Registering with the New Home Warranty Program

Keeping the “sweet” in “home sweet home” is not just the concern of the buyer, but is the responsibility of the builder as well. If you are in the business of constructing owner-occupied new homes, you must register with the New Home Warranty Program. Owner-occupied homes can include:

• Single family houses
• Two family houses (duplexes)
• Factory-built houses
• Townhouses
• Co-ops
• Condominiums
• Modular residences

WHO REGISTERS?

Any individual or organization that constructs new homes for sale can be considered a builder and is required to register. This also includes anyone who:

• Acts as prime contractor to construct a new home.
• Contracts with a general contractor for construction of a new home.
• Sells or transfers title to land and then participates in the construction of a new home.

Individuals who are not considered builders and thus are not required to register include:

• Licensed architects
• Engineers
• Attorneys
• Anyone who contracts with any of the above in order to provide professional services related to the construction of a new home.

HOW TO REGISTER

Now that we are clear regarding who must register for the program, we can get down to the nitty gritty of actually registering. All who register must complete an application and submit it with a non-refundable registration fee of $200.00. This must be in the form of a check from the business or a principal of the business. In some cases, the program may require a certified check.

Corporations must provide a certificate of incorporation. Limited and general partnerships must provide a certificate of limited partnership or a general partnership agreement. Joint venture must provide a joint venture agreement.

Be sure to have all of the above paperwork is in order. Once submitted, the builder will be issued a registration card valid for two years from the approval date. Anytime a construction permit is obtained from then on, the registration card must be presented to the local construction official.

THE BOTTOM LINE

Failure to comply with any of the above can lead to fines of up to $2,000.00. Every time a new home is sold in the meantime, it will be considered a separate offense.

If you have any questions regarding the New Home Warranty Program, the purchase of a new construction or simply a home that is new to you, contact the Law Office of H. Benjamin Sharlin LLC for an initial free consultation.

The Law Office of H. Benjamin Sharlin LLC is owned and operated by H. Benjamin Sharlin and serves all of Mercer County, New Jersey and the surrounding areas. Mr. Sharlin is a bilingual Spanish-speaking attorney who vigorously represents the interests of all his clients.

Please be advised that this blog is for informational purposes only, is not legal advice and does not create an attorney-client relationship.