Real Property

ARTICLE 14
PROPERTY CONDITION DISCLOSURE IN THE SALE OF RESIDENTIAL REAL
PROPERTY
Section 460. Short title.
461. Definitions.
462. Property condition disclosure statement.
463. Exemptions.
464. Revision.
465. Remedy.
466. Duty of an agent.
467. Liability.

S 460. Short title. This article shall be known and may be cited as
the "property condition disclosure act".

S 461. Definitions. As used in this article, the following terms shall
have the following meanings:
1. "Agent" means a person who is licensed as a real estate broker or a
real estate salesperson pursuant to section four hundred forty-a of this
chapter and is acting in a fiduciary capacity.
2. "Binding contract of sale" means a real estate purchase contract or
offer that would, upon signing by the seller and subject to satisfaction
of any contingencies, require the buyer to accept a transfer of title.
3. "Knowledge" means only actual knowledge of a defect or condition on
the part of the seller of residential real property.
4. "Real estate purchase contract" means any of the following:
(a) a contract which provides for the purchase and sale or exchange of
residential real property;
(b) a lease with an option to purchase residential real property;
(c) a lease-with-obligation-to-purchase agreement for residential real
property; or
(d) an installment land sale contract for residential real property.
5. "Residential real property" means real property improved by a one
to four family dwelling used or occupied, or intended to be used or
occupied, wholly or partly, as the home or residence of one or more
persons, but shall not refer to (a) unimproved real property upon which
such dwellings are to be constructed, or (b) condominium units or
cooperative apartments, or (c) property in a homeowners` association
that is not owned in fee simple by the seller.
6. "Transfer of title" means delivery of a properly executed
instrument conveying title to residential real property and shall
include delivery of a real estate purchase contract that is a lease or
installment land sale contract.

S 462. Property condition disclosure statement. 1. Except as is
provided in section four hundred sixty-three of this article, every
seller of residential real property pursuant to a real estate purchase
contract shall complete and sign a property condition disclosure
statement as prescribed by subdivision two of this section and cause it,
or a copy thereof, to be delivered to a buyer or buyer`s agent prior to
the signing by the buyer of a binding contract of sale. A copy of the
property condition disclosure statement containing the signatures of
both seller and buyer shall be attached to the real estate purchase
contract. Nothing contained in this article or this disclosure statement
is intended to prevent the parties to a contract of sale from entering
into agreements of any kind or nature with respect to the physical
condition of the property to be sold, including, but not limited to,
agreements for the sale of real property "as is".
2. The following shall be the disclosure form:
PROPERTY CONDITION DISCLOSURE STATEMENT
NAME OF SELLER OR SELLERS:
PROPERTY ADDRESS:
THE PROPERTY CONDITION DISCLOSURE ACT REQUIRES THE SELLER OF
RESIDENTIAL REAL PROPERTY TO CAUSE THIS DISCLOSURE STATEMENT OR A COPY
THEREOF TO BE DELIVERED TO A BUYER OR BUYER`S AGENT PRIOR TO THE SIGNING
BY THE BUYER OF A BINDING CONTRACT OF SALE.
PURPOSE OF STATEMENT: THIS IS A STATEMENT OF CERTAIN CONDITIONS AND
INFORMATION CONCERNING THE PROPERTY KNOWN TO THE SELLER. THIS DISCLOSURE
STATEMENT IS NOT A WARRANTY OF ANY KIND BY THE SELLER OR BY ANY AGENT
REPRESENTING THE SELLER IN THIS TRANSACTION. IT IS NOT A SUBSTITUTE FOR
ANY INSPECTIONS OR TESTS AND THE BUYER IS ENCOURAGED TO OBTAIN HIS OR
HER OWN INDEPENDENT PROFESSIONAL INSPECTIONS AND ENVIRONMENTAL TESTS AND
ALSO IS ENCOURAGED TO CHECK PUBLIC RECORDS PERTAINING TO THE PROPERTY.
A KNOWINGLY FALSE OR INCOMPLETE STATEMENT BY THE SELLER ON THIS FORM
MAY SUBJECT THE SELLER TO CLAIMS BY THE BUYER PRIOR TO OR AFTER THE
TRANSFER OF TITLE. IN THE EVENT A SELLER FAILS TO PERFORM THE DUTY
PRESCRIBED IN THIS ARTICLE TO DELIVER A DISCLOSURE STATEMENT PRIOR TO
THE SIGNING BY THE BUYER OF A BINDING CONTRACT OF SALE, THE BUYER SHALL
RECEIVE UPON THE TRANSFER OF TITLE A CREDIT OF FIVE HUNDRED DOLLARS
AGAINST THE AGREED UPON PURCHASE PRICE OF THE RESIDENTIAL REAL PROPERTY.
"RESIDENTIAL REAL PROPERTY" MEANS REAL PROPERTY IMPROVED BY A ONE TO
FOUR FAMILY DWELLING USED OR OCCUPIED, OR INTENDED TO BE USED OR
OCCUPIED, WHOLLY OR PARTLY, AS THE HOME OR RESIDENCE OF ONE OR MORE
PERSONS, BUT SHALL NOT REFER TO (A) UNIMPROVED REAL PROPERTY UPON WHICH
SUCH DWELLINGS ARE TO BE CONSTRUCTED OR (B) CONDOMINIUM UNITS OR
COOPERATIVE APARTMENTS OR (C) PROPERTY ON A HOMEOWNERS` ASSOCIATION THAT
IS NOT OWNED IN FEE SIMPLE BY THE SELLER.
INSTRUCTIONS TO THE SELLER:
(a) ANSWER ALL QUESTIONS BASED UPON YOUR ACTUAL KNOWLEDGE.
(b) ATTACH ADDITIONAL PAGES WITH YOUR SIGNATURE IF ADDITIONAL SPACE IS
REQUIRED.
(c) COMPLETE THIS FORM YOURSELF.
(d) IF SOME ITEMS DO NOT APPLY TO YOUR PROPERTY, CHECK "NA"
(NON-APPLICABLE). IF YOU DO NOT KNOW THE ANSWER CHECK "UNKN" (UNKNOWN).
SELLER`S STATEMENT: THE SELLER MAKES THE FOLLOWING REPRESENTATIONS TO
THE BUYER BASED UPON THE SELLER`S ACTUAL KNOWLEDGE AT THE TIME OF
SIGNING THIS DOCUMENT. THE SELLER AUTHORIZES HIS OR HER AGENT, IF ANY,
TO PROVIDE A COPY OF THIS STATEMENT TO A PROSPECTIVE BUYER OF THE
RESIDENTIAL REAL PROPERTY. THE FOLLOWING ARE REPRESENTATIONS MADE BY THE
SELLER AND ARE NOT THE REPRESENTATIONS OF THE SELLER`S AGENT.
GENERAL INFORMATION
1. HOW LONG HAVE YOU OWNED THE PROPERTY?
2. HOW LONG HAVE YOU OCCUPIED THE PROPERTY?
3. WHAT IS THE AGE OF THE STRUCTURE OR STRUCTURES? NOTE TO BUYER--IF
THE STRUCTURE WAS BUILT BEFORE 1978 YOU ARE ENCOURAGED TO
INVESTIGATE FOR THE PRESENCE OF LEAD BASED PAINT.
4. DOES ANYBODY OTHER THAN YOURSELF HAVE A LEASE, EASEMENT OR ANY
OTHER RIGHT TO USE OR OCCUPY ANY PART OF YOUR PROPERTY OTHER THAN
THOSE STATED IN DOCUMENTS AVAILABLE IN THE PUBLIC RECORD, SUCH AS
RIGHTS TO USE A ROAD OR PATH OR CUT TREES OR CROPS. YES NO UNKN NA
5. DOES ANYBODY ELSE CLAIM TO OWN ANY PART OF YOUR PROPERTY? YES NO
UNKN NA (IF YES, EXPLAIN BELOW)
6. HAS ANYONE DENIED YOU ACCESS TO THE PROPERTY OR MADE A FORMAL LEGAL
CLAIM CHALLENGING YOUR TITLE TO THE PROPERTY? YES NO UNKN NA (IF
YES, EXPLAIN BELOW)
7. ARE THERE ANY FEATURES OF THE PROPERTY SHARED IN COMMON WITH
ADJOINING LAND OWNERS OR A HOMEOWNERS ASSOCIATION, SUCH AS WALLS,
FENCES OR DRIVEWAYS? YES NO UNKN NA (IF YES DESCRIBE BELOW)
8. ARE THERE ANY ELECTRIC OR GAS UTILITY SURCHARGES FOR LINE
EXTENSIONS, SPECIAL ASSESSMENTS OR HOMEOWNER OR OTHER ASSOCIATION
FEES THAT APPLY TO THE PROPERTY? YES NO UNKN NA (IF YES, EXPLAIN
BELOW)
9. ARE THERE CERTIFICATES OF OCCUPANCY RELATED TO THE PROPERTY? YES
NO UNKN NA (IF NO, EXPLAIN BELOW)
ENVIRONMENTAL
NOTE TO SELLER - IN THIS SECTION, YOU WILL BE ASKED QUESTIONS
REGARDING PETROLEUM PRODUCTS AND HAZARDOUS OR TOXIC SUBSTANCES THAT YOU
KNOW TO HAVE BEEN SPILLED, LEAKED OR OTHERWISE BEEN RELEASED ON THE
PROPERTY OR FROM THE PROPERTY ONTO ANY OTHER PROPERTY. PETROLEUM
PRODUCTS MAY INCLUDE, BUT ARE NOT LIMITED TO, GASOLINE, DIESEL FUEL,
HOME HEATING FUEL, AND LUBRICANTS. HAZARDOUS OR TOXIC SUBSTANCES ARE
PRODUCTS THAT COULD POSE SHORT- OR LONG-TERM DANGER TO PERSONAL HEALTH
OR THE ENVIRONMENT IF THEY ARE NOT PROPERLY DISPOSED OF, APPLIED OR
STORED. THESE INCLUDE, BUT ARE NOT LIMITED TO, FERTILIZERS, PESTICIDES
AND INSECTICIDES, PAINT INCLUDING PAINT THINNER, VARNISH REMOVER AND
WOOD PRESERVATIVES, TREATED WOOD, CONSTRUCTION MATERIALS SUCH AS ASPHALT
AND ROOFING MATERIALS, ANTIFREEZE AND OTHER AUTOMOTIVE PRODUCTS,
BATTERIES, CLEANING SOLVENTS INCLUDING SEPTIC TANK CLEANERS, HOUSEHOLD
CLEANERS AND POOL CHEMICALS AND PRODUCTS CONTAINING MERCURY AND LEAD.
NOTE TO BUYER - IF CONTAMINATION OF THIS PROPERTY FROM PETROLEUM
PRODUCTS AND/OR HAZARDOUS OR TOXIC SUBSTANCES IS A CONCERN TO YOU, YOU
ARE URGED TO CONSIDER SOIL AND GROUNDWATER TESTING OF THIS PROPERTY.
10. IS ANY OR ALL OF THE PROPERTY LOCATED IN A DESIGNATED FLOODPLAIN?
YES NO UNKN NA (IF YES, EXPLAIN BELOW)
11. IS ANY OR ALL OF THE PROPERTY LOCATED IN A DESIGNATED WETLAND?
YES NO UNKN NA (IF YES, EXPLAIN BELOW)
12. IS THE PROPERTY LOCATED IN AN AGRICULTURAL DISTRICT? YES NO
UNKN NA (IF YES, EXPLAIN BELOW)
13. WAS THE PROPERTY EVER THE SITE OF A LANDFILL? YES NO UNKN NA
(IF YES, EXPLAIN BELOW)
14. ARE THERE OR HAVE THERE EVER BEEN FUEL STORAGE TANKS ABOVE OR
BELOW THE GROUND ON THE PROPERTY? YES NO UNKN NA IF YES, ARE
THEY CURRENTLY IN USE? YES NO UNKN NA LOCATION(S) ARE THEY LEAKING
OR HAVE THEY EVER LEAKED? YES NO UNKN NA (IF YES, EXPLAIN BELOW)
15. IS THERE ASBESTOS IN THE STRUCTURE? YES NO UNKN NA (IF YES, STATE
LOCATION OR LOCATIONS BELOW)
16. IS LEAD PLUMBING PRESENT? YES NO UNKN NA (IF YES, STATE LOCATION
OR LOCATIONS BELOW)
17. HAS A RADON TEST BEEN DONE? YES NO UNKN NA (IF YES, ATTACH A COPY
OF THE REPORT)
18. HAS MOTOR FUEL, MOTOR OIL, HOME HEATING FUEL, LUBRICATING OIL OR
ANY OTHER PETROLEUM PRODUCT, METHANE GAS, OR ANY HAZARDOUS OR
TOXIC SUBSTANCE SPILLED, LEAKED OR OTHERWISE BEEN RELEASED ON THE
PROPERTY OR FROM THE PROPERTY ONTO ANY OTHER PROPERTY? YES NO
UNKN NA (IF YES, DESCRIBE BELOW)
19. HAS THE PROPERTY BEEN TESTED FOR THE PRESENCE OF MOTOR FUEL, MOTOR
OIL, HOME HEATING FUEL, LUBRICATING OIL, OR ANY OTHER PETROLEUM
PRODUCT, METHANE GAS, OR ANY HAZARDOUS OR TOXIC SUBSTANCE? YES NO
UNKN NA (IF YES, ATTACH REPORT(S))
STRUCTURAL
20. IS THERE ANY ROT OR WATER DAMAGE TO THE STRUCTURE OR STRUCTURES?
YES NO UNKN NA (IF YES, EXPLAIN BELOW)
21. IS THERE ANY FIRE OR SMOKE DAMAGE TO THE STRUCTURE OR STRUCTURES?
YES NO UNKN NA (IF YES, EXPLAIN BELOW)
22. IS THERE ANY TERMITE, INSECT, RODENT OR PEST INFESTATION OR
DAMAGE? YES NO UNKN NA (IF YES, EXPLAIN BELOW)
23. HAS THE PROPERTY BEEN TESTED FOR TERMITE, INSECT, RODENT OR PEST
INFESTATION OR DAMAGE? YES NO UNKN NA (IF YES, PLEASE ATTACH
REPORT(S))
24. WHAT IS THE TYPE OF ROOF/ROOF COVERING (SLATE, ASPHALT, OTHER.)?
ANY KNOWN MATERIAL DEFECTS? HOW OLD IS THE ROOF? IS THERE A
TRANSFERABLE WARRANTEE ON THE ROOF IN EFFECT NOW? YES NO UNKN NA
(IF YES, EXPLAIN BELOW)
25. ARE THERE ANY KNOWN MATERIAL DEFECTS IN ANY OF THE FOLLOWING
STRUCTURAL SYSTEMS: FOOTINGS, BEAMS, GIRDERS, LINTELS, COLUMNS OR
PARTITIONS. YES NO UNKN NA (IF YES, EXPLAIN BELOW)
MECHANICAL SYSTEMS & SERVICES
26. WHAT IS THE WATER SOURCE (CIRCLE ALL THAT APPLY - WELL, PRIVATE,
MUNICIPAL, OTHER)? IF MUNICIPAL, IS IT METERED? YES NO UNKN NA
27. HAS THE WATER QUALITY AND/OR FLOW RATE BEEN TESTED? YES NO UNKN NA
(IF YES, DESCRIBE BELOW)
28. WHAT IS THE TYPE OF SEWAGE SYSTEM (CIRCLE ALL THAT APPLY - PUBLIC
SEWER, PRIVATE SEWER, SEPTIC OR CESSPOOL)? IF SEPTIC OR CESSPOOL,
AGE? ________ DATE LAST PUMPED? ________ FREQUENCY OF PUMPING?
________ ANY KNOWN MATERIAL DEFECTS? YES NO UNKN NA (IF YES,
EXPLAIN BELOW)
29. WHO IS YOUR ELECTRIC SERVICE PROVIDER? ________ WHAT IS THE
AMPERAGE? ________ DOES IT HAVE CIRCUIT BREAKERS OR FUSES?
________ PRIVATE OR PUBLIC POLES? ________ ANY KNOWN MATERIAL
DEFECTS? YES NO UNKN NA (IF YES, EXPLAIN BELOW)
30. ARE THERE ANY FLOODING, DRAINAGE OR GRADING PROBLEMS THAT RESULTED
IN STANDING WATER ON ANY PORTION OF THE PROPERTY? YES NO UNKN NA
(IF YES, STATE LOCATIONS AND EXPLAIN BELOW)
31. DOES THE BASEMENT HAVE SEEPAGE THAT RESULTS IN STANDING WATER? YES
NO UNKN NA (IF YES, EXPLAIN BELOW)
ARE THERE ANY KNOWN MATERIAL DEFECTS IN ANY OF THE FOLLOWING (IF
YES, EXPLAIN BELOW. USE ADDITIONAL SHEETS IF NECESSARY.):
32. PLUMBING SYSTEM? YES NO UNKN NA
33. SECURITY SYSTEM? YES NO UNKN NA
34. CARBON MONOXIDE DETECTOR? YES NO UNKN NA
35. SMOKE DETECTOR? YES NO UNKN NA
36. FIRE SPRINKLER SYSTEM? YES NO UNKN NA
37. SUMP PUMP? YES NO UNKN NA
38. FOUNDATION/SLAB? YES NO UNKN NA
39. INTERIOR WALLS/CEILINGS? YES NO UNKN NA
40. EXTERIOR WALLS OR SIDING? YES NO UNKN NA
41. FLOORS? YES NO UNKN NA
42. CHIMNEY/FIREPLACE OR STOVE? YES NO UNKN NA
43. PATIO/DECK? YES NO UNKN NA
44. DRIVEWAY? YES NO UNKN NA
45. AIR CONDITIONER? YES NO UNKN NA
46. HEATING SYSTEM? YES NO UNKN NA
47. HOT WATER HEATER? YES NO UNKN NA
48. THE PROPERTY IS LOCATED IN THE FOLLOWING SCHOOL DISTRICT UNKN
NOTE: BUYER IS ENCOURAGED TO CHECK PUBLIC RECORDS CONCERNING THE
PROPERTY (E.G. TAX RECORDS AND WETLAND AND FLOOD PLAIN MAPS)
THE SELLER SHOULD USE THIS AREA TO FURTHER EXPLAIN ANY ITEM ABOVE. IF
NECESSARY, ATTACH ADDITIONAL PAGES AND INDICATE HERE THE NUMBER OF
ADDITIONAL PAGES ATTACHED.
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SELLER`S CERTIFICATION: SELLER CERTIFIES THAT THE INFORMATION IN THIS
PROPERTY CONDITION DISCLOSURE STATEMENT IS TRUE AND COMPLETE TO THE
SELLER`S ACTUAL KNOWLEDGE AS OF THE DATE SIGNED BY THE SELLER. IF A
SELLER OF RESIDENTIAL REAL PROPERTY ACQUIRES KNOWLEDGE WHICH RENDERS
MATERIALLY INACCURATE A PROPERTY CONDITION DISCLOSURE STATEMENT PROVIDED
PREVIOUSLY, THE SELLER SHALL DELIVER A REVISED PROPERTY CONDITION
DISCLOSURE STATEMENT TO THE BUYER AS SOON AS PRACTICABLE. IN NO EVENT,
HOWEVER, SHALL A SELLER BE REQUIRED TO PROVIDE A REVISED PROPERTY
CONDITION DISCLOSURE STATEMENT AFTER THE TRANSFER OF TITLE FROM THE
SELLER TO THE BUYER OR OCCUPANCY BY THE BUYER, WHICHEVER IS EARLIER.
SELLER__________ DATE___________
SELLER__________ DATE___________
BUYER`S ACKNOWLEDGMENT: BUYER ACKNOWLEDGES RECEIPT OF A COPY OF THIS
STATEMENT AND BUYER UNDERSTANDS THAT THIS INFORMATION IS A STATEMENT OF
CERTAIN CONDITIONS AND INFORMATION CONCERNING THE PROPERTY KNOWN TO THE
SELLER. IT IS NOT A WARRANTY OF ANY KIND BY THE SELLER OR SELLER`S AGENT
AND IS NOT A SUBSTITUTE FOR ANY HOME, PEST, RADON OR OTHER INSPECTIONS
OR TESTING OF THE PROPERTY OR INSPECTION OF THE PUBLIC RECORDS.
BUYER__________ DATE__________
BUYER__________ DATE _________
3. Nothing in this article shall require a seller to undertake or
provide for any investigation or inspection of his or her residential
real property or to check any public records.

S 463. Exemptions. A property condition disclosure statement shall not
be required in connection with any of the following transfers of
residential real property:
1. A transfer pursuant to a court order, including, but not limited
to, a transfer order by a probate court during the administration of a
decedent`s estate, a transfer pursuant to a writ of execution, a
transfer by a trustee in bankruptcy or debtor-in-possession, a transfer
as a result of the exercise of the power of eminent domain, and a
transfer that results from a decree for specific performance of a
contract or other agreement between two or more persons;
2. A transfer to mortgagee or an affiliate or agent thereof by a
mortgagor by deed in lieu of foreclosure or in satisfaction of the
mortgage debt;
3. A transfer to a beneficiary of a deed of trust;
4. A transfer pursuant to a foreclosure sale that follows a default in
the satisfaction of an obligation that is secured by a mortgage;
5. A transfer by a sale under a power of sale that follows a default
in the satisfaction of an obligation that is secured by a mortgage;
6. A transfer by a mortgagee, or a beneficiary under a mortgage, or an
affiliate or agent thereof, who has acquired the residential real
property at a sale under a mortgage or who has acquired the residential
real property by a deed in lieu of foreclosure;
7. A transfer by a fiduciary in the course of the administration of a
descendent`s estate, a guardianship, a conservatorship, or a trust;
8. A transfer from one co-owner to one or more other co-owners;
9. A transfer made to the transferor`s spouse or to one or more
persons in the lineal consanguinity of one or more of the transferors;
10. A transfer between spouses or former spouses as a result of a
decree of divorce, dissolution of marriage, annulment, or legal
separation or as a result of property settlement, agreement incidental
to a decree of divorce, dissolution of marriage, annulment or legal
separation;
11. A transfer to or from the state, a political subdivision of the
state, or another governmental entity;
12. A transfer that involves newly constructed residential real
property that previously had not been inhabited;
13. A transfer by a sheriff; or
14. A transfer pursuant to a partition action.

S 464. Revision. If a seller of residential real property acquires
knowledge which renders materially inaccurate a property condition
disclosure statement provided previously, the seller shall deliver a
revised property condition disclosure statement to the buyer as soon as
practicable. In no event, however, shall a seller be required to provide
a revised property condition disclosure statement after the transfer of
title from the seller to the buyer or occupancy by the buyer, whichever
is earlier.

S 465. Remedy. 1. In the event a seller fails to perform the duty
prescribed in this article to deliver a disclosure statement prior to
the signing by the buyer of a binding contract of sale, the buyer shall
receive upon the transfer of title a credit of five hundred dollars
against the agreed upon purchase price of the residential real property.
2. Any seller who provides a property condition disclosure statement
or provides or fails to provide a revised property condition disclosure
statement shall be liable only for a willful failure to perform the
requirements of this article. For such a willful failure, the seller
shall be liable for the actual damages suffered by the buyer in addition
to any other existing equitable or statutory remedy.

S 466. Duty of an agent. An agent representing a seller of residential
real property as a listing broker shall have the duty to timely inform
each seller represented by that agent of the seller`s obligations under
this article. An agent representing a buyer of residential real
property, or, if the buyer is not represented by an agent, the agent
representing a seller of residential real property and dealing with a
prospective buyer, shall have the duty to timely (in any event, before
the buyer signs a binding contract of sale) inform such buyer of the
buyer`s rights and obligations under this article. If an agent performs
the duties and obligations imposed upon him or her pursuant to this
section, the agent shall have no further duties under this article and
shall not be liable to any party for a violation of this article.

S 467. Liability. Nothing contained in this article shall be construed
as limiting any existing legal cause of action or remedy at law, in
statute or in equity.