As of June 14, 2023, New York requires home sellers to disclose, in writing, the presence of toxic mold in their homes. This amendment to the regulations on Property Condition Disclosure Statements aims to empower buyers by providing comprehensive information about potential health risks, property maintenance, and renovation needs associated with indoor mold. Sellers now have the responsibility to include this crucial information in the disclosure statement, demonstrating their commitment to ethical practices and transparency.
Many sellers, however, avoid the hassle and potential risk of completing the Property Condition Disclosure Statement. In lieu of making the disclosure, Sellers may credit the buyer with $500 at closing, which protects them from liability associated with failing to properly disclose any defects on a Disclosure Statement. This practice is driven by concerns that sellers, who may not have experience in engineering or do not use the property as their primary residence, could face future claims for misrepresentation. As a result, we almost always advise sellers to err on the side of caution and credit the buyer, thereby reducing the risk of potential disputes and liability down the road.
While this practice of offering a credit at closing is common in New York, it is crucial for buyers to understand the implications. Buyers should conduct thorough due diligence, such as independent inspections or assessments, to gain a comprehensive understanding of the property's condition. The inclusion of "as is" language in the purchase and sale contract further highlights the importance of buyer diligence to ensure they are well-informed and protected throughout the transaction process.
Questions on how this could affect you? Call us today at (718)-554-6445 to set up a FREE consultation!
Sources: https://www.hauseit.com/seller-property-disclosure-form-ny-explained/
https://www.jdsupra.com/legalnews/new-york-amends-property-disclosures-to-9072043/#:~:text=New%20York%20amended%20its%20Property,unless%20the%20transaction%20is%20exempt
