Article 14. Property Condition Disclosure Act (§460-467) +15New York · Real Estate · English

Every seller of residential real property (1-4 family dwelling, not condos/co-ops) must complete, sign, and deliver a property condition disclosure statement to the buyer prior to the buyer signing a binding contract of sale. A copy signed by both parties is attached to the contract.

• ✓Disclosure statement required for 1-4 family dwellings before binding contract
• ✓Excludes condos, co-ops, unimproved land, and non-fee-simple HOA property
• ✓Signed copy must be attached to the purchase contract

The statement is based on the seller's actual knowledge. It covers general information, environmental (flood, FEMA, wetlands, tanks, asbestos, lead, radon, mold), structural, and mechanical systems. A knowingly false or incomplete statement may subject the seller to buyer claims.

• ✓Statement based only on seller's actual knowledge
• ✓Covers flood zones, FEMA certificates, environmental hazards, and structural/mechanical systems
• ✓Knowingly false statement subjects seller to buyer claims

Disclosure is not required for transfers by court order, deed in lieu of foreclosure, foreclosure sales, fiduciary transfers, co-owner transfers, transfers to spouses/lineal relatives, divorce settlements, government transfers, new construction never inhabited, sheriff sales, or partition actions.

• ✓Court-ordered, foreclosure, and fiduciary transfers are exempt
• ✓Transfers to spouses/lineal relatives and new uninhabited construction are exempt
• ✓Government, sheriff, and partition transfers are exempt

A seller who provides (or fails to provide/revise) a disclosure statement is liable only for a willful failure, for actual damages. If the seller acquires knowledge rendering the statement inaccurate, they must deliver a revised statement, but never after transfer of title or buyer occupancy.

• ✓Seller liable only for willful failure, for actual damages
• ✓Revised statement required if seller acquires materially changing knowledge
• ✓No revision required after title transfer or buyer occupancy

A listing agent must timely inform the seller of their obligations under the Act. A buyer's agent (or seller's agent dealing with an unrepresented buyer) must inform the buyer of rights/obligations before the buyer signs a binding contract. Compliance relieves the agent of further duties and liability.

• ✓Listing agent must inform seller of disclosure obligations
• ✓Buyer's agent must inform buyer before binding contract signing
• ✓Compliance relieves agent of liability under the Act

It is unlawful to discriminate in housing based on race, creed, color, national origin, sexual orientation, military status, sex, age, disability, marital status, or familial status. This applies to refusal to sell/rent, discriminatory terms, and discriminatory advertising.

• ✓Protected classes include race, creed, color, national origin, sexual orientation, military status, sex, age, disability, marital status, familial status
• ✓Applies to housing accommodations, land, and commercial space
• ✓Discriminatory advertising and inquiries are prohibited

Limited exemptions apply to owner-occupied two-family dwellings, rental of rooms by an owner-occupant, same-sex rentals, and senior housing (55+/62+). It is specifically unlawful for a real estate broker or salesperson to refuse to sell/rent or to discriminate based on protected classes.

• ✓Owner-occupied two-family and owner-occupied room rentals have limited exemptions
• ✓Senior housing (55+/62+) exempt as to age and familial status
• ✓Brokers/salespersons specifically prohibited from discriminatory practices

It is unlawful to make, print, or publish any notice, statement, or advertisement regarding the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin.

• ✓Federal protected classes: race, color, religion, sex, handicap, familial status, national origin
• ✓Prohibits discriminatory notices, statements, and advertisements

A seller offering real property with no utility electric service must provide written notice to the purchaser prior to accepting a purchase offer. A seller of property subject to an electric/gas utility surcharge must provide written notice stating the type, purpose, amount, and payment frequency. Uncapped natural gas wells must also be disclosed.

• ✓Written notice required prior to accepting a purchase offer for no electric service
• ✓Utility surcharge notice must state type, purpose, amount and frequency
• ✓Uncapped natural gas wells must be disclosed to purchaser
• ✓Purchasers suffering loss may recover actual damages

A broker shall not commingle a principal's money with their own and must maintain a separate special escrow bank account (federally insured), with deposits made within three business days. The broker must render an account and remit monies to the client within a reasonable time.

• ✓Broker cannot commingle client funds with own funds
• ✓Client funds deposited in separate special account within 3 business days
• ✓Funds must be in a federally insured bank account; interest not retained by broker

No broker/salesperson may induce an owner to sell/list by representing entry of persons of a particular protected category into the neighborhood. Solicitation is prohibited after written notice from an owner. A finding of unlawful discriminatory practice is presumptive evidence of untrustworthiness subject to discipline.

• ✓Blockbusting based on protected classes is prohibited
• ✓No solicitation after written notice from owner not to solicit
• ✓Discrimination finding is presumptive evidence of untrustworthiness

Exclusive listings of residential property must include a signed/initialed explanation (min 6-point type) distinguishing 'exclusive right to sell' (commission owed even if owner finds buyer) from 'exclusive agency' (no commission if owner finds buyer). MLS listings must give owners option of submitting offers through listing or selling broker.

• ✓Exclusive right to sell means commission owed even if owner finds buyer
• ✓Exclusive agency means no commission if owner finds buyer
• ✓Explanation must be in at least six-point type and signed/initialed

Brokers must ensure each licensee provides a fair housing disclosure notice at first substantive contact for all real property (residential, commercial, vacant land). Brokers must display fair housing notices at offices and open houses, and post links on websites. Signed acknowledgments must be retained three years.

• ✓Fair housing disclosure notice required at first substantive contact for all property types
• ✓Fair housing notices must be displayed at offices, open houses, and on websites
• ✓Signed acknowledgment retained for at least three years; oral disclosure insufficient

A broker cannot buy property listed with them without making their true position known to the listing owner. Before buying property for a client in which the broker has an interest, they must disclose to all parties. Before selling property they own an interest in, they must inform the purchaser.

• ✓Broker must disclose position when buying property listed with them
• ✓Must disclose interest to all parties when buying for a client
• ✓Must disclose interest to purchaser when selling own property

A broker must clarify which party they represent and cannot receive compensation from more than one party without full knowledge and consent. Brokers cannot negotiate with a party to another broker's exclusive listing, induce breach of a contract, or offer property for sale without owner authorization.

• ✓No compensation from more than one party without knowledge and consent
• ✓No negotiating with parties under another broker's exclusive listing
• ✓No inducing breach of contract or unauthorized property offers

No broker may enter a net listing contract (retaining the difference between the net amount to seller and the sale price). No broker may be party to an exclusive listing with automatic continuation beyond the fixed termination date.

• ✓Net listing contracts are prohibited
• ✓Exclusive listings cannot contain automatic continuation clauses

Broker supervision consists of regular, frequent, consistent personal guidance and oversight. Brokers must keep transaction records for three years (names/addresses, purchase contract, commission, listing agreement). Full-time salesperson service requires at least 35 hours/week for 50 weeks per year.

• ✓Records of transactions must be maintained for three years
• ✓Full-time experience is 35 hours/week for 50 weeks per year
• ✓Salespersons cannot own voting stock in their brokerage corporation

Only a broker may place advertisements for property. Advertisements must identify the broker/brokerage with address or phone. Team names must use the term 'team' and include brokerage name; titles like 'sales associate' are prohibited. Ads must be honest, and cannot guarantee future profits.

• ✓Only a broker may place property advertisements
• ✓Ads must include broker/brokerage name and address or phone
• ✓Team names must use 'team' and include the brokerage name

When a purchase and sales contract is presented for property partially or wholly within an agricultural district, the prospective grantor must deliver a notice informing residents that the property lies within an agricultural district and farming activities (noise, dust, odors) occur. The notice must be signed by grantor and grantee prior to sale.

• ✓Grantor must deliver agricultural district notice to prospective grantee
• ✓Notice must be signed by both grantor and grantee prior to sale
• ✓Failure to provide does not prevent recording officer from filing the deed

Requirements that a recorded instrument be original, on paper, in writing or signed are satisfied by digitized paper documents or electronic records. Electronic recording is discretionary for each county clerk; once permitted, the county accepts electronic recordings.

• ✓Digitized/electronic records satisfy original, paper, writing, and signature requirements
• ✓County clerk participation in electronic recording is discretionary
• ✓Electronic signature satisfies notarization/acknowledgment requirements

Every seller of residential real property pursuant to a real estate purchase contract must complete and sign a property condition disclosure statement and deliver it to the buyer or buyer's agent before the buyer signs a binding contract of sale. A copy signed by both must be attached to the purchase contract.

• ✓Disclosure statement delivered before buyer signs binding contract of sale
• ✓Copy signed by both seller and buyer attached to the purchase contract
• ✓Residential real property = 1-4 family dwelling, excludes condos, co-ops, vacant land
• ✓Based on seller's actual knowledge; not a warranty

The disclosure statement covers general information, environmental, structural, and mechanical items. Notable flood questions include FEMA floodplain, Special Flood Hazard Area (100-year), Moderate Risk (500-year), federal flood insurance requirements, prior FEMA/SBA assistance, existing flood insurance, and FEMA elevation certificates.

• ✓Statement includes flood zone (SFHA, 100/500-year) disclosures
• ✓Federal disaster assistance flood insurance requirement passes to future owners
• ✓Answer all questions based on seller's actual knowledge
• ✓Structure built before 1978 encourages lead-based paint investigation

A property condition disclosure statement is not required for transfers by court order, deed in lieu of foreclosure, foreclosure sales, transfers by fiduciaries, between co-owners, to a spouse or lineal relatives, between spouses via divorce, to/from government, newly constructed uninhabited property, by a sheriff, or pursuant to a partition action.

• ✓Court-ordered and foreclosure transfers are exempt
• ✓Transfers to spouse or lineal relatives are exempt
• ✓Newly constructed uninhabited property is exempt
• ✓Transfers by sheriff or partition action are exempt

If a seller acquires knowledge rendering a previous disclosure materially inaccurate, the seller must deliver a revised statement as soon as practicable, but never after transfer of title or occupancy. A seller who provides (or fails to provide) a disclosure is liable only for a willful failure and for the buyer's actual damages.

• ✓Revised statement required if disclosure becomes materially inaccurate
• ✓No revision required after transfer of title or occupancy
• ✓Seller liable only for willful failure, for actual damages
• ✓Historically credit given but current act imposes only willful-failure liability

A listing agent must timely inform each seller of their obligations under the Article. An agent representing the buyer (or a seller's agent dealing with an unrepresented buyer) must timely inform the buyer of rights and obligations before signing a binding contract. Performing these duties relieves the agent of further liability.

• ✓Listing agent must inform seller of disclosure obligations
• ✓Agent must inform buyer of rights/obligations before binding contract
• ✓Performing the duties relieves agent of further liability under the article

The salesperson's course totals 80 hours (77 instruction + 3 exam) with required subjects including Law of Agency (11 hrs) and Human Rights/Fair Housing (6 hrs). The broker's course totals 78 hours (75 instruction + 3 exam) requiring the salesperson course as a prerequisite.

• ✓Salesperson course: 77 instruction hours plus 3-hour exam (80 total)
• ✓Broker course: 75 instruction hours plus 3-hour exam (78 total)
• ✓Broker course requires prior completion of salesperson's course

Course applications must be made 60 days before the course. Students cannot miss more than 10% of course time. Instructors must achieve 100 points based on experience, teaching, and academic achievement. Courses may not be affiliated with or controlled by a broker or franchise.

• ✓Attendance requires missing no more than 10% of course time
• ✓Instructors must achieve 100 points on the qualifying scale
• ✓Approved courses cannot be controlled by a broker, appraiser, or franchise

Distance learning programs require division into major units/modules, a time-default mechanism, signed completion statements, and a proctored final exam within NY. Records must be retained three years. Students must complete distance courses within 12 months.

• ✓Distance learning requires proctored final exam in NY
• ✓Distance course must be completed within 12 months
• ✓Records retained for three years

It is unlawful to refuse, deny, or discriminate in the sale/rental/lease of housing because of race, creed, color, national origin, sexual orientation, military status, sex, age, disability, marital status, or familial status. Prohibited acts include refusing to sell/rent, discriminating in terms, and printing discriminatory advertisements.

• ✓Protected classes include race, creed, color, national origin, sexual orientation, military status, sex, age, disability, marital, familial status
• ✓Unlawful to refuse to sell/rent or falsely represent unavailability
• ✓Unlawful to print/circulate discriminatory statements or advertisements
• ✓Applies to owners, managing agents, brokers and salespersons

Certain exemptions apply: rental in an owner-occupied building of not more than two families; restriction of all rooms to same sex; rental of rooms in an owner-occupied dwelling; and age/familial status restrictions for senior housing (62+ or 55+ per federal Fair Housing Act standards). Age provisions do not apply to persons under 18.

• ✓Owner-occupied two-family building rentals may be exempt
• ✓Same-sex room rental restrictions are exempt
• ✓55+/62+ senior housing exemptions apply to age/familial status
• ✓Age provisions do not apply to persons under 18

No renewal license is issued unless 22.5 hours of approved CE is completed within the preceding two years. CE may be given by accredited colleges, vocational schools, real estate boards, and professional societies. Excluded: exam prep, mechanical office skills, sales promotion, and non-real estate subjects.

• ✓22.5 hours of approved CE required in the two years before renewal
• ✓Exam prep, office skills, and sales promotion do not qualify for CE
• ✓Course cannot be controlled by a broker or franchise

CE credit is accepted on attendance basis; instructors receive two hours credit per hour taught. No CE course counts more than once per two-year renewal cycle. Fair housing CE providers must video record each course and retain it for at least one year.

• ✓Instructors earn 2 hours credit per hour taught
• ✓No CE course counts more than once per renewal cycle
• ✓Fair housing CE courses must be video recorded and retained one year

Under 42 USCA §3604, it is unlawful to make, print, or publish any notice, statement or advertisement regarding the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin, or intent to make such preference.

• ✓Federal protected classes: race, color, religion, sex, handicap, familial status, national origin
• ✓Unlawful to indicate any preference, limitation or discrimination in advertising
• ✓Includes intent to make such preference or limitation

An applicant for a broker license must possess two years full-time experience as a licensed salesperson under a broker's supervision, or equivalent full-time general real estate experience for at least three years, credited according to a point system.

• ✓Broker requires 2 years full-time salesperson experience OR 3 years equivalent
• ✓Experience credited according to a point system in Part 179

A nonsolicitation order directs all brokers/salespersons to refrain from soliciting listings for the sale of residential property in a designated area. Prohibited forms include letters, postcards, handbills, telephone calls, door-to-door calls, and public postings. Newspaper ads of general circulation are not prohibited.

• ✓Nonsolicitation orders prohibit direct solicitation of listings in designated areas
• ✓Prohibited: letters, calls, handbills, door-to-door, public postings
• ✓Newspaper ads of general circulation are permitted

A broker shall not commingle the money or property of a principal with their own and must maintain a separate special bank account for client deposits, made within three business days. Monies must be in a federally insured account. Tenant security deposits must comply with §7-103 of the General Obligations Law.

• ✓No commingling of principal's money with broker's own
• ✓Deposit into separate special bank account within three business days
• ✓Monies must be in a federally insured bank account
• ✓Tenant security deposits handled per GOL §7-103

A broker shall not make or enter into a net listing contract for real property. No broker shall be a party to an exclusive listing contract containing an automatic continuation of the listing period beyond the fixed termination date.

• ✓Net listing contracts are prohibited
• ✓Exclusive listings cannot contain automatic continuation clauses
• ✓A net listing lets broker keep difference above a specified net amount

In all commission agreements providing for an exclusive listing of residential property, the broker must attach/print and have the homeowner sign an explanation (min six-point type) distinguishing 'exclusive right to sell' (owner owes commission even if owner finds buyer) from 'exclusive agency' (no commission if owner finds buyer).

• ✓Exclusive listing explanation required in min six-point type
• ✓Exclusive right to sell: commission owed even if owner finds buyer
• ✓Exclusive agency: no commission if owner finds buyer
• ✓Homeowner must sign or initial the explanation

No broker/salesperson shall induce an owner to sell by representing entry of persons of a particular protected class (blockbusting). A finding of unlawful discriminatory practice is presumptive evidence of untrustworthiness subject to discipline including revocation. Written owner notice of no-solicit desire prohibits further solicitation.

• ✓Blockbusting (inducing sale via protected-class representations) is prohibited
• ✓Discriminatory practice finding is presumptive evidence of untrustworthiness
• ✓Written owner notice not to solicit binds broker and all associated licensees

A broker must ensure each associated licensee provides a fair housing disclosure notice (containing Human Rights Law provisions) at first substantive contact for all real property including commercial and vacant land. Brokers must display and maintain a fair housing notice at every office and on websites, and have it available at open houses.

• ✓Fair housing disclosure notice provided at first substantive contact for all property
• ✓Signed acknowledgment (hardcopy) retained not less than three years
• ✓Fair housing notice displayed at every office and on website homepages
• ✓Oral disclosure does not satisfy the requirement

A broker must within a reasonable time render an account to the client and remit any collected monies. When managing property, a broker shall not accept any commission, rebate or profit on expenditures without the client's full knowledge and consent.

• ✓Broker must render account and remit client monies within reasonable time
• ✓No secret profit/rebate on expenditures made for client
• ✓Full knowledge and consent required for any profit on client expenditures

A broker shall not directly or indirectly buy property listed with them without first making their true position known to the listing owner. Before buying/selling property in which the broker has an interest, they must disclose it. A broker must make clear for which party they act and cannot receive compensation from more than one party except with full knowledge and consent.

• ✓Broker must disclose true position before buying listed property
• ✓Must disclose interest before buying for client or selling own property
• ✓No compensation from more than one party without full knowledge and consent

A broker shall not negotiate directly with an owner who has an existing exclusive written contract with another broker; shall not induce a party to break a contract to substitute a new one; shall not offer property without owner authorization; and shall not place a sign without owner consent.

• ✓No negotiating with owner under another broker's exclusive listing
• ✓No inducing breach of contract of sale or lease
• ✓No offering property or placing a sign without owner's authorization/consent

A broker must immediately deliver a copy of any instrument to any party executing it where prepared by the broker. A broker must exercise regular, frequent and consistent supervision of salespersons. Salesperson participation means active service under supervision for at least 35 hours per week for 50 weeks per year.

• ✓Copy of instrument delivered immediately to executing parties
• ✓Supervision means regular, frequent, consistent guidance and oversight
• ✓Qualifying experience = 35 hours/week for 50 weeks per year

Each broker must keep records for three years of each residential sale transaction including names/addresses, purchase contract, commission, listing agreement. A salesperson may not own voting shares of stock in the licensed brokerage corporation with which associated. Upon termination, salesperson must turn over all listing information to the broker.

• ✓Records maintained for three years for residential transactions
• ✓Salesperson may not own voting stock in the associated brokerage corporation
• ✓Salesperson must turn over listing information upon termination

Only a real estate broker may place advertisements for sale/lease of property. Advertisements must identify the advertiser as a broker or provide the broker/brokerage name with address or phone. Licensees must advertise under their licensed name; nicknames need full name shown. License type must be accurate; 'sales associate' or simply 'broker' titles are prohibited.

• ✓Only a broker may place property advertisements
• ✓Ads must include broker/brokerage name and address or phone
• ✓Must advertise under licensed name; nickname requires full name
• ✓Titles 'sales associate', 'licensed sales agent', or simply 'broker' prohibited

Team names must include full licensed names or be followed by 'at/of [broker/brokerage]', must use the term 'team', and cannot use 'associate', 'realty', or 'group'. Signage on listed property must identify the representative broker or brokerage. Business cards must contain business address, license type, brokerage name, and office phone.

• ✓Team names must use 'team' and include or reference the brokerage
• ✓Terms 'associate', 'realty', 'group' prohibited in team names
• ✓For-sale signs must identify the representative broker/brokerage
• ✓Business cards need address, license type, brokerage name, office phone

The salesperson's qualifying course totals 77 instruction hours (80 with 3-hour final exam), including Law of Agency (11), Legal Issues (10), Human Rights and Fair Housing (6), and Commercial/Investment Properties (10). The broker's qualifying course totals 75 instruction hours (78 with exam) requiring prior completion of the salesperson's course.

• ✓Salesperson course: 77 instruction hours plus 3-hour final exam = 80 total
• ✓Broker course: 75 instruction hours plus 3-hour final exam = 78 total
• ✓Broker course requires prior completion of salesperson's course
• ✓Salesperson course includes 11 hours Law of Agency and 6 hours Fair Housing

Attendance is computed on an hour equaling 50 minutes with a 10-minute break. No student receives credit if absent more than 10 percent of prescribed time. Final examinations may not be taken without satisfying attendance. Failure of the final exam constitutes failure of the course.

• ✓An hour of instruction equals 50 minutes plus a 10-minute break
• ✓No credit if absent more than 10 percent of prescribed time
• ✓Cannot take final exam without meeting attendance requirement
• ✓Failure of final exam constitutes failure of the course

No approved course may be affiliated with or controlled by any real estate broker, salesperson, appraiser, firm, company or franchise. Schools pay a $300 annual registration fee, plus $150 per additional location, and a one-time $25 fee per teacher. Records must be retained three years.

• ✓Courses cannot be controlled by a broker, appraiser, firm or franchise
• ✓Annual school registration fee is $300 plus $150 per additional location
• ✓Records retained for three years and available for inspection
• ✓Distance learning requires proctored final exam within NY State

No renewal license is issued to any broker or salesperson unless the licensee provides evidence of completing 22.5 hours of approved continuing education within the two-year period immediately preceding renewal. Courses must be approved by the department to count for credit.

• ✓22.5 hours of approved CE required within the two-year renewal period
• ✓Courses must be department-approved to count for credit
• ✓Unacceptable subjects include exam prep, office skills, and sales promotion

A licensee who teaches an approved course is credited two hours for each hour of actual teaching performed. No CE course counts for credit more than once within the two-year renewal cycle. A completed 30-hour or 32-hour supplemental course may earn CE credit but cannot carry over excess hours.

• ✓Teaching credit is two hours per hour of actual teaching
• ✓No CE course counts more than once in a two-year cycle
• ✓No carry-over of excess hours to a subsequent renewal cycle

Every entity approved to provide fair housing/discrimination instruction must create a video and audio recording of each course in its entirety, maintained for at least one year following the date the course was provided to a student, and subject to Department audit.

• ✓Fair housing course must be recorded with video and audio in entirety
• ✓Recording maintained at least one year after course provided
• ✓Recording subject to Department audit

A nonsolicitation order directs all brokers and salespersons to refrain from soliciting listings for the sale of residential property within a designated area. Prohibited solicitations include letters, postcards, calls, door-to-door, handbills and public postings. A nonsolicitation area includes properties on both sides of boundary streets.

• ✓Order prohibits all solicitation for sale listings in the designated area
• ✓Residential property includes 1-3 family, co-op and condo units
• ✓Nonsolicitation area includes both sides of boundary streets
• ✓Newspaper ads of general circulation are not prohibited

An applicant for a broker license must possess two years of full-time experience as a licensed salesperson under broker supervision, or equivalent full-time experience in general real estate for at least three years. Credit is awarded according to a point system.

• ✓Two years full-time as licensed salesperson under broker supervision
• ✓OR three years equivalent full-time general real estate experience
• ✓Experience credited according to a point system