New Jersey’s New Dam Disclosure Law: What Property Buyers and Sellers Need to Know

New Jersey Governor Mikie Sherrill signed Bill S3403/A4007 into law, requiring sellers to disclose the presence of dams on properties being sold in New Jersey along with information regarding the dams’ condition, inspection history, hazard classification, and ownership obligations. The law is intended to improve transparency during real estate transactions and help buyers better understand the responsibilities that can accompany dam ownership before becoming contractually obligated to buy the property.

For many, a waterbody can be an attractive property asset that enhances aesthetics, recreation opportunities, and property value. However, what is not always apparent is that the waterbody may be maintained by a dam, and ownership of that dam comes with legal, financial, and regulatory responsibilities. Because dams are regulated infrastructure, depending on their size and hazard classification, owners may be responsible for routine inspections, maintenance, repairs, emergency planning, and ongoing compliance with state regulations. In some cases, property owners do not discover the full extent of those obligations until after a real estate transaction is complete, resulting in unexpected costs and liabilities.

“Dams are critical infrastructure, but they also have long-term responsibilities. Owners can face substantial costs associated with inspections, maintenance, rehabilitation, and regulatory compliance, and those obligations often transfer with the property purchase,” explained Geoffrey M. Goll, PE, President of Princeton Hydro and NJ-licensed Professional Engineer. “This legislation helps ensure that prospective buyers understand the presence and condition of a dam so that they can evaluate those obligations upfront. Families and business owners can make informed investments while preventing unexpected liabilities, promoting public safety, and encouraging responsible stewardship of aging dam infrastructure across the state.”

The passage of S3403/A4007 follows months of advocacy led by The Nature Conservancy in New Jersey, which first proposed the legislation and worked closely with lawmakers, stakeholders, and bipartisan supporters throughout the legislative process. Through testimony, coalition building, and sustained engagement, the organization helped elevate awareness of the challenges and costs associated with dam ownership and the importance of providing prospective property buyers with clear and timely information.

“No family should learn after purchasing a home that they have also assumed responsibility for a structure that could require extensive repairs or ongoing compliance costs,” said Rebecca Hilbert, New Jersey Policy Associate at The Nature Conservancy. “By requiring transparency for buyers upfront, this legislation supports consumers, enhances public safety and helps ensure that dams affecting New Jersey’s rivers and communities are responsibly managed.”

Understanding the New Law

Section 1 of the New Jersey Dam Disclosure Law states, “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.” The law also adds specific dam-related questions to the property condition disclosure statement, including:

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?

Additionally, the law directs prospective buyers to New Jersey Department of Environmental Protection (NJDEP) resources regarding dam ownership responsibilities, dam removal, and hazard classifications to gain a better understanding of the implications of dam ownership before becoming contractually obligated or completing the sale transaction.

“Maintaining, repairing or replacing a dam can cost a lot of money. People deserve to know if they are purchasing property with a dam on it, and what obligations they have for that dam,” said Assemblyman Dave Bailey. “This bill could save a new homebuyer or business owner millions of dollars in unexpected future costs.”

Click here to read the full statutory language and implementation details of the New Jersey Dam Disclosure Law.

The Broader Impact of S3403

The law serves a broader public safety purpose. Better informed ownership can encourage compliance with dam safety requirements, timely maintenance and repairs, and informed decision-making regarding rehabilitation, dam removal, and river restoration.

These responsibilities are not insignificant. Under New Jersey’s Safe Dam Act and Dam Safety Standards (N.J.A.C. 7:20), regulated dams must be inspected by a qualified New Jersey-licensed Professional Engineer every two to four years, depending on the dam’s hazard classification. Regulated dam owners are also required to maintain an Operation and Maintenance Manual, while Hazard Class I and II dams must have a NJDEP-approved Emergency Action Plan in place. A regulated dam is generally defined as an artificial dike, levee, or barrier that raises the waters of a stream more than five feet above the usual mean low water height. Many property owners may be unaware that these requirements apply to a structure on their property until they begin exploring its regulatory status or ownership obligations, or receive a compliance letter from NJDEP.

These requirements exist to protect people, property, and the environment from the consequences of dam failures. When dams are not properly maintained, the impacts can extend far beyond the property boundary, potentially resulting in downstream flooding, property damage, environmental degradation, impacts to wildlife habitat, and, in the most severe cases, loss of life. By increasing awareness of dam ownership responsibilities before a property changes hands, the new law can help support safer, more proactive management of New Jersey’s aging dam infrastructure while reducing the likelihood of unexpected costs and obligations for future owners.

In a press release from The Nature Conservancy the organization stated, “The Nature Conservancy supported the legislation because dams can have lasting impacts on public safety, local communities and the health of New Jersey’s waterways. Ensuring property owners understand their responsibilities is an important step toward informed stewardship of dams that affect both people and nature.”

We applaud The Nature Conservancy for spearheading this effort and building the bipartisan support needed to move the legislation from concept to law. We also thank Governor Sherrill, Senator John Burzichelli, Assemblyman Dave Bailey, Assemblyman Sterley S. Stanley, and the many legislators who recognized the importance of greater transparency for New Jersey homebuyers and businesses.

Princeton Hydro has long supported proactive dam safety management, providing dam inspections, geotechnical investigations, regulatory guidance, rehabilitation planning, and dam removal services to property owners, municipalities, organizations, and regulatory stakeholders throughout New Jersey and beyond. For decades, Geoff has been a leading voice in dam safety and removal. Widely recognized for pioneering dam removal efforts in New Jersey and for his expertise throughout the United States and internationally, Geoff has spent more than thirty years evaluating dams and helping owners navigate complex regulatory and infrastructure challenges. To learn more about dam safety inspection, we invite you to read our recent blog, “A Day in the Life of a Dam Inspector: Casey Pantaleo, PE.”

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