The controlling distinctions
What to remember when the answer choices are close.
The statute covers residential real property improved by a one-to-four family dwelling, subject to its exemptions. Condominium units, cooperative apartments, and homeowners' association property the seller does not own in fee simple are outside that definition.
The seller answers from actual knowledge and is not required by the form to conduct a new investigation or inspection.
The statement is not a warranty and does not replace inspections or public-record review. The current form includes a set of flood questions, such as FEMA flood zone status, flood insurance, and past flood damage claims.
If the seller later learns something that makes the statement materially inaccurate, the statute calls for a revised statement as soon as practicable, but not after transfer of title or buyer occupancy, whichever occurs first.
A decision path
Work through the rule in this order.
- 1
Check coverage
Identify the property type and transaction before assuming the form is required. Review the statutory definitions and exemptions.
- 2
Use actual knowledge
The seller answers what the seller actually knows and may use unknown or not applicable where the form permits.
- 3
Deliver before contract
The buyer must receive the statement before signing a binding contract of sale.
- 4
Update material changes
If later knowledge makes an answer materially inaccurate, apply the statutory revision rule before the cutoff event.
Worked scenario
The old $500-credit answer appears
An exam choice says a seller may skip the disclosure and automatically give the buyer a $500 closing credit instead.
Best response
Reject that answer as outdated. The current statute requires the disclosure for covered transactions and section 465 now addresses willful failure through actual damages.
Why
Amendments effective March 20, 2024 removed the $500 credit option from New York law. Older prep materials still repeat it.
Exam lens
Words in the facts that should slow you down.
Common exam mistake
Memorizing the former $500 credit as a current seller option. It is an outdated rule and should not control a present-law question.
Questions students ask
Short answers before you move on.
Is the New York property disclosure statement a warranty?
No. The statutory form states that it is not a warranty and is not a substitute for inspections, testing, or public-record review.
Are condominium units and cooperative apartments covered by the form?
No. Real Property Law section 461 excludes condominium units and cooperative apartments from the definition of residential real property for the property condition disclosure article.
What replaced the old $500 credit rule?
Under section 465, a seller who willfully fails to meet the disclosure requirements is liable for the buyer's actual damages, in addition to other existing remedies.
Continue with the full subject lesson.
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This guide supports exam preparation and general education. It does not decide duties in a specific transaction and is not legal advice.