Reed Smith Client Alerts

Key takeaways

  • Effective as of March 20, 2024, New Jersey law requires that (i) all landlords entering into or renewing any commercial or residential leases and (ii) all sellers of commercial or residential real property disclose, in writing, flood risk information with respect to the subject property.
  • The legislation requires specific disclosures to be made by landlords and sellers of real property, and the New Jersey Department of Community Affairs has recently promulgated sample forms of these disclosures.
  • Tenants have the right to terminate any lease for which the landlord has failed to make the required flood disclosures. Although purchasers of real property do not have recission rights, they have other legal and equitable remedies.
  • Commercial mortgage lenders need to be aware of the flood disclosure requirements in connection with their diligence and underwriting of loans to be secured by real property located in New Jersey.


In response to the increasing flood risks in the State of New Jersey, on July 3, 2023, New Jersey Governor Phil Murphy signed legislation creating stringent flood risk disclosure requirements applicable to landlords and sellers of commercial and residential real property in New Jersey (the “NJ Flood Disclosure Requirements”). By the enactment of the legislation, New Jersey now joins the majority of states which have mandatory flood risk disclosure requirements. The NJ Flood Disclosure Requirements include disclosures relating to (i) the property’s flood risks and (ii) the property’s flood history. As mandated by the legislation, the New Jersey Department of Community Affairs and the New Jersey Department of Environmental Protection (a) developed and made available model disclosure notices for use by landlords and sellers of real property, and (b) created a website which gives property owners, prospective tenants, and prospective buyers the tools to access flood risk information.

Disclosure Requirements – Landlords

Each landlord must provide a written notice to each tenant under any new commercial or residential lease entered into on or after March 20, 2024, and to each tenant under any commercial or residential lease which is renewed on or after March 20, 2024. Such notices must be executed prior to the execution of any lease or lease renewal. The disclosure must set forth (i) whether the property is located in either (a) the FEMA Special Flood Hazard Area (the “100-year floodplain”) or (b) the FEMA Moderate Risk Flood Hazard Area (the “500-year floodplain”), and (ii) whether 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 experienced flooding.