Property Condition Disclosure
This week we wanted to update you on new legislation that was signed into law last week by Governor Hochul which will significantly impact how Sellers can comply with the requirements of RPP Article 14 (Property Condition Disclosure in the Sale of Residential Real Property (“RPDA”).
In an effort to provide prospective purchasers with more transparency related to flood risks and potential property damage caused by increasing flooding, A.1967/S.5400 Bill was signed into law by Governor Hochul as Chapter 484 on Friday, September 22, 2023. The new Legislation, as written, specifically removes the option for the Seller to give a $500.00 credit to the Purchaser in lieu of delivering a completed Property Condition Disclosure Statement (PCDS) and adds additional disclosure requirements related to flood risks for covered real estate transactions. The effective date of the bill is March 20, 2024. Therefore, after that date, the $500.00 credit will no longer be available to Sellers to avoid the obligation to deliver a completed PCDS and will have to provide the additional disclosures to prospective purchasers.
Below is a link to Senate Bill 5400 showing the revisions made to the RPDA:
https://legislation.nysenate.gov/pdf/bills/2023/s5400
We will continue to monitor this new legislation and provide you with detailed updates as they become available.
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