Understanding Seller Disclosures in New Jersey Real Estate Transactions
Last updated: March 27, 2025

The Role of Seller Disclosures
Seller disclosures are a crucial part of real estate transactions in New Jersey. These documents provide transparency by informing buyers of any known material defects or property issues. While many sellers emphasize the benefits of their property, legally they are obligated to disclose any known problems that could affect the value or safety of the home. Accurate disclosures help protect both parties and promote a smooth transaction.

What Is a Seller Disclosure?
A seller disclosure is a written statement where the seller outlines the current condition of the property, including known past or present issues. This information helps buyers make informed decisions and reduces the risk of future disputes.

Typical disclosures include:

• Structural Problems – Issues with the roof, foundation, walls, or support systems.
• Major Systems – Known defects in electrical, plumbing, or HVAC systems.
• Environmental Hazards – The presence of asbestos, lead-based paint, mold, or other concerns.
• Water Intrusion or Drainage – Any history of leaks, flooding, or drainage issues.

Selling “As Is” Still Requires Disclosure
In New Jersey, selling a home “as is” does not eliminate the obligation to disclose known defects. While the seller may not agree to make repairs, they are still legally required to share accurate information about any material problems. Concealing issues can expose the seller to legal action.

Legal Importance of Disclosure
Sellers who fail to disclose known defects may be held liable under New Jersey law. If a buyer can prove that the seller misrepresented or concealed important facts and suffered financial harm, they may have grounds for legal recourse.

Common Disclosure Concerns
Some of the most frequently reported disclosure issues in New Jersey include:

• Water Damage or Flooding – Past leaks or basement flooding should be disclosed.
• Pest Infestations – Termites, rodents, or insects that have caused damage or required treatment.
• Septic or Sewer Problems – Issues with wastewater systems can be costly and must be reported.

Failing to disclose such concerns may result in legal claims for fraud or misrepresentation.

Protecting Sellers Through Proper Disclosure
To minimize liability, sellers should complete a detailed seller disclosure form—typically provided by a real estate agent. Being thorough and honest on this form is essential.

Sellers may also benefit from consulting a real estate attorney, especially in cases involving:

• Prior litigation involving the property.
• Known defects that may impact value.
• Clarifying complex issues like easements, permits, or prior repairs.

Conclusion
In New Jersey, seller disclosures are more than a formality—they are a legal requirement designed to ensure fairness in real estate transactions. By clearly communicating known defects, sellers protect themselves and give buyers the transparency they need to make confident decisions. Sellers who provide accurate disclosures are more likely to close smoothly and avoid future disputes.