Increases the truth in heating penalties and amends the enhanced property disclosure statement

Section 2 of the bill amends Real Property Law § 462 to require a seller of real property to provide in the property disclosure statement any available information on the type and area of installation, and the energy efficiency of any appliances that are included in the sale of the property, if known. In addition, the bill requires the disclosure include a notice to the buyer advising the buyer that he or she is entitled to the past two years fuel or utility vendors bills for the property being considered for purchase. The disclosure must also include a notice to the seller advising them of their right to such records.

Section 3 of the bill provides that section 1 would take effect immediately, and section 2 would take effect 120 days after it becomes law.

Existing law

Energy Law § 17-103, the Truth in Heating Law was established in 1981 to afford potential real estate purchasers and renters a right to receive the past two years utility and/or fuel bills for any property they are considering purchasing or renting. Sellers are required to furnish potential buyers or renters with such information within 15 days of receipt of a written request. Such request must be received in advance of the buyer and seller, or lessor and lessee entering into any binding contractual agreement for the property in question.

Section 462 of the Real Property Law, the Property Condition Disclosure in the Sale of Residential Real Property was established in 2001 to benefit both buyers and sellers with a better basis for negotiating a purchase and sales agreement.

Both the Truth in Heating Law and the Property Disclosure Statement requirement are limited to residential property that is improved by a one to four family dwelling used or intended to be used or occupied as a home or residence of one or more persons.

Prior legislative history

None.

Statement in support

This bill would require that a notice be placed on the Property Condition Disclosure Statement educating buyers of their right to request and review a two year history of the property's utility or fuel bills, as well as any available information regarding the type of insulation in the dwelling and the energy efficiency of any appliance included in the sale. Although consumers have been entitled to this information under the Truth in Heating law since 1981, the vast majority of buyers are unaware of their rights relating to energy consumption disclosure.

As energy prices continue to be at high levels, the ability of consumers to heat and cool their homes is becoming more and more challenging. These prices, combined with the dramatic increase in the cost of food, goods and services in the marketplace, have created an environment that is forcing more and more consumers to be aware. Those considering purchasing or leasing property should be informed of the potential costs of their energy usage in the new property. While a sales price and corresponding mortgage obligation or a monthly rent payment may be affordable, an energy inefficient home or apartment may be a budget buster for some consumers. Advanced notice of heating and/or cooling costs associated with a property also benefits the fuel and utility suppliers by creating an informed marketplace where consumers are better equipped to pay their bills.

This measure may also act as a catalyst to encourage sellers and lessors to invest in energy efficient appliances and property improvements that might entice prospective buyers or lessees, and thereby contribute to the reduction of energy consumption in the State.

Budget implications

None.

Effective date

Section 1 would take effect immediately. Section 2 would take effect 120 days after enactment.