Despite 2024 law changes making PCDS mandatory for many, NY estates and trusts remain exempt from property condition disclosures. Learn the details here.
In March 2024, New York real estate law underwent a significant shift regarding the Property Condition Disclosure Statement (PCDS). The state removed the option for sellers to pay a $500 credit to the buyer in lieu of providing the disclosure statement. This change effectively made the PCDS mandatory for standard residential sellers.
Because of this major change, significant confusion arose among executors, trustees, and real estate agents. Many feared that estates and trusts—which were previously exempt from providing the PCDS—were now required to complete this detailed document about property defects.
We can confirm that the fiduciary exemption remains in full effect.
While the 2024 amendments removed the opt-out mechanism for regular sellers, the Legislature did not repeal the statutory exemptions listed in Real Property Law § 463.
For a full overview of what the PCDS requires and what changed in 2024, see my Property Condition Disclosure Statement seller's guide. For the separate issue of waiver riders — which fiduciaries may also encounter in contract negotiations — see my PCDS waiver rider risk analysis.
The Fiduciary Exemption Explained
Under New York Real Property Law § 463(7), the following transfers remain explicitly exempt from the PCDS requirement:
"A transfer by a fiduciary in the course of the administration of a decedent's estate, a guardianship, a conservatorship, or a trust."
Why Does This Exemption Exist?
The logic remains sound: An executor selling parents' home, or a trustee selling trust property, has often never lived in the house. They usually have no personal knowledge of the roof's age, basement leaks, or electrical history. Requiring a fiduciary to fill out a sworn statement about conditions they don't know puts them at unfair legal risk and provides little value to a buyer.
Important Caveats for Fiduciaries
Even though an estate or trust remains exempt from the PCDS form, this is not a "free pass" to conceal problems.
Known Latent Defects: Under general legal principles, a seller (even a fiduciary) generally cannot actively hide known, material defects that a buyer couldn't easily discover on their own. If you know there is a massive buried oil tank leaking in the yard, you should disclose it.
Federal Lead Paint Law: The NY state exemption does not override federal law. If the property was built prior to 1978, the standard Federal Lead-Based Paint Disclosure is still required.
Summary for Staten Island Sellers
If you are selling property as an executor, administrator, or trustee, you do not need to provide the 7-page Property Condition Disclosure Statement. The confusion following the March 2024 law change was understandable, but the statutory exemption for fiduciaries stands firm.
If you are handling an estate sale on Staten Island and need guidance on proper disclosures, contact Pete directly. I understand estate administration and residential real estate transactions, and I can ensure the process is managed correctly from appointment to closing table.