Laws, Directives and Updates for Builders in New Jersey

NJ Directive 15 is a requirement mandated by the State of New Jersey that all private plan warranty administrators, including 2-10 Home Buyers Warranty (2-10), must verify that the registered Builder Member is the owner of the property that is being sold and enrolled in the private plan. This directive has been established by the New Jersey Department of Community Affairs (NJDCA). This means that the party that is selling a newly built home must be a registered home builder and a member of the private plan. This requires 2-10 to implement new verification procedures to comply with the NJDCA’s directive.

October 14, 2024. This means that all homes that a 2-10 Builder Member submits for enrollment in the 2-10 New Home Warranty Program on and after October 14, 2024, will require additional verification.

You will need to include either (a) the contract of sale or (b) the home’s deed showing that you, as the builder, are the grantor of the property being sold when you submit your home for enrollment in the 2-10 New Home Warranty Program.

In this case, you must submit to 2-10 a copy of the construction contract or a deed showing that the homeowner is the owner of the land that you’re building on.  In addition, the homeowner will need to complete and sign the New Jersey Homeowner Certification.

You will need to submit a copy of the deed to 2-10 to show that you, the Builder Member, have the deed in your name.

Every enrollment now has the capability to upload documents through the Builder Portal on the summary page following enrollment of the home.  Please upload your Directive 15 documentation there for a streamlined process for our underwriting team to process your enrollment quicker.

The NJDCA requires that any party selling a newly built home holds the title of the home. That owner/seller must have a New Jersey New Home Builder Registration that matches the membership registration with the private plan. Contact your local 2-10 Risk Management Specialist to discuss how to enroll the selling entity into the 2-10 Program.

Reach out to your local Risk Management Specialist.

John McGrath
Risk Management Specialist
848.459.9935
jmcgrath@2-10.com

Learn More About John

Phil Dunlevy
Risk Management Specialist
609.760.4669
pdunlevy@2-10.com

Learn More About Phil

Glenn Findley
Regional VP
443.717.2761
gfindley@2-10.com

Learn More About Glenn

We will need a copy of the seller’s NJ New Home Builder Registration card along with a completed 2-10 New Home Membership Application. These can all be submitted online through our website, 2-10.com/builders-warranty.

Enrollments where a home buyer is purchasing a newly built home with a transfer of title.

1. A deed showing the seller of the property is the registered home builder and the buyer of the property is the homeowner stated on the Certificate of Participation. 
   
   OR
   
   
2. A purchase/sales contract showing the company selling the property matches the company registered with 2-10 Home Buyers Warranty. 
   • The seller’s name must consistently be listed throughout the document and must be the name registered with 2-10 Home Buyers Warranty.
   • If the company name listed as the seller does not match what is registered with 2-10 Home Buyers Warranty, we cannot accept for enrollment.
   • An addendum showing one person is the owner of two different seller names will not be acceptable. The seller listed on the provided document must match the name registered with the NJDCA and 2-10 Home Buyers Warranty.
   • The contract must be fully executed by both the seller and the buyer.

Enrollments where the home buyer has contracted with the builder to build a home on land owned by the home buyer.

A certification from the land-owning home buyer AND either (a) the contract between the land-owning home buyer and the company registered with 2-10 OR (b) a current deed listing the home buyer as the owner of the land.

All closings require

• Fully completed certification from all home buyer(s) on the form provided by 2-10.
• All home buyer(s) must be listed on the Certificate of Participation.
• If using a deed, it must show the home buyer(s) are the current owner(s) of record of the land.
• If using a construction contract, it must be signed by the home buyer(s) and the 2-10 registered home builder.