Key Takeaways
- New Jersey has extensive environmental regulations including the Industrial Site Recovery Act (ISRA)
- ISRA requires environmental cleanup before selling or closing industrial properties
- Underground storage tank regulations are strictly enforced with disclosure requirements
- Wetlands are protected under both federal and NJ DEP regulations
- Flood zone disclosure is required and affects insurance requirements
Last updated: January 2026
Environmental Issues in New Jersey Real Estate
New Jersey has extensive environmental regulations that significantly impact real estate transactions.
New Jersey Department of Environmental Protection (DEP)
The NJDEP regulates environmental matters:
| Area | Regulation |
|---|---|
| Site remediation | Cleanup of contaminated sites |
| Water quality | Discharge permits |
| Air quality | Emissions standards |
| Wetlands | Development restrictions |
| Underground tanks | Registration and cleanup |
Industrial Site Recovery Act (ISRA)
ISRA is a critical New Jersey environmental law:
When ISRA Applies
| Trigger | Description |
|---|---|
| Sale of industrial property | Commercial/industrial sites |
| Closure of operations | Shutting down industrial use |
| Change of ownership | Stock sales, asset transfers |
| Certain lease transactions | Some commercial leases |
ISRA Process
| Step | Requirement |
|---|---|
| Applicability determination | Is ISRA triggered? |
| Environmental assessment | Investigate site conditions |
| Remediation | Clean up any contamination |
| DEP approval | Obtain no further action letter |
| Compliance | Before closing/transfer |
Exemptions and Alternatives
| Option | Description |
|---|---|
| Exemption | Some transactions exempt |
| Remediation agreement | Buyer assumes responsibility |
| Financial assurance | Bond or insurance |
| DEP approved timeline | Extended cleanup period |
Key Point: ISRA can delay or prevent industrial property transactions until environmental issues are addressed.
Underground Storage Tanks (USTs)
New Jersey has strict UST regulations:
Registration and Compliance
| Requirement | Detail |
|---|---|
| Registration | All USTs registered with DEP |
| Testing | Regular tank testing required |
| Insurance | Financial responsibility |
| Closure | Proper procedures for removal |
| Disclosure | Must be disclosed in sales |
Leaking Tanks
If contamination is discovered:
- Immediate reporting required
- Remediation may be extensive
- Property owner often liable
- Can significantly affect value
Wetlands Protection
Freshwater Wetlands Act
| Regulation | Description |
|---|---|
| Scope | All freshwater wetlands |
| Buffer zones | Transition areas protected |
| Permits | Required for development |
| Penalties | Significant fines for violations |
Development Restrictions
Development in wetlands requires:
- DEP permits
- Mitigation if approved
- Buffer zone compliance
- Environmental impact review
Flood Hazard Areas
Disclosure Requirements
| Requirement | Detail |
|---|---|
| Mandatory disclosure | Yes in NJ |
| FEMA flood zones | Must be disclosed |
| Insurance implications | Flood insurance required |
Impact on Transactions
- Buyers must be informed
- Insurance costs can be significant
- Development may be restricted
- Elevation certificates may be needed
Lead-Based Paint (Federal)
For homes built before 1978:
| Requirement | Description |
|---|---|
| EPA pamphlet | Must provide |
| Known hazards | Must disclose |
| 10-day inspection | Buyer's right |
| Form | Federal disclosure form |
Radon
New Jersey has radon awareness requirements:
- Testing recommended
- May be required by lenders
- Common in certain areas
- Disclosure if known
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Test Your Knowledge
What New Jersey law requires environmental cleanup before selling industrial property?
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Test Your Knowledge
Which agency enforces environmental regulations in New Jersey?
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Test Your Knowledge
Is flood zone disclosure required in New Jersey?
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