ALBANY — New York Governor Kathy Hochul signed legislation in February 2026 requiring sellers of residential property to disclose known mold conditions to prospective buyers, making New York the 12th state to enact a mandatory mold disclosure law.
The law, which took effect March 1, 2026, requires sellers to complete a mold disclosure form as part of the property condition disclosure statement required under existing New York real estate law. Sellers must disclose any known mold conditions, any history of water intrusion or flooding, and any professional mold assessments or remediation work performed on the property.
Sellers who fail to provide the required disclosure or who knowingly provide false information are subject to civil liability to the buyer for damages resulting from the undisclosed mold condition. The law also requires that sellers provide buyers with a state-approved pamphlet on mold identification, health effects, and remediation.
Real estate industry groups initially opposed the legislation, arguing that it would create liability exposure for sellers who were unaware of mold conditions and would complicate transactions. The final version of the law was amended to limit liability to known conditions, addressing some of these concerns.
For restoration contractors, the new law is expected to drive increased demand for pre-sale mold assessments and remediation services as sellers seek to identify and address mold conditions before listing their properties.
New York joins California, Florida, Texas, and several other states in requiring mold disclosure. Industry advocates have been pushing for a federal mold disclosure standard that would apply uniformly across all states.
