Requires sellers of real property to disclose presence of dams, the official text

[First Reprint]

ASSEMBLY, No. 4007

STATE OF NEW JERSEY

222nd LEGISLATURE

INTRODUCED FEBRUARY 5, 2026

Sponsored by:

Assemblyman  DAVID BAILEY, JR.

District 3 (Cumberland, Gloucester and Salem)

Assemblyman  STERLEY S. STANLEY

District 18 (Middlesex)

Senator  JOHN J. BURZICHELLI

District 3 (Cumberland, Gloucester and Salem)

Co-Sponsored by:

Assemblymen Moen and Sampson

SYNOPSIS

Requires sellers of real property to disclose
presence of dams.

CURRENT VERSION OF TEXT

As reported by the Assembly Housing Committee on June
8, 2026, with amendments.

An Act concerning disclosure of dams on real property and
supplementing P.L.1960, c.39 (C.56:8-1 et seq.).

Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:

1.    a.         A seller of
real property located in this State shall disclose, on the property condition
disclosure statement, whether a dam is located within the boundaries of the
property and any actual knowledge of the seller concerning the dam, as required
pursuant to this section, to the purchaser before the purchaser becomes
obligated under any contract for the purchase of the property.

b.    The Division of Consumer
Affairs, in consultation with the Department of Environmental Protection,
Department of Community Affairs and New Jersey Real Estate Commission, in
addition to any other question as the director deems necessary, shall add the
following specific questions and information to the property condition
disclosure statement concerning dams on a property being sold.  1The division shall revise the regulations
promulgated pursuant to subsection c. of section 1 of P.L.1999, c.76
(C.56:8-19.1) with which the property condition disclosure statement is
required to comply to incorporate the requirements of this section, but in
advance of that rulemaking the division shall make the disclosure statement
revised pursuant to this section available for use by publishing the revised
disclosure statement on the division’s website.1  The additions to the property condition
disclosure statement shall contain the heading "Disclosure of Dam
Ownership" and contain questions, and space for sellers to answer yes, no,
or unknown.  If a seller answers yes to any question, the disclosure statement
shall require the seller to explain the answer.  The disclosure statement shall
contain the following questions:

(1) Is there a dam located
wholly or partially on the property? If so, what is the hazard classification
for the dam?

(2) If current law requires
the inspection of the dam, what are the results of the most recent inspection?

(3) If there are any
obligations associated with the dam under State law for which a purchaser would
assume responsibility for, what are the obligations?

c.     The Division of
Consumer Affairs, in consultation with the Department of Environmental
Protection, shall include in the disclosure requirements and form to be
distributed to 1sellers
and1
purchasers of real property before the purchaser becomes obligated under any
contract for the purchase of the property, that the 1seller
or1
purchaser may obtain information relating to the ownership responsibilities,
removal, and hazard classification of dams by contacting the Bureau of Dam
Safety in the Department of Environmental Protection or by going to the website
that the Department of Environmental Protection shall maintain and ensure is
managed with current and scientifically supported information 1[, including
any information about dams in the State gathered through the property condition
disclosure statement,]
and linked to and published on the website of the Department of Community
Affairs.  The Department of Environmental Protection's website shall, at a
minimum, include information that helps 1[property
owners]
sellers1
provide the disclosures enumerated in this statute 1,
including notice that a seller or purchaser may contact the Bureau of Dam
Safety in the Department of Environmental Protection to help determine whether
a dam is subject to the provisions of the "Safe Dam Act," P.L.1981,
c.249 (C.58:4-8.1 et seq.) or regulations adopted under chapter 20 of Title 7
of the New Jersey Administrative Code.

d.    As used in this
section, "dam" means an artificial dike, levee or other barrier,
together with appurtenant works, which is constructed for the purpose of
impounding water, on a permanent or temporary basis, that raises the water
level five feet or more above the usual, mean, low water height when measured
from the downstream toe-of-dam to the emergency spillway crest or, in the
absence of an emergency spillway, the top-of-dam.  The term shall not include a
dam in the pinelands area, as designated by subsection a. of section 10 of
P.L.1979, c.111 (C.13:18A-11), that raises the waters of any river or stream
less than eight feet above the surface of the ground where the drainage area
above the same is less than one square mile in extent and where the water
surface created by the dam is less than 100 acres in extent1.

2.    The Department of
Community Affairs, the Department of Environmental Protection, and the Division
of Consumer Affairs may adopt, pursuant to the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as
may be necessary to implement this act.

3.    This act shall take
effect immediately and shall apply to sales and exchanges of real property
occurring on or after the 90th day next following the 1[promulgation
of regulations implementing the requirements]
publication of the revised property condition disclosure statement by the
Division of Consumer Affairs pursuant to section 11 of this
act.