Riparian Claim and Survey, Tidelands Application, NJDEP Grant

[Kati Stratos]

Hi folks - I'm under contract on a property on the NJ shore. My other properties are in Philly, so this is my first time dealing with anything related to riparian rights and I'm feeling totally clueless. I'm wondering if anyone has had a similar experience or can offer any insight. (Yes, I've asked my agent these questions, but I made the mistake of choosing a new agent for this deal who is extremely inexperienced, has no answers, and I regret having worked with. But that's a whole separate issue and a mistake I won't make again.)

Situation (as relayed via email from title company to my agent): "A tideland search was done and it revealed an 8% riparian claim without a grant. We need to discuss further the amount of the Seller funds that will need to be escrowed in reference to the Tidelands Claim of record estimated at approximately 8% of the Property's current Assessed Land Value of $121,000. I will be filling the exhibits of a Riparian Survey and Riparian Appraisal, application fees and any related forms needed to submit the Tidelands Claim Application to the Tidelands Bureau of the NJDEP on behalf of the current property owner.I will be contacting [redacted] to authorize preparing a riparian survey based on the claim information. Once the riparian survey is received I will contact an appraiser who is familiar with the riparian appraisal process to prepare the riparian appraisal based on the riparian survey to be prepared as stated above."

My understanding: Any land that tidelands once flowed through belongs to the State of NJ. So, when they do a Tideland Search, they look for that and they estimate the amount of the area which is a "claim". That land needs to be bought from the State of NJ which is done through a Grant Application with the State of NJ. In order to estimate the claim more accurately, a Riparian Survey is done mapping out the claimed area and after that is done, the title company uses a formula to calculate the escrow to be held by the Seller to in essence purchase that land.

My questions: Does this mean it will be up to the seller to purchase the land from the state of New Jersey prior to closing? What is the general timeline for that? Are we talking a weeks-long process or a several months long process? I'm not thrilled about my money being held up in escrow if this is going to be a major delay. Are there things that could go wrong in the process? Anything I can or should be doing to mitigate risk to me and also ensure the sale moves forward efficiently?  Is this a big deal or no big deal?

I'm kindly requesting that responses please not be snarky or condescending. They sometimes are when I post here and it's super discouraging for folks who are not stupid, just may be less experienced than you. :) Thank you so much if you've taken the time to read and reply. 

[John M Chludzinski]

As a general observation on this question, the title officers that work down the shore are well versed in the process for clearing tideland claims and riparian grants and disputes.  I would rely on their expertise and advice before you put any stock in real estate agents or other folks (however well educated or experienced outside the state) who may offer advice. Any advice they may offer could be purely speculation.  I have sold homes at the shore with Riparian grants and tidelands permits in place for docks and such, and the folks in the Trenton office of the state EPA are a good resource too - that is their job.  I would stress that many times sellers are slipshod about maintaining good documentation that claims are properly recorded and docks, for example, are fully permitted.  That is where Trenton can come in handy - they maintain copies of the permits going back decades and they may have the ability to provide those when the homeowner has lost the copies.