What a NYC Seller MUST Disclose vs. What They Often Hide

NY State has one of the weakest seller-disclosure regimes of any major US real-estate market. In most states, a seller fills out a multi-page property condition disclosure listing known defects. In NY, sellers can — and routinely do — pay a $500 credit at closing to opt out of the disclosure entirely.

That "as-is" gap is why public records matter more in NYC than almost anywhere else. The seller may not tell you. The building's record will. Here's what the seller is legally required to disclose, what they almost certainly won't volunteer, and how to fill the gap.

What a NYC seller MUST disclose

Lead-paint disclosure (Federal Title X — pre-1978 buildings only)

For any building built before 1978, the seller must:

• Provide a federally-mandated lead-paint pamphlet
• Disclose any known lead-paint hazards
• Give the buyer 10 days to test for lead before closing
• Include a signed disclosure form in the contract

This is federal law, not NY-specific. The penalty for non-compliance can be 3x damages.

Property condition disclosure (or $500 credit)

NY Real Property Law §462 requires sellers of 1-4 family homes to fill out a 48-question property condition disclosure form. BUT sellers can pay a $500 credit at closing to opt out. Most do.

Condos and co-ops are exempt from the form entirely. So if you're buying a NYC condo or co-op, the seller has zero obligation to fill it out.

Material defects known to the seller (common law)

Even with the $500-credit opt-out, NY common law still requires sellers to disclose material defects they actively know about and that aren't reasonably discoverable. The bar is HIGH — courts have ruled that even active leaks aren't disclosable if a competent home inspection would've caught them.

Translation: in practice, sellers disclose very little, and recovering damages after the fact is hard.

HPD registration + Local Law disclosures

Sellers must disclose:

• Whether the building is registered with HPD (3+ units only)
• Lead-paint history (pre-1978 buildings)
• Window-guard certificate compliance
• Carbon-monoxide and smoke-alarm compliance

These are typically buried in the contract or rider; ask your attorney to flag any "not applicable" answers.

Condo / co-op specific disclosures

Condo and co-op sellers must provide:

• The offering plan (original sponsor document — sometimes 200+ pages)
• Recent financial statements (typically last 2-3 years)
• Board minutes (typically last 6-24 months, by request)
• Pending litigation list
• Special assessment history

The board may also have its own disclosure form. Ask your attorney to request all of these in writing.

What sellers often hide (within the legal limits)

Open building-wide violations

Sellers are not required to disclose building-wide HPD or DOB violations — those are on the building, not the unit. Even when the violations are obvious (open Class C in a unit two floors above yours), the seller can stay silent.

How to find them: public DOB BIS, HPD Online, and OATH search. Or pull them all at once from our audit.

Upcoming special assessments

The board may have already approved a $20,000 per-unit assessment for facade work. The seller will know. They may not tell you unless directly asked. Your attorney will request the most recent board minutes — read them carefully for "proposed assessment" language.

Active litigation

Required to be disclosed but often described in misleading low-detail terms ("minor contractor dispute" — which turns out to be a $500K lawsuit). Ask your attorney to get the docket numbers and pull the complaint.

Construction defects in new buildings

Sponsors of new-construction condos sometimes settle defect claims with the building's board confidentially — the settlement isn't public, even though the defect was real and may recur. Look for clues in DOB filings: multiple permits for "remediation" or "repair" in the building's first 5 years.

Boiler / mechanical system age

Not required to disclose. A 30-year-old boiler in a 50-unit building is a $200K replacement coming. Ask the board / management for the last 5 years of mechanical maintenance records — if they're vague, you have your answer.

Prior sale price + holding period

The seller doesn't disclose how recently they bought or what they paid — but ACRIS does. If they bought 18 months ago for 30% less than they're now asking, they're trying to flip — and may know something you don't. How to look up ACRIS sales history →

How the public record fills the gap

Six sources together replace 80% of what a strong seller-disclosure form would tell you:

• DOB BIS / DOB Now — every permit, violation, stop-work, and elevator inspection
• HPD Online — every habitability violation by class
• OATH — every unpaid fine and judgment lien
• ACRIS — every deed, mortgage, lien, and refinancing
• DOF — 5 years of assessment + tax history with exemption details
• FEMA — flood zone designation + base flood elevation

Each portal is searchable individually. Or pull all 6 in one report.

Run a free audit on the building →

What to ask your attorney to confirm in writing

• "Has the seller made any disclosures of material defects?"
• "Are there any open violations on the unit specifically (not just building-wide)?"
• "Has the board approved any special assessments or maintenance increases in the last 12 months or proposed any in the next 12?"
• "Is the building involved in any active litigation, and what's the docket number?"
• "What's the building's reserve fund balance and how much was contributed in the last 3 years?"
• "What's the seller's mortgage balance and is the title clear of liens?"

Get answers in writing before signing the contract. After signing, your leverage drops materially.

Recourse if a seller actively lied

NY courts allow rescission (unwinding the sale) only when the seller AFFIRMATIVELY misrepresented something material. "Did you know about the boiler issue?" "No" — that's affirmative misrepresentation if they knew. "We're not aware of any issues" — much harder to litigate even if defects existed.

This is why you build the evidence picture from public records yourself. Don't rely on the seller to tell you.

Related reading

See the full pre-purchase condo inspection checklist and the broader NYC building due-diligence checklist.