New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsHard
A New York real estate salesperson is involved in a transaction where the seller failed to provide a Property Condition Disclosure Statement (PCDS) to the buyer before the signing of the contract of sale. What is the established statutory credit the seller must provide to the buyer at closing in this scenario?
- ANo statutory credit; the buyer can sue for damages.
- B$250
- C$500
- D$1,000
Show answer & explanationAnswer & explanation
Correct answer: C. $500
Under the New York Property Condition Disclosure Act (PCDA), if a seller fails to provide the PCDS to the buyer before the signing of the contract of sale, the seller must provide the buyer with a $500 credit at closing. This is a statutory remedy, not an option for the buyer to sue for undisclosed damages.
Why the other options are wrong
- A. There is a specific statutory credit; suing for damages for non-disclosure is generally not the primary remedy under PCDA unless there's willful misrepresentation.
- B. Incorrect amount for the statutory credit.
- D. Incorrect amount for the statutory credit.
PCDS Non-Disclosure Penalty
In New York, if a seller fails to complete and deliver a Property Condition Disclosure Statement (PCDS) to the buyer before the contract of sale is signed, the seller must provide a $500 credit to the buyer at closing.
- Applies to 1-4 family residential properties.
- Credit is a statutory penalty for non-disclosure.
- Does not excuse the seller from liability for willful misrepresentation.
Memory trick: No disclosure, five hundred goes.