On September 22, 2023, Governor Hochul approved new legislation that provides significant changes to the Real Property Condition Disclosure Statement (“PCDS”). As of March 20th, 2024, new regulations regarding the Property Condition Disclosure Act (PCDA) will go into effect for all residential real estate transactions in New York State. What does that mean for buyers and sellers in the Empire State, and what can they expect moving forward?
What is the Property Condition Disclosure Act (PCDA)?
The PCDA requires sellers of residential properties to complete and provide a disclosure statement to potential buyers before a binding contract is signed. This statement outlines the seller’s knowledge of the property’s condition across various areas, including:
- Structural components (foundation, roof, etc.)
- Plumbing and electrical systems
- Heating and cooling systems
- Major appliances
- Presence of hazardous materials (lead paint, asbestos, etc.)
- History of leaks, roof repairs, major renovations
What’s new with the 2024 amendments?
The key changes to the PCDA include:
- Elimination of the Seller Credit Option: Previously, sellers could choose to offer a $500 credit to buyers instead of completing the PCDS. This option is no longer available.
- Expanded Disclosure Requirements: The revised form includes new questions regarding:
- Floodplain designation and history of flood insurance
- Presence of mold issues
- Functionality of smoke detectors and carbon monoxide detectors
What these changes mean for sellers:
- Increased Responsibility: Sellers are now obligated to complete the PCDS throughly and accurately
- Potential for Liability: Failure to disclose known issues could lead to legal repercussions from buyers.
What these changes mean for buyers:
- More Information for Informed Decisions: Buyers gain a more comprehensive understanding of the property’s condition before making a purchase.
- Greater Protection: Buyers can rely on the disclosed information to negotiate repairs or manage expectations.
What’s Your Next Move?
Whether you’re buying or selling real estate in New York, understanding the revised PCDA is crucial. As a licensed real estate salesperson in New York with expertise in the Lower Hudson Valley, my team of real estate professionals will help guide you through the intricacies of the PCDA and ensure a smooth and successful transaction. If you’re thinking about making a move out of New York, be sure to get in contact with us so we can connect you with our dedicated relocation team to assist with your out-of-state real estate needs.
Don’t hesitate to contact me today to see if our team is the right fit for your next move.
Who’s Your Realtor?
Micaela Stanaland is a licensed real estate salesperson in New York State and a licensed sales associate in New Jersey. She has been practicing real estate since 2017 throughout the beautiful Hudson Valley region.
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