Sometimes (unfortunately) real estate disclosure laws are confusing on purpose. And when it comes to stuff like asbestos, it gets even weirder. People assume the rules are black and white, but in New York, there's a lot of gray. So, do you have to disclose asbestos when selling a house in NY?
The answer is layered. And weirdly underdiscussed.
Short answer? Yes...but there are "shortcuts."
Long answer? You have to read it…
I know that sounds like a cop-out answer but stay with me.
This isn't just about a yes-or-no checkbox.
It's about what the law says, what sellers actually do, and how most buyers get blindsided anyway.
What the law technically says
Do you have to disclose asbestos when selling a house in NY according to law?
Legally, in New York, residential sellers are required to fill out a Property Condition Disclosure Statement (PCDS).
For years, sellers in NY danced around asbestos with vague terms like "environmental hazards." But that's changed.
The updated Property Condition Disclosure Statement (which now includes 56 specific questions) directly asks:
"Is there asbestos in the structure?"
Not maybe. Not implied. Blatantly asked.
So if you're the seller and you know (or even suspect) it's there, and you say "No" or leave it blank, and it turns out there was asbestos?
You're looking at possible legal action.
Buyers can sue for fraudulent misrepresentation, especially if they get sick or face thousands in abatement costs.
Even though, technically a person must have sustained an injury from asbestos for legal actions to be taken (in most cases.)
Asbestos isn't illegal - but it is very inconvenient
The myth: "If asbestos is found, you have to remove it."
Not true.
Asbestos is not illegal in the Bronx, NY or elsewhere. It's just heavily regulated.
In most older homes (especially pre-1980), you'll find asbestos in insulation, tiles, duct tape, cement, ceilings....you name it.
But if it's undisturbed, it's technically "safe."
Meaning: you can sell a home with asbestos in it.
And many do... as long as it's safe.
The Environmental Protection Agency (EPA) enforces regulations under the AHERA and the TSCA but does NOT mandate the removal of asbestos before the sale.
So, what counts as "knowing" there's asbestos?
Let's say you suspect the attic insulation is asbestos-based, but you've never tested it.
Does that count?
Technically, the disclosure form asks: "Is there asbestos in the structure?"
So if you know for sure, you check "Yes."
If you don't, you check "Unknown."
But "Unknown" is what can keep everyone out of trouble.
Even if you've been told by a contractor, "Yeah that looks like asbestos," unless you've got a lab report, you can technically say "Unknown."
Ethically murky? Absolutely. Legally shady? Kind of. But still allowed.
So when people ask: do you have to disclose asbestos when selling a house in NY, they're really asking: "How much can I legally avoid saying?"
What about the "just pay the $500 and skip the form" shortcut?
Before 2024, in the form there was one question about "hazardous materials."
It didn't directly say asbestos.
It just vaguely asked whether you're "aware of any substances, materials, or products that may be an environmental hazard."
And here's what most sellers did: they skipped the form entirely.
They could legally avoid filling it out if you give the buyer a $500 credit at closing. And most lawyers will tell you to just do that. It's cheaper, easier, and doesn't open you up to liability.
But now, the whole "just pay the $500 and skip the form" shortcut? It's starting to look sketchy too.
The new law doesn’t clearly say what happens if a seller just skips the form
So the law is kind of... unclear. Open to interpretation.
Because now there’s no clear punishment written in the law, that means judges could interpret it in different ways.
It opens the door for:
Lawsuits
Buyers walking away
Buyers demanding money later
Fraud claims if the seller left out serious defects
There are a few things that might happen if the seller refuses to give the form or leaves out important parts of it:
The buyer could try to cancel the deal.
The buyer could sue the seller and ask the court to force them to hand over a completed form.
If the buyer walks away, they could defend themselves by saying the seller broke the rules first.
If a big problem comes up (like asbestos or flooding), the buyer could argue the seller hid something important....especially if the seller knew about it and didn’t say anything.
If the seller left out answers to some questions (like the ones about flood risk or asbestos), the buyer might say: “You had special knowledge that I didn’t.” That could help them win a lawsuit for fraud or misrepresentation later on.
Because courts can interpret that as an intentional avoidance of disclosure. You knew there was a direct question about asbestos... and you chose to sidestep it.
So when people ask: do you have to disclose asbestos when selling a house in NY?
The real answer is: If you got it tested?
You do. Or you risk a lawsuit.
What if you test and find it?
Let’s say you want to be a good person and you get a test done.
It comes back positive.
(Which, let’s face it...it probably will if the home is old.)
Here’s what happens next:
You’re legally obligated to answer YES on the disclosure form
Buyers might freak out and back out
Or they’ll demand a price drop or remediation credit
Your agent will say “You shouldn’t have tested”
And your lawyer will be annoyed
There are buyers who get inspections, do the necessary tests and discover asbestos after closing, and immediately call their lawyer.
What you should do (from a seller’s POV)
Do you have to disclose asbestos when selling a house in NY?
If I were selling a house built before 1985, here’s what I’d do:
Look for signs of asbestos. Boiler wrap? 9x9 tiles? Popcorn ceilings?
Check if any past contractors said anything. Even a casual mention counts.
Decide whether to test. Know that if you do, you must disclose.
Talk to a good real estate attorney. Don’t cheap out.
Consider how honest you want to be.
Be ready to negotiate. Most buyers won’t mind if you’re honest.
PRO TIP: Some lawyers even suggest you transfer your home into a living trust which means you won't have to provide a buyer with a PCDS (from a legal perspective!)
Talk to a lawyer about that.
And one last thing: It’s not the asbestos that ruins deals. It’s the silence around it.
