WHEN PURCHASING REAL ESTATE IN NEW YORK, BUYER BEWARE (CAVEAT EMPTOR)

New York adheres to the doctrine of caveat emptor which relieves the seller from liability for failing to disclose information about a property to a buyer when the two parties deal at arms length.  A seller may only be held liable if there is some conduct by the seller which constitutes the active concealment of conditions or facts which would not otherwise be readily discovered by a buyer upon reasonable examination.  For concealment to be actionable as fraud, the defrauded buyer must show that the seller “thwarted” the due diligence efforts made by the buyer.  Otherwise the seller will not be held responsible under the doctrine of caveat emptor.

Very few protections are available to a buyer of real property in New York State.  Indeed the buyer is ultimately liable for any code or zoning violations on the property and purchases the property subject to all governmental or private restrictions (easements and covenants, etc.) imposed on the use of the property.  Some thirty or forty years ago, only a building permit was usually required to construct or renovate a single-family home or even a small office building.  However, over the past few decades, municipalities and state agencies have added more and more regulations affecting property rights.  Today the same small project will likely be subject to a wide variety of municipal and state permitting requirements including site development plan approval, wetlands, steep slopes and tree removal permits, storm water plan approval, species protection and historic preservation laws.  Multiple applications to local planning, zoning and wetlands boards as well as to county and state agencies may need to be made.  A buyer must carefully investigate and consider all such government regulations which may impact the intended use of the property before purchasing a property.