New Bill May Force NJ Realtors To Disclose If Homes Are Flood-Prone

NEW JERSEY — As storms in the Garden State have intensified over the past few years, causing extreme flooding in certain areas, a new bill introduced by Sen. Bob Smith (D-17) may require realtors and landlords to disclose if certain homes are prone to flooding.

Under the senator's new bill (S3110), landlords would be required to notify tenants whether a rental property has been or could be affected by flooding.

Landlords and realtors would have to disclose specific information, such as if a property has ever experienced flood damage, water seepage or pooled water due to a natural flood event, such as heavy rainfall, coastal storm surge, tidal inundation or river overflow.

The bill notes that properties in coastal and riverine areas may be subject to increased risk of flooding over time due to projected sea level rise and extreme storms caused by climate change.

In addition, landlords and realtors would have to notify potential buyers or renters if a property is located in a flood zone and if the government requires flood insurance to be obtained.

According to the bill, FEMA encourages property owners in high risk, moderate risk, and low risk flood zones to purchase flood insurance that covers the structure and the personal property within the structure.

Smith told New Jersey 101.5 that the Department of Environmental Protection is currently in the process of reevaluating flood zones across the state, which would provide buyers and tenants with more information.

The bill also states that if a landlord violates this requirement and a tenant suffers a "substantial loss or damage to [their] personal property as a result of flooding, the tenant may terminate the lease" within 30 days of the damage occurring. It further states that the tenant may pursue all legal remedies to recover damages because of the landlord's failure to disclose this critical information.

The legislation, which is also co-sponsored by state Sen. Dick Codey (D-Essex), has been approved by the Senate Environment and Energy committee and will now be considered by the full Upper House.

You can read the bill in its entirety here.