Property Condition Disclosure Statement Changes

On March 20th, 2024, a law requiring the full disclosure of the condition of the property took effect. This document, the Property Condition Disclosure Statement (PCDS) requires sellers to provide to buyers full disclosure of the condition of their property. Prior to this, sellers could provide a $500 credit in lieu of a Property Condition Disclosure Statement (PCDS). To see the new PCDS, click the button the right.

What Does This Mean For Sellers?

It is now vital for a seller to ensure the Property Condition Disclosure Statement is complete with accurate and honest information. If a buyer believes the condition of the house was not honestly or accurately disclosed, the seller may be held responsible for damages. Damages can range from the cost of repair to the cost of the home, in addition to punitive damages. 

The best way to ensure that the PCDS is filled out accurately is with a Pre-Listing Inspection.

What Does This Mean For Buyers?

The updated Property Condition Disclosure Statement provides homebuyers with comprehensive information about a property, and holds the seller accountable for disclosing known defects to the home. A completed PCDS is required to be presented to the buyer prior to an executed contract of sale. The Property Condition Disclosure Statement, however, should not be treated as a substitute for the buyer’s own due diligence. It is highly recommended that a buyer has their own home inspection performed. 

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Why Was The Property Condition Disclosure Updated?

The Property Condition Disclosure Statement was updated in order to strengthen consumer protections in a real estate transaction. Prior to the updates effective March 20, 2024, sellers typically provided a $500 credit in lieu of the completion of a Property Condition Disclosure Statement, eroding the protections the statement was meant to provide the buyer. Transparency is achieved for both the buyers and sellers through a completed Property Condition Disclosure Statement.

There are three major updates to the Property Condition Disclosure Statement:

  • The disclosure must be accurate and provided before an executed contract of sale.

All information in the PCDS must be filled out accurately to protect the buyer’s rights, and to protect the seller from liability for undisclosed information. 

  • Mold testing must be disclosed.

The seller must disclose if the home has been tested for mold, and if so, the results must be provided with the statement.

  • Flood risk information must be disclosed.

The seller must disclose information regarding the property’s location in FEMA designated flood zones, the requirement to maintain flood insurance, and if there is a FEMA elevation certificate available for the property.

A Full and Accurate Disclosure of Your Home: A Requirement

Failure to accurately complete the Property Condition Disclosure Statement exposes you to legal action for a period of up to 7 years. Your are expected to have knowledge of buried oil tanks, fuel leak and spills, plumbing, heating systems, roofing, structural integrity, the presence of termites, mold conditions, water intrusion, electrical wiring, panel boxes, lead paint, and asbestos. Additionally, you need to know if your home is in a flood zone. Was it ever an agricultural property? Does it have a FEMA elevation certificate? Has it ever been damaged from insect, rodent, or pest infestation? You will be required to provide this information about the property, and more, as truthfully as possible. Are you prepared to accurately disclose this information?

A Pre-listing inspection with Inspecticore’s Seller Property Condition Supplement will provide you with the information you need to complete the Property Condition Disclosure Statement. If a buyer believes the seller did not accurately disclose information about the home, they may seek legal retribution. As a seller, it is vital that the Property Condition Disclosure Statement is complete with accurate and honest information, otherwise the seller risks being held liable for undisclosed information. Under New York State law, only the seller can complete the PCDS- It may not be completed by a third party, including real estate agents. Inspecticore’s Pre-Listing Inspection is a tool that helps sellers complete the PCDS, and in the process, provides the seller with an extra layer of protection from liability. In addition to helping with the PCDS, a Pre-Listing Inspection provides the seller with many advantages when selling their home. For more information, click the button below!

Inspecticore's PCDS Supplemental Document

Inspecticore provides a supplementary document that provides question-by-question support in completing the Property Condition Disclosure Statement. After a Pre-Listing Inspection, our proprietary supplemental document is provided to the seller. This document, in addition to the inspection report, will help the homeowner accurately fill out the Property Condition Disclosure Statement. It is important to ensure the PCDS is complete with accurate and honest information. If the Property Condition Disclosure Statement is filled out incorrectly, the seller risks liability for undisclosed information that impacts the property.

Click the image to enlarge it and learn about how our Supplemental Document helps fill out the Property Condition Disclosure Statement.

 

PCDS Questions and Supplemental Doc

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