What Types of Legal Contracts Are Used When Buying a House in New York?

Quick Answer: When buying a house in New York, you'll encounter several key contracts: the offer form, the contract of sale (purchase contract), the Property Condition Disclosure Statement, any addenda, and various affidavits at closing. Attorneys typically draft and negotiate purchase contracts in New York, and sellers must now provide a completed disclosure statement before signing.

Common Real Estate Contracts in New York

Contract	Purpose	Legally Binding?
Offer form	States buyer's proposed price and terms	No
Contract of sale	Formalizes all terms of the transaction	Yes, once signed
Property Condition Disclosure Statement (PCDS)	Discloses known property conditions	Required by law
Addendum	Modifies or adds terms to the contract	Yes, once signed
Affidavits	Confirms title, boundaries, liens at closing	Yes

New York is one of the few states where attorneys—not real estate agents—typically draft and negotiate purchase contracts. That's true whether you're buying in Manhattan or Buffalo. Understanding what each document does will help you guide your clients through the process confidently.

Offer Form

The offer form is where everything starts. It's a single-page document (usually provided by the listing broker) that states the price the buyer is willing to pay, along with basic terms like the property address, names of both parties, and any conditions.

Common conditions on an offer form include mortgage terms the buyer needs, whether inspections will be conducted (engineering, termite, etc.), and any personal property to be included in the sale.

Here's the important part: the offer form is not legally binding. It's a starting point for negotiations. Once the seller accepts—or counters—the attorneys take over and draft the formal contract of sale.

Contract of Sale (Purchase Contract)

This is the document that matters. Once both parties sign the contract of sale, you're "in contract," and the agreement becomes legally binding. Walking away at that point means being in breach of contract.

In New York, the buyer's attorney typically drafts the purchase contract after an offer is accepted. Both attorneys then negotiate the specifics before finalizing. The contract spells out everything: the legal description of the property, agreed price, method of payment, closing date, contingencies (like financing and inspections), and what happens if something falls through.

Most residential contracts include a three-business-day attorney review period. During this window, either party's attorney can request changes or cancel the contract entirely. After that period closes, both sides are committed.

The buyer typically provides a down payment (often 10% of the purchase price) upon signing, which the seller's attorney holds in escrow until closing.

Property Condition Disclosure Statement (PCDS)

New York's Property Condition Disclosure Act requires sellers of 1–4 family residential properties to complete and deliver a disclosure statement to the buyer before signing the contract of sale.

Important update (March 2024): Sellers can no longer opt out by offering a $500 credit at closing. The PCDS is now mandatory for covered transactions. The form has also expanded from 48 to 56 questions, including new flood-related disclosures about FEMA floodplain status, flood insurance history, and past flood damage claims.

The PCDS covers the seller's actual knowledge of the property's condition—structural issues, mechanical systems, environmental hazards, water damage, and more. Sellers aren't required to hire an inspector; they only need to disclose what they actually know. But if they willfully fail to provide the form or misrepresent conditions, they can be liable for actual damages.

Exemptions: The PCDS requirement doesn't apply to condos, co-ops, HOA properties not owned in fee simple, sales by estates, or transfers to trust beneficiaries.

Addendum to the Purchase Contract

If anything needs to change after the contract is signed—a new condition, a price adjustment, a revised closing date—the parties use an addendum. This is typically a one-page form that describes the modification and requires signatures from both buyer and seller to take effect.

Addenda are common when inspection results reveal issues that need to be addressed, when financing terms change, or when closing dates need to shift.

Affidavits

At closing, you'll encounter several affidavits—sworn statements used primarily by the title company to confirm facts about the property. These typically include:

Affidavit of title: Confirms the seller's ownership and authority to sell
Survey affidavit: Acknowledges property boundaries
Judgment/lien affidavit: Confirms the existence or absence of liens against the property
Fence and boundary affidavit: Addresses any boundary disputes or encroachments

Each title company creates its own affidavit forms, but the purpose is the same: to establish clear, insurable title for the buyer.

Frequently Asked Questions

Do I need an attorney to buy a house in New York?
It's not legally required, but it's standard practice. In New York, real estate agents cannot draft or review contracts for legal purposes—only attorneys can. About 99% of residential transactions in NYC involve attorneys on both sides.

What is the attorney review period in New York?
Most residential contracts include a three-business-day attorney review period. During this time, either party's attorney can request changes or cancel the contract.

Can sellers still give a $500 credit instead of the PCDS?
No. As of March 20, 2024, the $500 credit option was eliminated. Sellers must now provide a completed Property Condition Disclosure Statement before signing.

What happens if a seller doesn't provide the PCDS?
The law no longer specifies a $500 penalty, but sellers who willfully fail to provide the form or make misrepresentations can be liable for actual damages. Buyers should consult their attorney if they don't receive a PCDS.

Are condos and co-ops exempt from the PCDS?
Yes. The disclosure requirement applies only to 1–4 family residential dwellings owned in fee simple. Condos, co-ops, and HOA properties are exempt.

Help Your Clients Navigate With Confidence

Understanding these contracts isn't just about passing your licensing exam—it's about providing real value to your clients. The paperwork can feel overwhelming to first-time buyers, and having an agent who can explain what each document means (while knowing when to defer to the attorneys) builds trust.

Ready to start your real estate career? Get your New York real estate licenseNew York Real Estate License and learn the ins and outs of New York transactions through AceableAgent's approved pre-license course.