A New Jersey residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in New Jersey Have To Disclose Property Defects?
New Jersey does require real estate sellers to disclose any material defects with a property. In most cases, this is through a standardized disclosure form approved by the state Real Estate Commission, but any disclosure which provides the required information is valid.
By mutual agreement, it may be possible to waive the use of a standard form and handle required disclosures another way. However, the seller always has a duty to disclose all material defects that are not obvious on a casual inspection of the property, even if the buyer agrees to take the property “as-is.”
Required Seller Disclosures in New Jersey
New Jersey sellers of residential real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:
- Seller’s Property Condition Disclosure Statement: New Jersey’s seller disclosure requirements are set by common law rather than by statute. A property condition disclosure statement identifies any known information that would affect the buyer’s decision if they knew about it (a.k.a., material facts about the property). While the seller must tell buyers about any known issues with the property, they are not required to hire an inspector or search for problems.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
- Flood Risk Disclosure: As of 2024, property condition disclosures must now include relevant information about local flood risk.
- Off-Site Conditions: Only essential when selling a newly constructed dwelling. Discloses how to look up nearby off-site conditions that could have an impact on the property’s worth.
- Point-of-Entry Treatment (POET) Systems: If the New Jersey Spill Compensation Fund covered the cost of installing and operating a POET system for the property being sold, the seller must inform the buyer that the system will no longer be funded upon the transfer of the home and also deliver a written notification to the Department of Environmental Protection and Energy within thirty (30) days of securing a binding sales contract.
- Private Well Testing: If the potable water source for the home being sold is provided by a private well, a test on the drinking water must be conducted and a copy of the results distributed to both the seller and buyer to be reviewed and acknowledged by both parties.
- Radon Notice: Discloses the status of any known radon hazards on the property, as appropriate.
