Residential Real Estate Sales Disclosure Statement
Real Property
ARTICLE 14
PROPERTY CONDITION DISCLOSURE IN THE SALE OF RESIDENTIAL REAL PROPERTY
Sec.460. Short title.
461. Definitions.
462. Property condition disclosure statement.
463. Exemptions.
464. Revision.
465. Remedy.
466. Duty of an agent.
467. Liability.
S 460. Short title.
This article shall be known and may be cited as the
"property condition disclosure act".
S 461. Definitions.
As used in this article, the following terms shall have the following meanings:
1. "Agent" means a
person who is licensed as a real estate broker or a real estate salesperson
pursuant to section four hundred forty-a of this chapter and is acting
in a fiduciary capacity.
2. "Binding contract
of sale" means a real estate purchase contract or offer that would, upon
signing by the seller and subject to satisfaction of any contingencies,
require the buyer to accept a transfer of title.
3. "Knowledge" means
only actual knowledge of a defect or condition on the part of the seller
of residential real property.
5. "Residential
real property" means real property improved by a one to four family dwelling
used or occupied, or intended to be used
or occupied, wholly or partly, as the home
or residence of one or more persons, but shall not refer to (a) unimproved
real property upon which such dwellings are to be constructed,
or (b) condominium units or cooperative apartments, or (c) property in
a homeowners' association that is not owned in fee simple by the seller.
6. "Transfer of title"
means delivery of a properly executed instrument conveying
title to residential real property and shall include
delivery of a real estate purchase contract that is a lease or installment
land sale contract.
S 462. Property condition disclosure statement.
1.
Except as is provided in section four hundred sixty-three of
this article, every seller of residential real
property pursuant to a real estate purchase contract shall complete and
sign a property condition disclosure statement as prescribed by subdivision
two of this section and cause it, or a copy thereof, to be
delivered to a buyer or buyer's agent prior to the signing by the buyer
of a binding contract of sale. A copy of the property condition
disclosure statement containing the signatures of both seller and
buyer shall be attached to the real estate purchase contract. Nothing
contained in this article or this disclosure
statement is intended to prevent the parties to a contract of sale
from entering into agreements of any kind or nature with respect
to the physical condition of the property to be sold, including, but not
limited to, agreements for the sale of real property "as is".
2. The
following shall be the disclosure form:
S 463. Exemptions.
A property condition disclosure statement shall not be required
in connection with any of the following transfers of residential real property:
1. A transfer
pursuant to a court order, including, but not limited
to, a transfer order by a probate court during the administration
of a decedent's estate, a transfer pursuant to a writ of execution, a
transfer by a trustee in bankruptcy or debtor-in-possession, a transfer
as a result of the exercise of the power of eminent domain, and
a transfer that results from a decree for
specific performance of a contract or other agreement between two or more
persons;
2. A transfer
to mortgagee or an affiliate or agent thereof by a mortgagor by deed in
lieu of foreclosure or in satisfaction of the mortgage debt;
4. A transfer
pursuant to a foreclosure sale that follows a default in the satisfaction
of an obligation that is secured by a mortgage;
5. A transfer by a sale under a power of sale that follows a default
in the satisfaction of an obligation that is secured by a mortgage;
6. A transfer by a mortgagee, or a beneficiary under a mortgage, or an affiliate or agent
thereof, who has acquired the residential real property at a sale
under a mortgage or who has acquired the residential real property by a
deed in lieu of foreclosure;
7. A transfer by a fiduciary in the course of the administration of a descendent's
estate, a guardianship, a conservatorship, or a trust;
9. A transfer made to the transferor's spouse or to one
or more persons in the lineal consanguinity of one or more of the
transferors;
10. A transfer between spouses or former spouses as
a result of a decree of divorce, dissolution of marriage, annulment,
or legal separation or as a result of property settlement,
agreement incidental to a decree of divorce, dissolution of marriage,
annulment or legal separation;
11. A transfer to or from the state, a political subdivision of
the state, or another governmental entity;
12. A transfer that involves newly constructed residential real property
that previously had not been inhabited;
S 464. Revision.
If a seller of residential real property acquires
knowledge which renders materially inaccurate a
property condition disclosure statement provided
previously, the seller shall deliver a revised property condition
disclosure statement to the buyer as soon as practicable. In no event,
however, shall a seller be required to provide a revised property
condition disclosure statement after the transfer of title from the seller
to the buyer or occupancy by the buyer, whichever is earlier.
S 465. Remedy.
1.
In the event a seller fails to perform the duty prescribed in this
article to deliver a disclosure statement prior to the
signing by the buyer of a binding contract of sale, the buyer shall receive
upon the transfer of title a credit of five hundred
dollars against the agreed upon purchase price of the residential real
property.
2.
Any seller who provides a property condition disclosure statement
or provides or fails to provide a revised property condition disclosure
statement shall be liable only for a willful
failure to perform the requirements of this article. For such a willful
failure, the seller shall be liable for the actual damages
suffered by the buyer in addition to any other existing equitable or statutory
remedy.
S 466. Duty of an agent.
An agent representing a seller of residential real property
as a listing broker shall have the duty to timely inform each seller represented
by that agent of the seller's obligations under this article.
An agent representing a buyer of residential real property, or, if the
buyer is not represented by an agent, the agent representing
a seller of residential real property and dealing with a prospective
buyer, shall have the duty to timely (in any event,
before the buyer signs a binding contract of sale) inform such buyer of
the buyer's rights and obligations under this article. If an
agent performs the duties and obligations imposed upon him
or her pursuant to this section, the agent shall have no further
duties under this article and shall not be liable to any party for a violation
of this article.
S 467. Liability.
Nothing contained in this article shall be construed as limiting
any existing legal cause of action or remedy at law,
in statute or in equity.
