State guide

Buying or Selling a Home in New York: What You Need to Know

New York is an attorney state, which means lawyers — not real-estate agents — draft and negotiate the contract on every residential deal.

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TL;DR

New York is an attorney state, which means lawyers — not real-estate agents — draft and negotiate the contract on every residential deal. The rules layer up fast: statewide disclosure forms, special treatment for co-ops versus condos, expanded flood and lead-paint disclosure, and an extra set of NYC-only laws covering transfer taxes, broker fees, and rent stabilization. Whether you're buying or selling, plan to involve a real-estate attorney early and budget for costs that go well beyond the purchase price.

9 things every New York buyer or seller should know

  • New York is an attorney state, so licensed real-estate agents cannot draft your purchase contract — only attorneys can. After your offer is accepted, the seller's attorney typically drafts the contract and the buyer's attorney reviews and negotiates it, and either side can still walk away during the one-to-three-week gap before both sides sign.

  • Sellers of 1- to 4-family homes in New York normally must give the buyer a Property Condition Disclosure Statement before signing the contract. Under Real Property Law §465 a seller can instead give the buyer a $500 credit at closing and skip the form, but that credit does not excuse a seller from common-law liability for knowingly hiding defects.

  • Since the NAR settlement took effect on August 17, 2024, a buyer's agent in New York must have a written buyer-representation agreement in place before showing you a home. The agreement has to spell out how the agent will be paid — as a dollar amount, a percentage, or a formula — and it must be signed before the first tour.

  • A New York co-op sale is a transfer of shares in a corporation plus an assignment of a proprietary lease for your unit, not a sale of real property. Because of that, co-op transfers require board approval — the board can interview you, review your finances, and reject you for most lawful reasons — and the state's standard Property Condition Disclosure Statement does not apply to the sale.

  • New York stacks several transfer taxes on a home sale: a 0.4% New York State transfer tax statewide, plus — inside NYC — a city Real Property Transfer Tax of 1% under $500,000 or 1.425% at $500,000 and above. These taxes are the seller's legal obligation, even when local custom or contract terms shift the dollars to the buyer.

  • The NYC Fairness in Apartment Rental Expenses (FARE) Act took effect June 11, 2025, with one rule: whoever hires the broker pays the broker. In most NYC rentals that is the landlord, which ends the longstanding 12–15% tenant-paid broker fee — but a tenant who hires their own agent to help search still pays that agent.

  • New York expanded flood disclosure starting in 2024: sellers must now answer Property Condition Disclosure Statement questions about prior flood damage, prior flood-insurance claims, whether the home sits in a FEMA Special Flood Hazard Area, and whether flood insurance is currently in force. Taking the $500 disclosure credit does not protect a seller from fraud liability for knowingly hiding flood history.

  • For any housing built before 1978, federal law requires sellers and landlords to give the EPA lead-hazard pamphlet, disclose known lead-based paint and hazards, and give buyers a 10-day opportunity to inspect before the contract becomes binding. Inside NYC, Local Law 1 of 2004 adds ongoing landlord duties to inspect for and remediate lead paint when a child under six lives in the unit — important context for buyers and renters of older NYC housing.

  • Under Real Property Law §443, your real-estate agent must present New York's Agency Disclosure Form at the first substantial conversation — not at the showing, and not at the offer. The form tells you whether the agent represents the seller, the buyer, both sides as a dual agent (which requires written consent), or as a designated agent inside a brokerage that represents both buyer and seller.

The guides

Common questions

Do I really need a lawyer to buy or sell a home in New York?
In practice, yes — nearly every residential closing in New York involves attorneys on both sides because licensed real-estate agents are not allowed to draft purchase contracts. The seller's attorney drafts the contract after the offer is accepted, and the buyer's attorney reviews and negotiates it before either side signs. Budget for legal fees in your closing costs; skipping representation here usually costs more than it saves.
What's the difference between buying a co-op and a condo in New York?
A condo is real property, so you get a deed to your unit. A co-op is shares in a corporation that owns the building plus a long-term lease on your unit, and co-op transfers need board approval — the board can interview you, review your finances, and reject you for most lawful reasons. Co-ops also use the building's offering plan (filed with the New York Attorney General) as the main disclosure document, instead of the state's standard Property Condition Disclosure Statement.
As a seller, can I just give the buyer a $500 credit instead of filling out the disclosure form?
Yes — New York Real Property Law §465 lets a seller of a 1- to 4-family home give the buyer a $500 credit at closing instead of completing the Property Condition Disclosure Statement. Many New York attorneys recommend this for estate sales, foreclosure sales, and out-of-state sellers because an inaccurate form can turn into a lawsuit. The credit does not waive your common-law duty, though: knowingly hiding a defect like a leaking oil tank or prior flood damage can still expose you to fraud claims.
Who pays the broker fee on an NYC rental now?
Under NYC's FARE Act, which took effect June 11, 2025, whoever hires the broker pays the broker. For most listings that is the landlord, because the landlord hired the listing agent to fill the unit — so tenants no longer owe the traditional 12–15% broker fee just for renting an apartment. The exception: if a tenant hires their own broker to help them search, the tenant still pays that broker.
What is New York's mansion tax and who pays it?
The mansion tax is an additional New York State tax on residential sales of $1 million or more, starting at 1% of the price and scaling up in brackets inside NYC. By statute it is the buyer's obligation, so plan for it on top of your down payment, lender fees, and attorney costs. On a $2 million Manhattan condo, for example, the mansion tax alone is more than $20,000 — separate from the city and state transfer taxes the seller pays.
Do I have to sign anything with a buyer's agent before they show me a house?
Yes — under the NAR settlement effective August 17, 2024, a buyer's agent in New York must have a signed written buyer-representation agreement before they tour any property with you. The agreement has to state how the agent will be paid, expressed as a dollar amount, a percentage, or a formula. Some agents use a short tour-only agreement first and then sign a fuller agreement at the point of offer.
Why don't I see buyer-agent commissions listed on home-search sites anymore?
Under the NAR settlement, MLS systems can no longer display offers of buyer-broker compensation, so New York MLS platforms removed those fields. Sellers can still offer to pay a buyer's agent — they just have to do it outside the MLS, through the listing agreement, showing instructions, or the purchase offer itself. So compensation conversations now happen agent-to-agent or inside the contract, not on the listing page.
Do I have to tell buyers about flood history on my New York home?
Yes, and the rule expanded in 2024. New York's Property Condition Disclosure Statement now asks specific questions about past flood damage, past flood-insurance claims, whether the home is in a FEMA Special Flood Hazard Area, and whether flood insurance is currently in force. Knowingly hiding flood history can still create fraud liability even if a seller opted for the $500 credit instead of completing the form.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.