On July 3, 2023, the New Jersey Legislature passed Public Law 2023, Chapter 93, which amended Chapter 313 of the 2001 Public Law and supplemented certain sections of the Consumer Fraud Act of 1960. This amendment mandates that, effective March 20, 2024, New Jersey landowners must disclose any flooding conditions on their properties to prospective tenants and buyers. Failure to comply with New Jersey’s flood disclosure laws not only carries the risk of legal repercussions, but also the potential loss of tenants or buyers.
According to the Department of Environmental Protection, flood risks in New Jersey are growing due to climate change. Areas not historically prone to flooding are now at high risk of significant flooding within the next thirty years. Consequently, starting on March 20, 2024, every landlord must provide a flood risk notice to prospective renters. Additionally, as of March 20, 2024, every seller of real property is required to disclose specific flood risk information using a property condition disclosure statement. These disclosures and notices must indicate whether a property is located in the FEMA Special Flood Hazard Zone or the FEMA Moderate Flood Hazard Zone. Landowners can determine whether their property is impacted using the Flood Risk Notification Tool.
In landlord-tenant relationships, if a landlord fails to disclose that their property is located in the FEMA Special or Moderate Risk Flood Hazard Area, tenants may have the right to terminate their lease by providing written notice and pursue all available legal remedies under the law. These remedies may include seeking damages for the impact on the habitability of the premises, disruptions to their access to the premises, or damage to personal property caused by flooding.
In seller-buyer transactions, although the new law does not specify legal consequences, New Jersey recognizes that buyers have legal remedies available when sellers fail to disclose certain conditions prior to a property purchase. Buyers should understand their rights and seek legal advice in such situations. Sellers must also ensure they comply with all applicable laws and regulations governing property disclosures to avoid potential legal issues.
If you're unsure about whether you are impacted by this new regulation or if you have any questions, reach out to us at info@ogplawfirm.com.
Disclaimer: The information provided in this document is for general informational purposes only and is not intended as legal advice. This document is not a legal opinion, and its contents should not be relied upon as such. The information may not reflect the most current legal developments, and it may not be applicable in all situations. You should seek legal advice from qualified legal counsel regarding any specific legal issues.
