Property Condition Disclosure Statement - Statewide Property Questions

Overview

New York Real Property Law §462 requires the Property Condition Disclosure Statement for covered one- to four-family residential transfers throughout New York State. It must be completed, signed, and delivered before the buyer signs a binding contract, and a signed copy must be attached to the contract. The current statute does not allow a seller to substitute the former $500 closing credit.

The same law applies statewide, but the facts that matter differ by property. Outside New York City, the form may require particular attention to private wells, septic systems, underground storage tanks, flooding, wetlands, drainage, radon, and other environmental or structural conditions.

What the Form Asks

The statutory form contains questions about the property's age and occupancy, ownership, utility systems, water source and quality, sewage systems, flooding and drainage, environmental conditions, structural components, mechanical systems, and known defects. Sellers should use the current statutory form, not an old brokerage copy.

The seller answers from actual knowledge. Section 462 does not require the seller to inspect the property or search public records, but it does require truthful answers. “Unknown” should describe the seller's actual knowledge; it should not be used to avoid disclosing a known condition.

Practical Process

1. Have the seller's attorney confirm that the property and transfer are covered and not exempt under §463.
2. Use the current statutory form and gather the seller's own records for wells, septic service, tanks, remediation, flooding, and material repairs.
3. Answer from actual knowledge and have counsel review the form before it is delivered.
4. Deliver it before the buyer signs a binding contract and attach the signed copy to the contract.
5. If a material answer becomes inaccurate before closing, notify counsel promptly.

Frequently Asked Questions

Can a seller call the property “as is” and skip the statement?

An “as is” term is not listed in §463 as a substitute for the statutory statement. Counsel should determine whether a specific statutory exemption applies. For a covered transfer, follow §462.

Does the form cover septic systems and wells?

Yes. The statutory form asks about water source and quality, sewage systems, septic tanks and related known conditions. The seller should answer the current form precisely rather than rely on a summary.

Is a property inspection required before completing it?

No. Section 462 says no inspection or public-record check is required. The disclosure is based on the seller's actual knowledge.

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.

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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.