When a seller elects not to provide the Property Condition Disclosure Statement under New York law, which party bears the obligation to satisfy the resulting $500 statutory requirement, and how is it typically fulfilled?
Correct Answer
B) The seller, by providing a $500 credit to the buyer on the closing settlement statement
Under NY Real Property Law §462, when a seller fails to deliver the Property Condition Disclosure Statement prior to the buyer signing a binding contract, the seller is obligated to credit the buyer $500 at closing. This obligation belongs solely to the seller and appears as a credit to the buyer on the settlement statement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
More Agency Relationships Disclosures Ny Specific Questions
Tom's listing agent informs him that instead of completing the Property Condition Disclosure Statement, he can provide a credit to the buyer. When must this $500 credit be provided under New York law?
At closing, a buyer receives a $500 credit from the seller under NY RPL §462 in lieu of a Property Condition Disclosure Statement. What does this credit represent, and what obligations does it create for the seller?
What is the primary purpose of New York's $500 credit option under the Property Condition Disclosure Act?
Under New York's Property Condition Disclosure Act, what is the amount of credit a seller can provide to a buyer in lieu of completing the disclosure statement?
Which document would show the $500 Property Condition Disclosure credit that a seller provides to a buyer?
- → Under New York RPL §462, a seller has completed a Property Condition Disclosure Statement but has not yet delivered it to any prospective buyer. The seller asks their listing agent about the $500 credit option as an alternative to providing the disclosure. Which of the following is the most accurate statement about the seller's options at this stage?
- → A buyer in Troy receives a $500 credit from the seller instead of a Property Condition Disclosure Statement. After closing, the buyer discovers the seller was aware of a roof leak but didn't mention it. What legal principle still protects the buyer?
- → Under New York's Property Condition Disclosure Act, a seller can choose the $500 credit option in all of the following situations EXCEPT:
- → A seller in Rochester initially chose to provide the $500 credit but now, two days before closing, wants to complete the Property Condition Disclosure Statement instead and keep the $500. The buyer prefers to receive the credit. What should happen?
- → A seller chose to provide a buyer with the $500 credit under NY RPL §462 in lieu of a Property Condition Disclosure Statement. At closing, the buyer seeks the credit but the seller denies having agreed to it, and no written documentation of the election appears in the contract. Which of the following best describes the legal and practical challenge the buyer faces?
- → An executor administering a deceased owner's estate is preparing to sell the decedent's property in Queens. The executor has never occupied or managed the property and has no firsthand knowledge of its condition. Under NY Real Property Law §462, which statement most accurately describes the executor's disclosure obligations?
- → A seller provides a Property Condition Disclosure Statement to the buyer, then discovers a significant plumbing defect before closing. Under New York Real Property Law §462, what is the seller's obligation regarding this newly discovered condition?
- → Maria is purchasing a home in Rochester. The seller chose not to provide a Property Condition Disclosure Statement and instead gave her a $500 credit at closing. Three months after closing, Maria discovers significant foundation problems that would have been apparent to the seller. What is Maria's legal position?
- → A listing agent's seller client asks if they can provide a $300 credit instead of the full $500 to save money while still avoiding the disclosure statement. How should the agent respond?
- → A seller in Yonkers provides both a completed Property Condition Disclosure Statement and a $500 credit to the buyer. Is this arrangement permissible under New York law?
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Previous Question
Under New York's Property Condition Disclosure Act, to which category of property does the disclosure requirement — and the seller's option to provide a $500 credit in lieu of disclosure — apply?
Next Question
A seller provides a Property Condition Disclosure Statement to the buyer, then discovers a significant plumbing defect before closing. Under New York Real Property Law §462, what is the seller's obligation regarding this newly discovered condition?