Here is the info I found out. When they title company ran a report they found a "cloud" on the title. It was from the 1960s. It is a tide land claim. Basically they are telling me that the state owns aproximately 16% of that lot. I have to apply for a grant and pay fair market value of that portion. I am surprised that not more of Mystic Island doesn't have this problem as it applies to any water that was filled in.
"The State of New Jersey claims ownership of these tidelands and holds them in trust for the people of the state. All tidelands are overseen by the Tidelands Resource Council, a board of twelve Governor-appointed volunteers, along with DEP staff at the Bureau of Tidelands Management.
Since tidelands are public lands, you must obtain written permission from the state and pay a fee in order to use these lands. Common uses of tidelands include docks, mooring piles, bulkheads and other fill materials. Some tidelands may be sold in the form of a Riparian Grant while others may only be rented through either a Tidelands License or Lease."