Q: In NY State, Can a homeowner sale a house without disclosing that an addition has been built half over the septic tank.
A: Building an addition over a septic tank would likely be considered a material defect that should be disclosed. New York law provides sellers with an alternative to completing the Property Condition Disclosure Statement. Sellers can opt to pay a $500 credit to the buyer at closing instead of providing the disclosure. Even if a seller opts for the $500 credit, they could still potentially face legal consequences for actively concealing defects. Building an addition over a septic tank and intentionally not disclosing it could be seen as active concealment.
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