S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8830
 
                             I N  S E N A T E
 
                               July 20, 2020
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the real property law,  in  relation  to  requiring  the
   disclosure  of  lead-based  paint  test  reports in real estate trans-
   actions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Legislative  findings.  The  legislature hereby finds and
 declares that lead poisoning of children persists as  one  of  the  most
 prevalent  and  preventable  environmental  diseases  in New York State.
 Nearly 100,000 children were newly identified with  levels  of  lead  in
 their  blood at five micrograms per deciliter (mcg/dL) in New York state
 between 2011 and 2015.   Medical research indicates  that  children  can
 suffer  permanent  brain damage at blood levels even lower than 5mcg/dL,
 and that there is no level of lead ingestion  that  is  without  adverse
 impact.    The  predominant cause of lead poisoning in young children is
 the ingestion of lead particles from deteriorating or abraded lead-based
 paint from older and poorly maintained residences.   Although  New  York
 state banned the sale of lead-based paint in 1970, (l.1970, ch. 338) 74%
 of New York's housing stock was constructed prior to 1970 and lead-based
 paint  was available outside of the state until 1978. New York state has
 both the nation's greatest number (over 4 million  units),  the  highest
 percentage  (55.08%)  of  pre-1960 and pre-1950 (41.0%) housing, and the
 oldest housing inventory among the fifty states. At least ninety percent
 of lead-based paint still exists in occupied housing built before  1960.
 New  York  state's older housing stock places residents at great risk of
 exposure to lead hazards, with low-income children living in older hous-
 ing having the highest risk of lead poisoning. Knowledge  of  lead-based
 paint  hazards, their control, mitigation, abatement, and risk avoidance
 is not sufficiently widespread. In addition, while federal law  requires
 the disclosure by sellers of real property of knowledge of the existence
 of  lead-based paint and lead-based paint hazards, and encourages poten-
 tial buyers to conduct inspections for  lead-based  paint,  these  mech-
 anisms  neither mandate that such inspections take place either by sell-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16968-01-0

 S. 8830                             2
 
 ers  or  buyers.  This  gap  in  disclosure  requirements   results   in
 residential  property  being  transferred  without  any knowledge of the
 potential for such property to cause lead poisoning  and  the  attendant
 liabilities.
   Local  county  health  departments  lack  sufficient information as to
 which housing contains lead-based paint and the locations of such  lead-
 based paint, resulting in less cost-effective prevention of lead poison-
 ing,  avoidable  harm to children's health, and wasted public resources.
 The purposes of this act are to assure that  properties  that  have  not
 been  previously  tested for lead-based paint are not simply transferred
 to new owners without knowledge of whether  there  is  lead-based  paint
 present,  and  to  better utilize the existing federal laws that mandate
 disclosure of lead-based paint and lead-based paint hazards and  to  aid
 in  the  prevention  of lead poisoning.  This act is not intended to and
 does not diminish the responsibility of buyers to carefully examine  the
 property  which they intend to purchase and public records pertaining to
 the property. This act is not intended to and does  not  limit  existing
 responsibilities by a seller, buyer or agent concerning the condition of
 the  property or potential liabilities or remedies at law, statute or in
 equity.
   This act will significantly improve the transfer  process  and  better
 serve  the interests of all parties to a home purchase. It will increase
 clarity regarding the nature of the property and  will  provide  greater
 certainty  to contracts entered into by better informed buyers and sell-
 ers. As well, it will provide incentive to owners  to  voluntarily  test
 their property prior to sale.
   §  2.  The  real property law is amended by adding a new article 16 to
 read as follows:
                                ARTICLE 16
                      LEAD-BASED PAINT DISCLOSURE ACT
 SECTION 520. SHORT TITLE.
         521. DEFINITIONS.
         522. INSPECTION OF  RESIDENTIAL  REAL  PROPERTY  FOR  LEAD-BASED
                PAINT PRIOR TO TRANSFER OF TITLE.
         523. DUTY OF AGENT.
         524. LIABILITY.
   §  520.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "LEAD-BASED PAINT DISCLOSURE ACT".
   § 521. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1. "AGENT" SHALL MEAN A PERSON WHO IS LICENSED AS A REAL ESTATE BROKER
 OR A REAL ESTATE SALESPERSON PURSUANT TO SECTION FOUR HUNDRED FORTY-A OF
 THIS CHAPTER AND ACTING IN A FIDUCIARY CAPACITY.
   2. "BINDING CONTRACT OF  SALE"  SHALL  MEAN  A  REAL  ESTATE  PURCHASE
 CONTRACT  OR OFFER THAT WOULD, UPON SIGNING BY THE SELLER AND SUBJECT TO
 SATISFACTION OF ANY CONTINGENCIES, REQUIRE THE BUYER TO ACCEPT A  TRANS-
 FER OF TITLE.
   3.  "BROKER"  SHALL  HAVE  THE  SAME  MEANING  AS "REAL ESTATE BROKER"
 DEFINED BY SECTION FOUR HUNDRED FORTY OF THIS CHAPTER.
   4. "BUYER" SHALL MEAN ANY  ENTITY  THAT  ENTERS  INTO  A  REAL  ESTATE
 PURCHASE  CONTRACT,  INCLUDING  BUT NOT LIMITED TO INDIVIDUALS, PARTNER-
 SHIPS, CORPORATIONS,  TRUSTS,  GOVERNMENT  AGENCIES,  HOUSING  AGENCIES,
 INDIAN TRIBES, AND NONPROFIT ORGANIZATIONS.
   5.  "LEAD-BASED PAINT" SHALL MEAN PAINT OR OTHER SIMILAR SURFACE COAT-
 ING MATERIAL CONTAINING 1.0 MILLIGRAMS OF LEAD PER SQUARE CENTIMETER  OR
 GREATER,  AS DETERMINED BY LABORATORY ANALYSIS OF PAINT SAMPLES WITH ALL

 S. 8830                             3
 
 LAYERS OF PAINT PRESENT, OR BY AN X-RAY  FLUORESCENCE  ANALYZER.  IF  AN
 X-RAY  FLUORESCENCE  ANALYZER  IS  USED, READINGS SHALL BE CORRECTED FOR
 SUBSTRATE BIAS WHEN NECESSARY AS SPECIFIED BY THE PERFORMANCE CHARACTER-
 ISTIC  SHEETS  RELEASED  BY  THE  UNITED STATES ENVIRONMENTAL PROTECTION
 AGENCY AND THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 FOR THE SPECIFIC X-RAY FLUORESCENCE ANALYZER  USED.  X-RAY  FLUORESCENCE
 READINGS  SHALL  BE  CLASSIFIED AS POSITIVE, NEGATIVE OR INCONCLUSIVE IN
 ACCORDANCE WITH THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVEL-
 OPMENT GUIDELINES FOR THE EVALUATION AND  CONTROL  OF  LEAD-BASED  PAINT
 HAZARDS IN HOUSING (JULY 2012) OR SUCCESSOR GUIDELINES, AND THE PERFORM-
 ANCE  CHARACTERISTIC  SHEETS RELEASED BY THE UNITED STATES ENVIRONMENTAL
 PROTECTION AGENCY AND THE UNITED STATES DEPARTMENT OF HOUSING AND  URBAN
 DEVELOPMENT  FOR  THE  SPECIFIC  X-RAY FLUORESCENCE ANALYZER USED. X-RAY
 FLUORESCENCE READINGS THAT FALL WITHIN THE INCONCLUSIVE ZONE, AS  DETER-
 MINED  BY  THE  PERFORMANCE CHARACTERISTIC SHEETS, SHALL BE CONFIRMED BY
 LABORATORY ANALYSIS OF PAINT CHIPS, RESULTS SHALL BE REPORTED IN  MILLI-
 GRAMS  OF  LEAD PER SQUARE CENTIMETER AND THE MEASURE OF SUCH LABORATORY
 ANALYSIS SHALL BE DEFINITIVE. IF LABORATORY ANALYSIS IS USED  TO  DETER-
 MINE  LEAD  CONTENT, RESULTS SHALL BE REPORTED IN MILLIGRAMS OF LEAD PER
 SQUARE CENTIMETER. WHERE THE SURFACE AREA OF A PAINT CHIP SAMPLE  CANNOT
 BE  ACCURATELY  MEASURED  OR IF AN ACCURATELY MEASURED PAINT CHIP SAMPLE
 CANNOT BE REMOVED, A LABORATORY ANALYSIS MAY BE REPORTED IN  PERCENT  BY
 WEIGHT.  IN  SUCH  CASE,  LEAD-BASED PAINT SHALL MEAN ANY PAINT OR OTHER
 SIMILAR SURFACE-COATING MATERIAL CONTAINING MORE THAN 0.009  PERCENT  OF
 METALLIC  LEAD,  BASED ON THE NON-VOLATILE CONTENT OF THE PAINT OR OTHER
 SIMILAR SURFACE-COATING MATERIAL. IN THE EVENT THAT  THE  UNITED  STATES
 ENVIRONMENTAL  PROTECTION  AGENCY  OR  A SUCCESSOR AGENCY, OR THE UNITED
 STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR A SUCCESSOR  AGEN-
 CY, OR A DEPARTMENT OR AGENCY OF THE STATE OF NEW YORK THAT HAS OBTAINED
 APPLICABLE  AUTHORIZATION  PURSUANT  TO  40 C.F.R. PART 745 SUBPART Q OR
 SUCCESSOR REGULATION, ADOPTS MORE STRINGENT  DEFINITIONS  OF  LEAD-BASED
 PAINT,  SUCH  MORE STRINGENT DEFINITIONS SHALL APPLY FOR THE PURPOSES OF
 THIS ARTICLE.
   6. "REAL ESTATE PURCHASE CONTRACT" SHALL MEAN ANY OF THE FOLLOWING:
   (A) A CONTRACT WHICH PROVIDES FOR THE PURCHASE AND SALE OR EXCHANGE OF
 RESIDENTIAL REAL PROPERTY;
   (B) A LEASE WITH AN OPTION TO PURCHASE RESIDENTIAL REAL PROPERTY;
   (C) A LEASE-WITH-OBLIGATION-TO-PURCHASE AGREEMENT FOR RESIDENTIAL REAL
 PROPERTY; OR
   (D) AN INSTALLMENT LAND SALE CONTRACT FOR RESIDENTIAL REAL PROPERTY.
   7. "RESIDENTIAL REAL PROPERTY" SHALL MEAN REAL PROPERTY IMPROVED BY  A
 RESIDENTIAL  DWELLING  ERECTED PRIOR TO THE YEAR NINETEEN HUNDRED SEVEN-
 TY-EIGHT.
   8. "RESIDENTIAL DWELLING" SHALL MEAN A SINGLE-FAMILY DWELLING, INCLUD-
 ING ATTACHED STRUCTURES SUCH AS PORCHES AND STOOPS, OR  A  SINGLE-FAMILY
 DWELLING  UNIT  WITHIN  A STRUCTURE THAT CONTAINS MORE THAN ONE SEPARATE
 RESIDENTIAL DWELLING UNIT, USED OR OCCUPIED, OR DESIGNED TO BE  USED  OR
 OCCUPIED,  WHOLLY  OR  PARTLY,  AS  THE HOME OR RESIDENCE OF ONE OR MORE
 PERSONS WHETHER OR NOT IT WAS OR WILL BE OCCUPIED.
   9. "SELLER" SHALL MEAN ANY ENTITY THAT INTENDS TO ENGAGE IN THE TRANS-
 FER OF TITLE TO A BUYER OF RESIDENTIAL REAL PROPERTY,  IN  WHOLE  OR  IN
 PART,  INCLUDING  BUT  NOT  LIMITED TO INDIVIDUALS, PARTNERSHIPS, CORPO-
 RATIONS, TRUSTS, GOVERNMENT AGENCIES, HOUSING AGENCIES,  INDIAN  TRIBES,
 MORTGAGE  BANKER, LENDER, AND NONPROFIT ORGANIZATIONS. THE TERM "SELLER"
 ALSO SHALL MEAN AN ENTITY THAT TRANSFERS SHARES IN A COOPERATIVELY OWNED
 PROJECT.

 S. 8830                             4
 
   10. "TEST FOR LEAD-BASED PAINT" SHALL MEAN A TEST FOR THE PRESENCE  OF
 LEAD-BASED PAINT THAT HAS BEEN CONDUCTED THROUGH BOTH A LEAD HAZARD RISK
 ASSESSMENT  AND  A  LEAD-BASED  PAINT INSPECTION AS DEFINED IN 40 C.F.R.
 745.103, 24 C.F.R. 35.86, AND THE UNITED STATES  DEPARTMENT  OF  HOUSING
 AND URBAN DEVELOPMENT GUIDELINES FOR THE EVALUATION AND CONTROL OF LEAD-
 BASED PAINT HAZARDS IN HOUSING (JULY 2012), OR SUCCESSOR REGULATIONS AND
 GUIDELINES,  AND  A REPORT PREPARED INDICATING THE RESULTS OF SUCH TEST,
 INCLUDING THE LOCATIONS WHERE TESTS WERE PERFORMED FOR LEAD-BASED  PAINT
 AND  LEAD-BASED  PAINT  HAZARDS AND THE READINGS OF ALL SUCH TESTS. SUCH
 TEST SHALL NOT BE VALID UNLESS PERFORMED BY A PERSON ACCREDITED PURSUANT
 TO: (A)  CERTIFICATION  TO  CONDUCT  LEAD  HAZARD  RISK  ASSESSMENT  AND
 INSPECTIONS  BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY PURSU-
 ANT TO 40 C.F.R. 745.226(B) OR  SUCCESSOR  REGULATION;  OR  (B)  CERTIF-
 ICATION  BY  A  STATE  OR TRIBAL PROGRAM AUTHORIZED BY THE UNITED STATES
 ENVIRONMENTAL PROTECTION AGENCY TO CERTIFY INDIVIDUALS ENGAGED IN  LEAD-
 BASED  PAINT ACTIVITIES PURSUANT TO 40 C.F.R. 745.325 OR SUCCESSOR REGU-
 LATION OR ELIGIBLE TO CONDUCT THE INSPECTIONS REQUIRED BY THIS  ARTICLE.
 FOR  MULTIFAMILY  HOUSING, THE TEST MUST BE CONDUCTED IN ACCORDANCE WITH
 THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT GUIDELINES
 FOR THE EVALUATION AND CONTROL OF LEAD-BASED PAINT  HAZARDS  IN  HOUSING
 (JULY 2012), OR SUCCESSOR GUIDELINES.
   11.  "TRANSFER  OF  TITLE"  SHALL MEAN DELIVERY OF A PROPERLY EXECUTED
 INSTRUMENT CONVEYING  TITLE  TO  RESIDENTIAL  REAL  PROPERTY  AND  SHALL
 INCLUDE  DELIVERY  OF A REAL ESTATE PURCHASE CONTRACT THAT IS A LEASE OR
 INSTALLMENT LAND SALE CONTRACT.
   § 522. INSPECTION OF RESIDENTIAL REAL PROPERTY  FOR  LEAD-BASED  PAINT
 PRIOR  TO TRANSFER OF TITLE.  1. (A) EFFECTIVE APRIL FIRST, TWO THOUSAND
 TWENTY-ONE, EVERY SELLER OF RESIDENTIAL REAL PROPERTY PURSUANT TO A REAL
 ESTATE PURCHASE CONTRACT SHALL DELIVER TO A BUYER OR BUYER'S AGENT PRIOR
 TO THE SIGNING BY THE BUYER OF A BINDING CONTRACT OF SALE A  CERTIFICATE
 THAT SUCH PROPERTY HAS BEEN TESTED FOR LEAD-BASED PAINT, AND PROVIDE THE
 REPORT  OF SUCH TEST. A COPY OF THE CERTIFICATE CONTAINING THE SIGNATURE
 OF THE SELLER AND ANY REPORT OF A TEST FOR  LEAD-BASED  PAINT  SHALL  BE
 ATTACHED  TO  THE  REAL ESTATE PURCHASE CONTRACT. A COPY OF SUCH CERTIF-
 ICATE AND REPORT OF SUCH TEST AND ANY SUBSEQUENT REPORTS OF  SUCH  TESTS
 SHALL  BE FILED WITH THE STATE DEPARTMENT OF HEALTH IN THE DEPARTMENT OF
 HEALTH IN THE COUNTY WHERE SUCH RESIDENTIAL REAL  PROPERTY  IS  LOCATED,
 AND  SUCH  CERTIFICATE SHALL AS WELL BE FILED WITH THE OFFICE AUTHORIZED
 UNDER SECTION THREE HUNDRED SEVENTY-TWO OF THIS CHAPTER TO BE  REGISTRAR
 OF  TITLE  IN  THE  COUNTY WHERE SUCH REAL PROPERTY IS LOCATED, AND SUCH
 OFFICE SHALL NOT ACCEPT FOR FILING AN INSTRUMENT OF  TRANSFER  OF  TITLE
 UNLESS ACCOMPANIED BY SUCH CERTIFICATE WHERE APPLICABLE.
   (B) THE PRESENTATION OF A CERTIFICATE OF SUCH TEST BY A PRIOR OWNER OF
 SAID  PROPERTY  AND  EVIDENCE OF FILING SUCH CERTIFICATE AND REPORT WITH
 THE DEPARTMENT OF HEALTH IN THE COUNTY WHERE SUCH RESIDENTIAL REAL PROP-
 ERTY IS LOCATED, SHALL BE DEEMED TO BE IN COMPLIANCE WITH THE PROVISIONS
 OF THIS SUBDIVISION.
   (C) IN THE EVENT THE SELLER HAS NOT RECEIVED  FROM  A  PRIOR  OWNER  A
 CERTIFICATION AND REPORT OF SUCH TESTS AS SET FORTH IN THIS SUBDIVISION,
 THE  COSTS  OF  TESTING  FOR  LEAD-BASED  PAINT AND THE PREPARATION OF A
 CERTIFICATE AND REPORT THEREOF AS PROVIDED IN THIS SUBDIVISION SHALL  BE
 DEDUCTIBLE  BY  THE  TRANSFEROR  OR  GRANTOR,  UP  TO THE AMOUNT OF FIVE
 HUNDRED DOLLARS, OR IN A BUILDING WITH MORE THAN ONE DWELLING UNIT UP TO
 FOUR HUNDRED DOLLARS PER DWELLING UNIT TESTED, FROM THE TAXES IMPOSED BY
 SECTIONS FOURTEEN HUNDRED TWO AND FOURTEEN HUNDRED TWO-A OF THE TAX LAW.
 THE TRANSFEROR OR GRANTOR SHALL NOT BE REIMBURSED FOR COSTS IN EXCESS OF

 S. 8830                             5

 THE TOTAL TAXES IMPOSED BY SECTIONS FOURTEEN HUNDRED  TWO  AND  FOURTEEN
 HUNDRED TWO-A OF THE TAX LAW.
   2. ANY PROVISION IN A REAL ESTATE PURCHASE CONTRACT OR ANY OTHER DOCU-
 MENT  RELATED TO THE TRANSFER OF TITLE IN RESIDENTIAL REAL PROPERTY THAT
 PURPORTS TO WAIVE ANY RIGHT CREATED UNDER STATE OR FEDERAL LAW  FOR  THE
 BUYER  TO  CONDUCT  A  RISK  ASSESSMENT OR INSPECTION OF THE PROPERTY TO
 DETERMINE THE PRESENCE  OF  LEAD-BASED  PAINT  AND/OR  LEAD-BASED  PAINT
 HAZARDS,  OR  ANY  ORAL  AGREEMENT THAT PURPORTS TO WAIVE SUCH RIGHT, IS
 NULL AND VOID AS AGAINST PUBLIC POLICY, NOTWITHSTANDING THAT SUCH  WAIV-
 ERS MIGHT OTHERWISE BE PERMITTED BY FEDERAL LAW.
   3.  A  CERTIFICATE  THAT  SUCH PROPERTY HAS BEEN TESTED FOR LEAD-BASED
 PAINT SHALL NOT BE REQUIRED IN CONNECTION  WITH  ANY  OF  THE  FOLLOWING
 TRANSFERS OF RESIDENTIAL REAL PROPERTY:
   (A) A TRANSFER TO A BENEFICIARY OF A DEED OF TRUST;
   (B) A TRANSFER BY A FIDUCIARY IN THE COURSE OF THE ADMINISTRATION OF A
 DECEDENT'S ESTATE, A GUARDIANSHIP, A CONSERVATORSHIP, OR A TRUST;
   (C) A TRANSFER FROM ONE CO-OWNER TO ONE OR MORE OTHER CO-OWNERS;
   (D)  A  TRANSFER  MADE  TO  THE  TRANSFEROR'S SPOUSE OR TO ONE OR MORE
 PERSONS IN THE LINEAL CONSANGUINITY OF ONE OR MORE OF THE TRANSFERORS;
   (E) A TRANSFER BETWEEN SPOUSES OR FORMER SPOUSES  AS  A  RESULT  OF  A
 DECREE  OF  DIVORCE,  DISSOLUTION OF MARRIAGE, ANNULMENT, OR LEGAL SEPA-
 RATION OR AS A RESULT OF PROPERTY SETTLEMENT, AGREEMENT INCIDENTAL TO  A
 DECREE  OF  DIVORCE,  DISSOLUTION  OF MARRIAGE, ANNULMENT OR LEGAL SEPA-
 RATION;
   (F) A TRANSFER TO OR FROM THE STATE, A POLITICAL  SUBDIVISION  OF  THE
 STATE, OR ANOTHER GOVERNMENTAL ENTITY;
   (G) A TRANSFER BY A SHERIFF;
   (H) A TRANSFER PURSUANT TO A PARTITION ACTION; OR
   (I)  A TRANSFER OF AN UNOCCUPIED DWELLING UNIT OR RESIDENTIAL PROPERTY
 THAT IS TO BE DEMOLISHED, PROVIDED THE DWELLING UNIT  OR  PROPERTY  WILL
 REMAIN  UNOCCUPIED UNTIL DEMOLITION AND LEAD-SAFE WORK PRACTICES ENUMER-
 ATED IN 40 C.F.R. 745 AND  SUCCESSOR  REGULATIONS,  OR  MORE  PROTECTIVE
 STATE LAW ARE FOLLOWED DURING THE DEMOLITION.
   4.  NOTHING  CONTAINED  IN  THIS  ARTICLE  IS  INTENDED TO PREVENT THE
 PARTIES TO A CONTRACT OF SALE FROM ENTERING INTO AGREEMENTS OF ANY  KIND
 OR  NATURE  WITH RESPECT TO THE PHYSICAL CONDITION OF THE PROPERTY TO BE
 SOLD, INCLUDING, BUT NOT LIMITED TO, AGREEMENTS FOR  THE  SALE  OF  REAL
 PROPERTY "AS IS".
   §  523.  DUTY  OF AGENT. AN AGENT REPRESENTING A SELLER OF RESIDENTIAL
 REAL PROPERTY AS A LISTING BROKER, OR, IF THE SELLER IS NOT  REPRESENTED
 BY  AN AGENT, THE AGENT REPRESENTING THE BUYER OF RESIDENTIAL REAL PROP-
 ERTY AND DEALING WITH A PROSPECTIVE SELLER, SHALL HAVE THE DUTY TO TIME-
 LY (IN ANY EVENT, BEFORE THE BUYER SIGNS A  BINDING  CONTRACT  OF  SALE)
 INFORM  EACH  SELLER  OF THE SELLER'S OBLIGATIONS UNDER THIS ARTICLE. AN
 AGENT REPRESENTING A BUYER OF RESIDENTIAL  REAL  PROPERTY,  OR,  IF  THE
 BUYER IS NOT REPRESENTED BY AN AGENT, THE AGENT REPRESENTING A SELLER OF
 RESIDENTIAL  REAL  PROPERTY  AND DEALING WITH A PROSPECTIVE BUYER, SHALL
 HAVE THE DUTY TO TIMELY (IN ANY EVENT, BEFORE THE BUYER SIGNS A  BINDING
 CONTRACT  OF  SALE)  INFORM  SUCH  BUYER OF THE BUYER'S RIGHTS AND OBLI-
 GATIONS UNDER THIS ARTICLE. IF AN AGENT PERFORMS THE  DUTIES  AND  OBLI-
 GATIONS  IMPOSED  UPON  HIM  OR  HER PURSUANT TO THIS SECTION, THE AGENT
 SHALL HAVE NO FURTHER DUTIES UNDER THIS ARTICLE AND SHALL NOT BE  LIABLE
 TO  ANY  PARTY  FOR A VIOLATION OF THIS ARTICLE. THE DEPARTMENT OF STATE
 MAY, PURSUANT TO SECTION  FOUR  HUNDRED  FORTY-ONE-C  OF  THIS  CHAPTER,
 REVOKE OR SUSPEND THE LICENSE OF AN AGENT WHO VIOLATES THIS ARTICLE.

 S. 8830                             6
 
   § 524. LIABILITY. NOTHING CONTAINED IN THIS ARTICLE SHALL BE CONSTRUED
 AS  LIMITING  ANY  EXISTING  LEGAL  CAUSE OF ACTION OR REMEDY AT LAW, IN
 STATUTE OR IN EQUITY.
   §  3.  The real property law is amended by adding a new section 235-aa
 to read as follows:
   § 235-AA. DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS.
 1. PRIOR TO EXECUTING A RESIDENTIAL LEASE OR  RENTAL  AGREEMENT  WITH  A
 TENANT,  THE  OWNER  OF REAL PROPERTY SHALL PROVIDE THE TENANT A COPY OF
 ALL REPORTS OF A TEST FOR LEAD-BASED PAINT ISSUED OR  PREPARED  PURSUANT
 TO  SECTION  FIVE  HUNDRED  TWENTY-TWO  OF  THIS  CHAPTER, AND ANY OTHER
 REPORT, WITHIN THE POSSESSION OR CONTROL OF  THE  OWNER,  PERTAINING  TO
 LEAD-BASED  PAINT  OR  LEAD-BASED  PAINT  HAZARDS  WITHIN THE MEANING OF
 SECTION 4852D OF TITLE 42 OF THE UNITED STATES CODE AND THE  REGULATIONS
 THEREUNDER. OWNERS WHO DELIVER A DISCLOSURE FORM WITH ALL REQUIRED DOCU-
 MENTS  UNDER  THE  PROVISIONS OF SECTION 4852D OF TITLE 42 OF THE UNITED
 STATES CODE AND THE REGULATIONS  THEREUNDER  SHALL  BE  DEEMED  TO  HAVE
 COMPLIED WITH THE REQUIREMENTS OF THIS SUBDIVISION.
   2.  ANY  AGREEMENT  BY  A  LESSEE  OR  TENANT OF PREMISES FOR DWELLING
 PURPOSES WAIVING OR MODIFYING HIS OR HER RIGHTS AS  SET  FORTH  IN  THIS
 SECTION SHALL BE VOID AS CONTRARY TO PUBLIC POLICY.
   3.  AN  OWNER  WHO  VIOLATES  THIS SECTION SHALL BE LIABLE FOR A CIVIL
 PENALTY NOT TO EXCEED TEN THOUSAND DOLLARS, AND IN ADDITION,  A  PENALTY
 TO  THE  TENANT  NOT  TO  EXCEED  THE EQUIVALENT OF THE AMOUNT OF RENTAL
 PAYMENTS FOR THREE MONTHS PLUS ANY ATTORNEY'S  FEES.    THE  POWERS  AND
 REMEDIES  SET  FORTH  IN  THIS SECTION SHALL BE IN ADDITION TO ALL OTHER
 EXISTING LEGAL CAUSE OF ACTION OR REMEDY AT LAW, IN STATUTE OR IN  EQUI-
 TY.
   §  4.  Subdivision 2 of section 462 of the real property law, as added
 by chapter 456 of the laws of 2001, is amended to read as follows:
   2. The following shall be the disclosure form:
 
                  PROPERTY CONDITION DISCLOSURE STATEMENT
 
 NAME OF SELLER OR SELLERS:
 
 PROPERTY ADDRESS:
 
   THE PROPERTY CONDITION DISCLOSURE ACT REQUIRES THE SELLER OF  RESIDEN-
 TIAL  REAL PROPERTY TO CAUSE THIS DISCLOSURE STATEMENT OR A COPY THEREOF
 TO BE DELIVERED TO A BUYER OR BUYER'S AGENT PRIOR TO THE SIGNING BY  THE
 BUYER OF A BINDING CONTRACT OF SALE.
   PURPOSE  OF  STATEMENT:  THIS IS A STATEMENT OF CERTAIN CONDITIONS AND
 INFORMATION CONCERNING THE PROPERTY KNOWN TO THE SELLER. THIS DISCLOSURE
 STATEMENT IS NOT A WARRANTY OF ANY KIND BY THE SELLER OR  BY  ANY  AGENT
 REPRESENTING  THE SELLER IN THIS TRANSACTION. IT IS NOT A SUBSTITUTE FOR
 ANY INSPECTIONS OR TESTS AND THE BUYER IS ENCOURAGED TO  OBTAIN  HIS  OR
 HER OWN INDEPENDENT PROFESSIONAL INSPECTIONS AND ENVIRONMENTAL TESTS AND
 ALSO IS ENCOURAGED TO CHECK PUBLIC RECORDS PERTAINING TO THE PROPERTY.
   A  KNOWINGLY  FALSE OR INCOMPLETE STATEMENT BY THE SELLER ON THIS FORM
 MAY SUBJECT THE SELLER TO CLAIMS BY THE BUYER  PRIOR  TO  OR  AFTER  THE
 TRANSFER  OF  TITLE.  IN  THE  EVENT  A SELLER FAILS TO PERFORM THE DUTY
 PRESCRIBED IN THIS ARTICLE TO DELIVER A DISCLOSURE  STATEMENT  PRIOR  TO
 THE  SIGNING BY THE BUYER OF A BINDING CONTRACT OF SALE, THE BUYER SHALL
 RECEIVE UPON THE TRANSFER OF TITLE A  CREDIT  OF  FIVE  HUNDRED  DOLLARS
 AGAINST THE AGREED UPON PURCHASE PRICE OF THE RESIDENTIAL REAL PROPERTY.

 S. 8830                             7
 
   "RESIDENTIAL  REAL  PROPERTY" MEANS REAL PROPERTY IMPROVED BY A ONE TO
 FOUR FAMILY DWELLING USED OR OCCUPIED, OR INTENDED TO BE USED  OR  OCCU-
 PIED, WHOLLY OR PARTLY, AS THE HOME OR RESIDENCE OF ONE OR MORE PERSONS,
 BUT  SHALL  NOT  REFER  TO  (A) UNIMPROVED REAL PROPERTY UPON WHICH SUCH
 DWELLINGS  ARE TO BE CONSTRUCTED OR (B) CONDOMINIUM UNITS OR COOPERATIVE
 APARTMENTS OR (C) PROPERTY ON A  HOMEOWNERS'  ASSOCIATION  THAT  IS  NOT
 OWNED IN FEE SIMPLE BY THE SELLER.
 
 INSTRUCTIONS TO THE SELLER:
   (a) ANSWER ALL QUESTIONS BASED UPON YOUR ACTUAL KNOWLEDGE.
   (b) ATTACH ADDITIONAL PAGES WITH YOUR SIGNATURE IF ADDITIONAL SPACE IS
 REQUIRED.
   (c) COMPLETE THIS FORM YOURSELF.
   (d)  IF  SOME ITEMS DO NOT APPLY TO YOUR PROPERTY, CHECK "NA" (NON-AP-
 PLICABLE). IF YOU DO NOT KNOW THE ANSWER CHECK "UNKN" (UNKNOWN).
 
   SELLER'S STATEMENT: THE SELLER MAKES THE FOLLOWING REPRESENTATIONS  TO
 THE  BUYER BASED UPON THE SELLER'S ACTUAL KNOWLEDGE AT THE TIME OF SIGN-
 ING THIS DOCUMENT. THE SELLER AUTHORIZES HIS OR HER AGENT,  IF  ANY,  TO
 PROVIDE  A COPY OF THIS STATEMENT TO A PROSPECTIVE BUYER OF THE RESIDEN-
 TIAL REAL PROPERTY. THE FOLLOWING ARE REPRESENTATIONS MADE BY THE SELLER
 AND ARE NOT THE REPRESENTATIONS OF THE SELLER'S AGENT.
 
 GENERAL INFORMATION
   1. HOW LONG HAVE YOU OWNED THE PROPERTY?
   2. HOW LONG HAVE YOU OCCUPIED THE PROPERTY?
   3. WHAT IS THE AGE OF THE STRUCTURE OR STRUCTURES? NOTE  TO  BUYER--IF
      THE  STRUCTURE WAS BUILT BEFORE 1978 YOU ARE ENCOURAGED TO INVESTI-
      GATE FOR THE PRESENCE OF LEAD BASED PAINT HAZARDS. IN ADDITION, NEW
      YORK REAL PROPERTY LAW REQUIRES THE SELLER TO PRODUCE  THE  RESULTS
      OF  A TEST OF ALL THE PAINTED SURFACES FOR LEAD, OR TO CONDUCT SUCH
      A TEST IF NOT PREVIOUSLY PERFORMED.
   4. DOES ANYBODY OTHER THAN YOURSELF HAVE  A  LEASE,  EASEMENT  OR  ANY
      OTHER  RIGHT  TO USE OR OCCUPY ANY PART OF YOUR PROPERTY OTHER THAN
      THOSE STATED IN DOCUMENTS AVAILABLE IN THE PUBLIC RECORD,  SUCH  AS
      RIGHTS TO USE A ROAD OR PATH OR CUT TREES OR CROPS. YES NO UNKN NA
   5. DOES  ANYBODY  ELSE CLAIM TO OWN ANY PART OF YOUR PROPERTY?  YES NO
      UNKN NA (IF YES, EXPLAIN BELOW)
   6. HAS ANYONE DENIED YOU ACCESS TO THE PROPERTY OR MADE A FORMAL LEGAL
      CLAIM CHALLENGING YOUR TITLE TO THE PROPERTY? YES NO  UNKN  NA  (IF
      YES, EXPLAIN BELOW)
   7. ARE  THERE  ANY  FEATURES  OF  THE  PROPERTY  SHARED IN COMMON WITH
      ADJOINING LAND OWNERS OR A HOMEOWNERS ASSOCIATION, SUCH  AS  WALLS,
      FENCES OR DRIVEWAYS? YES NO UNKN NA (IF YES DESCRIBE BELOW)
   8. ARE  THERE  ANY  ELECTRIC OR GAS UTILITY SURCHARGES FOR LINE EXTEN-
      SIONS, SPECIAL ASSESSMENTS OR HOMEOWNER OR OTHER  ASSOCIATION  FEES
      THAT APPLY TO THE PROPERTY? YES NO UNKN NA (IF YES, EXPLAIN BELOW)
   9. ARE  THERE  CERTIFICATES OF OCCUPANCY RELATED TO THE PROPERTY?  YES
      NO UNKN NA (IF NO, EXPLAIN BELOW)
 
 ENVIRONMENTAL
   NOTE TO SELLER - IN THIS SECTION, YOU WILL BE ASKED QUESTIONS  REGARD-
 ING  PETROLEUM  PRODUCTS AND HAZARDOUS OR TOXIC SUBSTANCES THAT YOU KNOW
 TO HAVE BEEN SPILLED, LEAKED OR OTHERWISE BEEN RELEASED ON THE  PROPERTY
 OR  FROM  THE  PROPERTY  ONTO ANY OTHER PROPERTY. PETROLEUM PRODUCTS MAY
 INCLUDE, BUT ARE NOT LIMITED TO, GASOLINE,  DIESEL  FUEL,  HOME  HEATING

 S. 8830                             8
 
 FUEL,  AND  LUBRICANTS.  HAZARDOUS OR TOXIC SUBSTANCES ARE PRODUCTS THAT
 COULD POSE SHORT- OR LONG-TERM DANGER TO PERSONAL HEALTH OR THE ENVIRON-
 MENT IF THEY ARE NOT PROPERLY DISPOSED OF, APPLIED  OR  STORED.    THESE
 INCLUDE,  BUT  ARE  NOT LIMITED TO, FERTILIZERS, PESTICIDES AND INSECTI-
 CIDES, PAINT INCLUDING PAINT THINNER, VARNISH REMOVER AND WOOD PRESERVA-
 TIVES, TREATED WOOD, CONSTRUCTION MATERIALS SUCH AS ASPHALT AND  ROOFING
 MATERIALS, ANTIFREEZE AND OTHER AUTOMOTIVE PRODUCTS, BATTERIES, CLEANING
 SOLVENTS  INCLUDING  SEPTIC  TANK  CLEANERS, HOUSEHOLD CLEANERS AND POOL
 CHEMICALS AND PRODUCTS CONTAINING MERCURY AND LEAD.
 
   NOTE TO BUYER - IF  CONTAMINATION  OF  THIS  PROPERTY  FROM  PETROLEUM
 PRODUCTS  AND/OR  HAZARDOUS OR TOXIC SUBSTANCES IS A CONCERN TO YOU, YOU
 ARE URGED TO CONSIDER SOIL AND GROUNDWATER TESTING OF THIS PROPERTY.  IF
 LEAD IN DRINKING WATER IS A CONCERN TO YOU, YOU ARE URGED  TO  HAVE  THE
 PLUMBING EXAMINED, INCLUDING THE SERVICE LINE.
 
   10. IS  ANY OR ALL OF THE PROPERTY LOCATED IN A DESIGNATED FLOODPLAIN?
       YES  NO  UNKN  NA (IF YES, EXPLAIN BELOW)
   11. IS ANY OR ALL OF THE PROPERTY LOCATED  IN  A  DESIGNATED  WETLAND?
       YES  NO  UNKN  NA (IF YES, EXPLAIN BELOW)
   12. IS  THE  PROPERTY  LOCATED  IN AN AGRICULTURAL DISTRICT?   YES  NO
       UNKN  NA (IF YES, EXPLAIN BELOW)
   13. WAS THE PROPERTY EVER THE SITE OF A LANDFILL?  YES  NO   UNKN   NA
       (IF YES, EXPLAIN BELOW)
   14. ARE  THERE  OR  HAVE  THERE  EVER BEEN FUEL STORAGE TANKS ABOVE OR
       BELOW THE GROUND ON THE PROPERTY?  YES  NO  UNKN  NA  IF YES,  ARE
       THEY CURRENTLY IN USE? YES NO UNKN NA LOCATION(S) ARE THEY LEAKING
       OR HAVE THEY EVER LEAKED? YES NO UNKN NA (IF YES, EXPLAIN BELOW)
   15. IS  THERE ASBESTOS IN THE STRUCTURE? YES NO UNKN NA (IF YES, STATE
       LOCATION OR LOCATIONS BELOW)
   16. IS LEAD PLUMBING PRESENT? YES NO UNKN NA (IF YES,  STATE  LOCATION
       OR LOCATIONS BELOW)
   17. HAS  A RADON TEST BEEN DONE? YES NO UNKN NA (IF YES, ATTACH A COPY
       OF THE REPORT)
   18. HAS MOTOR FUEL, MOTOR OIL, HOME HEATING FUEL, LUBRICATING  OIL  OR
       ANY  OTHER  PETROLEUM  PRODUCT,  METHANE  GAS, OR ANY HAZARDOUS OR
       TOXIC SUBSTANCE SPILLED, LEAKED OR OTHERWISE BEEN RELEASED ON  THE
       PROPERTY  OR  FROM  THE  PROPERTY ONTO ANY OTHER PROPERTY?  YES NO
       UNKN NA (IF YES, DESCRIBE BELOW)
   19. HAS THE PROPERTY BEEN TESTED FOR THE PRESENCE OF MOTOR FUEL, MOTOR
       OIL, HOME HEATING FUEL, LUBRICATING OIL, OR  ANY  OTHER  PETROLEUM
       PRODUCT,  METHANE GAS, OR ANY HAZARDOUS OR TOXIC SUBSTANCE? YES NO
       UNKN NA (IF YES, ATTACH REPORT(S))
 
 STRUCTURAL
   20. IS THERE ANY ROT OR WATER DAMAGE TO THE STRUCTURE  OR  STRUCTURES?
       YES NO UNKN NA (IF YES, EXPLAIN BELOW)
   21. IS  THERE ANY FIRE OR SMOKE DAMAGE TO THE STRUCTURE OR STRUCTURES?
       YES NO UNKN NA (IF YES, EXPLAIN BELOW)
   22. IS THERE ANY  TERMITE,  INSECT,  RODENT  OR  PEST  INFESTATION  OR
       DAMAGE?  YES NO UNKN NA (IF YES, EXPLAIN BELOW)
   23. HAS  THE  PROPERTY BEEN TESTED FOR TERMITE, INSECT, RODENT OR PEST
       INFESTATION OR DAMAGE? YES NO  UNKN  NA  (IF  YES,  PLEASE  ATTACH
       REPORT(S))
   24. WHAT  IS  THE TYPE OF ROOF/ROOF COVERING (SLATE, ASPHALT, OTHER.)?
       ANY KNOWN MATERIAL DEFECTS? HOW OLD IS THE ROOF? IS THERE A TRANS-

 S. 8830                             9
 
       FERABLE WARRANTEE ON THE ROOF IN EFFECT NOW? YES NO  UNKN  NA  (IF
       YES, EXPLAIN BELOW)
   25. ARE  THERE  ANY  KNOWN  MATERIAL  DEFECTS  IN ANY OF THE FOLLOWING
       STRUCTURAL SYSTEMS: FOOTINGS, BEAMS, GIRDERS, LINTELS, COLUMNS  OR
       PARTITIONS. YES NO UNKN NA (IF YES, EXPLAIN BELOW)
 
 MECHANICAL SYSTEMS & SERVICES
   26. WHAT  IS  THE WATER SOURCE (CIRCLE ALL THAT APPLY - WELL, PRIVATE,
       MUNICIPAL, OTHER)? IF MUNICIPAL, IS IT METERED? YES NO UNKN NA
   27. HAS THE WATER QUALITY AND/OR FLOW RATE BEEN TESTED? YES NO UNKN NA
       (IF YES, DESCRIBE BELOW)
   28. WHAT IS THE TYPE OF SEWAGE SYSTEM (CIRCLE ALL THAT APPLY -  PUBLIC
       SEWER, PRIVATE SEWER, SEPTIC OR CESSPOOL)?  IF SEPTIC OR CESSPOOL,
       AGE?  ________  DATE  LAST  PUMPED? ________ FREQUENCY OF PUMPING?
       ________ ANY KNOWN MATERIAL DEFECTS?   YES NO  UNKN  NA  (IF  YES,
       EXPLAIN BELOW)
   29. WHO IS YOUR ELECTRIC SERVICE PROVIDER? ________ WHAT IS THE AMPER-
       AGE?  ________  DOES  IT  HAVE CIRCUIT BREAKERS OR FUSES? ________
       PRIVATE OR PUBLIC POLES? ________ ANY KNOWN MATERIAL DEFECTS?  YES
       NO UNKN NA (IF YES, EXPLAIN BELOW)
   30. ARE THERE ANY FLOODING, DRAINAGE OR GRADING PROBLEMS THAT RESULTED
       IN  STANDING  WATER ON ANY PORTION OF THE PROPERTY? YES NO UNKN NA
       (IF YES, STATE LOCATIONS AND EXPLAIN BELOW)
   31. DOES THE BASEMENT HAVE SEEPAGE THAT RESULTS IN STANDING WATER? YES
       NO UNKN NA (IF YES, EXPLAIN BELOW)
 
 ARE THERE ANY KNOWN MATERIAL DEFECTS IN ANY OF THE  FOLLOWING  (IF  YES,
 EXPLAIN BELOW. USE ADDITIONAL SHEETS IF NECESSARY.):
 
   32. PLUMBING SYSTEM?              YES        NO        UNKN        NA
   33. SECURITY SYSTEM?              YES        NO        UNKN        NA
   34. CARBON MONOXIDE DETECTOR?     YES        NO        UNKN        NA
   35. SMOKE DETECTOR?               YES        NO        UNKN        NA
   36. FIRE SPRINKLER SYSTEM?        YES        NO        UNKN        NA
   37. SUMP PUMP?                    YES        NO        UNKN        NA
   38. FOUNDATION/SLAB?              YES        NO        UNKN        NA
   39. INTERIOR WALLS/CEILINGS?      YES        NO        UNKN        NA
   40. EXTERIOR WALLS OR SIDING?     YES        NO        UNKN        NA
   41. FLOORS?                       YES        NO        UNKN        NA
   42. CHIMNEY/FIREPLACE OR STOVE?   YES        NO        UNKN        NA
   43. PATIO/DECK?                   YES        NO        UNKN        NA
   44. DRIVEWAY?                     YES        NO        UNKN        NA
   45. AIR CONDITIONER?              YES        NO        UNKN        NA
   46. HEATING SYSTEM?               YES        NO        UNKN        NA
   47. HOT WATER HEATER?             YES        NO        UNKN        NA
   48. THE PROPERTY IS LOCATED IN THE
       FOLLOWING SCHOOL DISTRICT                          UNKN
 
   NOTE: BUYER IS ENCOURAGED TO CHECK PUBLIC RECORDS CONCERNING THE PROP-
 ERTY (E.G. TAX RECORDS AND WETLAND AND FLOOD PLAIN MAPS)
   THE  SELLER SHOULD USE THIS AREA TO FURTHER EXPLAIN ANY ITEM ABOVE. IF
 NECESSARY, ATTACH ADDITIONAL PAGES AND INDICATE HERE THE NUMBER OF ADDI-
 TIONAL PAGES ATTACHED.
 
   ______________________________________________________________________
   ______________________________________________________________________

 S. 8830                            10
 
   ______________________________________________________________________
   ______________________________________________________________________
 
   SELLER'S  CERTIFICATION: SELLER CERTIFIES THAT THE INFORMATION IN THIS
 PROPERTY CONDITION DISCLOSURE STATEMENT IS  TRUE  AND  COMPLETE  TO  THE
 SELLER'S  ACTUAL  KNOWLEDGE  AS  OF  THE DATE SIGNED BY THE SELLER. IF A
 SELLER OF RESIDENTIAL REAL PROPERTY  ACQUIRES  KNOWLEDGE  WHICH  RENDERS
 MATERIALLY INACCURATE A PROPERTY CONDITION DISCLOSURE STATEMENT PROVIDED
 PREVIOUSLY,  THE  SELLER  SHALL  DELIVER  A  REVISED  PROPERTY CONDITION
 DISCLOSURE STATEMENT TO THE BUYER AS SOON AS PRACTICABLE. IN  NO  EVENT,
 HOWEVER, SHALL A SELLER BE REQUIRED TO PROVIDE A REVISED PROPERTY CONDI-
 TION DISCLOSURE STATEMENT AFTER THE TRANSFER OF TITLE FROM THE SELLER TO
 THE BUYER OR OCCUPANCY BY THE BUYER, WHICHEVER IS EARLIER.
 
   SELLER _______________________________________  DATE ________________
   SELLER _______________________________________  DATE ________________
 
   BUYER'S  ACKNOWLEDGMENT:  BUYER ACKNOWLEDGES RECEIPT OF A COPY OF THIS
 STATEMENT AND BUYER UNDERSTANDS THAT THIS INFORMATION IS A STATEMENT  OF
 CERTAIN  CONDITIONS AND INFORMATION CONCERNING THE PROPERTY KNOWN TO THE
 SELLER. IT IS NOT A WARRANTY OF ANY KIND BY THE SELLER OR SELLER'S AGENT
 AND IS NOT A SUBSTITUTE FOR ANY HOME, PEST, RADON OR  OTHER  INSPECTIONS
 OR TESTING OF THE PROPERTY OR INSPECTION OF THE PUBLIC RECORDS.

   BUYER _______________________________________   DATE ________________
   BUYER _______________________________________   DATE ________________
 
   § 5. This act shall take effect immediately.