What New Jersey asks of a builder
before the first footing
By Justin Kelly
NJ Real Estate Broker-Salesperson
New Jersey asks a builder of owner-occupied new homes to register with the State before construction starts, and sets the new home warranty in three tiers: one year, two years and ten years. Here is what each one covers.
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
Most of what a buyer looks at on a new construction home is in front of them: the plan, the homesite, the finishes. The part that is not in front of them is what New Jersey asks of the builder before any of it goes up. It is worth knowing, because it is the same for every owner-occupied new home in the state, and because it gives you something specific to ask about.
The New Home Warranty and Builders' Registration Act is where it lives. Under the Act, a builder registers with the State before starting a new home and before offering a warranty on one. Registration comes first, before the first footing goes in the ground. It is also not a one time filing: it is renewed every two years, so a registration is a current thing rather than a historical one.
The warranty itself is set in tiers, and each tier covers something different. The first year covers materials and workmanship, which is the finish level of the house, the part you notice in the first months of living in it. The second tier runs two years and covers the mechanical systems, specifically the design and installation of heating, cooling, plumbing and electrical. Those are the systems that get used hard from the first winter on, and they carry their own window for that reason.
The longest tier runs ten years and covers major structural defects. That is the one that outlives the relationship. Ten years after closing, the people who sold you the house have moved on to other neighborhoods and you have probably stopped thinking about the build at all, which is exactly why the paperwork from the beginning still matters at the end. A structural tier that long is the reason registration is worth confirming rather than assuming.
None of this is a substitute for reading the warranty that comes with a specific home, and what any of it means for your own purchase is a question for a licensed New Jersey attorney. What it does give you is the shape of the thing and the vocabulary for it. When you are standing in a model and someone asks whether you have any questions, registration and the three warranty tiers are a good place to start.
General information about what the New Home Warranty and Builders' Registration Act says, drawn from the NJ Department of Community Affairs. 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 warranty on a new home is set in tiers, and the longest one outlives the day you move in. If you are looking at new construction in South Jersey, registration and the warranty terms are two things you can ask about by name.
