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Commercial Leasing Law & StrategyFeaturesInsurance LawLandlord Tenant Law

New NJ Statute Requires Notices of Flood-Prone Areas In Commercial Real Estate Transactions

By Gordon C. Duus
August 01, 2023

On July 3, 2023, the New Jersey Legislature enacted a statute (Senate Bill 3110; P. L. 2023, c. 93) requiring sellers and landlords of commercial and residential property to provide notices of flood-prone areas to purchasers and tenants before the transaction becomes binding.

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Rental Property

For leases, the law amends the New Jersey Truth-in-Renting Act, N.J.S.A. 46:8-43 et seq., to require every landlord to notify in writing each of the landlord's tenants, prior to lease signing or renewal, whether the property is located in the Federal Emergency Management Agency (FEMA) Special Flood Hazard Area (100-year floodplain) or Moderate Risk Flood Hazard Area (500-year floodplain) and if the landlord has actual knowledge that the rental premises or any portion of the parking areas of the real property containing the rental premises has been subjected to flooding. The law does not apply to: 1) landlords who lease commercial space or residential dwellings for less than one month; 2) residential dwellings in a premises containing not more than two units; 3) owner-occupied premises containing not more than three units; or 4) hotels, motels, or other guest houses serving transient or seasonal guests for a period of less than 120 days.

If the lease is in writing, the required notice may be included in the written lease, but for residential leases the notice must be a separate rider, individually signed or otherwise acknowledged by the tenant and written in not less than 12-point typeface. The New Jersey Department of Community Affairs (DCA), in consultation with the New Jersey Department of Environmental Protection (DEP), is directed to develop and publish a model notice to be used by landlords. The provisions of the act applicable to leases are not effective until the 90th day after the publication of the model notice by the DCA.

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