New York State introduced a significant change to the disclosure requirements for certain types of real estate transactions. As of March 20, 2024, the Property Condition Disclosure Act (PCDA) of New York, which has been in effect since 2002, no longer allows sellers of residential real property containing up to four units to provide the purchaser with a $500 credit in lieu of providing the buyer a completed Property Condition Disclosure Statement (the “Disclosure Statement”). Prior to March 20, 2024, sellers routinely opted for the $500 credit instead of completing a disclosure statement to limit potential exposure caused by alleged misrepresentations made in a completed Disclosure Statement. Now, a $500 credit is no longer an option for sellers. Under the revised PCDA, sellers are now obligated to furnish the Disclosure Statement, which is comprised of fifty-six inquiries concerning the property, ranging from structural and mechanical issues to environmental and flood-related concerns. Consequently, unless exempted, sellers must furnish the Disclosure Statement to purchasers before executing a sales contract. Several aspects of the original PCDA remain unchanged, including the exemptions and exceptions regarding the types of transfers requiring the Disclosure Statement. Exempt transactions include transfers by fiduciaries such as trustees or executors,

Local Law 11, also known as the Facade Inspection Safety Program (FISP), is a crucial regulation in New York City aimed at ensuring the safety of building facades. Enacted in response to tragic incidents involving facade failures, Local Law 11 mandates periodic inspections of the exterior walls and appurtenances of buildings taller than six stories. The law requires building owners to hire a licensed professional, typically an architect or engineer, to conduct these inspections every five years to assess the condition of the facade and identify any necessary repairs or maintenance. Building owners must file a report with the New York City Department of Buildings (DOB) detailing the findings of the inspection and any required corrective actions. Failure to comply with Local Law 11 can result in significant fines and penalties. The law plays a crucial role in safeguarding public safety by ensuring that building facades are properly maintained and pose no threat to pedestrians or occupants. Compliance with Local Law 11 is essential for building owners to maintain the integrity and safety of their properties while also adhering to city regulations. Jorges & Bowers, LLP is a law firm located in midtown Manhattan advising clients in complex real estate

When it comes to purchasing real estate in New York City, especially an apartment, due diligence is not just a suggestion; it’s a necessity. The allure of living in one of the world’s most vibrant cities can often overshadow the importance of thoroughly vetting the property. However, overlooking this crucial step can lead to significant financial and legal consequences down the line. At the heart of due diligence lies the thorough examination of various documents and aspects related to the property. Ultimately, buyers need to fully investigate and understand the risks associated with a particular building and unit. For example, is the building contemplating a major capital assessment or maintenance increase? Are dogs prohibited? Is the building embroiled in a lawsuit? Does the building allow parents to co-purchase with their children? Is there a flip tax? Have many unit owners complained of ongoing bedbug infestations? Has there been a history of water leaks into or emanating from a particular unit? First, one of the primary documents to scrutinize is the building’s financial statements. These financial disclosures provide insights into the financial health of the property, including its revenue, expenses, reserves, and any outstanding debts. Understanding the financial stability of the