Understanding New Jersey's Updated Property Disclosure Laws: What All Those in the Real Estate Industry Needs to Know

A new Flood Disclosure Law came into effect earlier this year and if this is the first time you’re hearing of this, we highly recommend you keep reading:

Starting March 20, 2024, in all New Jersey real estate transactions, it will be required to fully disclose a property’s flood history and its exposure to potential future natural risk. This comes as a result of new legislation Governor Murphy signed back in June 2023.

In 2023, we saw carriers apply for record-breaking rate increases, exceeding 64%. One month into 2024, requests for increases have already begun. But, why? According to the National Centers for Environmental Information, there were 28 weather and climate disasters in 2023, totaling around $9.2 billion in flooding damage alone.

According to the Seller’s Property Condition Disclosure Statement itself, “The purpose of this Disclosure Statement is to disclose, to the best of the Seller’s knowledge, the condition of the Property, as of the date set forth below. The Seller is aware that he or she is under an obligation to disclose any known material defects in the Property even if not addressed in this printed form. Seller alone is the source of all information contained in this form. All prospective buyers of the Property are cautioned to carefully inspect the Property and to carefully inspect the surrounding area for any off-site conditions that may adversely affect the Property. Moreover, this Disclosure Statement is not intended to be a substitute for prospective buyer’s hiring of qualified experts to inspect the Property.”

Does reading that alone make your head spin? Aaron Levine, CIC, MBA , Founder and CEO of our Luxury Group Insurance Agency Team and Joseph J. Asterita , Esq. of Asterita & Associates, LLC - Attorneys At Law came together to discuss this new disclosure, translating the new legal jargon into plain English:

The full document is ten pages with 135, yes, 135 questions. You can find this disclosure statement in full here.

Staying informed about legal requirements is crucial for both homeowners, landlords, REALTORS?, Title Insurance Professionals, Mortgage Brokers, Insurance Experts and everyone involved in this industry. At LG Insurance, we recognize the importance of keeping our clients informed. We are grateful to all those who attended our March 20th event in Red Bank, hosted with Joseph Asterita of Asterita and Associates. Together, we have created an informational website which you can find here, and have been attending REALTOR? office meetings. If you are looking for us to join your next meeting, let us know here.