Understanding NJ Tidelands Grants vs. Leases vs. Licenses
For New Jersey title agents, tidelands issues remain one of the most misunderstood - and most consequential - state-held interests affecting real property. When an NJ tidelands claim is identified, the nature of that claim depends on whether the State has issued a tidelands grant, tidelands lease, or tidelands license. Each carries very different implications for ownership, underwriting, and marketability of title.
Understanding these distinctions is a critical part of evaluating risk during an NJ tidelands search.
The State’s Role in New Jersey Tidelands Ownership
Under New Jersey’s Public Trust Doctrine, the State retains ownership of lands formerly flowed by the mean high tide. Administration of these interests is handled primarily through the New Jersey Department of Environmental Protection (NJDEP) and the Tidelands Resource Council.
The State’s ownership interest is only altered when formal action is taken—most commonly through a tidelands grant, lease, or license. Absent one of these instruments, the State’s interest may still exist, even if it does not appear in county land records.
NJ Tidelands Grants: Transfer of State Ownership
An NJ tidelands grant is the most definitive resolution of a tidelands claim. Through a grant, the State conveys its ownership interest in tidelands to a private party.
For title agents, confirming the existence and scope of a tidelands grant is essential. Older grants can be difficult to locate and may not clearly align with present-day property descriptions, making a dedicated New Jersey tidelands search particularly valuable.
Key characteristics of New Jersey tidelands grants:
Transfer fee ownership from the State
Often issued for filled or formerly submerged lands
May pre-date modern recording or indexing systems
Frequently reference historic shorelines rather than current lot lines
NJ Tidelands Leases: Authorized Use Without Ownership
An NJ tidelands lease permits private use of state-owned tidelands while preserving the State’s ownership interest. These are commonly associated with waterfront improvements such as docks, piers, marinas, or buildings constructed on filled lands.
From a title perspective, tidelands leases often require careful underwriting review. Because the State’s interest remains intact, leases may impact insurability and frequently warrant specific policy exceptions.
Key characteristics of NJ tidelands leases:
Ownership remains with the State of New Jersey
Use is authorized for a defined term
Lease payments are typically required
Lease obligations may survive changes in property ownership
NJ Tidelands Licenses: Limited and Conditional Authorization
An NJ tidelands license provides temporary or limited authorization to use state-owned tidelands. Licenses do not convey ownership and are generally more restrictive than leases.
For New Jersey title agents, licenses indicate state involvement but offer little long-term clarity. They should be viewed as a signal of potential ongoing tidelands exposure rather than a resolution.
Key characteristics of NJ tidelands licenses:
Short-term or conditional in nature
Often issued for minor or interim uses
May be revocable or non-renewable
Do not resolve underlying tidelands ownership
Why These Distinctions Matter for New Jersey Title Agents
Knowing whether an NJ tidelands claim involves a grant, lease, or license helps title professionals:
Assess the extent of the State’s retained interest
Identify potential title exceptions early
Support underwriting decisions
Document appropriate due diligence
In New Jersey, tidelands issues are less about whether a property is waterfront today and more about historic shoreline conditions. For title agents, understanding the differences between NJ tidelands grants, leases, and licenses is essential to evaluating risk and issuing coverage with confidence.
It is also important to note that the absence of a grant, lease, or license does not necessarily mean the absence of a tidelands claim. In many cases, the State’s interest remains unresolved, making a comprehensive NJ tidelands search an important risk-management tool. The team at WTG are experts in NJ Tidelands. Order a WTG Tidelands Search today or contact us with any questions.
