The controlling distinctions
What to remember when the answer choices are close.
The statute generally covers residential real property improved by a one-to-four-family dwelling, subject to its definitions and exemptions. Condominium units and cooperative apartments 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 is not a substitute for home, pest, radon, environmental, title, or public-record review.
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Reject that answer as outdated.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
The former $500 credit alternative was removed from current New York law. Older preparation materials can 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 It is an outdated rule and should not control a present-law question.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?
They are excluded from the statute's definition of residential real property for this disclosure article. Always confirm the current statutory definition and transaction facts.
What replaced the old $500 credit rule?
The current liability section provides that a seller's willful failure to perform the article's requirements can result in liability for the buyer's actual damages, in addition to other existing remedies.
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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.