USA - NEW JERSEY Law and Practice Contributed by: Steven Fleissig, David Freylikhman, Cory Mitchell Gray and David Jensen, Greenberg Traurig LLP
Flood Hazard Disclosure As to any transactions of real estate in New Jersey after 20 March 2024, the Flood Hazard Disclosure Law shall apply and names cer - tain required disclosures that must be made before a purchaser is obliged under a contract for the purchase of real estate. The disclosure must include whether the property is located in the Federal Emergency Management Agency (FEMA) Special or Moderate Risk Flood Hazard Area, as well as certain other disclosures which are listed below: • Is any or all of the property located wholly or partially in the Special Flood Hazard Area (100-year floodplain) according to FEMA’s flood insurance rate maps for the property? • Is any or all of the property located wholly or partially in the Moderate Flood Hazard Area (500-year floodplain) according to FEMA’s flood insurance rate maps for the property? • Is the property subject to any requirement under federal law to obtain and maintain flood insurance? • Has the seller received assistance, or is the seller aware of any previous owners receiving assistance, from FEMA, the US Small Busi - ness Administration, or other federal disaster flood assistance for flood damage to the property? • Is there flood insurance on the property? • Is there a FEMA elevation certificate available for the property? If so, it must be shared with the buyer. • Has seller ever filed a claim for flood damage to the property with any insurance provider, including the National Flood Insurance Pro - gram? If the claim was approved, what was the amount received? • Has the property experienced any flood dam - age, water seepage, or pooled water due to a natural flood event, such as heavy rainfall,
transfers of property. Accordingly, many require the issuance of a certificate of occupancy upon a conveyance, commonly referred to as a “CO”. Custom and practice is to contact the zoning or building office in the municipality where the property is located in order to determine the specific requirements. Each municipality will impose its own rules such as requiring the cure of violations, deferred maintenance obligations, and/or closing out open permits. The property owner usually must complete the application for inspection and issuance of the CO along with payment of a fee. 2.3 Effecting Lawful and Proper Transfer of Title In New Jersey, lawful and proper transfer of title to real estate is effectuated by execution, deliv - ery, and recordation of a proper deed with the county clerk for the county in which the subject property is located along with the payment of the applicable taxes and fees in order to perfect the transfer. The deed must be signed, acknowl - edged, and contain an adequate description of the property. The most commonly used deed is a Bargain and Sale Deed with Covenants Against Grantor’s Acts and it must include a statement, at the top of the first page, which states “Pre - pared by:” followed by the name of the New Jersey attorney that drafted the deed. In nearly all cases, a statement of the true consideration for the transfer must be recited in the deed, the acknowledgment, the proof of the execution, or an appended affidavit by one of the parties to the deed. If the conveyance is for new construction, the words “NEW CONSTRUCTION” in upper case lettering shall be printed clearly at the top of the first page of the deed and an affidavit must also be submitted.
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