New Jersey’s real estate market is dynamic, and in 2025, a number of legislative updates are shaking up how properties are bought, sold, and rented. If you’re a homeowner, investor, or aspiring buyer, understanding the top 5 real estate laws & regulations changing in New Jersey this year is more important than ever.
Below, we break down each law, how it impacts you, and what you should do to stay compliant and protected.
1. Enhanced Tenant Protection Laws Take Effect
Tenant and landlord reviewing lease agreement in New Jersey under 2025 rental protection laws
In 2025, New Jersey introduced expanded tenant protections in response to housing insecurity and rising rents. The new legislation includes:
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Minimum 90-day notice for rent increases above 5%
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Eviction diversion programs in more counties
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Limits on credit-based tenant screening
This update reinforces tenant stability, especially in urban areas like Newark and Jersey City. It builds upon the “Fair Chance in Housing Act” of 2021, which banned blanket criminal background checks in tenant screening.
NJ Fair Chance in Housing Act – State of NJ
Eviction Protection Updates – Legal Services of NJ
Why it matters: Landlords must update lease agreements and tenant screening practices. Renters now have greater legal standing against unfair practices.
2. New Mandatory Seller Disclosure Form Introduced
As of March 2025, New Jersey real estate transactions require the use of an updated Seller Property Condition Disclosure Statement (SPCDS). Key additions include:
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Disclosures for climate-related risks (flood zones, wildfire risks, etc.)
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Any prior mold remediation, structural damage, or pest infestations
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Permit records for DIY renovations
These changes bring New Jersey in line with states like California and New York that have expanded disclosure laws.
NJ Real Estate Commission – Disclosure Requirements
Why it matters: Sellers must be transparent or risk contract cancellations or lawsuits. Buyers now benefit from improved transparency, especially in coastal or flood-prone zones.
3. Short-Term Rental (STR) Licensing and Limitations
Short-term vacation rental home in Jersey City with compliance notice on door under 2025 STR laws
With the continued growth of Airbnb and Vrbo listings in vacation destinations like Cape May and Hoboken, many towns have passed or expanded local short-term rental ordinances in 2025.
Typical changes include:
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Annual STR licensing and registration with the municipality
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Minimum night stay requirements (e.g., 3-night minimum)
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Cap on the number of STRs per host or property type
For example, Jersey City now limits short-term rentals to a host’s primary residence only and requires on-site presence during stays.
Jersey City STR Ordinance
NJ STR Tax Info – NJ Division of Taxation
Why it matters: Investors and hosts must comply or face fines up to $2,500. This impacts cash flow for real estate investors in tourist-heavy areas.
4. Mandatory Energy and Flood Risk Disclosures
Eco-friendly New Jersey home with solar panels and flood risk map highlighting new disclosure laws
New statewide rules enacted in 2025 now require home sellers and landlords to disclose:
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Energy efficiency ratings or recent utility bills
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Flood risk scores, even for properties not currently in FEMA flood zones
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Installation history of green systems (e.g., solar panels, geothermal)
This aligns with New Jersey’s Energy Master Plan goals to achieve 100% clean energy by 2050 and addresses growing concerns about flooding and climate resilience.
NJ Energy Master Plan Overview
Flood Disclosure Bill S3110 – NJ Legislature
Why it matters: Buyers gain critical insight into utility costs and climate risks. Sellers should prepare documentation ahead of listing.
5. Affordable Housing Compliance & Developer Accountability
New Jersey affordable housing complex with signage highlighting 2025 compliance and zoning reforms
Municipalities and developers in New Jersey are under pressure in 2025 to meet updated affordable housing requirements under the Mount Laurel Doctrine. New enforcement includes:
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Tighter deadlines for affordable unit delivery
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Quarterly compliance reporting to the NJ Housing and Mortgage Finance Agency (HMFA)
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Public registry of towns with unmet affordable housing quotas
This reform aims to tackle New Jersey’s widening housing affordability gap.
Mount Laurel Doctrine – Fair Share Housing Center
NJ HMFA Compliance Guidelines
Why it matters: Developers who ignore mandates risk delays and legal challenges. Buyers in income-qualified brackets may benefit from expanded access to affordable housing programs.
What These Real Estate Law Changes Mean for You
Understanding the top 5 real estate laws & regulations changing in New Jersey this year is critical whether you’re a buyer, seller, landlord, or developer. These laws:
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Increase transparency and consumer protection
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Promote energy and climate resilience
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Enforce equity in housing and rental practices
As legal landscapes shift, it’s important to consult real estate professionals who stay current on local and state regulations.
Final Thoughts
New Jersey’s real estate market is evolving — and so is its legal framework. By staying informed about the top 5 real estate laws & regulations changing in New Jersey this year, you can confidently navigate transactions, protect your interests, and make better decisions.
With decades of experience and hundreds of successful transactions in Morris County, I’m here to help. Call me, Jackie Scura at 973.214.9488 or email me for more information’s.