I hope everyone had a great 4th. Right before the fireworks hit, Governor Murphy approved and signed NJ Bill S3110. This amends the Truth-in-Renting Act by requiring landlords to disclose to renters (and property owners to disclose to potential buyers) any knowledge they have about flood risks with the property.
NJ Bill S3110
A Little Background
Over the years, climate change and rising sea levels brought more and more opportunities for flooding in seaside towns like those along the Jersey Shore. As a result, many lenders require that Jersey Shore home buyers purchase flood insurance as a condition of the loan approval process. Fortunately, homeowners’ options expanded from just the FEMA-backed National Flood Insurance Program (NFIP). They now include private market flood insurance companies like the Thomas Heist Insurance Agency in Ocean City.
What Does the Bill Do?
NJ Bill S3110 requires landlords to disclose any flood risks or history of flooding of their property to potential tenants at the time that they fill out their rental/lease application. Only flooding caused by a natural event, such as heavy rainfall or a coastal surge from a storm (think Hurricane Sandy). This includes disclosing any damage that occurred during the flooding. Also, the landlord must inform the potential tenant that they may get flood insurance through the NFIP if they so desire. All of this information must be presented to the potential tenant through an official DCA form (Department of Community Affairs). If the landlord refuses or fails to disclose this information, the tenant may terminate their lease if a flood causes major damage to the tenant’s belongings. In addition, the tenant can seek any legal recourse necessary against the landlord.
Likewise, any homeowner selling their New Jersey home must disclose any history of flooding on the property as well as whether or not the property sits within any known flood zones. In fact, NJ Bill S3110 requires the DCA to include questions specifically about any flooding on the property on the seller disclosure documents. All of this makes it easier for renters and home buyers to identify any potential flooding risks with living/owning a Jersey Shore property. It also ensures that they have ready access to information to help them in case a flood from a natural event takes place in the future. For more information about S3110, please visit the New Jersey Legislature’s website here.
Sherri Lilienfeld, Apex Prime Realty, Your Source for Jersey Shore Real Estate