Do You Need a Disclosure Form to Sell a House in New Jersey?

What is a seller’s disclosure?

A seller’s disclosure is typically a standard form where you outline any significant issues or notable features of the property you’re selling. It’s one of the required documents that needs to be completed before a real estate transaction can be finalized.

A material defect refers to a flaw or issue with the home, whether in its structure or systems, that could affect its value or potentially pose a safety risk. The challenge is that many of these problems aren’t always visible or easy to detect right away.

In most states, sellers are expected to inform buyers about any serious known issues with the property. While some states mandate a formal disclosure form and others are less strict, being transparent is generally required either way.

Is a seller’s disclosure required in New Jersey?

Back in July 2024, Bill S3192/A4454, also known as the Real Estate Consumer Protection Enhancement Act, was signed into law. In simple terms, the rule requires sellers to hand over a fully completed property condition disclosure statement before a buyer is officially locked into a contract.

The idea is to make things more transparent, so buyers know exactly what they’re getting into, helping them make better decisions and avoiding surprises or disputes later on. It’s a big push toward clearer, more honest transactions in real estate.

And yes, it applies broadly to residential sales, including bank-owned properties and estates, so sellers across the board need to comply.

If intentional omissions come to light during inspection or appraisal, they can jeopardize a closing.

If a seller knew about a problem, especially one that’s costly to fix or could affect the buyer’s health or safety, and it only comes out after the sale, it could end up leading to legal trouble or even a lawsuit.

That’s why top-notch agent Joanne Botwinick of Point Pleasant, New Jersey, routinely collaborates with her clients to complete the Sellers Property Condition Disclosure Statement and any auxiliary forms for additional items, if necessary.

Some forms cover specific situations, ranging from a house that’s haunted to solar panels.

Botwinick, who works with over 81% more single-family homes than the average agent in her market, says disclosures help save sellers time by filtering out the wrong buyers early on. Once buyers learn something about the property that doesn’t fit what they’re looking for, they’re likely to remove it from their list right away.

From the age of the water heater to homeowners association (HOA) restrictions, “The disclosure form helps the buyers make an educated decision as to whether they want to consider or purchase the house,” she says.

“Providing the information upfront saves the seller time and angst by reducing the chance the buyer will back out of the transaction.”

What if sellers don’t know how to answer the form?

For homeowners intimidated by the complex 117-question form, Botwinick offers simple advice: Be honest about what you know and what you don’t know.

The disclosure clearly states “the seller alone is the sole source of information,” which suggests the information is being provided by a homeowner rather than an expert in construction or a related field.

For that reason, sellers have the option of responding to the questions by marking yes, no, or unknown.

Sellers who have never lived in the home, such as those who inherited the property as part of an estate or bought it at a sheriff’s sale or as an investment, generally mark the unknown category throughout.

“Other homeowners honestly may not know information such as if their home has termites or whether the wiring is 220 or 110,” says Botwinick.

However, “A seller’s biggest mistake is not disclosing a problem,” she says, “because the home inspection will reveal it.”

What’s on the New Jersey Realtors® disclosure form?

The Seller’s Property Condition Disclosure Statement specifically asks the seller to disclose information about:

Occupancy

This section establishes the:

• Seller’s ownership of the property (with a copy of the deed attached to the disclosure)
• Home’s age
• Purchase date
• Length of time the seller has owned the property

Roof

This section reveals:

• The roof’s age
• Whether the roof has been repaired or replaced during the seller’s ownership
• Knowledge of any leaks

Attic, basement, crawl space

This section looks for any signs of water damage or moisture issues by asking about things like:

• The functioning and number of sump pumps
• Water dampness, accumulation, leaks, and mold growth in the basement, crawlspace, and other structures
• Repairs to control water issues
• Cracks or bulges in the floor or foundation walls
• Restrictions on attic usage resulting from its construction
• Whether ventilation is provided by a whole-house or attic fan, and its operability
• Whether the attic is accessible by a staircase, pull-down ladder, crawl space, etc.

Termites, wood-destroying insects, rot, pests

This part of the form requests details about whether the home has ever been inspected for and experienced damage due to termites, pests, or rot, and whether the property is currently under contract with a licensed pest control company.

Structural items

This section of the form prompts sellers to think about past and current issues with structural integrity that may threaten the health and safety of future occupants and require extensive, expensive repairs.

The sources of problems range from forces of nature, such as Hurricane Sandy, to human error or substandard construction materials.

The form asks for sellers to report:

• Movement and shifting of walls, floors, or foundation, or limitations in the use of space, resulting from how it was constructed
• Whether the property has ever experienced fire, wind, smoke, or flood damage
• The stability of driveways, walkways, patios, sinkholes, or retaining walls
• Use of fire-retardant plywood in construction
• Any present or past efforts made to repair any problems with the items in this section

Additions and remodeling

This section checks if any current or previous owners made additions or structural changes to the home, and whether those updates had the proper permits and approvals.

Plumbing, water, sewage

This section looks into the reliability of the home’s water supply, details about the water heater, and the condition of the sewage system, including:

• Whether drinking water comes from a public or community system or from the well
• If the water does not come from a municipal source, the location and age of the well, and if tests have been performed on the water, and proof of those tests
• Whether the home has a softener, filter, or other water purification system
• The energy source (gas or electric), age of the water heater, and any problems
• Whether the wastewater from the washing machine, dishwasher, or other appliance discharges to anything other than sewer, septic, or other system
• Whether the sewage is carried away from the home with a private or public sewage system, septic system, or cesspool
• If there’s an active cesspool or septic system, the date of its installation and last maintenance, and its location on the property
• Awareness of any shut-off, disconnected, or abandoned wells, underground water or sewage tanks, or dry wells on the property, and whether they were closed per municipal rules
• Any leaks, backups, or other problems relating to any of the plumbing systems and fixtures (including pipes, sinks, tubs, and showers), or any other water or sewage-related problems

Heating and air conditioning

Besides documenting the age and last maintenance date of the air conditioner, heater and furnace, or combined HVAC unit, this section reviews the home’s heating and cooling systems, including whether:

• Some sections of the home are without air conditioning or heating
• The air conditioning is provided by window units, a central system, or in zones
• There’s centralized heating or individual zones
• The heat is generated by electricity, propane, fuel oil, natural gas, etc.
• The heat is forced air, hot water or base board, radiator, or steam heat
• Any above or underground tanks used to store fuel or other substances, and a closure certificate if the tank is no longer in use

Wood-burning stoves or fireplaces

If the home has a fireplace, wood-burning stove, or insert, this section lets sellers confirm whether it works properly, if it has the right permits, and if it’s been serviced or maintained recently.

Electrical system

This section describes the:

• Wiring (copper, aluminum, etc.)
• Amp service (60, 100, etc.)
• Presence of circuit breaker and fuses
• Any wall switches, light fixtures, or electrical outlets in need of repair
• Information about whether additional work has been properly permitted and the name and address of an electrician who completed the job

Land (soil, drainage, and boundaries)

This section looks into whether the land or property has ever been or is currently affected by any negative conditions. Aside from asking if the owner has a property survey, it also checks whether sellers are aware of things like:

• Fill or expansive soil on the property
• Past or present mining operations on the property
• Whether the property is located in a flood hazard zone
• Drainage or flood problems affecting the property
• Areas of the property designated as protected wetlands
• Encroachments, utility easements, boundary line disputes, or drainage or other easements affecting the property
• Water retention basins on the property or the adjacent properties
• Any part of the property is claimed by the State of New Jersey as land
  presently or formerly covered by tidal water (riparian claim or lease grant)
• Shared or common areas (for example, driveways, bridges, docks, walls, bulkheads, etc.) or maintenance agreements regarding the property

Environmental hazards

This section is all about disclosing any known risks around the property that could affect health, safety, or how livable the home is long-term. You should be able to inform buyers about:

• Receiving written notification from any public agency or private concern regarding the property being adversely affected now or in the future by a condition that exists on or in the vicinity of this property
• Any condition on or in the vicinity of the property that now, previously, or could in the future adversely affect the quality or safety of the air, soil, water, and physical structures present on this property
• Underground storage tanks (UST) or toxic substances now or previously present on this property or adjacent property (structure or soil), such as polychlorinated biphenyl (PCB), solvents, hydraulic fluid, petro-chemicals, hazardous wastes, pesticides, chromium, thorium, lead, or other hazardous substances in the soil
• Whether the property has been tested for the presence of any other toxic substances, such as lead-based paint, urea-formaldehyde foam insulation, asbestos-containing materials, or others
• Any underground storage tank that has been tested
• Whether their property is in a designated Airport Safety Zone

Deed restrictions, special designations, homeowners associations/condominiums, and co-ops

This section covers any restrictions that could limit how the property can be used because of approvals needed from outside organizations.

For example, it looks at whether the home is in a historic district, a protected area like the New Jersey Pinelands, or somewhere that falls under special rules beyond regular local zoning laws.

If the property is part of a condominium or other common interest ownership plan, this section examines whether the seller is aware of:

• Any defect, damage, or problem with any common elements or common areas that materially affects the property
• Conditions or claims that may increase assessments or fees
• Changes to the association’s rules or bylaws that impact the property

It also indicates whether the property owner is:

• Subject to covenants, conditions, or restrictions
• Required to belong to a condominium association or HOA, or other similar organization or property owners
• Required to pay dues or assessments

Miscellaneous

The section focuses on whether the sellers are aware of:

• Existing or threatened legal action affecting the property, or their condominium or HOA
• Violations of federal, state, or local laws or regulations relating to this property
• Zoning violations, encroachments on adjacent properties, non-conforming uses, or setback violations
• Unpaid public improvement, condominium, or HOA assessments
• Zoning, housing, building, safety, or fire ordinance violations
• Mortgages, encumbrances, or liens
• Obstacles that would prevent the seller from conveying a clear title
• Material defects to the property, dwelling, or fixtures not disclosed elsewhere on the form
• Fees sellers pay on an ongoing basis with respect to this property (such as garbage collection fees), other than water and sewer charges, utility and cable TV fees, local property taxes, any special assessments, and any association dues or membership fees

Radon gas

This section gives sellers the option to either keep or waive their right to keep radon testing details confidential. If they choose to waive it, they’ll need to provide the relevant reports and share whether they know if the property:

• Has been tested for radon gas
• Has radon remediation equipment on site currently, and if that equipment is in good working order.
• Has been treated in an effort to mitigate the presence of radon gas

Major appliances and other items

This section specifies what major appliances and other features exist in the home, whether they will be left, and what condition they’re in.

• Working smoke detectors: number, battery type, location
• Working carbon monoxide detectors: number, location, operable
• Whether the in-ground pool, spa, pool heater, and above-ground pool have the proper permits and have been inspected for leaks or defects in the filter, walls, and mechanical components

This section allows the seller to indicate whether these or other items are included in the sale and are in working order:

• Electric garage door opener
• Refrigerator
• Range
• Microwave oven
• Dishwasher
• Trash compactor
• Garbage disposal
• In-ground sprinkler system
• Central vacuum system
• Security system
• Washer
• Dryer
• Intercom

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What additional information may be needed?

Sometimes, sellers may need to include extra documents to back up what’s listed on the form. For example, if they know about an underground storage tank that’s been tested, they’ll usually be asked to provide copies of the test reports or a closure certificate.

On March 20, 2024, a New Jersey law on flood risk disclosure (P.L. 2023, c.94) was implemented, requiring sellers to be upfront about any known or potential flooding issues tied to a property. In particular, you should let buyers know if your home is in a FEMA-designated flood zone (like a Special or Moderate Flood Hazard Area) and share any known history or risks of flooding. Include this information in a property condition disclosure statement before a buyer becomes legally bound to the contract.

Are you ready to sell or buy a home in New Jersey?

Selling a home in New Jersey comes with a few disclosure rules, but it’s really all about being upfront from the start. Being honest about your property not only keeps you on the right side of the law, but it also makes the whole process smoother with buyers.

It can help you avoid last-minute surprises, drawn-out negotiations, or issues after closing. When you’re unsure, it’s usually safer to just share it than deal with problems later on.

Experienced New Jersey Realtors like Botwinick consider disclosures an important element of sellers’ sales strategies.

“It makes the whole transaction and engagement easier and more transparent for both parties,” she explains.

And, it’s one of the many ways Realtors add value to sales transactions.

“The goal of the Realtor is to take stress off the seller by coming to a compromise with the buyer that creates a win-win situation for everyone,” Botwinick says.

HomeLight’s Agent Match can connect you with top-performing agents in New Jersey who have the local experience and market knowledge to successfully guide you through every step of the home-selling or buying journey, from disclosures to closing. Put a top professional in your corner.

Header Image Source: (Jonathan Roger / Unsplash)

Editor’s note: This blog post is for educational purposes only, not legal advice. If you need assistance on what to include on a home seller disclosure form in New Jersey, HomeLight encourages reaching out to a lawyer.