Registered home builders in the state of New Jersey are required by law to enroll in a warranty plan. This may either be the State Plan offered by NJ's New Home Warranty Program or a private warranty plan approved by the program. (Currently approved private home warranty programs can be found here).
The state warranty plan is open to all builders. If you do not enroll in a private warranty program, you will be enrolled in the state plan. The rate of the state plan is determined by the builder's warranty enrollment and dispute resolution record.
The liability of a builder under a warranty is limited by law to the purchase price of the home in the first good faith sale or the fair market value of the home on its completion date, if there is no good faith sale.
New Jersey home builders must provide a 10- year limited warranty against defects in materials, workmanship and systems for their customers.
The builder (or the warranty plan of which the builder is a member) is responsible for providing the homeowner with a full statement of warranty coverage and warranty claims procedures. No certificate of occupancy is issued unless the builder presents proof to local construction officials that the new home is covered by a warranty.
Unless it's an emergency situation or there's a major structural defect, the homeowner must wait 120 days from the commencement date of the warranty before filing a claim.
To file a claim, the homeowner must then notify the builder in writing with a list of defects found. If covered by the warranty, the builder can choose to either repair, replace or pay for the correction of the defect(s). The builder is also responsible for reasonable shelter expenses if the home is uninhabitable during the repairs.
The builder must inspect and repair the defect(s) covered by the warranty within 30 days of the homeowner’s notice. If the builder does not, the homeowner may file a formal Notice of Claim and Demand with the New Home Warranty Program. The New Home Warranty Program will then a means of claims resolution.
Additional details regarding the New Jersey New Home Warranty Plan and the claim resolution process can be found on the New Jersey Division of Community Affairs website.