Seller's Property Condition Disclosure Law takes effect Friday, March 1, 2002

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New York State's REALTORS® remind home sellers that an important new law entitled the Property Condition Disclosure Act is now in effect. Beginning on Friday, March 1, 2002 most sellers of one-to-four family residential housing will be required to provide potential buyers with a completed and signed property condition disclosure form. Failure to provide the form will result in a $500 credit to the buyer at closing.

Regardless of whether the sale is broker-assisted or for sale by owner, sellers will have to provide potential buyers with the 48-question form covering a series of general, environmental, mechanical and service items. The form must then be provided to a buyer prior to the buyer signing a binding contract of sale.

"This new law will help avoid disputes between buyers and sellers arising when buyers find defects in the property after a binding contract of sale goes into effect. Our members report that this is one of the most common disruptions in the residential real estate process," said NYSAR President Savo Fries. "We strongly believe that the up-front disclosure required by this new law will result in fewer disputes, less litigation and smoother transactions to the benefit of buyers and sellers alike."

Fries cautioned that although the form provides key information early in the transaction, it is a supplement to professional inspections, not a replacement. "Buying a home is the largest financial commitment most of us ever make. It simply makes sense to have as much information as possible prior to being bound by a contract."

New York joins more than 30 states that have some form of mandatory disclosure by the seller to the buyer. The experience in these states has been uniformly positive with REALTORS® reporting a decrease in litigation and an increase in transactions that successfully close.

Under the law, real estate licensees are required to educate their clients and customers about the disclosure law, but sellers must complete the form themselves.

The New York State Association of REALTORS® is a not-for-profit trade organization representing more than 37,000 of New York state's real estate professionals. The association provides a variety of benefits including legislative and legal representation, educational programs, publications such as the New York Report, and a code of professional standards. The term REALTOR® is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of REALTORS®. These REALTORS® are also members of the New York State Association of REALTORS® as well as their local board or association of REALTORS®.