Do I Really Need a Home Inspection? A Guide to Inspections in New York

Many New York buyers budget generously for renovations but hesitate to spend a few hundred dollars on an inspector. New York follows the rule of caveat emptor, “let the buyer beware”: a seller generally has no duty to tell you what is wrong with the house. A home inspection is your main chance to learn the truth before you are bound.

When Does the Inspection Happen in New York?

New York differs from many states:

• In New York City, Long Island and Westchester, attorneys usually draft the contract, and the inspection is normally done before the contract is signed. The buyer puts down about 10% at signing, and the contract usually has no “inspection contingency.” If you find a problem after you sign, it is often too late.
• In parts of upstate New York, brokers’ form contracts are common, and they may include attorney-approval and inspection contingencies that let the buyer walk away or renegotiate within a set period.

Downstate, the basic order is inspect first, then sign.

Do Inspectors Need a License?

Yes. New York licenses home inspectors (Real Property Law Article 12-B). Confirm the inspector’s license and insurance, and ask for a sample report. Inspection agreements often include a limitation of liability, so the amount you can recover from an inspector who misses something may be small.

What Should Be Checked in a House or Multi-Family?

A general inspection covers the roof, exterior, foundation, structure, grading, basement water, plumbing and electrical systems, heating and boiler, water heater, windows and chimney. In New York, pay special attention to:

1. Buried oil tanks. Many older homes in Queens, Staten Island and Long Island once heated with underground oil tanks. A leaking abandoned tank can be very expensive to remediate. Order a separate tank sweep.
2. Sewer lines. In New York City, the owner is generally responsible for the line running from the house to the street sewer. A sewer scope camera inspection can reveal roots, cracks or collapse.
3. Termites and wood-destroying insects.
4. Radon, more common in parts of upstate New York.
5. Lead-based paint. For homes built before 1978, federal law requires the seller to disclose known lead paint information and to give the buyer 10 days to conduct a lead inspection (which the buyer may waive in writing).
6. Wells and septic systems, common upstate and in parts of Long Island, which need specialized testing.
7. Illegal conversions. Basement rentals, attic additions, garages turned into bedrooms: an inspector looks at condition, not legality. Legality is for your attorney and title company to verify.

What Does the Attorney Check Beyond the Inspection?

• The Certificate of Occupancy (CO). In New York City it can be looked up on the Department of Buildings (DOB) website. A house legally registered as a two-family but actually split into three units can bring fines, financing and insurance problems;
• Open permits and violations, including DOB, Environmental Control Board (ECB/OATH) and Department of Housing Preservation and Development (HPD) records. Open permits can delay closing;
• The Property Condition Disclosure Statement (PCDS). Since March 20, 2024, sellers of one- to four-family homes must deliver the disclosure statement before the buyer signs the contract. The old option of giving a $500 credit instead is gone (condos and co-ops remain exempt). Reading the PCDS side by side with the inspection report often reveals problems.

How Do You Inspect a Condo or Co-op?

Inspect the unit itself: plumbing, wiring, windows, floors, air conditioning and signs of leaks. But the bigger risk is often the building, and that is mostly reviewed by your attorney:

• The building’s financial statements and whether reserves are adequate;
• Board minutes for the past two years, looking for leaks, facade work, elevator problems or litigation;
• Any upcoming special assessments;
• Compliance costs for facade inspections (Local Law 11), gas piping (Local Law 152) and building emissions (Local Law 97);
• For co-ops, the flip tax, sublet rules and financing limits.

What If the Inspection Finds Problems?

1. Ask for a lower price or a closing credit;
2. Ask the seller to repair before closing, with the contract spelling out the standard of work and who confirms it;
3. Bring in specialists, such as a structural engineer, roofer or electrician;
4. Walk away. Before you sign, that is always an option.

Attorney’s Insight

From an attorney’s perspective, an inspection report is not just a reference on whether the house is “good.” It is a negotiating tool and a piece of evidence. Three suggestions:

• Run the inspection and attorney review in parallel. Downstate, the time from accepted offer to signed contract is often only a week or two. If the inspection lags, another buyer may sign first;
• Don’t read only the summary page. Items marked “recommend further evaluation” are often where the real risk lies. Deal with them before signing, not after closing;
• Put important issues in the contract. A verbal promise to “fix it” gives you almost no protection in New York. After closing, most of the seller’s contract representations “merge into the deed” and are extinguished, unless the contract expressly says they survive closing.

Attorney’s perspective

We use the inspection report to decide which issues are worth negotiating with the seller, as a price reduction or repairs, before you sign.

For advice about your own situation, call +1 718-218-5805 or schedule a consultation. We meet clients in Flushing and Manhattan, in English or Chinese.

Series overview

This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. For advice about your situation, please contact us.

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