How the new home warranty
works in New Jersey.
By Justin Kelly
NJ Real Estate Broker-Salesperson
New Jersey asks builders of owner-occupied new homes to sign up with the State before construction starts, and to cover each home with a warranty of one, two and ten years depending on the kind of defect.
At a glance
- The New Home Warranty and Builders Registration Act asks a builder to register with the State before starting a new home and before offering a warranty on one, and to renew that registration every two years
- The warranty runs in tiers: one year on materials and workmanship, two years on the mechanical systems, ten years on major structural defects
- The two year tier covers the design and installation of heating, cooling, plumbing and electrical
Guide
New Jersey's New Home Warranty and Builders' Registration Act covers owner-occupied new homes, including single family houses, townhouses, condominiums and modular homes. Under the Act, a builder registers with the State's New Home Warranty Program before starting a new home or offering a warranty on one, and renews that registration every two years.
The warranty comes in tiers. The first year covers materials and workmanship. The first two years cover the design and installation of the heating, cooling, plumbing and electrical systems. From the third year through the tenth, only major structural defects are covered.
The builder is the one who provides the warranty. According to the NJ Department of Community Affairs, coverage starts when the builder first transfers ownership of the home to the owner, or first lets the owner move in. The builder is responsible for giving the owner a full statement of the coverage and how to make a claim, which should happen at closing. The town also holds back the certificate of occupancy, its sign-off that the house can be lived in, until the builder shows the home is covered.
What the warranty covers on a specific home is set out in the documents that come with it. What it means for your own purchase is worth confirming with a licensed New Jersey attorney.
General information drawn from the NJ Department of Community Affairs page on builder registration and the new home warranty. Not legal advice, and not a description of any one builder or home. Written by Justin Kelly, NJ Real Estate Broker-Salesperson. More at South Jersey New Construction.
Our take
The new home warranty is set in tiers, and the longest runs ten years on major structural defects. If you are looking at new construction in South Jersey, we can represent you from the first visit through closing.
