28% of home buyers nationwide find hidden issues in properties after closing. A third of them blame sellers for not being upfront about them. The last thing you want is to be sued for undisclosed defects. A New York seller’s disclosure form is your best defense.
But finding the right disclosure can be tricky, and just one missed issue could cost you a fortune! Houzeo, New York’s best home-selling website, removes this risk by automatically assigning the right forms for your sale. You can complete them online in just a few steps.
KEY TAKEAWAYS
- When to Disclose: Share your New York seller disclosure form with buyers early on, ideally before offers come in. This builds trust and helps avoid deal delays.
- What to Disclose: List down defects like roof leaks, mold, electrical issues, or legal disputes that impact home value.
- Hidden Problems Count Too: Even if a defect isn’t easy to see, like foundation cracks or water damage, you still have to report it.
- Disclosures Can Save You Thousands: Around 77% of real estate lawsuits are linked to disclosure issues. Being upfront helps you avoid costly legal battles.
What Is a Seller Property Disclosure in New York?
The property condition disclosure statement details your home’s condition and history. Disclose any known flaws, such as hurricane damage or mold, that could impact the property’s value. This allows buyers to make an informed decision and avoid nasty surprises.
Is a Seller Disclosure in New York Mandatory?
Yes! Real estate laws in NY require disclosing material defects in real estate. If your property has a leaky roof, sinkhole risk, or even a termite infestation, you must disclose it. Don’t risk skipping this step—it’s the law.
What Do You Have to Disclose When Selling a House in New York?
In New York, sellers must disclose known defects, including structural issues, water damage, and environmental hazards. Ensure that you disclose these issues if they exist, especially if you are selling a house by owner in New York:
1. Material Defects
- Structure and Appliances: Your property disclosure statement should include HVAC system problems. New York’s weather affects many home systems. Document all plumbing and drainage issues carefully.
- Drainage and Flooding: Disclose past flood damage, particularly if located in flood-prone areas like Manhattan’s Financial District, Staten Island’s South Shore, or Queens’ Broad Channel. Include dates, repair records, and any recurring drainage issues.
- Plumbing: State the source of potable water and if there are issues with it. Also, mention any unused wells or tanks on the property, as well as issues with the sprinkler or plumbing systems.
- Pools and Water Features: Highlight safety features like enclosures and barriers. If you’ve got a pool, make sure it’s up to code. New York law mandates that all pools built after October 2000 meet the safety guidelines in the Residential Swimming Pool Safety Act.
2. Code Violations
- HOA Restrictions and Boundaries: The NYS property condition disclosure must include HOA restrictions. Government zoning violations need documentation. Unrecorded liens should be clearly stated
- Government Restrictions: Reveal any violations of zoning rules, construction breaches, safety codes, or restrictions on property additions. Also, disclose any unrecorded liens.
3. Environmental Hazards
- Health and Safety Risks: The property condition disclosure confirms potential lead paint, asbestos, or mold risks due to its age. Additionally, radon gas or past pest infestations may also be present.
- Infestations: New York is notorious for termites. If you’ve had an infestation or damage, make sure it’s disclosed when selling a house as is in New York.
- Sinkholes: The NY property condition disclosure statement must mention nearby sinkholes. Include any related insurance claims. Environmental damage requires a detailed explanation.
- Environmental Damage: Mention any past environmental damage or repairs. Also, specify if there are any sensitive areas like mangroves on the property.
4. Federal Disclosure Requirements
The property condition disclosure statement in NYS includes lead paint details if your house was built before 1960. Even for newer homes, the Lead-Based Paint Hazard Reduction Act of 1992 requires sellers to:
- Provide an EPA-approved pamphlet on lead hazards.
- Include the Lead Warning Statement in the contract.
- Disclose any known lead-based paint on the property.
What Can You Skip in a NY Disclosure Statement?
The New York property condition disclosure statement has certain exemptions, such as:
- Deaths or suicides on the property, as long as they don’t affect its condition.
- The presence of a registered sex offender in the area (buyers can check public databases).
- Any claims or beliefs that the property is haunted.
- Whether previous occupants had AIDS or HIV.
What Is the Penalty for an Incorrect New York House Disclosure?
The NYS disclosure form for buyer and seller must be honest. Intentional omissions may result in serious lawsuits. Intentional omissions may result in lawsuits or fines. These may include one or more of the following:
- Lawsuits for Damages: If you don’t disclose major defects, the buyer can sue you for repair costs. However, they must prove that you knew about the defect and deliberately withheld the information.
- Fraud Charges: The real estate disclosure laws apply to all property transfers. Buyers can cancel contracts for undisclosed issues. Fraud charges may result from deliberate misinformation.
- Legal Fees: If the buyer wins a lawsuit, you may be responsible for both the damages and the buyer’s attorney fees. This can significantly increase your financial burden.
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How to Minimize Issues in the New York Seller’s Disclosure Form?
The number of homes for sale in New York is rising, buyers may choose to look for a more suitable house if they find inconsistencies with your disclosure. Here are the tips to save you from any such issues:
- Complete a Pre-Sale Inspection: Get a thorough home inspection before completing the New York state property disclosure form. Fix problems you can before listing. Document all repairs thoroughly.
- Review the Disclosure Carefully: You can compare your forms with the ones offered by top For Sale By Owner site to make sure you didn’t forget anything important.
- Consult with Professionals: Understanding the New York real estate transaction process helps with proper disclosures. Local attorneys can guide you through the requirements. They understand state-specific disclosure laws.
- Keep All Bills and Records: Many sellers wonder what do you have to disclose when selling a house. The answer includes all known defects. Keep records of all repairs for documentation.
How Important Is the Seller’s Disclosure Statement in New York?
Complete the NYS property condition disclosure statement thoroughly and honestly. This document builds trust with potential buyers. Transparency keeps deals moving forward.
Once your disclosures are ready, the next step is listing. With a New York Flat Fee MLS listing service, you can get your home on the market quickly while saving thousands in agent fees.
