REMINDER: Flood Disclosure Requirements in Effect

Amendments to the Truth-in-Renting Act and the Consumer Fraud Act took effect earlier this year. Those amendments require sellers and landlords to make notifications to prospective buyers and renters regarding flooding.

Covered landlords means any person who rents or leases commercial space or dwelling units, for a term of at least one-month. This includes self storage owners and operators.

Covered landlords must disclose, prior to the tenant signing a lease or lease extension, whether a property is in a FEMA Special Flood Area (“100-year floodplain) or Moderate Risk Flood Hazard Area (“500-year floodplain”) or if the landlord has actual knowledge that the rental premises or any portion of the parking areas has been subject to flooding.

NJ-SSA members may use this search tool to determine if their facility is in a flood area. 

Each tenant must be provided with notice in writing prior to signing the rental agreement. If the lease is in writing, the notice may be included in the written lease or the written lease renewal.

Here is a copy of the notice. Importantly, the notice must be provided regardless of whether the property is in a flood area.

If a landlord fails to disclose that the property is in a FEMA Special or Moderate Risk Flood Hazard Area and a tenant subsequently becomes aware that the property is in one of those areas, the tenant may terminate the lease by giving a written notice of termination to the landlord. 

No later 30 days after the termination date, the landlord must refund all rent or other amounts paid in advance under the lease for any period after the termination date of the lease.

Further, a seller of real property, including a self storage facility, must disclose on the property condition disclosure statement whether the property is located in the FEMA Special or Moderate Risk Flood Hazard Area.

Here is a copy of the seller’s required disclosure. 

NJ-SSA members who have not already done so should amend their rental agreements to include the required notice information. Alternatively, standalone notices should be sent to tenants as soon as possible.