According to legislation signed by the Governor on November 13, effective March 1, 2002, all sellers of residential real property improved by a 1-4 family dwelling must provide a disclosure statement to buyers (in the form set forth in the statute) regarding the property conditon prior to the buyer signing a contract. The seller must also revise the statement upon acquiring knowledge that some part of it has become materially inaccurate. Certain types of property are exempt, including cooperative and condominium units. The sellers' failure to provide such disclosure statement will result in the buyer receiving a $500 credit against the purchase price at closing. The full text of this statute, which appears as Article 14 of the Real Property Law, may be found here, and a downloadable version of the disclosure statement may be found here.

S5339-A LIBOUS Same as A 1762-A
ON FILE: 06/11/01 Real Property Law
TITLE....Requires sellers of certain residential real property to disclose known defects to prospective purchasers of such property

STATE OF NEW YORK

5339--A

2001-2002 Regular Sessions

IN SENATE

May 17, 2001
___________

The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:

1 Section 1. Legislative findings. The legislature hereby finds and

2 declares that residential real estate consumers, both buyers and sellers

3 would benefit from a mechanism intended to increase their ability to

4 obtain information concerning a home purchase and sale. The legislature

5 recognizes that home ownership sales are often complicated by misunder-

6 standings arising from an ad hoc transfer process and conflicting infor-

7 mation. A uniform document that regularizes disclosure can supplement

8 information provided by professional inspections and tests to provide

9 sellers and buyers with a better basis for negotiating a purchase and

10 sales agreement. A uniform disclosure statement will alert both buyers

11 and sellers to aspects of properties which may require attention: envi-

12 ronmental, structural, mechanical or other potential problem areas,

13 particularly those not readily observable by a visual inspection of the

14 property.

15 This act is not intended to and does not diminish the responsibility

16 of buyers to carefully examine the property which they intend to

17 purchase and public records pertaining to the property and, in fact,

18 highlights the importance of professional inspections and environmental

19 tests. This act is not intended to and does not limit existing responsi-

20 bilities by a seller, buyer or agent concerning the condition of the

21 property or potential liabilities or remedies at law, statute or in

22 equity.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[-] is old law to be omitted.

LBD05050-02-1

S. 5339--A 2

1 This act will significantly improve the transfer process and better

2 serve the interests of all parties to a home purchase. It will increase

3 clarity regarding the nature of the property and will provide greater

4 certainty to contracts entered into by better informed buyers and sell-

5 ers.

6 § 2. The real property law is amended by adding a new article 14 to

7 read as follows:

8 ARTICLE 14

9 PROPERTY CONDITION DISCLOSURE IN THE SALE OF RESIDENTIAL REAL

10 PROPERTY

11 Section 460. Short title.

12 461. Definitions.

13 462. Property condition disclosure statement.

14 463. Exemptions.

15 464. Revision.

16 465. Remedy.

17 466. Duty of an agent.

18 467. Liability.

19 § 460. Short title. This article shall be known and may be cited as

20 the "property condition disclosure act".

21 § 461. Definitions. As used in this article, the following terms shall

22 have the following meanings:

23 1. "Agent" means a person who is licensed as a real estate broker or a

24 real estate salesperson pursuant to section four hundred forty-a of this

25 chapter and is acting in a fiduciary capacity.

26 2. "Binding contract of sale" means a real estate purchase contract or

27 offer that would, upon signing by the seller and subject to satisfaction

28 of any contingencies, require the buyer to accept a transfer of title.

29 3. "Knowledge" means only actual knowledge of a defect or condition on

30 the part of the seller of residential real property.

31 4. "Real estate purchase contract" means any of the following:

32 (a) a contract which provides for the purchase and sale or exchange of

33 residential real property;

34 (b) a lease with an option to purchase residential real property;

35 (c) a lease-with-obligation-to-purchase agreement for residential real

36 property; or

37 (d) an installment land sale contract for residential real property.

38 5. "Residential real property" means real property improved by a one

39 to four family dwelling used or occupied, or intended to be used or

40 occupied, wholly or partly, as the home or residence of one or more

41 persons, but shall not refer to (a) unimproved real property upon which

42 such dwellings are to be constructed, or (b) condominium units or coop-

43 erative apartments, or (c) property in a homeowners' association that is

44 not owned in fee simple by the seller.

45 6. "Transfer of title" means delivery of a properly executed instru-

46 ment conveying title to residential real property and shall include

47 delivery of a real estate purchase contract that is a lease or install-

48 ment land sale contract.

49 § 462. Property condition disclosure statement. 1. Except as is

50 provided in section four hundred sixty-three of this article, every

51 seller of residential real property pursuant to a real estate purchase

52 contract shall complete and sign a property condition disclosure state-

53 ment as prescribed by subdivision two of this section and cause it, or a

54 copy thereof, to be delivered to a buyer or buyer's agent prior to the

55 signing by the buyer of a binding contract of sale. A copy of the prop-

56 erty condition disclosure statement containing the signatures of both

S. 5339--A 3

1 seller and buyer shall be attached to the real estate purchase contract.

2 Nothing contained in this article or this disclosure statement is

3 intended to prevent the parties to a contract of sale from entering into

4 agreements of any kind or nature with respect to the physical condition

5 of the property to be sold, including, but not limited to, agreements

6 for the sale of real property "as is".

7 2. The following shall be the disclosure form:

8 PROPERTY CONDITION DISCLOSURE STATEMENT

9 NAME OF SELLER OR SELLERS:

10 PROPERTY ADDRESS:

11 THE PROPERTY CONDITION DISCLOSURE ACT REQUIRES THE SELLER OF RESIDEN-

12 TIAL REAL PROPERTY TO CAUSE THIS DISCLOSURE STATEMENT OR A COPY THEREOF

13 TO BE DELIVERED TO A BUYER OR BUYER'S AGENT PRIOR TO THE SIGNING BY THE

14 BUYER OF A BINDING CONTRACT OF SALE.

15 PURPOSE OF STATEMENT: THIS IS A STATEMENT OF CERTAIN CONDITIONS AND

16 INFORMATION CONCERNING THE PROPERTY KNOWN TO THE SELLER. THIS DISCLOSURE

17 STATEMENT IS NOT A WARRANTY OF ANY KIND BY THE SELLER OR BY ANY AGENT

18 REPRESENTING THE SELLER IN THIS TRANSACTION. IT IS NOT A SUBSTITUTE FOR

19 ANY INSPECTIONS OR TESTS AND THE BUYER IS ENCOURAGED TO OBTAIN HIS OR

20 HER OWN INDEPENDENT PROFESSIONAL INSPECTIONS AND ENVIRONMENTAL TESTS AND

21 ALSO IS ENCOURAGED TO CHECK PUBLIC RECORDS PERTAINING TO THE PROPERTY.

22 A KNOWINGLY FALSE OR INCOMPLETE STATEMENT BY THE SELLER ON THIS FORM

23 MAY SUBJECT THE SELLER TO CLAIMS BY THE BUYER PRIOR TO OR AFTER THE

24 TRANSFER OF TITLE. IN THE EVENT A SELLER FAILS TO PERFORM THE DUTY

25 PRESCRIBED IN THIS ARTICLE TO DELIVER A DISCLOSURE STATEMENT PRIOR TO

26 THE SIGNING BY THE BUYER OF A BINDING CONTRACT OF SALE, THE BUYER SHALL

27 RECEIVE UPON THE TRANSFER OF TITLE A CREDIT OF FIVE HUNDRED DOLLARS

28 AGAINST THE AGREED UPON PURCHASE PRICE OF THE RESIDENTIAL REAL PROPERTY.

29 "RESIDENTIAL REAL PROPERTY" MEANS REAL PROPERTY IMPROVED BY A ONE TO

30 FOUR FAMILY DWELLING USED OR OCCUPIED, OR INTENDED TO BE USED OR OCCU-

31 PIED, WHOLLY OR PARTLY, AS THE HOME OR RESIDENCE OF ONE OR MORE PERSONS,

32 BUT SHALL NOT REFER TO (A) UNIMPROVED REAL PROPERTY UPON WHICH SUCH

33 DWELLINGS ARE TO BE CONSTRUCTED OR (B) CONDOMINIUM UNITS OR COOPERATIVE

34 APARTMENTS OR (C) PROPERTY ON A HOMEOWNERS' ASSOCIATION THAT IS NOT

35 OWNED IN FEE SIMPLE BY THE SELLER.

36 INSTRUCTIONS TO THE SELLER:

37 (a) ANSWER ALL QUESTIONS BASED UPON YOUR ACTUAL KNOWLEDGE.

38 (b) ATTACH ADDITIONAL PAGES WITH YOUR SIGNATURE IF ADDITIONAL SPACE IS

39 REQUIRED.

40 (c) COMPLETE THIS FORM YOURSELF.

41 (d) IF SOME ITEMS DO NOT APPLY TO YOUR PROPERTY, CHECK "NA" (NON-AP-

42 PLICABLE). IF YOU DO NOT KNOW THE ANSWER CHECK "UNKN" (UNKNOWN).

43 SELLER'S STATEMENT: THE SELLER MAKES THE FOLLOWING REPRESENTATIONS TO

44 THE BUYER BASED UPON THE SELLER'S ACTUAL KNOWLEDGE AT THE TIME OF SIGN-

45 ING THIS DOCUMENT. THE SELLER AUTHORIZES HIS OR HER AGENT, IF ANY, TO

46 PROVIDE A COPY OF THIS STATEMENT TO A PROSPECTIVE BUYER OF THE RESIDEN-

47 TIAL REAL PROPERTY. THE FOLLOWING ARE REPRESENTATIONS MADE BY THE SELLER

48 AND ARE NOT THE REPRESENTATIONS OF THE SELLER'S AGENT.

49 GENERAL INFORMATION

50 1. HOW LONG HAVE YOU OWNED THE PROPERTY?

51 2. HOW LONG HAVE YOU OCCUPIED THE PROPERTY?

52 3. WHAT IS THE AGE OF THE STRUCTURE OR STRUCTURES? NOTE TO BUYER--IF

53 THE STRUCTURE WAS BUILT BEFORE 1978 YOU ARE ENCOURAGED TO INVESTI-

54 GATE FOR THE PRESENCE OF LEAD BASED PAINT.

S. 5339--A 4

1 4. DOES ANYBODY OTHER THAN YOURSELF HAVE A LEASE, EASEMENT OR ANY

2 OTHER RIGHT TO USE OR OCCUPY ANY PART OF YOUR PROPERTY OTHER THAN

3 THOSE STATED IN DOCUMENTS AVAILABLE IN THE PUBLIC RECORD, SUCH AS

4 RIGHTS TO USE A ROAD OR PATH OR CUT TREES OR CROPS. YES NO UNKN NA

5 5. DOES ANYBODY ELSE CLAIM TO OWN ANY PART OF YOUR PROPERTY? YES NO

6 UNKN NA (IF YES, EXPLAIN BELOW)

7 6. HAS ANYONE DENIED YOU ACCESS TO THE PROPERTY OR MADE A FORMAL LEGAL

8 CLAIM CHALLENGING YOUR TITLE TO THE PROPERTY? YES NO UNKN NA (IF

9 YES, EXPLAIN BELOW)

10 7. ARE THERE ANY FEATURES OF THE PROPERTY SHARED IN COMMON WITH

11 ADJOINING LAND OWNERS OR A HOMEOWNERS ASSOCIATION, SUCH AS WALLS,

12 FENCES OR DRIVEWAYS? YES NO UNKN NA (IF YES DESCRIBE BELOW)

13 8. ARE THERE ANY ELECTRIC OR GAS UTILITY SURCHARGES FOR LINE EXTEN-

14 SIONS, SPECIAL ASSESSMENTS OR HOMEOWNER OR OTHER ASSOCIATION FEES

15 THAT APPLY TO THE PROPERTY? YES NO UNKN NA (IF YES, EXPLAIN BELOW)

16 9. ARE THERE CERTIFICATES OF OCCUPANCY RELATED TO THE PROPERTY? YES

17 NO UNKN NA (IF NO, EXPLAIN BELOW)

18 ENVIRONMENTAL

19 NOTE TO SELLER - IN THIS SECTION, YOU WILL BE ASKED QUESTIONS REGARD-

20 ING PETROLEUM PRODUCTS AND HAZARDOUS OR TOXIC SUBSTANCES THAT YOU KNOW

21 TO HAVE BEEN SPILLED, LEAKED OR OTHERWISE BEEN RELEASED ON THE PROPERTY

22 OR FROM THE PROPERTY ONTO ANY OTHER PROPERTY. PETROLEUM PRODUCTS MAY

23 INCLUDE, BUT ARE NOT LIMITED TO, GASOLINE, DIESEL FUEL, HOME HEATING

24 FUEL, AND LUBRICANTS. HAZARDOUS OR TOXIC SUBSTANCES ARE PRODUCTS THAT

25 COULD POSE SHORT- OR LONG-TERM DANGER TO PERSONAL HEALTH OR THE ENVIRON-

26 MENT IF THEY ARE NOT PROPERLY DISPOSED OF, APPLIED OR STORED. THESE

27 INCLUDE, BUT ARE NOT LIMITED TO, FERTILIZERS, PESTICIDES AND INSECTI-

28 CIDES, PAINT INCLUDING PAINT THINNER, VARNISH REMOVER AND WOOD PRESERVA-

29 TIVES, TREATED WOOD, CONSTRUCTION MATERIALS SUCH AS ASPHALT AND ROOFING

30 MATERIALS, ANTIFREEZE AND OTHER AUTOMOTIVE PRODUCTS, BATTERIES, CLEANING

31 SOLVENTS INCLUDING SEPTIC TANK CLEANERS, HOUSEHOLD CLEANERS AND POOL

32 CHEMICALS AND PRODUCTS CONTAINING MERCURY AND LEAD.

33 NOTE TO BUYER - IF CONTAMINATION OF THIS PROPERTY FROM PETROLEUM

34 PRODUCTS AND/OR HAZARDOUS OR TOXIC SUBSTANCES IS A CONCERN TO YOU, YOU

35 ARE URGED TO CONSIDER SOIL AND GROUNDWATER TESTING OF THIS PROPERTY.

36 10. IS ANY OR ALL OF THE PROPERTY LOCATED IN A DESIGNATED FLOODPLAIN?

37 YES NO UNKN NA (IF YES, EXPLAIN BELOW)

38 11. IS ANY OR ALL OF THE PROPERTY LOCATED IN A DESIGNATED WETLAND?

39 YES NO UNKN NA (IF YES, EXPLAIN BELOW)

40 12. IS THE PROPERTY LOCATED IN AN AGRICULTURAL DISTRICT? YES NO

41 UNKN NA (IF YES, EXPLAIN BELOW)

42 13. WAS THE PROPERTY EVER THE SITE OF A LANDFILL? YES NO UNKN NA

43 (IF YES, EXPLAIN BELOW)

44 14. ARE THERE OR HAVE THERE EVER BEEN FUEL STORAGE TANKS ABOVE OR

45 BELOW THE GROUND ON THE PROPERTY? YES NO UNKN NA IF YES, ARE

46 THEY CURRENTLY IN USE? YES NO UNKN NA LOCATION(S) ARE THEY LEAKING

47 OR HAVE THEY EVER LEAKED? YES NO UNKN NA (IF YES, EXPLAIN BELOW)

48 15. IS THERE ASBESTOS IN THE STRUCTURE? YES NO UNKN NA (IF YES, STATE

49 LOCATION OR LOCATIONS BELOW)

50 16. IS LEAD PLUMBING PRESENT? YES NO UNKN NA (IF YES, STATE LOCATION

51 OR LOCATIONS BELOW)

52 17. HAS A RADON TEST BEEN DONE? YES NO UNKN NA (IF YES, ATTACH A COPY

53 OF THE REPORT)

S. 5339--A 5

1 18. HAS MOTOR FUEL, MOTOR OIL, HOME HEATING FUEL, LUBRICATING OIL OR

2 ANY OTHER PETROLEUM PRODUCT, METHANE GAS, OR ANY HAZARDOUS OR

3 TOXIC SUBSTANCE SPILLED, LEAKED OR OTHERWISE BEEN RELEASED ON THE

4 PROPERTY OR FROM THE PROPERTY ONTO ANY OTHER PROPERTY? YES NO

5 UNKN NA (IF YES, DESCRIBE BELOW)

6 19. HAS THE PROPERTY BEEN TESTED FOR THE PRESENCE OF MOTOR FUEL, MOTOR

7 OIL, HOME HEATING FUEL, LUBRICATING OIL, OR ANY OTHER PETROLEUM

8 PRODUCT, METHANE GAS, OR ANY HAZARDOUS OR TOXIC SUBSTANCE? YES NO

9 UNKN NA (IF YES, ATTACH REPORT(S))

10 STRUCTURAL

11 20. IS THERE ANY ROT OR WATER DAMAGE TO THE STRUCTURE OR STRUCTURES?

12 YES NO UNKN NA (IF YES, EXPLAIN BELOW)

13 21. IS THERE ANY FIRE OR SMOKE DAMAGE TO THE STRUCTURE OR STRUCTURES?

14 YES NO UNKN NA (IF YES, EXPLAIN BELOW)

15 22. IS THERE ANY TERMITE, INSECT, RODENT OR PEST INFESTATION OR

16 DAMAGE? YES NO UNKN NA (IF YES, EXPLAIN BELOW)

17 23. HAS THE PROPERTY BEEN TESTED FOR TERMITE, INSECT, RODENT OR PEST

18 INFESTATION OR DAMAGE? YES NO UNKN NA (IF YES, PLEASE ATTACH

19 REPORT(S))

20 24. WHAT IS THE TYPE OF ROOF/ROOF COVERING (SLATE, ASPHALT, OTHER.)?

21 ANY KNOWN MATERIAL DEFECTS? HOW OLD IS THE ROOF? IS THERE A TRANS-

22 FERABLE WARRANTEE ON THE ROOF IN EFFECT NOW? YES NO UNKN NA (IF

23 YES, EXPLAIN BELOW)

24 25. ARE THERE ANY KNOWN MATERIAL DEFECTS IN ANY OF THE FOLLOWING

25 STRUCTURAL SYSTEMS: FOOTINGS, BEAMS, GIRDERS, LINTELS, COLUMNS OR

26 PARTITIONS. YES NO UNKN NA (IF YES, EXPLAIN BELOW)

27 MECHANICAL SYSTEMS & SERVICES

28 26. WHAT IS THE WATER SOURCE (CIRCLE ALL THAT APPLY - WELL, PRIVATE,

29 MUNICIPAL, OTHER)? IF MUNICIPAL, IS IT METERED? YES NO UNKN NA

30 27. HAS THE WATER QUALITY AND/OR FLOW RATE BEEN TESTED? YES NO UNKN NA

31 (IF YES, DESCRIBE BELOW)

32 28. WHAT IS THE TYPE OF SEWAGE SYSTEM (CIRCLE ALL THAT APPLY - PUBLIC

33 SEWER, PRIVATE SEWER, SEPTIC OR CESSPOOL)? IF SEPTIC OR CESSPOOL,

34 AGE? ________ DATE LAST PUMPED? ________ FREQUENCY OF PUMPING?

35 ________ ANY KNOWN MATERIAL DEFECTS? YES NO UNKN NA (IF YES,

36 EXPLAIN BELOW)

37 29. WHO IS YOUR ELECTRIC SERVICE PROVIDER? ________ WHAT IS THE AMPER-

38 AGE? ________ DOES IT HAVE CIRCUIT BREAKERS OR FUSES? ________

39 PRIVATE OR PUBLIC POLES? ________ ANY KNOWN MATERIAL DEFECTS? YES

40 NO UNKN NA (IF YES, EXPLAIN BELOW)

41 30. ARE THERE ANY FLOODING, DRAINAGE OR GRADING PROBLEMS THAT RESULTED

42 IN STANDING WATER ON ANY PORTION OF THE PROPERTY? YES NO UNKN NA

43 (IF YES, STATE LOCATIONS AND EXPLAIN BELOW)

44 31. DOES THE BASEMENT HAVE SEEPAGE THAT RESULTS IN STANDING WATER? YES

45 NO UNKN NA (IF YES, EXPLAIN BELOW)

46 ARE THERE ANY KNOWN MATERIAL DEFECTS IN ANY OF THE FOLLOWING (IF YES,

47 EXPLAIN BELOW. USE ADDITIONAL SHEETS IF NECESSARY.):

48 32. PLUMBING SYSTEM? YES NO UNKN NA

49 33. SECURITY SYSTEM? YES NO UNKN NA

50 34. CARBON MONOXIDE DETECTOR? YES NO UNKN NA

51 35. SMOKE DETECTOR? YES NO UNKN NA

52 36. FIRE SPRINKLER SYSTEM? YES NO UNKN NA

53 37. SUMP PUMP? YES NO UNKN NA

54 38. FOUNDATION/SLAB? YES NO UNKN NA

S. 5339--A 6

1 39. INTERIOR WALLS/CEILINGS? YES NO UNKN NA

2 40. EXTERIOR WALLS OR SIDING? YES NO UNKN NA

3 41. FLOORS? YES NO UNKN NA

4 42. CHIMNEY/FIREPLACE OR STOVE? YES NO UNKN NA

5 43. PATIO/DECK? YES NO UNKN NA

6 44. DRIVEWAY? YES NO UNKN NA

7 45. AIR CONDITIONER? YES NO UNKN NA

8 46. HEATING SYSTEM? YES NO UNKN NA

9 47. HOT WATER HEATER? YES NO UNKN NA

10 48. THE PROPERTY IS LOCATED IN THE FOLLOWING SCHOOL DISTRICT UNKN

11 NOTE: BUYER IS ENCOURAGED TO CHECK PUBLIC RECORDS CONCERNING THE PROP-

12 ERTY (E.G. TAX RECORDS AND WETLAND AND FLOOD PLAIN MAPS)

13 THE SELLER SHOULD USE THIS AREA TO FURTHER EXPLAIN ANY ITEM ABOVE. IF

14 NECESSARY, ATTACH ADDITIONAL PAGES AND INDICATE HERE THE NUMBER OF ADDI-

15 TIONAL PAGES ATTACHED.

16 ______________________________________________________________

17 ______________________________________________________________

18 ______________________________________________________________

19 ______________________________________________________________

20 SELLER'S CERTIFICATION: SELLER CERTIFIES THAT THE INFORMATION IN THIS

21 PROPERTY CONDITION DISCLOSURE STATEMENT IS TRUE AND COMPLETE TO THE

22 SELLER'S ACTUAL KNOWLEDGE AS OF THE DATE SIGNED BY THE SELLER. IF A

23 SELLER OF RESIDENTIAL REAL PROPERTY ACQUIRES KNOWLEDGE WHICH RENDERS

24 MATERIALLY INACCURATE A PROPERTY CONDITION DISCLOSURE STATEMENT PROVIDED

25 PREVIOUSLY, THE SELLER SHALL DELIVER A REVISED PROPERTY CONDITION

26 DISCLOSURE STATEMENT TO THE BUYER AS SOON AS PRACTICABLE. IN NO EVENT,

27 HOWEVER, SHALL A SELLER BE REQUIRED TO PROVIDE A REVISED PROPERTY CONDI-

28 TION DISCLOSURE STATEMENT AFTER THE TRANSFER OF TITLE FROM THE SELLER TO

29 THE BUYER OR OCCUPANCY BY THE BUYER, WHICHEVER IS EARLIER.

30 SELLER__________ DATE___________

31 SELLER__________ DATE___________

32 BUYER'S ACKNOWLEDGMENT: BUYER ACKNOWLEDGES RECEIPT OF A COPY OF THIS

33 STATEMENT AND BUYER UNDERSTANDS THAT THIS INFORMATION IS A STATEMENT OF

34 CERTAIN CONDITIONS AND INFORMATION CONCERNING THE PROPERTY KNOWN TO THE

35 SELLER. IT IS NOT A WARRANTY OF ANY KIND BY THE SELLER OR SELLER'S AGENT

36 AND IS NOT A SUBSTITUTE FOR ANY HOME, PEST, RADON OR OTHER INSPECTIONS

37 OR TESTING OF THE PROPERTY OR INSPECTION OF THE PUBLIC RECORDS.

38 BUYER__________ DATE__________

39 BUYER__________ DATE _________

40 3. Nothing in this article shall require a seller to undertake or

41 provide for any investigation or inspection of his or her residential

42 real property or to check any public records.

43 § 463. Exemptions. A property condition disclosure statement shall not

44 be required in connection with any of the following transfers of resi-

45 dential real property:

46 1. A transfer pursuant to a court order, including, but not limited

47 to, a transfer order by a probate court during the administration of a

48 decedent's estate, a transfer pursuant to a writ of execution, a trans-

49 fer by a trustee in bankruptcy or debtor-in-possession, a transfer as a

50 result of the exercise of the power of eminent domain, and a transfer

51 that results from a decree for specific performance of a contract or

52 other agreement between two or more persons;

53 2. A transfer to mortgagee or an affiliate or agent thereof by a mort-

54 gagor by deed in lieu of foreclosure or in satisfaction of the mortgage

55 debt;

56 3. A transfer to a beneficiary of a deed of trust;

S. 5339--A 7

1 4. A transfer pursuant to a foreclosure sale that follows a default in

2 the satisfaction of an obligation that is secured by a mortgage;

3 5. A transfer by a sale under a power of sale that follows a default

4 in the satisfaction of an obligation that is secured by a mortgage;

5 6. A transfer by a mortgagee, or a beneficiary under a mortgage, or an

6 affiliate or agent thereof, who has acquired the residential real prop-

7 erty at a sale under a mortgage or who has acquired the residential

8 real property by a deed in lieu of foreclosure;

9 7. A transfer by a fiduciary in the course of the administration of a

10 descendent's estate, a guardianship, a conservatorship, or a trust;

11 8. A transfer from one co-owner to one or more other co-owners;

12 9. A transfer made to the transferor's spouse or to one or more

13 persons in the lineal consanguinity of one or more of the transferors;

14 10. A transfer between spouses or former spouses as a result of a

15 decree of divorce, dissolution of marriage, annulment, or legal sepa-

16 ration or as a result of property settlement, agreement incidental to a

17 decree of divorce, dissolution of marriage, annulment or legal sepa-

18 ration;

19 11. A transfer to or from the state, a political subdivision of the

20 state, or another governmental entity;

21 12. A transfer that involves newly constructed residential real prop-

22 erty that previously had not been inhabited;

23 13. A transfer by a sheriff; or

24 14. A transfer pursuant to a partition action.

25 § 464. Revision. If a seller of residential real property acquires

26 knowledge which renders materially inaccurate a property condition

27 disclosure statement provided previously, the seller shall deliver a

28 revised property condition disclosure statement to the buyer as soon as

29 practicable. In no event, however, shall a seller be required to provide

30 a revised property condition disclosure statement after the transfer of

31 title from the seller to the buyer or occupancy by the buyer, whichever

32 is earlier.

33 § 465. Remedy. 1. In the event a seller fails to perform the duty

34 prescribed in this article to deliver a disclosure statement prior to

35 the signing by the buyer of a binding contract of sale, the buyer shall

36 receive upon the transfer of title a credit of five hundred dollars

37 against the agreed upon purchase price of the residential real property.

38 2. Any seller who provides a property condition disclosure statement

39 or provides or fails to provide a revised property condition disclosure

40 statement shall be liable only for a willful failure to perform the

41 requirements of this article. For such a willful failure, the seller

42 shall be liable for the actual damages suffered by the buyer in addition

43 to any other existing equitable or statutory remedy.

44 § 466. Duty of an agent. An agent representing a seller of residential

45 real property as a listing broker shall have the duty to timely inform

46 each seller represented by that agent of the seller's obligations under

47 this article. An agent representing a buyer of residential real proper-

48 ty, or, if the buyer is not represented by an agent, the agent repres-

49 enting a seller of residential real property and dealing with a prospec-

50 tive buyer, shall have the duty to timely (in any event, before the

51 buyer signs a binding contract of sale) inform such buyer of the buyer's

52 rights and obligations under this article. If an agent performs the

53 duties and obligations imposed upon him or her pursuant to this section,

54 the agent shall have no further duties under this article and shall not

55 be liable to any party for a violation of this article.

S. 5339--A 8

1 § 467. Liability. Nothing contained in this article shall be construed

2 as limiting any existing legal cause of action or remedy at law, in

3 statute or in equity.

4 § 3. This act shall take effect on the first day of March in the year

5 next succeeding the year in which it shall have become a law and shall

6 apply to any real estate purchase contract entered into on or after such

7 date.