New Home Warranty & Builders Registration Act

The New Home Warranty and Builders’ Registration Act (NJSA 46:3B-1et seq) was enacted in 1977 to provide a broad scope for the warranty of a new home and standards for construction and quality of the structural elements and components of a new home. Basically, the law requires a builder to register with the State of New Jersey before starting construction of any new home and before offering a warranty on any new home bought and sold in the State. The law and regulations provide limited ten-year warranty coverage against defects of materials, workmanship, and systems in a new home. The law requires a builder to warrant each new home and to provide warranty follow up services: the builder is the warrantor of the home. In the event the builder does not make repairs on claims for which the builder has been found responsible, then the State New Home Warranty Security Fund covers the cost of these repairs. The law and regulations also provide a process through which the builder and the homeowner can resolve disputes over corrections of such defects. If a builder is found negligent and/or does not participate in this dispute settlement process, the builder’s registration can be suspended or revoked, thus preventing the builder from building new homes in New Jersey. (Click on above link for more info.)