A new law takes effect on March 20, 2024, which changes the Property Condition Disclosure Statement (PCDS) used in residential real estate transactions. The change is intended to empower homebuyers with better information about flood-related aspects of a property.
Seven new questions related to the property’s flood status and experience have been added to the PCDS. The new law requires property owners to disclose whether the property is in a FEMA-designated 100-year or 500-year floodplain, whether it must comply with federal flood insurance requirements, and its flood insurance history.
The option for buyers to receive a $500 credit in lieu of the completed PCDS, as permitted under the previous law, has been eliminated. In the past, sellers were often advised not to complete the PCDS form. However, with this new law, the PCDS is mandatory for every real estate transaction in New York State.
As under the previous law, there are a number of exemptions from the disclosure requirements, including those who are selling on behalf of the trust or estate of a deceased person.
The new law does not alter the role or responsibilities of real estate brokers and agents concerning the PCDS. Brokers and agents still have a duty to timely inform sellers of their obligations with respect to the PCDS.
This is not intended to be legal advice. You should contact your attorney to discuss your specific situation.