Off-Site Conditions in NJ: Strawn v. Canuso and the Disclosure Act

The short answer: In Strawn v. Canuso, 140 N.J. 43 (1995), the New Jersey Supreme Court held that a builder-developer of residential real estate—and a broker representing that builder—must disclose known, non-obvious off-site physical conditions that materially affect habitability, use, enjoyment, value or desirability to an objectively reasonable buyer (Justia opinion). Later that year the Legislature passed the New Residential Construction Off-Site Conditions Disclosure Act (N.J.S.A. 46:3C-1 et seq.), which defines a limited list of off-site conditions, puts lists in municipal clerks' offices, and—for newly constructed homes—treats a statutory notice about those lists as full disclosure of the listed conditions (N.J.S.A. 46:3C-8; 46:3C-10).

This page is about off-site conditions on new residential construction and the Strawn case. On-site seller property-condition forms stay on our NJ seller disclosure guide. Consumer Fraud Act basics for licensees are on that CFA page.

This article explains case law and statutes for educational purposes. It is not legal advice. Buyers, sellers and licensees with a live disclosure dispute should talk to a New Jersey attorney.

What did Strawn v. Canuso decide?

Families who bought new homes in Voorhees Township sued builder-developers and the selling brokerage after learning the homes sat near the Buzby Landfill, a closed dump that had received hazardous materials. They alleged the professionals knew about the landfill and stayed silent while marketing a peaceful setting (Strawn).

The Court held that a professional seller of residential housing and its broker can be liable for nondisclosure—not only for affirmative lies—when:

1. An off-site physical condition is known to the seller/broker
2. The condition is unknown to and not readily observable by the buyer
3. The condition is material enough to affect habitability, use or enjoyment and make the property substantially less desirable or valuable to an objectively reasonable buyer

The Court limited that common-law duty to professional residential sellers and their brokers—not ordinary resellers of used homes and not commercial-property sellers. It also tied silence to the Consumer Fraud Act when a material fact is omitted with intent that others rely on the omission.

What did the Off-Site Conditions Disclosure Act change?

The Act (P.L.1995, c.253) says the Legislature wanted to define the entirety of disclosure duties for sellers of newly constructed residential real estate and to create a public repository buyers can check (N.J.S.A. 46:3C-2).

Key definitions (N.J.S.A. 46:3C-3):

So the Act is narrower than the open-ended Strawn holding: it applies to new homes and a fixed list of condition types.

Which off-site conditions are on the statutory list?

Under N.J.S.A. 46:3C-3, "off-site conditions" that may materially affect value are limited to:

1. Sites on the federal National Priorities List (CERCLA/"Superfund") as listed by DEP
2. Sites on New Jersey's master list of known hazardous discharge sites
3. Overhead electric transmission lines of 240,000 volts or more
4. Electrical transformer substations
5. Underground gas transmission lines (as defined in federal pipeline rules)
6. Large sewer pump stations (≥0.5 million gallons per day) and sewer trunk lines over 15 inches in diameter
7. Sanitary landfill facilities
8. Public wastewater treatment facilities
9. Airport safety zones under the Air Safety and Zoning Act

Traffic noise, a busy highway, a school in decline, or a neighbor's unfinished renovation are not on this list. Strawn itself said professional sellers are not required to investigate or disclose "transient social conditions" such as neighborhood change in the abstract.

How do municipal clerk lists and the seller's notice work?

• Each municipal clerk must receive and make available lists of off-site conditions inside that municipality (N.J.S.A. 46:3C-4).
• Owners/operators of certain utility and facility conditions must file and annually update those lists with the clerk (N.J.S.A. 46:3C-5). DEP-related lists for the environmental categories are handled under companion provisions of the Act.
• At contract signing for newly constructed residential real estate, the seller must give the purchaser a statutory notice that lists are available from the municipal clerk where the home sits and from clerks of municipalities within one-half mile of the property. The notice form is set out in N.J.S.A. 46:3C-8.
• The purchaser then has five business days from execution to cancel by certified mail; cancellation is effective when mailed (46:3C-8).

Does giving the notice finish the seller's off-site disclosure duty?

For the Act's covered new-construction sales, yes—as to the listed off-site conditions. Providing the notice is deemed full disclosure of those off-site conditions and a defense to claims that the seller failed to disclose them, even if the municipal lists are incomplete, late, missing or inaccurate (N.J.S.A. 46:3C-10(a)–(b)). The Act also preserves separate disclosure duties under other statutes (for example, Planned Real Estate Development Full Disclosure Act or airport-safety rules) (46:3C-10(d)).

That safe harbor is why new-construction teams treat the 46:3C notice as mandatory paperwork, not optional courtesy.

How should a new NJ agent think about this?

On a new-construction listing or sale:

• Confirm your broker's process for the 46:3C-8 notice and the five-business-day cancellation window
• Know which municipalities' clerks cover the project and the half-mile ring
• Do not invent answers about landfill or Superfund status—point buyers to the clerk lists and encourage independent due diligence (the notice itself says that)

On a resale of an existing home:

• The Off-Site Conditions Disclosure Act's "newly constructed" framework does not rewrite every resale. On-site condition forms and other rules still matter; see seller disclosure, lead-based paint and underground oil tanks
• Exam-style disclosure vocabulary is drilled on disclosures and transfer of title on the NJ exam

Never:

• Guarantee that "nothing nearby matters" because you glanced at a map
• Fill gaps in a municipal list with guesses
• Treat this page as a substitute for counsel when a buyer claims they were not told about a nearby landfill or transmission line

Disclosure rules are part of NJ pre-licensing. Business Elementary's 75-hour pre-licensing course covers the licensing and disclosure framework around them.

Sources

• Strawn v. Canuso, 140 N.J. 43 (1995) (Justia): https://law.justia.com/cases/new-jersey/supreme-court/1995/a-56-94-opn.html
• N.J.S.A. 46:3C-1 (short title): https://law.justia.com/codes/new-jersey/title-46/section-46-3c-1/
• N.J.S.A. 46:3C-2 (findings): https://law.justia.com/codes/new-jersey/title-46/section-46-3c-2/
• N.J.S.A. 46:3C-3 (definitions / listed conditions): https://law.justia.com/codes/new-jersey/title-46/section-46-3c-3/
• N.J.S.A. 46:3C-4 (municipal lists): https://law.justia.com/codes/new-jersey/title-46/section-46-3c-4/
• N.J.S.A. 46:3C-5 (provider lists): https://law.justia.com/codes/new-jersey/title-46/section-46-3c-5/
• N.J.S.A. 46:3C-8 (seller notice and 5-day cancel): https://law.justia.com/codes/new-jersey/title-46/section-46-3c-8/
• N.J.S.A. 46:3C-10 (deemed disclosure / defense): https://law.justia.com/codes/new-jersey/title-46/section-46-3c-10/
• NJDEP pointer page for the Act: https://www.nj.gov/dep/srp/siteinfo/nrcocda.htm

Last reviewed: November 5, 2026