New York real estatecompliance requirements
What New York requires on every residential transaction — the Property Condition Disclosure Statement, the agency disclosure, the attorney-driven contract process, and the broker recordkeeping rules — and how brokerages keep every file compliant automatically.
New York pairs mandatory disclosure forms with an attorney-driven contract process, so files move between agents and attorneys and still have to stay complete. Real estate is regulated by the New York Department of State (DOS), Division of Licensing Services. Here is what brokerages and their teams have to get right on every deal.
Required disclosures
The anchor document is the Property Condition Disclosure Statement (PCDS), required by Real Property Law § 462. The seller of a one-to-four-family home must complete, sign, and deliver it to the buyer before a binding contract is signed, with a signed copy attached to the contract. Agents must also deliver the agency-relationship disclosure under Real Property Law § 443, and the federal lead-based-paint disclosure applies to homes built before 1978.
An attorney-state contract process
New York is an “attorney-state.” Purchase contracts are typically drafted and reviewed by attorneys, often under an attorney-approval contingency, rather than assembled from a single standardized REALTOR® form. That means a brokerage file is built from documents that pass between agents and attorneys — and each one still has to be present, complete, and signed.
Broker recordkeeping
Under the DOS regulations (19 NYCRR 175.23), a broker must keep and make available records of each transaction for three years. The table below summarizes the key requirements.
At a glance
Key New York compliance requirements
| Requirement | What New York requires |
|---|---|
| Governing body | New York Department of State (DOS), Division of Licensing Services. |
| Seller disclosure | Property Condition Disclosure Statement (PCDS), required by Real Property Law § 462 — delivered to the buyer before a binding contract is signed. |
| Agency disclosure | Disclosure Regarding Real Estate Agency Relationship, required by Real Property Law § 443. |
| Attorney involvement | New York is an 'attorney-state' — contracts are typically drafted and reviewed by attorneys, often under an attorney-approval contingency. |
| Other required disclosures | Lead-based paint for homes built before 1978, plus the agency disclosure acknowledgment and applicable local/condo disclosures. |
| Record retention | Brokers must retain records of each transaction for 3 years (DOS regulation, 19 NYCRR 175.23). |
How brokerages keep every New York file compliant
Because New York files move between agents and attorneys, the risk is usually a document that exists somewhere but never made it back into the brokerage file — a missing PCDS acknowledgment, an unsigned agency disclosure, or a rider that surfaces at a compliance review or in a dispute. The hard part is checking that on every file, not a sample.
Joymore reads every contract, disclosure, and addendum the moment it arrives. It checks each file against your brokerage's standards — confirming the PCDS, agency disclosure, and required signatures are present and complete — and flags anything missing before it becomes a liability, with no extra work for your real estate agents.
- See how automated compliance review audits each file against your standards.
- Explore the platform that reads every file on arrival.
- Run the transaction compliance checklist or estimate savings with the ROI calculator.
This page is general information, not legal advice. New York requirements and forms change — confirm current obligations with the DOS or your brokerage's counsel.
FAQ
New York real estate compliance questions
What disclosures are required when selling a home in New York?
New York requires the seller of one-to-four-family residential property to complete and sign a Property Condition Disclosure Statement (PCDS) under Real Property Law § 462 and deliver it to the buyer before a binding contract is signed, with a signed copy attached to the contract. Agents must also provide the agency-relationship disclosure under Real Property Law § 443, and the federal lead-based-paint disclosure applies to homes built before 1978.
Is the Property Condition Disclosure Statement mandatory in New York?
Yes. Real Property Law § 462 requires the seller to complete, sign, and deliver the PCDS before the buyer signs a binding contract. Historically, a seller who failed to deliver it gave the buyer a $500 credit at closing; a 2023 amendment (effective 2024) strengthened the act and added flood-related questions. Because New York is an attorney-state, sellers should confirm the current requirement with their attorney.
How long must New York brokers keep transaction records?
Under the Department of State's regulations (19 NYCRR 175.23), a real estate broker must keep and make available records of each transaction for three years. Because New York transactions are attorney-driven, brokerage files also need to track agency disclosures, the PCDS, and contract documents that move between agents and attorneys.
Can New York real estate compliance be automated?
Much of it can. Confirming the PCDS and agency disclosure are present and signed, tracking documents as they pass between agents and attorneys, and keeping every file organized for the three-year retention window are document-heavy, rules-based tasks. Software like Joymore reads each file on arrival and flags anything missing or out of policy, while the broker keeps responsibility for supervision and judgment.
For New York real estate brokerages
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