New York Required Disclosures & Escrow/Trust Rules

📋 The 1-minute cheat sheet

• Sellers of residential 1-to-4 unit property must deliver a Property Condition Disclosure Statement (PCDS).
• If the PCDS is not delivered, the seller historically owed the buyer a $500 credit at closing.
• Agency disclosure must be provided at first substantive contact, separate from property disclosures.
• Client and customer funds must be held in a separate escrow/trust account, not commingled.
• Brokers must promptly deposit and account for escrowed funds and disburse only as authorized.
• Fair housing protections under federal and NY Human Rights Law apply to all dealings.
• Lead-based paint disclosure applies to most residential housing built before 1978.
• Records of disclosures and escrow transactions must be retained per DOS requirements.