New York PCDA Seller Disclosure Requirements | Listing Compliance

Key Information

New York's Property Condition Disclosure Act (PCDA), codified at Real Property Law §462, requires residential sellers to provide a completed Property Condition Disclosure Statement before a buyer signs a purchase contract. However, sellers may instead give buyers a $500 credit at closing to waive the PCDA form — a practice that became very common in New York, particularly in New York City. Regardless of the PCDA waiver, sellers still have common-law duties to disclose known material defects that are not readily observable, and federal lead-based paint disclosure applies to pre-1978 homes.

Pricing: Starting $99/month

Time Required: Complete listing package in one workflow

The Problem

The most dangerous misconception in New York real estate is that taking the $500 PCDA waiver eliminates all disclosure obligations. It does not. Common-law fraud claims, federal lead paint requirements, and known material defect duties all survive the waiver — and sellers who believe the $500 credit fully protects them may be in for a costly surprise.

The Solution

BuildMyListing helps New York listing agents and sellers understand the distinction between PCDA waiver and ongoing disclosure obligations, generate compliant listing documentation, and prepare complete listing packages for the New York City, Long Island, and Upstate markets.

Key Features

PCDA vs. Common-Law Distinction

BuildMyListing's compliance workflow distinguishes between the PCDA statutory form (waivable for $500), ongoing common-law disclosure duties (not waivable), and federal requirements — so sellers understand exactly what each layer covers.

Benefit: Sellers understand what the $500 waiver does and does not eliminate

Property Condition Documentation

Even when sellers elect the PCDA waiver, document known material defects — roof condition, foundation, HVAC, water intrusion, environmental hazards — in a structured format that supports the common-law disclosure obligation.

Benefit: Protection that survives the PCDA waiver

Pre-1978 Lead Paint Checklist

New York City and Upstate NY have significant pre-1978 housing stock. BuildMyListing flags pre-1978 properties and includes the federal lead-based paint disclosure checklist in every applicable listing.

Benefit: Federal requirement compliance on New York's older homes

NYC-Specific Documentation

New York City listings have additional considerations: co-op board packages, condo offering plans, and building condition reports. BuildMyListing supports documentation of known building-level conditions for NYC listings.

Benefit: NYC listing documentation that goes beyond upstate requirements

How It Works

Determine PCDA Election

Establish whether the seller will complete the Property Condition Disclosure Statement or credit the buyer $500 at closing. BuildMyListing records this election and adjusts the compliance documentation accordingly.

Document Known Conditions

Regardless of PCDA election, document known material conditions: structural, mechanical, environmental, flood/water history, legal encumbrances. This satisfies the ongoing common-law disclosure duty.

Download Listing Package

Download the full package: enhanced photos, MLS description, compliance summary, and PCDA documentation for your broker file — with lead paint checklist included for pre-1978 properties.

Compliance Reference

Disclosure Obligation	Legal Basis	Eliminated by $500 PCDA Waiver?	Notes
Property Condition Disclosure Statement form	NY Real Property Law §462 (PCDA)	Yes — seller may substitute $500 credit	The statutory form requirement and the $500 remedy are codified in RPL §465. The waiver only removes the obligation to complete the PCDA form.
Common-law duty to disclose known material defects	NY common law (Stambovsky v. Ackley and successors)	No — common-law duty survives	Sellers and agents remain liable for fraudulent concealment of known material defects regardless of the PCDA election
Lead-based paint disclosure	42 U.S.C. §4852d (federal)	No — federal law is separate	Applies to pre-1978 homes regardless of PCDA. Seller must provide EPA pamphlet and disclosure form; buyer has 10-day inspection right.
New York City Local Law 31 / lead paint (rental)	NYC Administrative Code §27-2056	N/A — applies to rental, not sale	NYC landlords (not sellers) must conduct annual lead inspections in pre-1960 units with children under 6. Sale trigger is federal law.
Co-op disclosure (NYC)	NY BCL + RPL — co-op offering plan	N/A	Co-op sales require buyers to receive the proprietary lease and house rules. Co-op offering plans have their own disclosure regime under the Martin Act (General Business Law §352-e).
Flood disclosure (post-2023)	NY RPL §462 (PCDA amendment effective March 20, 2024)	No — flood history questions added and cannot be waived under amended PCDA	NYS amended the PCDA effective March 20, 2024, to require flood history disclosure. The amendment added specific flooding questions and — importantly — the $500 waiver option was eliminated. Sellers must now complete the form.

Common Use Cases

NYC Co-op Sale

Scenario: Agent listing a pre-war co-op in Manhattan. PCDA historically waived for $500 in NYC. The 2024 flood disclosure amendment and common-law fraud risk still require documentation.

Process: Note property type (co-op) → BuildMyListing flags: PCDA 2024 amendment requires flood history answers → Document any known building-level conditions → Lead paint checklist for pre-1978 building → Download package for attorney

Compliance: Addresses 2024 PCDA amendment + common-law obligations + federal lead requirement

Upstate NY Single-Family with Water Intrusion

Scenario: Seller in Syracuse knows of past basement water intrusion that was remediated. Seller wants to take the $500 PCDA waiver.

Process: Advise seller that known water intrusion is a material defect that must be disclosed regardless of PCDA election → Document the intrusion history and remediation → PCDA election documented with understanding of common-law residual

Compliance: Known water intrusion documented; common-law duty survives waiver

Frequently Asked Questions

What is the New York Property Condition Disclosure Act (PCDA)?

The Property Condition Disclosure Act (PCDA), codified at New York Real Property Law §462 et seq., requires sellers of residential real property (1-4 family, condominiums, cooperatives, and timeshares) to provide buyers with a completed Property Condition Disclosure Statement before the buyer signs a purchase contract. The form covers structural, mechanical, environmental, flooding, and legal conditions of the property.

Can a seller avoid completing the PCDA form in New York?

Historically yes, but this changed in March 2024 for flood-related questions. Under the pre-2024 statute, sellers could elect to skip the PCDA form by giving buyers a $500 credit at closing (RPL §465). This practice was extremely common in New York City. However, a March 2024 amendment to the PCDA requires sellers to complete flood history disclosures — and eliminated the $500 waiver option for those specific questions. For non-flood items, the $500 waiver still applies.

What changed with New York's 2024 PCDA flood amendment?

New York amended the PCDA effective March 20, 2024 (signed by Governor Hochul as part of flood disclosure legislation) to require sellers to answer specific flood history questions on the disclosure form. The amendment was prompted by Hurricane Ida and other flooding events in which buyers discovered flood histories after closing. Sellers must now disclose: whether the property is in a FEMA flood zone, prior flood damage, flood insurance history, and drainage or water penetration issues. The $500 waiver is not available for these flood questions.

Does the $500 PCDA waiver eliminate all disclosure obligations?

No — this is the most important misconception in New York real estate. The $500 credit only substitutes for the statutory PCDA form. Sellers still have ongoing common-law duties to disclose known material defects, and fraudulent concealment of a known defect remains actionable regardless of the PCDA election. Federal lead-based paint disclosure requirements also apply independently. Sellers who take the $500 waiver and knowingly conceal material defects remain exposed to rescission and fraud claims.

What is New York's common-law disclosure duty?

Even before the PCDA existed, New York courts recognized that sellers who actively conceal or misrepresent known defects could be liable for fraud. The famous case Stambovsky v. Ackley (1 A.D.2d 843, 3rd Dept. 1991) — the 'haunted house case' — held that a seller could not conceal facts they had publicized. More broadly, New York common law prohibits fraudulent concealment of material facts the buyer cannot reasonably discover. This duty survives the PCDA waiver.

How does New York City's co-op disclosure regime differ from regular home sales?

Co-op sales in New York City are governed by a separate framework. The Martin Act (General Business Law §352-e) requires that co-op offering plans be filed with the Attorney General's office and provided to buyers. The proprietary lease and house rules must also be disclosed. Co-op boards control approval of purchasers, which creates additional disclosure context. PCDA technically applies to co-op sales, but the co-op's own disclosure documents are typically more comprehensive.

When does federal lead-based paint disclosure apply to New York homes?

Federal lead-based paint disclosure (42 U.S.C. §4852d) applies to all residential sales in any state, including New York, for homes built before 1978. New York City has a particularly large pre-1978 housing stock — the majority of the city's housing predates this threshold. Sellers must: provide the EPA pamphlet, complete a lead disclosure form, disclose any known lead paint or hazards, and give buyers 10 days to conduct an inspection. This is a federal requirement separate from the PCDA.

How does New York compare to other states for seller disclosure?

New York is unusual in having a form-based disclosure requirement (PCDA) that includes a monetary waiver option — though the 2024 flood amendment narrowed this. Texas (§5.008) requires a mandatory form with no waiver. Florida relies on common law (Johnson v. Davis) with no mandatory form. Washington requires the highly structured Form 17 under RCW 64.06. California requires a Transfer Disclosure Statement plus AB 723 for photo alterations. New York's hybrid approach — form plus waiver plus common-law residual — creates more complexity than most states.

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New York PCDA Seller Disclosure — What Listing Agents Must Understand