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Buyer and Seller Tips: Property Disclosures and Real Estate Legalities

The road to becoming an informed buyer or seller is paved with good intentions. Here are the legal aspects of real estate in New York that you need to know.

As a home buyer

Familiarize yourself with certain disclosures you need to fulfill, as well as things you should be looking for in your real estate agent.

The rule of “caveat emptor” – As a buyer, you have your own duty to fulfill; to inspect the property and find defects, if any, before you buy a property. It’s important to note that under New York law, listing brokers are not required to disclose any information about property defects. Of course, certain exceptions apply for special cases, such misinformation and/or omitted information. Under these aspects can a listing broker be liable for damages.
Buyer’s broker disclosure requirements – A property’s listing agent might not be required to disclose any information to you, but your broker must provide you a complete disclosure of everything about the property.
You cannot sue a broker if he failed to inform you that the property is “stigmatized.” – There are special cases when a property up for sale is labeled as “stigmatized” due to being a scene of a crime or being a former home of an individual with a discriminated and transmittable disease (HIV, AIDS, etc.) You can’t sue the listing agent for failure to disclose such information – he’s not required by New York legislature. You can, however, make a written inquiry addressed to the seller’s agent or the seller himself for this information.

As a home seller

Here are some of the obligations you need to fulfill, as well as disclosures you should require from your listing agent.

Information disclosures – Your listing agent might not be mandated by New York law to disclose information about your property to interested buyers, but it’s still best to inform your agent about property information and defects to avoid misinformation in the selling process. While you’re not really liable to answer for misinformation or omitted information, it’s best to keep everything clean and open.
Disclosure requirements under the Property Disclosure Act (PCDA) – Disclosure requirements under PCDA are required under state laws (you can read all about them here
If your buyer isn’t represented by a buyer’s agent, your listing broker must notify him/her about the PCDA.

For additional reading, here are some links to help you get more acquainted with property laws and requirements: