New Jersey guide
Coastal Area Facility Review Act (CAFRA) — Property Restrictions and Agent Obligations
If you're buying a New Jersey home within about 1,500 feet of the ocean, tidal waters, or coastal wetlands, the property may sit in the CAFRA zone, which means the state controls what you can build, expand, or rebuild.
Reading as buyer.
TL;DR
If you're buying a New Jersey home within about 1,500 feet of the ocean, tidal waters, or coastal wetlands, the property may sit in the CAFRA zone, which means the state controls what you can build, expand, or rebuild. Before you make an offer based on renovation plans, confirm with the NJ Department of Environmental Protection whether a CAFRA permit is required, because permits can take months to years and approval is not guaranteed. If the listing agent knew the home was in the CAFRA zone and you mentioned renovation plans, they were supposed to tell you, so undisclosed CAFRA restrictions can support a consumer fraud claim after closing.
Before you start — 7 things to know
A property within roughly 1,500 feet of the Atlantic Ocean, tidal waters, or coastal wetlands in New Jersey may fall inside the CAFRA zone, which puts new construction and major changes under NJ Department of Environmental Protection permitting jurisdiction.
A buyer can check whether a specific New Jersey address is inside the CAFRA zone for free using the NJ DEP's online CAFRA zone map at nj.gov/dep/landuse before writing an offer.
Adding a second story, expanding the footprint, or demolishing and rebuilding a CAFRA-zone home each require a CAFRA permit from the NJ Department of Environmental Protection, and approval is never automatic.
A CAFRA permit application can take months to years to process, so a buyer planning renovations should price both the permit timeline and the chance of denial into the offer.
A CAFRA-zone home built before the Coastal Area Facility Review Act took effect in 1973 may be a pre-existing non-conforming structure, but rebuilding after more than 50% destruction requires full CAFRA compliance.
Oceanfront and waterfront New Jersey properties may also be subject to the Coastal Wetlands Act, the Tidelands Act, and riparian rights rules that can change where the legal property line actually sits.
Under New Jersey's Strawn common-law duty, a listing agent who knows a home is in the CAFRA zone and hears the buyer mention renovations is expected to disclose the CAFRA permitting requirement, and silence can later support a consumer fraud claim.
The timeline — step by step
Before making an offer, look up the New Jersey address on the NJ DEP's CAFRA zone map at nj.gov/dep/landuse to see if the property sits inside the regulated coastal area.
If the home is inside the CAFRA zone and the buyer plans renovations, ask the listing agent in writing whether the seller knows of CAFRA restrictions and request any existing CAFRA permits or denial letters during attorney review.
During the buyer's New Jersey attorney review period, hire a CAFRA-experienced attorney or environmental permit consultant to evaluate whether the renovation plan is actually permittable.
Before removing the inspection or feasibility contingency, get a written feasibility opinion on CAFRA permitting so the buyer can walk away if the renovation plan is not viable.
At closing, keep copies of the CAFRA zone map result, the seller's disclosure package, and any consultant opinions in case a future New Jersey consumer fraud claim becomes necessary.
Common questions
How do I tell if a New Jersey home I want to buy is in the CAFRA zone?
Do I need a CAFRA permit if I only want to remodel the inside of a CAFRA-zone home?
What happens if a storm destroys more than half of a CAFRA-zone home I buy?
Can I sue the seller or their agent if they hid a CAFRA restriction from me?
How long does a CAFRA permit actually take to get?
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