Need info about disclosure in real estate in LI (attorneys, houses)

[Glad2BHere]

What is a seller's obligation regarding disclosure in LI/ny?

If something is fixed, or a seller believes it to be fixed, what is their obligation regarding disclosure? Or what if a seller blatantly hides something as well but your inspector does not pick it up on inspection? Must a seller disclose something they know is wrong with their home, or does not signing the property owner's disclosure form and paying the $500 penalty exempt an owner from being sued down the line? Can someone sue a previous owner for something that they find wrong in a home after the fact?

I would like to know more about disclosure in real estate in LI specifically. Still looking to purchase and wonder about the seller not signing the disclosure form and paying the penalty.

[brimasa]

It's caveat emptor - once you buy the house it's ALL yours. I can't imagine any circumstance where a seller's attorney would advise them to fill out that form and leave themselves open to liability instead of paying the $500. Think about it - most houses on Long Island were built before half the population was born. My house is older than my parents - why should I take on the responsibility of every single thing that might be wrong with it for years to come after I sell? That's just silly.

You buy a house, things are going to go wrong eventually. That's life as a homeowner!

[aos4261]

Glad,
In general the law in NY is caveat emptor, or buyer beware. This said,
the seller (and listing agent, if one exists) has an ethical obligation to disclose conditions they know are wrong with the house. I think most realtors will try to rectify the problems first. For example, if the house has termites, likely the realtor is going to hire a termite expert to get rid of the problem. If the realtor knows of the termite problem, does not rectify it, and does not mention the problem to a potential seller, a realtor can lose his/her license and the agency can be sued. For this reason, I would hope most realtors will act ethically. Their reputation and business is on the line. Seller's themselves are obviously not bound by any preofessional obligation and it may be a slightly different story.

As far as the property disclosure form, the situation you describe is typical. Seller's attorneys advise them NOT to fill out the disclosure form and instead rebate $500. The idea is to relinquish the seller from future responsibility. The idea of rebating that $500 at closing is that a buyer should use that $500 to get the home inspected prior to closing.

Inspections will find most major problems, but not everything. If there is something the inspector cannot inspect (ie alarm, underground sprinklers, etc.) or you suspect something is broken, you can ask your attorney to have the seller put additional funds into escrow (to be released upon fulfillment of certain conditions or at a future time) to protect you.

If you have any other questions, feel free to email me.

[Kbinspections]

Pay the $500 dollars. I have only seen one disclosure form filled out since it became law.