N.Y. Real Property Law Section 242
Disclosure prior to the sale of real property

1.

(a) Any person, firm, company, partnership or corporation offering to sell real property to which no utility electric service is provided shall provide written notice to the prospective purchaser or to the prospective purchaser’s agent, clearly indicating this fact. Such notice shall be provided prior to accepting a purchase offer.

(b)

Any prospective or actual purchaser who has suffered a loss due to a violation of this section is entitled to recover any actual damages incurred from the person offering to sell said real property.

(c)

The provisions of this subdivision shall not apply in instances where the real property being sold lies within the applicable free footage allowance or service lateral specified by the public service commission in rule, regulation or public utility tariff.

2.

Disclosure prior to the sale of real property to which utility surcharge payments attach.

(a)

Any person, firm, company, partnership or corporation offering to sell real property against which an electric, gas or water utility surcharge is assessed for the purpose of defraying the costs associated with an electric, gas or water line extension, or for the purpose of defraying the costs associated with related facilities, shall provide written notice to the prospective purchaser or the prospective purchaser’s agent, stating as follows: “This property is subject to an electric, gas and/or water utility surcharge”. In addition, such notice shall also state, the type and purpose of the surcharge, the amount of the surcharge and whether such surcharge is payable on a monthly, yearly or other basis. Such notice shall be provided by the seller prior to accepting a purchase offer.

(b)

Any prospective or actual purchaser who has suffered a loss due to a violation of this subdivision is entitled to recover any actual damages incurred from the person offering to sell or selling said real property.

3.

Any person, firm, company, partnership or corporation offering to sell real property on which uncapped natural gas wells are situated, and of which such person, firm, company, partnership or corporation has actual knowledge, shall inform any purchaser of the existence of these wells prior to entering into a contract for the sale/purchase of such property.

4.

Disclosure prior to the sale of real property to which a green jobs-green New York on-bill recovery charge applies.

(a)

Any person, firm, company, partnership or corporation offering to sell real property which is subject to a green jobs-green New York on-bill recovery charge pursuant to title nine-A of article eight of the public authorities law shall provide written notice to the prospective purchaser or the prospective purchaser’s agent, stating as follows: “This property is subject to a green jobs-green New York on-bill recovery charge”. Such notice shall also state the total amount of the original charge, the payment schedule and the approximate remaining balance, a description of the energy efficiency services performed, including improvements to the property, and an explanation of the benefit of the green jobs-green New York qualified energy efficiency services. Such notice shall be provided by the seller prior to accepting a purchase offer.

(b)

Any prospective or actual purchaser who has suffered a loss due to a violation of this subdivision is entitled to recover any actual damages incurred from the person offering to sell or selling said real property.

Source: Section 242 — Disclosure prior to the sale of real property, https://www.­nysenate.­gov/legislation/laws/RPP/242 (updated Sep. 22, 2014; accessed Oct. 26, 2024).

240
Definitions and use of terms 240‑B
Certain conveyances authorized 240‑C
Joint tenancy severance 241
Ancient conveyances abolished 242
Disclosure prior to the sale of real property 243
Grant of fee or freehold 244
When grant takes effect 245
Estate which passes by grant or devise 246
Certain deeds declared grants 247
Conveyance by tenant for life or years of greater estate than possessed 248
Effect of conveyance where property is leased 249
Covenants in mortgages 251
Covenants not implied 252
Lineal and collateral warranties abolished 253
Construction of covenants in grants of freehold interests 254
Construction of clauses and covenants in mortgages and bonds or notes 254‑A
Right of election of mortgagee in certain cases 254‑B
Limitation on late charges 254‑C
Right to a copy of real property appraisals and consumer reports in certain cases 254‑D
Fees by mortgagee for direct payment of real property taxes by mortgagor prohibited 255
Construction of grant of appurtenances and of all the rights and estate of grantor 256
Construction of grant in executor’s or trustee’s deed of appurtenances, and of the estate of testator and grantor 257
Covenants bind representatives of grantor and mortgagor and inure to the benefit of whom 258
Short forms of deeds and mortgages 259‑C
Provision in lease of real property for waiver of trial by jury in actions for personal injury or property damage 260
Lands adversely held may be conveyed or mortgaged 261
Maintenance of telegraph or other electric wires raises no presumption of grant 265
Fraudulent intent, question of fact 265‑A
Home equity theft prevention 265‑B
Distressed property consulting contracts 266
Rights of purchaser or incumbrancer for valuable consideration protected 267
Conveyances with power to revoke, determine or alter 268
Disaffirmance of fraudulent act by executor and others 269
When remainderman may pay interest owed by life tenant 270
Powers of courts of equity not abridged 271
Construction of covenants in mortgages on leases of real property and bonds or notes 272
Construction of grant of appurtenances, and all of the rights and estate of the mortgagor 273
What form of mortgage on lease of real property 274
Transfers and mortgages of interest in decedents’ estates 274‑A
Certificate of principal amount unpaid on mortgages of real property 275
Certificate of discharge of mortgage required 276
Effect of certain easements on the right to invest in mortgages 277
Modification and extension of mortgage investment 277‑A
Powers of fiduciaries and others holding guaranteed mortgages or mortgage investments 278
Exchange of mortgage investment 278‑A
Sale or exchange of certain real property or mortgage investments therein authorized 279
Graduated payment mortgage 280
Reverse mortgage loans for persons sixty years of age or older 280‑A
Reverse mortgage loans for persons seventy years of age or older 280‑B
Federal home equity conversion mortgage regulation 280‑D
Federal home equity conversion mortgage default and foreclosure regulation 281
Credit line mortgage 282
Mortgagor’s right to recover attorneys’ fees in actions or proceedings arising out of foreclosures of residential property
Green check means up to date. Up to date

Accessed:
Oct. 26, 2024

Last modified:
Sep. 22, 2014

§ 242’s source at nysenate​.gov

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