Selling a home or any property can be a long, complicated process. There is a lot of paperwork to be considered as well as emotional ties, listing requirements, and market conditions. The real estate selling process only gets more complicated by certain legalities.
In New York, seller disclosures are legally required. But what exactly do you have to disclose, and why?
What Do You Legally Have to Disclose When Selling a House?
As a seller, you must disclose information about known home defects to buyers. If you fail to share property conditions or defects with buyers, you can be liable for undisclosed defects.
Property Condition Disclosure Act
It is primarily because of the Property Condition Disclosure Act (PCDA) that sellers must make disclosures (see New York Real Property Law § 460-467). Under the PCDA, residential property sellers are required to complete a property condition disclosure statement. Both the seller and buyer must sign the statement after its completion. Within the form, you will be asked to reveal a host of information, which includes but is not limited to:
- How long you have owned and occupied the property
- The age of the structure
- Lease agreements and/or land rights involving your property
- Ownership claims to the property (that other individuals might have)
- Electric or gas utility surcharges
- If the property is in a designated floodplain or wetland
- If the property was ever a landfill site
- Water or rot damage
- Fire or smoke damage
- Termite, insect, rodent, or pest infestation damage
- Any known material defects involving footings, beams, girders, lintels, columns, or partitions
Exemptions from Property Disclosure Laws
Certain property transfers are exempt from the PCDA. You are not required to complete disclosure statements for property transfers, such as a:
- Court-ordered transfer following a lawsuit (i.e., probate, foreclosure, bankruptcy)
- Transfer made to your lender to satisfy your mortgage or prevent a foreclosure
- Transfer made to the estate or trust beneficiaries
- Transfer made during the administration of a guardianship or conservatorship
- Transfer to a co-owner of the property or a spouse or relative
- Transfer made as part of a settlement (i.e., divorce, annulment, legal separation)
- Transfer to the state or other local government agencies
- Transfer of new constructions that have not been occupied
To be sure you are exempt, you should speak with a real estate attorney. They will have a firm grasp on real estate laws and will know what and if you are required to make any disclosures.
At Belushin Law Firm, P.C., we are legal advocates dedicated to supporting our clients. We are prepared to protect you and your interests throughout the entire real estate transaction process.
If you are in need of a reliable New York real estate attorney, reach out to our firm via phone ((888) 918-9890) or online.