NY Property Disclosure Statement: 56 Questions, No Opt-Out
Back to the NYC Real Estate Blog
New York’s Property Condition Disclosure Statement (PCDS) requires sellers to answer 56 questions about a home’s condition. Since March 2024, sellers can no longer pay a $500 credit to skip it. A July 2025 update added guidance on septic systems, on top of the flood-risk questions added the year before.
We walk buyers through this constantly, because most people, including some agents, are still working off the pre-2024 rules. The form changed twice since then, and neither change made it into most of what’s written about it.
A valuable disclosure tool that protects buyers.
What is a Property Condition Disclosure Statement
New York’s Real Property Law, Article 14, requires sellers of residential property to provide buyers with a PCDS before the contract is signed. It covers the property’s age, structure, mechanical systems, environmental history, and now also flood risk and septic guidance.
It 
applies only to real residential property: single-family homes used as residences. Vacant lots, condos, co-ops, and HOA-owned property don’t require one.
| Change | Effective date | What it means |
|---|---|---|
| $500 credit opt-out eliminated | March 20, 2024 | Sellers must complete the PCDS; no more paying to skip it |
| Flood-risk questions added | March 20, 2024 | Seven new questions on flood history and insurance requirements |
| Septic system guidance added | July 1, 2025 | The form now points sellers to NYS Department of Health resources |
The $500 shortcut is gone, and that changes everything
Before 2024, sellers could avoid completing a PCDS by paying a $500 credit toward the purchase price instead. Most sellers’ attorneys recommended taking that option. It was cheaper than the liability exposure of answering 56 questions honestly.
Governor Hochul signed A.1967/S.5400 eliminating that option, effective March 20, 2024. Every seller of residential property must now complete and submit the form. There’s no more routine business expense to hide behind.
What’s actually on the form now
The form grew from 48 questions to 56 with the 2024 amendment. It asks about structural issues, mold and termite history, drainage, shared features, ownership history, and, since 2024, flood zone status and flood insurance requirements.
A seller answers based on actual knowledge, not a fresh inspection. They’re not required to investigate anything they don’t already know. That’s a real limit worth understanding: the PCDS discloses what a seller knows, not what a thorough inspection would find.
The update almost nobody’s writing about yet
Effective July 1, 2025, the revised PCDS adds instructions on where to find septic system operation and maintenance information. It points sellers to the NYS Department of Health’s own resources. It’s a narrower change than the 2024 overhaul, but it’s real. Most articles on this topic, including national ones from major sites, don’t mention it at all.
If you’re buying a property on septic rather than municipal sewer, confirm this directly with your attorney. Don’t assume an older explainer still reflects the current form.
What happens if a seller skips it, or lies on it
A seller who fails to provide a PCDS, or knowingly answers falsely, is responsible for any actual damages suffered by the buyer. That’s in addition to any other legal remedies already available under New York law.
This sits against the backdrop of caveat emptor, the older “buyer beware” doctrine that otherwise governs New York real estate. The PCDS is a legislated exception to that doctrine, not a replacement for it. Buyers still need their own home inspection and due diligence; the PCDS tells you what the seller knows, an inspection tells you what’s actually there.
Our pillar guide to due diligence covers the rest of what to verify before you close. Once you’re through this stage, our NYC closing costs calculator breaks down what you’ll owe at the table. Our buyer rebate can offset a real share of it.
Common questions
Can a seller still pay $500 to skip the PCDS in New York? No. That option was eliminated effective March 20, 2024. All sellers of residential property must now complete and deliver the form.
What is a material defect on a property disclosure form? A condition that would affect the property’s value or sales-worthiness, something a reasonable buyer would want to know before finalizing a purchase.
What is caveat emptor, and does it still apply in New York? “Buyer beware,” the older common-law doctrine that otherwise governs New York real estate. The PCDS is a specific, legislated exception to it, not a full replacement.
Does the PCDS cover septic systems? As of July 1, 2025, the form includes guidance directing sellers to NYS Department of Health resources on septic system operation and maintenance.
What happens if a seller lies on the PCDS? They become liable for the buyer’s actual damages resulting from the false statement, in addition to any other legal remedies available under New York law.
Nicole Fishman Benoliel co-founded NestApple in 2017. She's a lawyer admitted to the New York bar - her law degree is from La Escuela Libre de Derecho in Costa Rica, with further study at IE Business School in Madrid and an LLM from Fordham in New York. She does not act in a legal capacity at NestApple; every client is referred to an attorney who handles real estate deals full time.
