The Importance of Tidelands Searches for NJ Real Estate
Title agencies play a crucial role in the commercial or residential real estate purchase process, performing the due diligence required to ensure a clear or clean title lawfully owned by the title holder with no claims against them by outside parties.
Title agents will conduct the crucial work that helps ensure lenders and home buyers have clarity and accuracy on the status of a property, and can avoid financial losses if problems arise with the title.
This due diligence typically includes searching for and examining encumbrances such as:
liens
easements
court judgements
bankruptcy filings
divorce decrees and more
In the State of New Jersey, however, this list must include an additional item unique to the state: Riparian Rights, addressed via a Tidelands search.
What Are Tidelands?
Tidelands, also known as Riparian Lands, are lands that are currently or formerly flowed by natural waterways. These lands are owned by the State and held in trust for the public.
“Formerly” is an important term here, because there are many areas that once flowed but have since been filled in and built over, hence there could be properties well inland, not considered part of the “shore”, that qualify as a Tideland and are claimed property of the State of NJ.
What Is A Tideland Search?
Tideland searches are an essential piece of the real estate settlement process. In many cases, the State of NJ allows individual property owners to buy, rent or lease the Riparian Lands, issuing a Tideland grant, license or lease:
A grant is issued if the State agrees to sell the property
A license is a short-term rental agreement, typically 2-5 years
A lease is a long-term rental agreement, typically 20 years
A grant is a true transfer of ownership, while licenses or leases are typically procured to address fixed structures like docks, mooring piles and boat lifts; yacht or boat club structures; even utilities-related structures like pipes or cable lines. All three items are referred to as “instruments”, and all require fees to be paid to the State.
A Tidelands Search from WTG will uncover any existing instruments and provide pinpoint accurate detailed mapping as visual proof of location on any existing Tidelands claim areas.
Understanding if a property is claimed by the NJ DEP (New Jersey Department of Environmental Protection) is extremely important. A property that is claimed essentially has a cloud on its title, one which could cost tens of thousands of dollars to address.
Why Highly Detailed Data Matters
There are maps that dictate the parcels of land where the State of New Jersey claims ownership. It is critical to leverage high-quality property data and mapping detail to have the utmost clarity on the location of property boundaries, tideland claim areas and more.
It’s even more beneficial to have access to mapping experts who can review all available data and advise on any questions or concerns. After all, depending on the map findings there may be particular conditions or exceptions that apply.
For example, The Mystic Island Development Company Grant in Little Egg Harbor, NJ is extremely specific. The grant covers select formerly flowed water-bodies in a very specific area, therefore releasing only certain lots from the State’s claim. Without a WTG Tidelands report a nuance like this could be missed, potentially costing a title agent thousands of dollars.
If a property is in fact claimed, a few detailed steps may occur as part of the process performed by a Title Agency.
For instance, if a riparian grant is issued by the State, it needs to be examined to determine if the claimed area is covered by the grant. In the event that there is no grant, or if the grant does not cover the entire claimed area, an exception for the rights of the State of New Jersey would be added to the Title Agency’s insurance commitment.
In the case of a lease or license, an agent would want to confirm that any improvements to that property are within the licensed area and that payments are current.
Why NJ Tidelands Expertise Matters
Tidelands can be a very complex issue. If a tideland grant or other conveyance is present on the property, that can open up further issues. It’s important to have the utmost clarity on the location of property boundaries, tideland claim areas and nature of the claim.
WTG is the premier provider of Tideland Searches, serving clients nationwide who are doing business in New Jersey. Moreover, our expert team in our Flood Resource Center based in NJ has expertise in current flow claim situations and trends at the NJ DEP, as well as a thorough understanding and ability to interpret grant coverages.
If you’re doing commercial or residential real estate business in New Jersey, having a trusted resource with superior mapping data and expertise is the best way to protect your title business, lending investment or home.
Click here to view a sample report, and contact us today to learn more.
The information provided is for informative purposes only and is not intended to be legal advice or a legal opinion. For legal advice, please consult an attorney.
