New York eliminated the $500 PCDS credit in 2024 — sellers must now complete the disclosure form. Learn what to disclose and how to protect yourself from liability.
If you're selling a home in New York State, you've likely heard that you need to fill out a Property Condition Disclosure Statement — or PCDS. This form is one of the most important documents in a residential real estate sale, and getting it wrong can expose you to liability long after the closing.
This post explains what the PCDS is, what changed in 2024, what you must disclose, and how to protect yourself as a seller.
The PCDS is just one item on the legal checklist you should complete before listing. For the complete pre-listing checklist — including open permits, title review, liens, and capital gains exposure — see Before You List Your Staten Island Home: The Legal Checklist Your Realtor Won't Give You.
What Is the Property Condition Disclosure Statement?
The Property Condition Disclosure Statement is a form required by New York State law (Real Property Law §462) for the sale of most residential real property — including single-family homes, two-family homes, three-family homes, and condominiums.
The PCDS requires sellers to answer a series of questions about the property's physical condition: the roof, the foundation, the basement, the electrical system, the plumbing, the HVAC, known defects, past repairs, environmental hazards, and more. The PCDS must be provided to the buyer before the buyer signs the contract of sale.
What Changed in 2024?
For many years, New York law gave sellers an alternative: instead of completing and delivering the PCDS, a seller could simply pay the buyer a $500 credit at closing. Many sellers took this route.
That option no longer exists. Effective March 20, 2024, New York eliminated the $500 credit escape hatch. Sellers are now required to complete and deliver the PCDS. There is no longer an alternative. This affects every residential seller in New York, including all sellers in Staten Island.
What Does the PCDS Cover?
Structural and physical condition:
- Roof condition and any known leaks
- Foundation condition, settlement, or movement
- Basement water infiltration or flooding
- Structural modifications or additions
Mechanical systems:
- Heating system age and condition
- Central air conditioning (if any)
- Electrical system (including whether it has been updated)
- Plumbing system and water supply
Environmental hazards:
- Presence of lead-based paint (pre-1978 homes have additional federal disclosure requirements)
- Asbestos
- Underground oil tanks (present or previously removed)
- Radon testing results, if any
- Termite or pest history
Other issues:
- Flooding history
- Drainage problems
- Zoning violations or building code violations
- Pending lawsuits or legal proceedings affecting the property
"Known" Is the Key Word
The PCDS asks about conditions you know about — not things you should have investigated. You are not required to hire a home inspector before filling out the form. But if you know something is wrong, you must disclose it.
If the buyer later discovers a problem that the seller knew about and failed to disclose, the seller can face claims of misrepresentation or fraud. The honest approach is usually the best approach: disclose what you know, explain the context, and let the buyer make an informed decision.
How the PCDS Affects the Sale
Once a buyer receives the PCDS, they will likely have the property inspected — and the inspection report will be compared to what you disclosed. In Staten Island, the inspection typically happens after the offer is accepted but before the contract is signed. There is no attorney review period — once the contract is signed, the deal is binding.
Disclosing known issues upfront often leads to cleaner negotiations. Buyers and their attorneys are less likely to demand concessions or walk away when they feel the seller has been transparent.
Get It Right Before You Sign
Your attorney will help you review the PCDS, understand which questions require disclosure, and handle the document correctly so it is delivered to the buyer before contract signing as required by law.
For a complete overview of the entire selling process, see The Staten Island Home Selling Process: A Step-by-Step Guide.
Contact Pete today: Call (718) 442-2010 | Text (718) 957-8121 | [[email protected]](mailto:[email protected])
Pete Weinman, Esq.
Weinman Law Offices, PC · 260 Christopher Lane, Suite 201, Staten Island, NY 10314
Licensed in New York and New Jersey
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