Consult with your attorney to see if it's in your best interest, or not, to fill out the disclosure form and follow his/her advice; generally yes, if the form is not filled out the buyer does receive $500 at closing out of the procceds of the sale--again, before filling in the form, consult with your attorney regarding any potential liabilities....
If you do not provide a property condition disclosure form you are required to give the buyers a $500 credit at the closing. Some attorneys recommend not filling out the form to prevent potential litigation in the future. You can always be sued regardless of the fact you provided or didn't provide a property disclosure. I would read the form and draw your own conclusions as to what is on it and how it is filled out. Then check with your attorney to see what they say. Keep in mind, that if you do fill it out, do not check "no" in any of the boxes if the information is actually "unknown". It's a common mistake.
Donald A. Mituzas
Licensed Associate Broker
Prudential Douglas Elliman
Yes it is true. Ask your attorney for his/her recommendation pertaining to this issue. Many believe that it is better off not filling out the disclosure and giving a $500 credit at closing for this. The ultimate answer though, lies with your attorney., You're paying him/her good money for his/her objectivity and advice. That's your wisest course of action. Good luck.