home buying and selling process in New York City. If you bought or sold a home in the last 20 years, the Property Condition Disclosure Statement was undoubtedly brought up at the closing and almost certainly it was that the seller was issuing the $500 credit instead of providing the Property Condition Disclosure Statement. This was the case in every transaction I have represented someone or sold or purchased myself.
Sellers no longer have the ability to opt out of the disclosure statement and pay the $500 credit.
The disclosure form is 56 questions ranging from the condition of the property to the school district. Most of the questions are focused on the condition, specifically the structure, and flooding risks.
How should you handle this as a seller? It is too early to know exactly how this will affect the market and process but one idea to help sellers ensure a smooth sale is for the seller to conduct their own home inspection before listing the home and provide this along with the Property Disclosure Statement.
Regardless, it is important to know the new obligation of sellers and to bring it up with your attorney if you are thinking about selling a home. Send me a message if you would like a copy of the disclosure form or would like to discuss this further.