What Must Be Disclosed When Selling a House in New York State?

Selling a home in any state involves a checklist of must-do and don’t-do items that can seem overwhelming. While many of those items are very similar regardless of where the property is located, there are also some state-specific rules and regulations to consider — one of the biggest is disclosures.

If you’re preparing to sell a house in the state of New York, it’s important to understand what you’re required to disclose, what must be fixed or addressed before listing, and how disclosure laws could impact or impede the sale process.

Fortunately, you’ve come to the right place. We spoke to a number of experienced New York investors, appraisers, and other professionals to find out everything you need to know about real estate disclosures in The Empire State.

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What is a seller’s disclosure?

When selling a residential property in the U.S., most states have laws mandating that sellers provide buyers with information about the condition of the house or specific features that may impact the sale.

In states like New York, the seller completes a disclosure form that answers specific questions about the property and includes areas to explain those answers.

The home seller is often legally required to share any issues or problems within their knowledge. Your listing agent should inform you about local disclosure laws and provide you with the appropriate disclosure forms to complete. We’ll cover New York’s disclosure laws in a moment.

When a buyer makes an offer on a property, that offer typically specifies a certain time frame in which the seller must provide disclosures. The buyer then has a certain period of time to review the disclosures and has the right to rescind the offer based on what is disclosed.

When and how is the disclosure made?

If you are represented by a real estate agent, it is typically his or her responsibility to make you — and the buyer, if they don’t have agent representation — aware of the required disclosures. Your agent will most likely provide you with a copy of the disclosure form.

After you have completed the form and shared all known defects, you’ll sign the final page to verify that all information is thorough and accurate to the best of your knowledge. Your listing agent should deliver the completed disclosure statement to the buyer (or the buyer’s agent) before the purchase contract is finalized. The buyer also signs the disclosure to confirm receipt, and it is then attached to the signed purchase contract.

The difference between disclosures and inspections

It’s important to note that a disclosure form is not a substitute for a home inspection. However, the buyer and their inspector could potentially look further into areas of concern raised by the disclosure.

Sharon Quataert, a top real estate agent in Monroe County with 40 years of experience, points out that in the current competitive New York real estate market, many buyers are waiving inspections, which underscores the importance of disclosures.

“As our real estate gets older, and communities are reaching 50 or 60 years old, there are more potential issues emerging,” she explains. “When buyers waive inspections, they are less aware of defects [in] properties. That means sellers and real estate agents have a greater responsibility to point out things that they might not have had to in the past.”

The form also mentions that New York adheres to the principle of caveat emptor or buyer beware, and says that the form is not intended to take the place of the buyer’s independent due diligence and does not serve as any sort of warranty on behalf of the seller.