November 2, 2026James Hoffman

What Must Home Sellers Disclose in New York? A Plain-English Guide

New York law requires sellers to disclose a specific list of property conditions before closing. Skipping or mishandling that disclosure can cost you money and delay your sale. Here is what every Western New York seller needs to know.

New York sellers are required by law to disclose known material defects about their property before transferring title. Understanding what must home sellers disclose in New York is one of the most practical things you can do before listing, because getting it wrong can stall your closing or expose you to a lawsuit.

If you own a home in Amherst or anywhere in Erie or Niagara County, here is what the law actually requires.

What Must Home Sellers Disclose in New York?

New York's Property Condition Disclosure Act (PCDA) governs this. Under the PCDA, sellers of one-to-four-family residential properties must complete a written Property Condition Disclosure Statement (PCDS) and deliver it to the buyer before the buyer signs a purchase contract. You can read the full statute at the New York State Legislature's website.

The PCDS covers a wide range of property conditions, including:

• The age and condition of the roof, foundation, basement, and structure

• Whether the property has ever flooded or has drainage problems

• Known water supply and septic system issues

• The presence of lead paint, asbestos, radon, or other environmental hazards

• Defects in plumbing, heating, electrical, and mechanical systems

• Any known pest or termite damage

• Fuel storage tanks, underground or above-ground

• Any additions or improvements made without a required permit

• Whether the property is in a designated flood zone

• Any litigation or violations that affect the property

You are only required to disclose what you actually know. You are not required to hire an inspector to uncover issues before filling out the form. But if you know something, you must disclose it.

The $500 Credit Option and Its Risks

New York law gives sellers an alternative. Instead of completing the PCDS, a seller can give the buyer a $500 credit at closing. Many sellers choose this route thinking it eliminates their liability. It does not.

If you skip the disclosure form and later the buyer discovers a known defect you did not mention, you can still face a fraud or misrepresentation claim. The $500 credit only waives the statutory disclosure requirement. It does not protect you from a lawsuit based on what you knew and concealed.

For most sellers, completing the PCDS honestly is the cleaner path. Find out what your home is worth →

What This Means For You

• Fill out the PCDS carefully and completely. Review your records, permits, and any past inspection reports before you write a single word.

• Disclose everything you know. If a repair was done but the underlying cause was never resolved, say so.

• Talk to your attorney before choosing the $500 credit option. The savings are small and the legal exposure can be significant.

• Keep a copy of the signed disclosure. Both you and the buyer should sign and date it, and your closing file should include that record.

If you are preparing to sell and want to understand how disclosure affects your pricing strategy and timeline, the House Hoffman Team at HUNT Real Estate ERA can walk you through the full process. You can also browse our selling resources on the blog for more guidance on the steps from listing to close.

Request a pricing and preparation review for your home.

Frequently Asked Questions

Does the New York Property Condition Disclosure Act apply to all home sales?

The PCDA applies to sales of one-to-four-family residential properties in New York. Certain transactions are exempt, including sales by court order, foreclosure sales, and transfers between co-owners. If you are unsure whether your sale qualifies for an exemption, your real estate attorney can confirm it before you list.

What happens if a seller fails to disclose a known defect in New York?

A buyer who discovers an undisclosed known defect after closing can sue the seller for fraud or misrepresentation, even if the seller provided the $500 credit instead of the disclosure form. Damages can include repair costs and, in some cases, additional compensation. Honest disclosure upfront is far less expensive than litigation after the fact.

Do sellers in Amherst need to disclose flood zone status?

Yes. The PCDS asks directly whether the property lies in a FEMA-designated flood zone, and sellers must answer based on what they know. Buyers in Erie County increasingly ask about flood risk given the area's weather patterns, so this is one item where accuracy matters both legally and practically. Your agent can help you locate the FEMA flood map for your address.