THE LEGAL FOUNDATION
The Property Condition Disclosure Act (PCDA)
New York's Property Condition Disclosure Act (RPL §462) requires residential sellers to complete a standardized disclosure form covering known material defects and conditions. The form must be delivered to the buyer before the contract is signed.
If a seller opts not to complete the form, they must give the buyer a $500 credit at closing. Most attorneys advise completing it — withholding it raises suspicion without offering any real legal protection.
Important: Disclose What You Know
The PCDA requires disclosure of known conditions — you are not required to investigate every system in the home. But if you know about a defect and fail to disclose it, you face potential fraud liability regardless of any "as-is" language in the contract.
WHAT YOU MUST DISCLOSE
Section-by-Section Breakdown
General Property Information
- →Age of the home
- →Known violations of zoning or building codes
- →Pending violations, litigation, or government orders
- →Whether the home has been used for any illegal activities
Structural Components
- →Foundation type and any known cracks, settling, or shifting
- →Roof age and any known leaks or repairs
- →Basement: any water infiltration, dampness, or flooding history
- →Any prior structural repairs or modifications
Mechanical Systems
- →Heating system type and age, any known issues
- →Central air conditioning presence and condition
- →Plumbing: any known leaks, low pressure, or galvanized pipe
- →Electrical: service amperage, any known issues, knob-and-tube wiring presence
Environmental Conditions
- →Presence or prior presence of asbestos (common in pre-1980 Long Island homes)
- →Lead-based paint (federal requirement for pre-1978 homes — separate form)
- →Presence of mold or prior mold remediation
- →Any hazardous materials or contamination on the property
Flood, Water & Drainage
- →Whether the property is in a FEMA Special Flood Hazard Area (SFHA)
- →Any history of flooding or water damage
- →Drainage issues on the lot
- →Any prior flood insurance claims
Prior Repairs & Permits
- →Major renovations completed and whether permits were pulled
- →Any unpermitted work on the property
- →Insurance claims filed in the last 5 years
LONG ISLAND SPECIFIC
Disclosures That Are Uniquely Important on Long Island
Underground Oil Tanks (USTs)
This is the single biggest disclosure issue on Long Island. Many homes built before 1980 have underground heating oil tanks — some removed, some abandoned in place, some still in active use. A leaking UST can contaminate soil and groundwater and create a six-figure remediation liability. Sellers must disclose known UST presence. If you don't know, get a tank sweep ($150–$300) before listing. Buyers will ask — and their attorney will require disclosure or testing before contract.
Flood Zone Status
Long Island's proximity to the ocean, bays, and tidal waterways means many properties are in FEMA-designated flood zones. AE-zone properties require mandatory flood insurance, currently averaging $1,500–$4,000+ per year. Sellers must disclose if the property is in a Special Flood Hazard Area. Buyers can look this up — but they expect you to disclose it. Failure to disclose flood zone status has generated significant legal disputes in Nassau and Suffolk County.
Septic Systems
Sewered vs. septic is a major distinction on Long Island. If your home has a cesspool or septic system, you must disclose its presence, last pumping date, and any known issues. Nassau County has active cesspool phaseout requirements under the Reclaim Our Water initiative — buyers will ask, and your attorney will need to address this in the contract.
Prior Flood or Hurricane Damage
Superstorm Sandy (2012) affected thousands of Long Island properties. Sellers of any home that sustained Sandy damage — or damage from subsequent storms — must disclose repair history. Insurance claims filed are discoverable. Attempting to conceal prior flooding is fraud, not disclosure avoidance.
CONSEQUENCES
What Happens If You Don't Disclose
Failing to disclose a known material defect in New York exposes the seller to fraud claims, misrepresentation suits, and rescission of the contract. The "as-is" clause does not protect sellers from fraud — courts have consistently held that sellers cannot hide behind as-is language to avoid liability for known defects they concealed.
Have Questions About Your Disclosure?
Jeff works with experienced Long Island real estate attorneys who can help you complete the PCDA correctly and address any complex property issues before they become problems.