You can download a copy of this disclosure form here:
This disclosure is required by New York law for standalone 1-4 family homes, but not condominiums, co-ops, vacant land, or property part of a homeowner’s association not owned by the seller.
What is the Penalty for Not Completing the Disclosure?
The penalty for non-compliance with the disclosure requirement is $500, which is give to the buyer as a credit at closing. Providing the $500 credit does not override the seller's obligation to disclose material facts that the seller is aware of.
When Should I Provide the Disclosure to the Buyer?
Deliver the disclosure and have the buyer sign it and include it with their offer.
Are There Any Property Transfers That Are Exempt?
Yes, for a complete updated list see here. As of the time of this writing, exemptions include:
- transfer ordered by the court in a lawsuit such as a probate, mortgage foreclosure, bankruptcy, legal partition, or divorce
- transfer to your lender to satisfy your mortgage or prevent a foreclosure
- transfer made to distribute the property of a decedent's estate or trust, or made during the administration of a guardianship or conservatorship
- transfer to another co-owner of the property, or to your spouse or a relative from a common ancestor, such as a parent, grandparent, child or grandchild
- transfer that has not been ordered by a court, but is part of the settlement of a divorce, annulment, or legal separation
- transfer to the state of New York, or any other unit of local government, whether part of a condemnation, or not, and
- transfer of newly constructed property that has never been inhabited.