Effective Date: March 20, 2024

1. Introduction
   PremierBLU is committed to complying with all applicable real estate disclosure requirements, including New Jersey’s Flood Hazard Disclosure Law enacted on July 3, 2023. This policy outlines our obligations as they relate to informing buyers and tenants of potential flood risks affecting properties involved in sale or lease transactions.
2. Applicability
   The Flood Hazard Disclosure Law applies to all real property sale, exchange, and lease transactions in New Jersey. Sellers and landlords are legally required to provide specific disclosures regarding flood risk prior to the buyer or tenant becoming contractually obligated.
3. Flood Hazard Disclosures in Sale Transactions
   For property sales or exchanges, PremierBLU ensures that all required flood-related disclosures are provided to prospective buyers before entering into a purchase agreement. These disclosures include:

• Whether the property is located wholly or partially in a Special Flood Hazard Area (100-year floodplain) as identified by FEMA
• Whether the property is located wholly or partially in a Moderate Flood Hazard Area (500-year floodplain)
• Whether the property is subject to mandatory flood insurance requirements under federal law
• Whether the seller or any prior owner has received federal disaster assistance (e.g., from FEMA or the SBA)
• Whether flood insurance currently exists for the property
• Availability of a FEMA Elevation Certificate, which must be shared if available
• Whether any flood insurance claims have been filed in the past and, if so, the amount received
• Any history of flood damage, water seepage, or pooling caused by natural flood events (including the frequency of such events)

Additionally, sellers must include a notice regarding increasing flood risks in New Jersey, with a link to resources managed by the NJ Department of Environmental Protection (DEP) and the Department of Community Affairs (DCA).

4. Flood Hazard Disclosures in Lease Transactions
   Landlords must provide similar disclosures to tenants prior to lease execution or renewal. These disclosures may be incorporated into the lease itself or presented as a separate document. Required questions include:

• Whether any part of the rental property or premises is within a Special Flood Hazard Area
• Whether any part of the rental property or premises is within a Moderate Flood Hazard Area
• Whether the rental premises or parking areas have experienced flood damage, water seepage, or pooling water from flood events, and how frequently

Failure to provide the required notice allows tenants to terminate the lease. If flooding later occurs that results in damage to personal property, habitability issues, or restricted access, tenants retain the right to pursue legal remedies.

5. Disclosure Forms
   An interim disclosure form is currently available online while final regulations are being developed. PremierBLU provides these forms in compliance with state law for both buyers and tenants, ensuring clarity and timely delivery.
6. Legal Considerations and Unresolved Questions
   While the statute mandates disclosure, several interpretive questions remain:

• The law requires disclosure based on actual knowledge, but current forms reference “best knowledge” in sales and are unclear for leases
• The standard property condition disclosure form used for residential transactions now includes flood risk disclosures and may raise concerns in “as-is” transactions
• It is unclear whether an abbreviated disclosure form focused only on flood-related questions is sufficient
• The enforceability of waivers or limitations of liability related to disclosure obligations is currently uncertain
• Questions exist around the scope of a seller’s or landlord’s duty to investigate before completing disclosure

7. Leases with Renewal Options
   Special attention must be given to existing leases that contain renewal clauses. Landlords must assess:

• Whether to send the disclosure form to all tenants with renewal options
• Whether tenants should sign an acknowledgment of receipt
• How to comply with any applicable lease notice provisions before issuing a disclosure

8. Compliance and Risk Mitigation
   PremierBLU is actively monitoring updates to the statute and guidance issued by the NJ DEP and DCA. We advise all clients involved in property transactions to review these disclosures carefully and consult with legal professionals when needed.
9. Contact Information
   If you have any questions about our Flood Hazard Disclosure practices or the related legal obligations, please contact us:

Email: [email protected]
Address: 37 Easton Ave. STE 235, New Brunswick, NJ 08901