BILL NUMBER: S5772
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the real property law, in relation to establishing the
right to inspection of residential real properties
 
PURPOSE:
This bill would prohibit both the sellers and the buyers of residential
real properties from agreeing to sell or offering to purchase properties
contingent upon the waiver, limitation, or restriction of a buyer's
right to choose to obtain a home inspection. It also requires that
offers to purchase residential real properties, condominium units, or
cooperative apartments include specific language informing both the
seller and the buyer of the right to inspection.
 
SUMMARY OF PROVISIONS:
Section 1 amends the title of Article 14 of the real property law to
reflect the addition of the right to inspection.
Section 2 amends section 451 of the real property law by adding a defi-
nition for "inspection".
Section 3 amends section 458 of the real property law to include a new
right of inspection for purchasers of real property.
Section 4 sets forth the effective date.
 
JUSTIFICATION:
New York is facing a housing shortage, with far more buyers clamoring to
purchase homes than houses available for sale. This housing shortage is
expected to continue into the foreseeable future, and it has made the
housing market extremely aggressive and competitive. A disturbing trend
that has emerged in the wake of this competitive market is a practice of
encouraging prospective buyers to waive housing inspections to have
their offers accepted. According to the National Association of Real-
tors, in 2020-2021, nearly 20% of homebuyers waived their rights to a
home inspection.
This is a dangerous practice, as the inspection is where significant
and/or structural defects are identified and used to negotiate a fair
price for the home. When home inspections are waived, prospective home
buyers may wind up unknowingly purchasing a home that is in need of far
more repairs than the buyer realized, resulting in devastating conse-
quences for the unsuspecting buyer. It also impacts other homes in the
community because the owner may decide to just cut their losses and
abandon any repairs whatsoever, leaving the home uninhabited and in
disrepair. This is especially problematic in states like New York, which
has some of the oldest housing stock in the country.
This bill seeks to address that problem by creating a buyer's right to
have their home inspected. By passing this legislation, New York would
join the handful of other states that have already eliminated this
dangerous practice by creating a buyer's right to inspect.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: A.8889 (Wallace)
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on January lst after it shall have become
law.

Statutes affected:
S5772: 461 real property law