NYC Seller Disclosure Requirements

New York sellers face one of the most disclosure-intensive real estate markets in the country. The Property Condition Disclosure Act, federal lead paint rules, HPD violation reporting, and co-op or condo document requirements each carry their own deadlines, forms, and liability exposure. In my experience working with sellers across Upper Manhattan and all five boroughs, the sellers who move fastest to closing are the ones who gather their disclosure materials before the listing goes live, not after a buyer is under contract and demanding answers on a 10-day clock.

This guide covers every layer of NYC seller disclosure requirements, what each applies to, what happens when sellers get it wrong, and the 2026 updates you need to know. Nothing in this guide constitutes legal advice. Every disclosure decision should be made in consultation with a licensed NY real estate attorney.

The Property Condition Disclosure Act: What It Covers

The New York Property Condition Disclosure Act (PCDA), codified at Real Property Law Sections 460 through 467, took effect on March 1, 2002 and was amended most recently in 2021. The law requires sellers of one-to-four family residential dwellings to disclose the known condition of the property before the buyer signs a purchase contract.

The standardized Property Condition Disclosure Statement (PCDS) asks 48 questions organized into five sections: general property information, environmental conditions, structural conditions, mechanical systems, and miscellaneous. Sellers must answer each question based on their actual knowledge at the time of disclosure. Answering "unknown" when the seller does know the answer to a question may constitute misrepresentation. Answering "no" to a condition the seller knows exists is misrepresentation.

The $500 Credit Option: What It Does and Does Not Do

Under RPL Section 465, sellers may pay the buyer a $500 credit at closing instead of completing the PCDS. This credit is credited against the purchase price on the HUD-1 or ALTA settlement statement. Many sellers with older buildings, deferred maintenance histories, or known conditions elect this route on the advice of counsel to limit post-closing liability from disclosure omissions.

Critical point: the $500 credit does not eliminate a buyer's right to conduct a home inspection or request repairs. It also does not insulate sellers from fraud or misrepresentation claims for actively concealing known defects. The credit covers only the statutory PCDA disclosure obligation, not all common-law duties. Consult your attorney before deciding which route to take.

Federal Lead Paint Disclosure: Pre-1978 Buildings

Any residential property built before 1978 triggers a separate federal disclosure requirement under the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. Section 4852d). This applies to co-ops, condos, and one-to-four family homes alike. The federal rule is administered by HUD and the EPA.

Sellers of pre-1978 residential properties must:

• Disclose any known lead-based paint or lead-based paint hazards in the unit
• Provide buyers with the EPA pamphlet "Protect Your Family From Lead in Your Home"
• Give buyers a minimum 10-day period to conduct a lead inspection or risk assessment before becoming obligated under the contract
• Attach any existing lead test reports, records, or inspection results to the contract

Failure to comply carries civil penalties of up to $18,364 per violation under 2025 EPA penalty schedules and potential criminal liability in cases of willful violations. In practice, your real estate attorney prepares the lead paint disclosure addendum as part of the standard contract package. The 10-day inspection window can be waived in writing by the buyer but cannot be waived by the seller.

HPD Violations and Open Permits: What Buyers Will Find

During a standard due diligence period, every buyer's attorney pulls NYC Department of Buildings (DOB) and NYC Housing Preservation and Development (HPD) records for the property address. These searches reveal:

• HPD violations: Class A (non-hazardous), Class B (hazardous), and Class C (immediately hazardous). Class C violations covering lead paint, mold, lack of heat or hot water, and rodent infestation are considered material defects.
• Environmental Control Board (ECB) fines: Outstanding fines become liens on the property and must be resolved before title can pass.
• Open building permits: Permits that were filed but never closed with a final inspection create title problems. Lenders will not fund a mortgage on a property with open permits for work completed under the permit scope.
• Stop Work Orders: Active Stop Work Orders (SWOs) block closings until the underlying violation is addressed and the SWO is lifted by DOB.

Sellers who discover open violations or permits before listing have the option to resolve them proactively, which typically accelerates the transaction. Sellers who do not disclose known violations expose themselves to renegotiation demands, price reductions, or rescission claims during due diligence. Your attorney can advise on timing and strategy. I work directly with attorneys and expeditors to coordinate permit closures when needed, but the legal strategy is always directed by counsel.

Co-op Board Documents: The Full Disclosure Package

Co-op sales are exempt from the PCDA because buyers are purchasing shares in a cooperative corporation, not real property. However, the due diligence package for a co-op sale is typically more document-intensive than a one-family home sale. Buyers' attorneys need a complete package to review before contract signing, and gaps or missing documents slow every transaction.

Documents the Co-op Seller Must Provide

The managing agent is the source for most of these documents. Request them at listing time, not at contract signing. Some buildings charge document production fees ranging from $200 to $500. Factor this into your selling costs. In my experience, sellers who have a complete co-op package ready before accepting an offer save an average of 10 to 14 days on their contract timeline.

Condo Offering Plan and Declaration Requirements

Condominium buyers receive a different document package reflecting the fact that they are purchasing real property (a unit deed) rather than shares. The most significant document is the Attorney General-approved offering plan, which is the foundational legal document governing the condominium. All unit owners are entitled to a copy of the current offering plan plus all filed amendments.

For resale condos (not sponsor sales), the seller provides the most recent filed amendments, the current by-laws, house rules, and two years of financial statements. If the seller no longer has these, the condominium's managing agent or board secretary can produce them for a fee. The AG's office also maintains an offering plan database at the Real Estate Finance Bureau, which is publicly searchable.

2026 Updates: What Changed This Year

Several disclosure-related developments in 2026 affect NYC sellers:

• Local Law 97 (Climate Mobilization Act): Buildings exceeding carbon emissions thresholds face annual fines beginning in 2025 and escalating through 2030. Co-op and condo boards in non-compliant buildings must disclose LL97 fines and remediation plans in their financials. Buyers' attorneys are reviewing LL97 compliance in due diligence. Consult your attorney on how to present LL97 exposure in your offering documents.
• AI-generated images disclosure (NYS DOS November 2025): The NYS Department of State issued guidance in November 2025 requiring disclosure when AI-generated images are used in listing photos or virtual tours. Sellers working with agents using AI-generated staging must confirm that listings are appropriately labeled.
• Buyer Representation Agreement requirement (REBNY 2025): While this rule primarily affects buyer's agents, sellers should be aware that all buyer showings now require a signed Buyer Representation Agreement before the showing occurs. This has no direct impact on seller disclosure obligations but affects the showing process.

Non-Disclosure Penalties and Real-World Consequences

Sellers sometimes wonder whether disclosure matters if they are selling "as-is." In New York, an "as-is" clause in a contract does not eliminate a seller's liability for fraudulent concealment of known material defects. Courts have consistently held that "as-is" protects sellers from claims based on conditions the buyer could have discovered through reasonable inspection, not from conditions the seller actively hid.

Real consequences in the absence of proper disclosure include:

• Post-closing rescission lawsuits for misrepresentation (can unwind the entire transaction)
• Monetary damages equal to the cost of repair plus consequential damages
• NYS DOS complaints against the listing agent, which can result in license suspension
• Federal EPA civil penalties for lead paint non-disclosure (up to $18,364 per violation)

The simplest risk management strategy is complete, accurate disclosure with attorney guidance from day one. I introduce sellers to their attorney before the listing is signed, not after a buyer makes an offer. See also: 7 Mistakes NYC Sellers Make and NYC Closing Process Guide.

Active Co-op and Condo Listings

Live co-op and condo listings across all five boroughs. Source: REBNY RLS.

View All

Active NEW

$1,395,000

575 Main Street #1310

Roosevelt Island

3 bd 3 ba 1,595 sf

View Details Tour

Co-op · 1975 RLS #RLS20077281

Active

$420,000

2 Tudor City Place #10L

Murray Hill

0 bd 1 ba 600 sf

View Details Tour

Co-op · 1956 RLS #RLS20079209

Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.

Frequently Asked Questions