Bulletin: NJ000067

Dear Associates:

N.J.S.A. 58:12A-27 becomes effective on September 14, 2002. This statute provides that every contract of sale for real property shall include a provision requiring as a condition of the sale the testing of the water supply consistent with the statute where: (1) the potable water supply for the property is a private well located on the property; or, (2) if the potable water supply for the property is a well that has less than 15 service connections that does not regularly serve an average of at least 25 individuals daily at least 60 days,

The statute further provides that where such testing is required, no closing of title on the sale of the real property shall occur unless both the buyer and seller have certified in writing at closing that they have received and reviewed a copy of the test results of the potable water supply for the sale property.

As this is not a title matter, we do not believe that compliance with the new statute necessitates the addition of a requirement at Schedule B-I for compliance with the statute. However, where you are conducting the closing or providing other escrow services, we strongly suggest that you obtain a written acknowledgment showing that the buyer and seller have complied with the law. You may obtain the acknowledgment either as a separate document or by adding it to your Opinion 26 acknowledgment. We suggest the following language for the acknowledgment:

"Buyer and Seller acknowledge that each has received and reviewed a copy of the water test results pursuant to N.J.S.A. 58:12A-27, if applicable.

__________________________
Buyer

__________________________
Seller"

Please call this office if you have any questions.