By Justin Liva, Mojo House BuyersIf your basement takes on water every spring, you may be wondering whether a buyer has to hear about it. New Jersey added to its disclosure rules with a flood law in 2023 and a disclosure statement law in 2024, and the flood questions are now spelled out in state law.
This is a general overview of what the official sources say. It isn't legal advice, and the question of what you specifically need to disclose belongs with a real estate attorney.
The property condition disclosure statement
New Jersey's Division of Consumer Affairs publishes a standard form called the Seller's Property Condition Disclosure Statement. It goes section by section, from the roof and structure to plumbing, heating and electrical, and most questions can be answered yes, no or unknown.
If you're selling a condo, it also asks about the association and any dues or assessments.
A law that took effect on August 1, 2024, P.L.2024, c.32, sets out who handles the statement:
- When a seller works with an agent in a residential sale, the agent has to obtain a property condition disclosure statement that the seller has filled in and signed.
- When a seller has no agent, or works with a transaction broker, the seller has to give the statement to the buyer before the buyer is bound by a contract.
The same law protects the brokerage from liability for information the seller was supposed to disclose, as long as the agent made reasonable efforts to learn about the property's condition, such as asking the seller questions and doing a visual inspection. The form itself says the seller alone is the source of the information in it, so the answers are yours.
The flood risk questions
The flood rules come from P.L.2023, c.93, signed on July 3, 2023 and codified at N.J.S.A. 56:8-19.2. It requires a seller of real property in New Jersey to disclose flood information on the property condition disclosure statement before the buyer becomes obligated under the contract. According to the Department of Community Affairs, sellers had to start using the updated form on March 20, 2024.
The law lists the questions. In plain language, you're asked:
- Is any part of the property in FEMA's Special Flood Hazard Area, the "100-year floodplain"?
- Is any part in a Moderate Risk Flood Hazard Area, the "500-year floodplain"?
- Does federal law require flood insurance on the property?
- Have you, or any previous owner you know of, received federal disaster assistance for flood damage there?
- Is there flood insurance on the property now?
- Is there a FEMA certificate documenting the building's height relative to flood levels? If one exists, it has to be shared with the buyer.
- Have you ever filed a flood damage claim with any insurer, including the National Flood Insurance Program, and how much was paid if it was approved?
- Has the property had flood damage, water seepage or pooled water from a natural flood event like heavy rain, storm surge, tidal flooding or a river overflowing? How many times?
Each question gets a yes, no or unknown, and any yes needs an explanation. The eighth question's own examples include heavy rainfall, so think about seepage after big storms when you answer it, and ask your attorney if you're unsure.
For the flood zone questions, you don't have to guess. The state built a lookup tool searchable by mailing address, linked from flooddisclosure.nj.gov, that shows whether a property overlaps a FEMA special or moderate flood hazard area. The law made the flood-zone disclosure, beyond what the seller actually knows, take effect once that tool was in place.
Landlords have a parallel duty under the same law to notify tenants about flood risk, though buildings with two or fewer units and owner-occupied buildings with up to three units are exempt. If you're selling a rental, that's a separate piece to sort out with your attorney.
Lead paint in older homes
A federal rule applies on top of the state ones. For most housing built before 1978, HUD's summary of the lead disclosure rule says the seller has to give the buyer the EPA lead hazard pamphlet, disclose any known lead-based paint or lead hazards, and share any available records or reports before the buyer is bound. Both parties sign a certification that this happened.
If you aren't sure when your house was built, pin that down before you list.
Selling as-is still means being honest
I buy houses as-is and in any condition, including fire-damaged and unlivable ones, and I rarely buy houses in great shape. So the history these forms ask about is part of what I'm looking at. To me, "as-is" is about who handles the repairs, not about keeping a buyer in the dark.
My advice is to disclose what you know, plainly; the form itself notes the seller's obligation to disclose known material defects even if the printed form doesn't ask about them. A buyer who learns about a problem up front can price it in. A buyer who finds out after closing can turn into a bigger problem, and your attorney can explain what exposure that creates.
When I'm the buyer, condition is one of the factors I'm already pricing. A known leak or a cracked foundation doesn't end the conversation. It's part of the math, the same way it is in my guide to selling a house that needs repairs.
Getting your records together
Before you fill out the form, pull together whatever paper trail you have:
- Insurance claim records, especially for water or flood damage
- Receipts and permits for repairs or upgrades
- Any FEMA flood certificate, survey or prior inspection report
- Notices from the town about violations or open permits
If you inherited the house and honestly don't know its history, "unknown" is a real answer on the form. Just don't use it to dodge something you do know.
Selling without an agent puts the delivery job on you, which I go over in my for sale by owner guide. To see where disclosure fits among the other steps, read my walkthrough of the New Jersey sale process. And if you have questions about how I handle a house with known problems, my FAQ page is a good place to start.