N.J. Admin. Code § 5:25-2.1

Current through Register Vol. 56, No. 19, October 7, 2024

Section 5:25-2.1 - Registration required

(a) No individual, partnership, corporation or other business entity shall engage in the business of constructing new homes unless registered with the Department in accordance with this subchapter.

(b) No corporation, partnership, or other business entity shall be issued a registration in accordance with this subchapter nor shall they engage in the business of construction of new homes unless a stockholder, director, officer, partner or employee thereof, as the case may be, shall be listed as a builder designee in accordance with this subchapter.

(c) For the purpose of these regulations, the term "engaging in the business of construction of new homes" shall mean and include constructing any new home for sale, acting as prime contractor to construct any new home on behalf of oneself or another person or advertising or holding oneself out as constructing or being available to construct a new home or homes.

1. The term shall also mean and include the sale or transfer of title to a parcel of land to any person and the subsequent participation in the construction of a new home or any part of a new home by the seller or transferor.

2. The term shall also include a person who contracts with a general contractor or with subcontractors for the construction of a new home for the purpose of sale to an owner.

(d) Nothing herein shall be interpreted as requiring that a person who constructs a new home for his own personal use and occupancy or who contracts with a licensed architect, professional engineer or attorney to provide customary professional services in connection with said new home, be registered as a builder; nor shall a person acting as a licensed architect, professional engineer or attorney for said owner to provide customary professional services in connection with said new home, be registered as a builder. If such new homes are subsequently sold to purchaser who is not the original builder/owner, notification that the home carries no warranty shall be made at the time of title transfer and/or closing. No person shall be permitted to construct a new home for his own use and occupancy more often than once each five years without being registered as a builder, and complying with these regulations.

(e) A corporation, partnership or other business organization may be denied a certificate of registration as a builder if any stockholder, director, officer, partner, or any other person having an economic interest in the organization shall have violated any of the provisions of 5:25-2.5. The provisions of this subsection shall extend to any business organization having a parent or subsidiary relationship to any such business organization.

N.J. Admin. Code § 5:25-2.1

Amended by R.1986 d.141, effective 5/5/1986.
See: 17 N.J.R. 2816(a), 18 N.J.R. 959(a).
Added text in (c) "The term shall ... sale to a purchaser."
Amended by R.1998 d.126, effective 3/2/1998.
See: 29 N.J.R. 3916(a), 30 N.J.R. 825(a).
In (c), inserted 1 and 2 designations, and substituted a reference to owner for a reference to purchasers at the end of 2.