EVERY 1-4 family Seller in N.Y.S. will be required to complete and provide the new Property Condition Disclosure Statement to Buyers before they sign a contract.
Let me start with a little early history. NYS has always maintained a ‘caveat emptor’ position. Buyers perform inspections before signing a contract. That was their due diligence. At times, major, undisclosed, pre-existing issues would occur and cost buyers significant money to correct. Sellers did not worry because of the caveat emptor existence.
NYS then passes the PCDA, which gives Sellers a multi-page document to complete about all aspects of their home, to the best of their knowledge. Included was an ‘opt-out’ which said a Seller could credit $500 in place of the paper and not become involved in any recourse. The opt-out money was the choice in 99+% of area sales.
NYS has now Enacted a new PCD Law which removes the $500 opt-out! As of the Mar 20th date, Sellers will be required to submit the PCDS form to sell their home. Broker Firms & Real Estate attorneys are preparing for this and how to manage a one-size DOESN’T fit all scenario. Components age, wear out, break, and most times without warning. ‘My home never had water issues except for that 1 time’. Informed Sellers already have questions. How should I disclose? Where am I liable? How can I protect myself from any future frivolous actions against me?
You are in various stages of the home selling cycle. What can you do now to prepare for this new requirement? The first move is to get a copy of the latest PCD form Have a look at what you will need to answer. Next, should you choose, contact me for a shortlist of items and actions you can take now regardless of whether selling in a month or a year. You can take action now to prepare for the inevitable need when you sell. As I speak with various Real Estate attorneys, I gain additional insights on how best to assist sellers with the requirements and will always update and send the list to you.
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