Bulletin: NJ2024002

Dear Associates:

As result of a recent update in NJ Administrative Code (N.J.A.C. 7:13, et. seq.), new requirements have been established regarding lands in protected flood hazard areas. The regulations allow the New Jersey Department of Environmental Protection (DEP) to require that an owner record a Deed Notice against the property. This Deed Notice would specify that all or a certain defined portion of the property lies within a flood hazard area or riparian zone and that some activities may be regulated or prohibited on the specified site or may require a flood hazard area permit. The Deed Notice would be recorded in the county land records where the property is located.

Additionally, the DEP regulations allow for the recording of violation notices against a property which the DEP determines has been the subject of unpermitted activity in a regulated area. The violation notice would also be recorded in the county land records where the property is located and should be treated as “Enforcement Notices” as defined in the ALTA 2021 forms.

The regulations allow for fines that are personal to the property owners, but the fines are not liens. It is possible for the DEP to pursue legal action against the owner which could result in an upper court judgment against the owner, which judgment would of course be a lien against the property.

If a county search picks up a recorded Violation Notice or a recorded Deed Notice, be sure that these item(s) are set up as Exceptions in Schedule B II in both the commitment and in any policies to be issued.

If the county search does not pick up any recorded Violation Notice or recorded Deed Notice, then no further action is required.

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