New York amended its Property Condition Disclosure Statement to include the disclosure of indoor mold. This change takes effect today, June 14, 2023, and applies to the sale of residential property, unless the transaction is exempt.

The Property Condition Disclosure Act requires the seller of residential real property to disclose to the buyer, based on seller’s knowledge, certain conditions about the property. Those conditions are detailed in the Property Condition Disclosure Statement (“PCDS”).

The Environmental section of the statement now includes the question “Has the property been tested for indoor mold?” If the seller answers yes, the statement requires that a copy of the report be attached to the PCDS.

A memo accompanying the legislation explains: “Indoor mold has been referred to as ‘killer mold,’ this is because the health risks associated with certain types of mold are tremendous. Inhalation of a wide variety of fungi can lead to or exacerbate existing allergies. Mold has also been found to cause toxic effects or infections. The public needs to be aware that indoor mold is a threat and what to do to clean up indoor mold if found on their property. The history of mold must be disclosed in order to prevent further mold growth. Health risks are increased in property where indoor mold is hidden or not identified as dangerous.”

Various exemptions to the requirement that a seller provide a PCDS exist, such as sales in connection with mortgage foreclosures, or transfers by a fiduciary while administering an estate.

Harris Beach’s Real Estate attorneys are tracking this issue and related matters. Should you have questions, please reach out to attorney Melanie C. Marotto at (716) 200-5230 and mmarotto@harrisbeach.com, or to the Harris Beach attorney with whom you most frequently work.