The Nature Conservancy Applauds Governor Sherrill's Signing of Dam Disclosure Legislation

Chester, N.J. — The Nature Conservancy applauds Governor Mikie Sherrill for signing legislation requiring sellers to disclose the presence of dams on residential properties and provide information about associated ownership responsibilities before a home sale is finalized. This commonsense consumer protection measure helps ensure homebuyers have critical information about potential maintenance obligations, inspection requirements and other liabilities tied to dam ownership.

"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, TNC's policy Associate in New Jersey. "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."

The legislation was developed in response to growing concerns about homeowners unknowingly purchasing properties with dams and later discovering their responsibility for upkeep costs and regulatory requirements that in some cases can reach hundreds of thousands to millions of dollars.

"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."

“There are dams throughout the 3rd legislative district and other rural parts of the state where ownership is uncertain. Someone can buy a house and later find out they are responsible for maintaining a dam they had no idea existed," said Senator John Burzichelli. “That costs money. This bill will make sure people have a fair warning beforehand.”

The new law requires sellers to disclose whether a dam is located wholly or partially on a property and provide available information regarding hazard classifications, inspections and owner obligations. It also directs state agencies to make educational resources available to prospective purchasers.

"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 who has been inspecting dams for over three decades in the state. "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."

TNC 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.