Property Condition Disclosure Statement - Current RPAPL §462 Compliance
Property Condition Disclosure Statement - Current RPAPL §462 Compliance
Overview
New York Real Property Law §462 requires a seller of covered residential real property to complete, sign, and deliver a Property Condition Disclosure Statement to the buyer or the buyer's agent before the buyer signs a binding contract of sale. A signed copy must be attached to the contract.
The current statute does not provide a $500 closing-credit alternative. Covered sellers must follow the current delivery rule.
Properties Covered
The statute's definition generally covers property improved by a one- to four-family dwelling used or intended to be used wholly or partly as the home of one or more persons. The statutory definition excludes condominiums, cooperative apartments, vacant land in a subdivision, and property in a homeowners' association that is not owned in fee simple by the seller. Section 463 contains additional transfer exemptions. The seller's attorney should determine whether a particular transfer is covered or exempt.
Seller's Knowledge Standard
The statement is based on the seller's actual knowledge when the form is completed. The statute says the seller is not required to conduct an inspection or check public records to complete it. That standard is not permission to guess, minimize, or conceal. The seller should answer accurately from actual knowledge and review the completed form with counsel before delivery.
The statutory form addresses matters including ownership and occupancy, environmental conditions and flooding, structural conditions, water and sewer systems, mechanical systems, and known defects. A seller who acquires knowledge that makes a prior statement materially inaccurate must discuss the required correction with counsel.
Practical Process
- Ask the seller's attorney whether the property and transfer are covered by §§462-463.
- Complete the current statutory form using actual knowledge only.
- Have counsel review the form before delivery.
- Deliver it before the buyer signs a binding contract and attach the signed copy to the contract.
- Preserve the completed statement and the delivery record with the transaction file.
Frequently Asked Questions
Can a seller still pay a $500 credit instead of completing the statement?
No. The current text of §462 requires delivery of the statement for covered transfers and contains no $500 credit alternative.
Does the seller have to inspect the property before answering?
No. Section 462 says the statement is based on actual knowledge and does not require an inspection or public-record search. The seller must still answer truthfully and should obtain legal advice rather than inventing an answer.
Does this replace federal lead-based-paint disclosure?
No. Federal disclosure duties for most pre-1978 housing are separate and may still apply.
Verified Sources
- New York Senate, Real Property Law §462 - fetched and read 2026-08-07.
- New York Senate, Real Property Law §463 - statutory transfer exemptions; accessed 2026-08-07.
- U.S. EPA, real-estate lead disclosure requirements - fetched and read 2026-08-07.
This article provides general educational information only and is not legal advice. The seller should have a New York real-estate attorney apply the current statute to the particular property and transfer.
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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