Local Selling Tips

Pursuant to N.J.S.A. 46:8-50, EVERY seller of real property located in New Jersey (which includes vacant land) MUST disclose, on the Seller’s Property Condition Disclosure Statement, whether the property is located in a FEMA flood hazard area and whether the seller has any actual knowledge concerning flood risks on the property before the purchaser becomes obligated under any contract to purchase the property. This means that the disclosures must be made regardless of whether the property is in a flood zone—flood zones change so a seller must use the DEP’s Flood Risk Notification Tool to disclose whether the property is in a flood zone at the time of the sale. The tool may be accessed here. Given the information available by accessing this tool, sellers are required to disclose information which is “beyond actual knowledge” in addition to actual knowledge, if any—so this applies to estate administrators, lenders and any third parties that may not be familiar with the property. N.J.S.A. 46:8-50(2)(c). 

While the Seller’s Property Condition Disclosure Statement is not mandatory in its entirety, the law clearly states, “[a] seller of real property shall be required to use the [DCA’s] revised form…” when answering the specific questions and providing flood risk disclosures as set forth in the new law. N.J.S.A. 46:8-50(2)(b). Please note that New Jersey Realtors® Seller’s Property Condition Disclosure Statement (Form #140) has been updated to comply with these legal requirements under the heading “Flood Risk”.