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Credit: New York State Department of State
What is the Property Condition Disclosure Statement?
The Property Condition Disclosure Statement (PCD Statement) is a requirement under the Property Condition Disclosure Act (the “Act”), which is part of Article 14 of the New York Real Property Law (“Article 14”). This Act mandates that sellers of “Residential Real Property” provide a PCD Statement to the buyer.
“Residential Real Property” is defined as a property improved by a one to four family dwelling that is used or intended to be used, wholly or partly, as a home or residence. This definition specifically excludes unimproved real property, condos, co-ops, and property in a homeowners’ association not owned in fee simple by the seller.
The PCD Statement consists of 48 questions about the condition of the property, which the seller must answer. If the seller fails to provide the PCD Statement to the buyer, they are obligated to give the buyer a $500.00 credit at closing.
Recent Updates to the Property Condition Disclosure Statement
The New York State Department of State has recently revised the Environmental Section of the PCD Statement. The update includes the addition of “indoor mold” as a hazardous substance that the seller must disclose. The revised PCD Statement includes question 19A, which asks: “Has the property been tested for indoor mold?” You can find the revised PCD Statement here.
When and How Should the Property Condition Disclosure Statement Be Used?
In transactions where the Act applies, Article 14 (Section 466) places a responsibility on the listing real estate broker to inform the seller of their obligation to provide the PCD Statement to the buyer in a timely manner. If the buyer is not represented by a real estate broker, the seller’s real estate broker is required to inform the buyer of their right to receive the PCD Statement or the $500.00 credit. It’s important to note that a real estate broker should never complete a PCD Statement on behalf of the seller.
If the seller or buyer has any questions regarding the PCD Statement, the real estate broker should advise them to consult their attorney. This ensures that both parties are fully aware of their rights and obligations, and can make informed decisions during the transaction.
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Syd Harewood is a real estate professional with a passion for NYC’s architectural gems. For inquiries, call or message Syd Harewood at 646-535-3819. Experience the finest in NYC real estate with Syd’s expert guidance and deep knowledge of the city’s most exquisite properties.
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