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S 3403

Requires sellers of real property to disclose presence of dams.

2026-2027 Regular Session Introduced by John Burzichelli

Sellers must disclose if a dam is on the property and share known dam hazards and obligations on the standard disclosure form for real estate sales.

Reported from Senate Committee with Amendments, 2nd Reading
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Bill Summary · S 3403

Overview

Senate Bill S 3403 (2026) from New Jersey would require sellers of real property to disclose the presence and certain details about dams located within or associated with the property. The disclosure would be made on the property condition disclosure statement provided to a prospective purchaser prior to entering into a real estate contract. The bill also directs state agencies to revise disclosure forms and provide information to assist sellers and buyers in understanding dam ownership, responsibilities, and hazard classifications.

Purpose and intent

  • To ensure prospective real estate buyers are informed about any dams that are located wholly or partially on the property.
  • To provide transparency regarding dam-related hazards, ownership responsibilities, and legal obligations that a purchaser may assume.
  • To centralize and standardize dam-related disclosures within the property condition disclosure process, leveraging state agencies to provide guidance and information.

Key provisions and changes

  • Disclosure obligation

    • A seller must disclose, on the property condition disclosure statement, whether a dam is located within the boundaries of the property and any actual knowledge the seller has about the dam.
    • The disclosure must be provided before the purchaser becomes obligated under any contract for the purchase.

  • Required questions and format

    • The Division of Consumer Affairs, with consultation from the DEP, Department of Community Affairs, and New Jersey Real Estate Commission, must add specific questions and information about dams to the standard property condition disclosure statement.
    • The revised disclosure form must include a section titled “Disclosure of Dam Ownership” with questions and space for yes/no/unknown responses. If a seller answers “yes,” the seller must explain.
    • Questions to be included (examples): 1) Is there a dam located wholly or partially on the property? If so, what is the dam’s hazard classification? 2) If current law requires dam inspection, what are the results of the most recent inspection? 3) If there are obligations under state law associated with the dam that a purchaser would assume, what are those obligations?
    • The Division must revise regulations to incorporate these dam-related requirements, but in advance of formal rulemaking, the revised disclosure statement must be published on the Division’s website for use.

  • Information and guidance for buyers/sellers

    • The disclosure form must provide information indicating where to obtain additional dam-related information, including ownership responsibilities, removal, and hazard classification.
    • The DEP’s Bureau of Dam Safety and the DEP website must be referenced as sources of current, scientifically supported information, with links to the Community Affairs website.
    • The DEP website should help sellers comply with the new disclosures and note that a seller or purchaser may contact the Bureau of Dam Safety to determine whether a dam falls under the Safe Dam Act or related regulations.

  • Definitions

    • “Dam” is defined broadly to include artificial dikes, levees, or barriers with appurtenant works that impound water, and that raise water levels by five feet or more (measured in a specified way). Exclusions apply to certain pinelands-area dams meeting specific criteria (less than eight feet rise, drainage area under one square mile, water surface under 100 acres).

  • Effective date and scope

    • The act takes effect immediately upon publication of the revised property condition disclosure statement.
    • It applies to sales and exchanges of real property occurring on or after the 90th day following publication of the revised disclosure statement.

  • Administrative authority

    • The Department of Community Affairs, Department of Environmental Protection, and Division of Consumer Affairs may adopt regulations as necessary to implement the act under the Administrative Procedure Act.

Who/what is affected

  • Real property sellers in New Jersey.
  • Real property purchasers (buyers) relying on the property condition disclosure statement.
  • State agencies: Division of Consumer Affairs, Department of Environmental Protection (DEP), Department of Community Affairs, and New Jersey Real Estate Commission.
  • The Bureau of Dam Safety within the DEP (as a source of information).
  • The general public, via the DEP and DCA websites, which will host and link to the revised disclosures and dam-related information.

Procedural and timeline aspects

  • Introduced: February 9, 2026.
  • Reported from Senate Commerce Committee with amendments: June 8, 2026.
  • Regulatory process: Agencies may adopt implementing regulations under the Administrative Procedure Act; meanwhile the revised disclosure form must be published on the Division of Consumer Affairs website for use.
  • Effective date: Immediate upon publication of the revised disclosure statement, with applicability to property transactions occurring on or after the 90th day post-publication.

Potential impacts

  • Increased transparency for buyers regarding dam-related risks and responsibilities.
  • Greater clarity for sellers on disclosure obligations and potential legal exposure related to dam information.
  • Standardization of dam-related disclosures across real estate transactions in New Jersey.
  • Enhanced access to state-maintained dam safety information and regulatory context for all parties.

Compiled from official sources — confirm details with the bill’s official record.

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