Real Estate Flood Risk Disclosure Requirements in New York, New Jersey, and Pennsylvania

New York, New Jersey, and Pennsylvania have laws regarding flood risk disclosure which goes beyond whether or not flood insurance is going to be required by a lender. Realtors, Lenders, Attorneys, Home Buyers, Sellers, Landlords, and Renters all need to know what is required. 

As the frequency and severity of major flooding events continues to rise across the country, and across the world, the importance of understanding flood risk will continue to dramatically increase.

Flood risk must be disclosed when selling or renting real estate in New York, New Jersey, and Pennsylvania. 

New York:

In New York, if you're buying or selling a property, the seller is required to disclose whether the property is located in a high risk or a medium risk flood zone. This includes information about whether the property is in a Special Flood Hazard Area (SFHA), which is a high-risk zone for flooding. The seller needs to provide this information to the buyer, typically through a disclosure form that’s part of the sales process.

New Jersey:

New Jersey has similar flood risk disclosure laws. Sellers must also let potential buyers know if a property is located in a high risk or a medium risk flood zone. This is done through a disclosure form, which helps ensure that buyers are aware of potential flood risks.

Pennsylvania:

In Pennsylvania, sellers are required to disclose flood risk information as part of the real estate transaction process. This disclosure is mandated through the Seller's Property Disclosure Statement, which includes flood risk among the material defects that sellers must reveal to prospective buyers. Pennsylvania is one of the majority of states that require sellers to disclose flood risk, with only eight states not having such a requirement87.

Summary:

In all three states, the goal is to keep buyers informed about potential flood risks. Sellers are legally required to provide clear information, which helps everyone make better decisions. It’s always a good idea to check the flood zone maps and talk to your insurance agent if you have any concerns.

It’s important for the buyer to have this information so they can take steps like getting flood insurance. It’s also good to remember that properties in higher risk flood zones may have stricter building regulations or other considerations to keep in mind.

Sellers are generally required to disclose any prior flood claims for the property. If the property has experienced flooding in the past, this is important information for the buyer, as it can affect the property’s condition, its value, and the need for flood insurance. Buyers will also want to know if the property has experienced multiple claims or serious flooding in the past, as this could indicate ongoing risk or issues with the property’s structure.

What is the difference between high risk and medium risk flood zones?

A high-risk flood zone, also known as a Special Flood Hazard Area (SFHA), is considered a 

• 100-year flood zone: This refers to areas with a 1% chance of flooding in any given year. That means that there is a 26% chance of flooding over the life of a 30-year mortgage. Properties in this zone will be required to be covered by flood insurance in order to obtain financing.

 A medium-risk flood zone is considered a 

• 500-year flood zone: This refers to areas with a 0.2% chance of flooding in any given year. Meaning that there is a 6% chance of experiencing at least one flood event during the life of a 30-year mortgage. While the risk is lower than in the 100-year flood zone, it's still a flood risk zone and must be disclosed. Flood insurance is generally not required in this zone, but it is recommended. 

Key Points:

• Sellers must disclose if the property is in 100-year or 500-year flood zones.
• 100-year zones are higher risk, while 500-year zones are lower risk.
• Previous flood claims must be disclosed, giving buyers insight into past flood events and potential risks.

These disclosures help ensure that buyers have all the information they need to make an informed decision, especially when it comes to flood risks.

New York State has recently updated its real estate flood risk disclosure requirements for both sellers and landlords, reflecting the growing concern over climate change and flooding risks. Below are the key details:

Under Section 462 of New York State’s Real Property Law, effective March 20, 2024:

• Sellers must provide a Property Condition Disclosure Statement (PCDS) that includes extensive flood-related information. This includes:

  • Whether the property is located in a FEMA-designated floodplain or special/moderate flood hazard areas (100-year or 500-year floodplain).

  • Whether flood insurance is required for the property.

  • Any history of flooding or drainage issues leading to standing water.

  • Claims for flood damage filed with insurance providers.

  • Receipt of federal disaster assistance for flood damage.

  • Availability of a FEMA elevation certificate139.

• The prior option to offer buyers a $500 credit instead of completing the PCDS has been eliminated169.

• Sellers are liable for willful non-disclosure, which can result in lawsuits and damages37.

Under Section 231-B of New York State’s Real Property Law, effective June 21, 2023:

• Landlords must disclose:

  • Floodplain status (100-year or 500-year floodplain) based on FEMA maps.

  • Known prior flood damage due to natural events like heavy rainfall or storm surges.

  • The availability of FEMA flood insurance for tenants, noting that standard renter’s insurance does not cover flood damage27.

• This applies to all new leases and renewals, including co-ops and rented condominium units27.

These laws aim to provide buyers and tenants with critical information about flood risks, enabling informed decisions about property purchases and leases. They also address long-standing concerns about transparency in real estate transactions in flood-prone areas39.

Citations:

1. https://www.harrisbeachmurtha.com/insights/new-york-revises-property-disclosure-forms-to-address-flood-risk/
2. https://coopersmith.law/nyc-flood-disclosure-laws-explained/
3. https://www.nadelassociates.com/blog/2025/01/new-york-property-disclosures-require-extensive-flood-information/
4. https://coopersmith.law/2024/01/nyc-flood-disclosure-laws-explained/
5. https://www.timesunion.com/business/article/new-law-mandates-flood-history-disclosure-new-york-19379299.php
6. https://www.lawpf.com/post/new-york-changes-to-real-property-law-requiring-disclosure-of-flood-insurance-and-elimination-of-5
7. https://www.wny-lawyers.com/2023/11/ny-landlords-and-sellers-must-disclose-flood-risks/
8. https://help.firststreet.org/hc/en-us/articles/360049236793-Learn-about-flood-risk-disclosures-and-which-states-have-them
9. https://nysba.org/breaking-news-new-rules-on-property-condition-disclosure-and-flood-risk-go-into-effect-today/

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New Jersey has implemented new flood risk disclosure requirements for real estate transactions, effective March 20, 2024. These requirements apply to both sellers and landlords of residential and commercial properties123.

Sellers must provide a Property Condition Disclosure Statement (PCDS) to purchasers before they become obligated under a contract. The PCDS must include:

• Whether the property is located in a FEMA Special Flood Hazard Area (100-year floodplain) or Moderate Risk Flood Hazard Area (500-year floodplain)12.

• Any actual knowledge of flood risks associated with the property7.

• Information about past flood damage, water seepage, or pooled water due to natural flood events2.

• Details about flood insurance coverage and claims2.

• Information about federal disaster flood assistance received2.

Landlords must provide written notice to tenants for new leases and renewals, disclosing:

• Whether the property is located in a FEMA Special or Moderate Risk Flood Hazard Area14.

• Any actual knowledge of flooding experienced by the rental premises or parking areas1.

• Tenants have the right to terminate a lease if the landlord fails to disclose that the property is in a flood hazard area24.

• Landlords may be liable for damage to tenants' property or limited access due to flooding if proper disclosures weren't made2.

• For sales, failure to make required disclosures may release the buyer from contractual obligations2.

• The law applies to both residential and commercial properties, with some exceptions for short-term rentals and small owner-occupied premises4.

These new requirements aim to provide greater transparency about flood risks in real estate transactions, helping buyers and tenants make informed decisions38.

Citations:

1. https://www.reedsmith.com/en/perspectives/2024/03/new-jersey-law-mandates-flood-risk-disclosure-for-real-estate
2. https://ansell.law/new-flood-disclosures-required-for-new-jersey-residential-and-commercial-property-sales-and-leases/
3. https://www.saul.com/insights/alert/mandatory-disclosure-rules-all-new-jersey-sellers-and-landlords-residential
4. https://www.gibbonslawalert.com/2024/05/28/effective-march-20-2024-new-flood-hazard-disclosure-requirements-on-new-jersey-property-sellers-and-landlords/
5. https://www.greenbaumlaw.com/insights-alerts-New-Jersey-Imposes-New-Flood-Hazard-Disclosure-Requirements-on-Sellers-and-Landlords.html
6. https://www.hklaw.com/en/insights/publications/2024/04/nj-legislature-expands-real-property-owners
7. https://schiller.law/understanding-new-jerseys-new-flood-disclosure-law-what-real-estate-owners-and-landlords-need-to-know/
8. https://dep.nj.gov/flooddisclosure/

Pennsylvania requires sellers to disclose known flood risks and past flooding events as part of the real estate transaction process. These requirements are enforced through the Seller’s Property Disclosure Statement, which is mandated by state law.

Key Elements of Pennsylvania’s Flood Risk Disclosure
What Is Not Required in Pennsylvania

• Disclosure of Past Flooding: Sellers must disclose any known history of flooding, regardless of when it occurred. For example, if a property last flooded in 1972, that event must be disclosed just as if it happened recently. The law requires that any known flooding be reported, not just recent incidents4.

• Explanation of Circumstances: Sellers are encouraged to provide details about the flooding, including the nature, frequency, and extent of the damage. If flooding only happened once or was limited in scope, this should be explained. Sellers should also describe any remediation or repairs that were made as a result of the flooding4.

• Amendments for New Events: If flooding or water damage occurs after the initial disclosure form is completed but before the sale is finalized, the seller must update the disclosure statement to reflect the new information4.

• Disclosure Form Sections: Flooding and water infiltration questions appear in several sections of the Seller’s Property Disclosure Statement, including:

  • Roof (water leakage from storms)

  • Structural Items (any past or present water leakage)

  • Additions/Alterations (recovery work requiring permits)

  • Water Supply (well contamination from flooding)

  • Sewage System (damage or servicing due to flood conditions)4

• No Requirement for Flood Insurance Details: Unlike some states, Pennsylvania does not require sellers to disclose whether the property is currently covered by flood insurance, the cost of premiums, or details of past insurance claims.

• No Mandate for FEMA Flood Zone Disclosure: Sellers are not specifically required to state the FEMA flood zone designation of the property, though any knowledge of being in a flood hazard area should be disclosed as a material fact35.

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