A. Yes, a real estate broker has an obligation to advise the seller of a two family townhouse what the seller’s obligations are under the Property Condition Disclosure Act (the “Act”).
The Act is codified under Article 14 of the New York Real Property Law (“Article 14”) and requires sellers of one to four family dwellings to deliver a Property Condition Disclosure Form (the “PCD Form”) to the purchaser. The PCD Form contains 48 questions which the seller completes concerning the condition of the seller’s property. If the seller does not deliver the PCD to the purchaser, the Seller is required to give the purchaser a $500.00 credit at the closing.
A real estate broker should never complete a PCD Form on behalf of the seller.
Article 14 (Section 466) imposes a duty upon a listing real estate broker to timely inform the seller of his/her obligation to deliver the PCD Form to the purchaser. Article 14 further provides that a purchaser’s real estate broker, or the seller’s real estate broker if the purchaser is not represented by a real estate broker, is required to inform the purchaser of the his/her right to receive the PCD Form or the $500.00 credit.
Important Tip: If the seller or purchaser has questions regarding the PCD Form, the real estate broker should direct the seller or purchaser to consult his/her attorney.
The Legal Line Question by:
Neil B. Garfinkel
REBNY Broker Counsel
Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP