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Property Condition Disclosure Act: The First Published Court Test

By Karl B. Holtzschue
October 07, 2003

The Property Condition Disclosure Act (PCDA), which became effective on March 1, 2002, requires a seller of residential real property to deliver to a buyer a Property Condition Disclosure Statement (PCDS) before the buyer signs a binding contract (Real Property Law, sec. 462). In Malach v. Chuang (see page 8), infra, a Richmond County Civil Court judge construed ' for the first time ' the remedy provisions of the statute (R.P.L. sec. 465).

Facts Proven At Trial


The sellers gave the purchasers a PCDS answering 'unknown' to question 20 regarding rot to structures. In fact, they answered 'unknown' to 30 of the 48 questions. The purchasers hired an inspector to check the structures, but that inspection did not include the in-ground swimming pool (placed mostly above ground). When the deck was removed after the closing, the purchasers noticed that the main supports and the body of the pool had rot, which if left untreated, would cause the pool to collapse. The existence of the rot was not easily discoverable upon reasonable observation. The judge found that the evidence supported the sellers' claim that they did not have actual knowledge of the condition of the pool because it was not visible prior to their giving the PCDS.

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