A New Jersey homeowner is selling a property that was previously used as a gas station. The owner remediated the site under NJDEP oversight and received a No Further Action (NFA) letter confirming cleanup completion. The owner is now selling the property as a residential lot. Which statement best describes the seller's disclosure obligation regarding the prior environmental contamination?

Correct Answer

A) The seller must disclose the history of contamination and the remediation, including the NFA letter, because the prior use and environmental history are material facts buyers are entitled to know.

Under the New Jersey Residential Property Condition Disclosure Act (N.J.S.A. 46:3C-1 et seq.) and the general duty to disclose material facts, a seller must disclose the history of contamination and the subsequent remediation — including the existence of the NFA letter — because the prior environmental use of the property is a material fact that a reasonable buyer would consider significant. The NFA letter itself is relevant information that buyers and their lenders will want to review. Receiving an NFA letter does not erase the disclosure obligation; it is part of the environmental history that must be disclosed.