DISCLAIMER: As a friendly reminder, this blog post is meant to be used for educational purposes only, not legal advice. If you need assistance navigating the legalities of what to disclose when selling a home in New Jersey (NJ) or using seller disclosure forms, HomeLight always encourages you to reach out to your own advisor. If you’re considering selling your New Jersey home, you’ve probably wondered what kind of disclosure forms the Garden state requires and how much you need to know about the specifics of your home to successfully close a sale. According to New Jersey Realtors, the only required disclosure form pertains to the owners’ knowledge of lead paint or paint hazards in homes constructed prior to 1978. Filled out and signed by the homeowner at the time of listing, the form verifies whether the seller has knowledge of the presence of lead-based paint or hazards on the property. That disclosure also entitles the buyers to conduct or waive a 10-day opportunity to conduct their own risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards. If the seller’s home was built in 1979 or afterward, the form is not required. The lead paint disclosure is the only form sellers must complete. In the sale of a home, New Jersey statutes — and court — assume an “implied warranty of habitability,” which means the home is fit to live in. That “common law” obligates sellers to disclose any known, concealed material defects in the home and property to the buyer. If intentional omissions come to light during inspection or appraisal, they can jeopardize a closing. If the seller’s knowledge of the problem — particularly if it requires an expensive solution or compromises the health and safety of the buyers — is revealed after the sale, it can result in lawsuits. That’s why top-notch agent Joanne Botwinick of Point Pleasant, New Jersey routinely collaborates with her clients to complete the New Jersey Board of Realtors Standard Form of Sellers Property Condition Disclosure Statement and auxiliary forms about additional items if necessary. There are forms that cover specific situations ranging from a house that’s haunted (which you don’t necessarily have to disclose upfront but must reveal if the buyer asks) to solar panels. “If you don’t have it, you can still sell the house,” she says. “But, it’s a tool that helps expedite the sale of a home.” Botwinick, who works with over 81% more single-family homes than the average agent in her market, says disclosures avoid wasting the sellers’ time with buyers who will eliminate the home from their prospect list once they become aware something about the home doesn’t meet their criteria. From the age of the water heater to 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.” For homeowners intimidated by the complex 107-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.” The New Jersey Board of Realtors form specifically asks the seller to disclose information about: This section establishes the: This section reveals: This section seeks indications of water damage or moisture problems by asking about: This part of the form requests details about whether the home has ever been inspected for and/or experienced damage due to termites, pests, or rot, and whether the property is currently under contract with a licensed pest control company. 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/or require extensive, expensive repairs. The source of problems range from forces of nature such as Hurricane Sandy to human error or materials used in construction that were later found to be substandard. The form asks for sellers to report: This section explores whether additions or structural changes were made by present or past owners and whether those changes received the necessary permits and approvals. This section explores the soundness of the home’s water source, water heater information, and sewage system including: Besides documenting the age and last maintenance date of the air conditioner, heater/furnace, or combined HVAC unit, this section reviews the home’s heating and cooling systems including whether: If the home has a fireplace, wood-burning stove, or insert, this section offers sellers the opportunity to verify the fireplace’s functionality, necessary permits, and recent maintenance records. This section describes the: This section seeks to explore whether the land and property itself have been or are currently subject to adverse conditions. Besides asking whether the owner has a survey of the property, the questions ask whether the sellers are aware of: Besides asking questions, this section asks sellers to attach documentation showing whether they are aware of: This section discusses potential limitations for the use of the property due to permission required by other organizations. For example, the section explores whether the property is subject to being located within a designated historic district, protected area such as the New Jersey Pinelands, or being subject to legal authorities other than typical local zoning ordinances. If the property is part of a condominium or other common interest ownership plan, this section examines whether the seller is aware of: It also indicates whether the property owner is: The section focuses on whether the sellers are aware of: This section allows the sellers to waive or maintain their right to confidentiality if the property has been tested and treated for radon. If they waive that right, the sellers supply appropriate reports and disclose whether they are aware of whether the property: This section specifies what major appliances and other features exist in the home, whether they will be left and their condition including: This section allows the seller to indicate whether these or other items are included in the sale and are in working order: Additional documentation may be requested to accompany and verify the basic form. For example, if they are aware of an underground storage tank that has been tested, the sellers are asked to provide a copy of each test report or closure certificate. If the sellers have lived in the property and choose not to fill out a disclosure form, they (and their agent) must still date and sign the empty form and present it to buyers (and their agent) for signature as well. With their signatures, buyers confirm they acknowledge receipt of the information and have been “cautioned to carefully inspect the property and to carefully inspect the surrounding area for any off-site conditions that may adversely affect the property.” The signature also attests to the buyer’s understanding that the disclosure “is not intended to be a substitute for prospective buyer’s hiring of qualified experts to inspect the property.” Beyond the basic disclosure regarding lead-paint hazards, New Jersey sellers are not required to fill out any disclosure forms. However, under state law, home sellers are obligated to inform buyers about any concealed material defects in the house and on the property. Experienced New Jersey Realtors like Joanne Botwinick consider disclosures to be an important element of the sellers’ sales strategy. “It makes the whole transaction and whole 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)Do sellers have to disclose anything other than lead paint hazards?
A seller’s biggest mistake is not disclosing a problem,” she says “because the home inspection will reveal it.
What if sellers don’t know the answers to the questions?
What’s on the New Jersey Realtors disclosure form?
Occupancy
Roof
Attic, basement, crawl space
Termites, wood-destroying insects, rot, pests
Structural items
Additions/remodeling
Plumbing, water, sewerage
Heating and air conditioning
Wood-burning stoves or fireplaces
Electrical system
Land (soil, drainage, and boundaries)
Environmental hazards
Deed restrictions, special designations, homeowners associations/condominiums, and co-ops
Miscellaneous
Radon gas
Major appliances and other items
What additional information may be needed?
Are you ready to sell or buy a home in New Jersey?
