The Property Condition Disclosure Act and the uncapped natural gas well disclosure

Coverage and timing

New York's Property Condition Disclosure Act generally covers property improved by a one to four family dwelling used or intended wholly or partly as a residence. It excludes unimproved land, condominium units, cooperative apartments, and homeowners' association property not owned in fee simple by the seller. Statutory transfer exemptions can also apply.

For a covered sale, the seller completes and signs the statement and delivers it or a copy to the buyer or buyer's agent before the buyer signs a binding contract of sale. Attach a copy signed by both parties to the purchase contract. An as-is agreement does not eliminate disclosure.

Knowledge, revision, and liability

The seller completes the form personally using actual knowledge. Use unknown for an unknown answer and not applicable for an inapplicable question. These are the seller's representations, not the agent's. The Act requires no seller investigation, inspection, or public-record search. The statement is not a warranty or a substitute for independent inspections and tests.

Questions address general information, environmental conditions, structural conditions, and mechanical systems, including flooding, water damage, fuel tanks, roofs, and heating. New knowledge making a prior statement materially inaccurate requires revision as soon as practicable. No revision is required after title transfer or buyer occupancy, whichever occurs first.

Under Real Property Law § 465, seller liability under the Act requires a willful failure to perform its requirements; actual buyer damages and other existing remedies remain available.

Agent duties and a separate well disclosure

Under Real Property Law § 466, the listing agent timely informs the seller of the seller's obligations. The buyer's agent informs the buyer of rights and obligations before the buyer signs a binding contract. If the buyer is unrepresented, the seller's agent dealing with that buyer must do so. Performance of these duties leaves the agent with no further duties or liability for a violation under this Act.

Real Property Law § 242 separately requires a person or entity offering real property for sale, with actual knowledge of uncapped natural gas wells situated on it, to inform the purchaser of their existence before entering the sale/purchase contract. This rule is not restricted to residential property.