Home > NYLS Law Review > Vol. 70 > Iss. 1 ()
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10
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28
Abstract
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For centuries, the doctrine of caveat emptor has governed New York residential real estate transactions, rewarding sellers who do not disclose material defects affecting the property, and punishing unsuspecting buyers who fail to exercise due diligence. To alleviate the doctrine’s inherent unfairness to buyers, the New York Legislature enacted two mandatory property disclosure laws in 2002: McKinney’s Real Property Law 462 and 465. However, a loophole in McKinney’s 465 enabled sellers to opt-out of making the required disclosures by paying buyers a $500 credit after closing.
To remedy this shortcoming, the New York Legislature repealed the credit loophole in 2023 and deferred to the judiciary to enforce the required disclosures set forth in McKinney’s 462. Today, New York courts have the opportunity to abandon the doctrine of caveat emptor and strictly enforce the mandatory disclosure requirements. This Note contends that New York courts, by strictly enforcing property disclosure laws, can create a more transparent residential real estate market and yield equitable legal outcomes for buyers and sellers alike. Further, this Note proposes that the New York Legislature enact additional statutory safeguards to protect buyers when sellers fail to comply with McKinney’s 462.
Recommended Citation
Grady Miller, A Golden Opportunity for New York: Caveat Emptor and Revised McKinney's 465, 70 N.Y.L. Sch. L. Rev. 10 (2026).