New York Real Estate Salesperson ExaminationProperty Condition and DisclosuresEasy
A New York real estate salesperson is working with a buyer who is interested in a property where a death occurred due to natural causes two years ago. The buyer's agent is aware of this fact. What is the salesperson's obligation to disclose this information under New York law?
- ANew York law does not consider a death by natural causes a material fact requiring disclosure, unless specifically asked.
- BNew York is a 'stigmatized property' state, meaning agents must disclose all past events that could stigmatize a property.
- CThe salesperson must disclose the death as it is a material fact that could affect the buyer's decision.
- DThe salesperson is prohibited from disclosing information about deaths on the property under all circumstances.
Show answer & explanationAnswer & explanation
Correct answer: A. New York law does not consider a death by natural causes a material fact requiring disclosure, unless specifically asked.
New York law generally does not consider 'stigmatized' properties (such as those where a death by natural causes occurred) to be material defects requiring disclosure, unless the buyer specifically asks. This differs from some other states.
Why the other options are wrong
- B. New York is generally not considered a full 'stigmatized property' disclosure state; specific events like murder or suicide might require disclosure if they affect the property's value or are specifically asked about, but natural death is usually exempt.
- C. While some buyers might consider it material, New York law does not classify a death by natural causes as a material fact requiring unsolicited disclosure.
- D. Salespersons are not prohibited from disclosing if asked, but they are generally not obligated to volunteer the information.
Stigmatized Property Disclosure (NY)
In New York, properties where certain events (e.g., natural death, illness, haunting) have occurred are generally NOT considered material defects requiring disclosure, unless directly inquired about by a buyer.
- Natural death not a material defect.
- HIV/AIDS status not disclosable.
- Disclosure only if directly asked by buyer.
- Focus on physical defects, not psychological impact.
Memory trick: NY's 'Stigma Silence' means no need to disclose, unless the buyer asks, then let it flow!