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New Jersey law requires that all individuals or businesses who solicit and/or perform home improvement work must obtain registration from the Division of Consumer Affairs. The registration application requires demonstration that the contractor has a legitimate street address and at least $500,000 in liability insurance. Year after year, “Home Improvements” has been the largest complaint category that consumers have filed with the Division of Consumer Affairs. Each contractor also may contest the Division’s assessment of consumer restitution.
The New Jersey Contractor’s Registration Act requires that all home improvement contractors register with the N.J. Division of Consumer Affairs and display their registration number known as NJHIC#. Throughout 2014, Consumer Affairs’ investigators focused on protecting homeowners, with over 130 Notices of Violation issued for not meeting requirements of the Home Improvement Contractors’ Registration Act and Consumer Fraud Act. We do our best to calculate your filing fees upfront and collect those fees today so we can get started. Your specialist will determine your exact filing fees and invoice additional fees if required.
Licenses
If the homeowner files a lawsuit against the contractor for failing to comply with the home improvement contract regulations the contractor will face exposure of triple damages under the New Jersey Consumer Fraud Act. A statement of any guaranty or warranty with respect to any products, materials, labor or services made by the seller. Ensure that all applicable construction permits are obtained by the contractor, from the appropriate municipality. Is incapable, for medical or any other good cause, of discharging the functions of a licensee in a manner consistent with the public’s health, safety and welfare. OPRA is a state law that was enacted to give the public greater access to government records maintained by public agencies in New Jersey.
Oversee licenses, track renewals, access documents, and more from a single interface. A list of county Clerks Offices can be found at /state/archives/catcounty.html/. The Building Contractor Checklist covers key items that you may consider when starting your business.
Start
Although great efforts are made to keep these guides as accurate as possible, they are primarily for informational purposes. Specific details about your business may require additional or more specialized assistance. You are encouraged to consult with an attorney and accountant for legal and tax advice. The first step in starting a business is writing a well-considered, comprehensive business plan.
Any person, whether a sole proprietorship, partnership, corporation, limited liability company or any other type of business organization that is engaged in the business of selling or making home improvements is considered a home improvement contractor for the purposes of the Act. We track the following licenses with the New Jersey Department of Consumer Affairs - Home Improvement Contractor Section in order to provide compliance services to our clients. As a client, you see this and other reference data in License Managerin-line with your licenses.
Home Improvement Contracts: An Overview of New Jersey Regulatory Requirements
Get a head start on the planning process by knowing upfront what to expect so you don't run into unexpected surprises that may delay your grand opening. It also is advisable to ask the contractor for references and speak with those references about the contractor`s work.
Contracts for home improvement projects costing $500 or more must be in writing. They must include the legal name, business address, and registration number of the contractor as well as a start date, completion date, description of the work to be done, and the total price. To advertise and perform home improvement work legally in New Jersey, contractors must register with the New Jersey Division of Consumer Affairs. The Division has directed 62 of the contractors to pay a total of $1,046,978 in consumer restitution, in amounts ranging from as little as $378 to as much as $185,000, for allegedly failing to complete work that consumers had paid for in advance, failing to refund deposits, or other issues.
The 35 contractors cited today have been directed to pay a total of $438,176.41 in restitution to consumers, in amounts ranging from $1,500 to $68,405, for allegedly failing to complete work that consumers had paid for in advance, failing to refund deposits, or other issues. In total, 35 contractors were cited for $570,000 in consumer restitution and penalties due to alleged violations. The New Jersey Division of Consumer Affairs today announced that, during the fourth quarter of 2014, it has issued Notices of Violation to 35 contractors, seeking $567,676.41 in consumer restitution and civil penalties, including . "Home improvement disputes are consistently the number-one consumer complaint category the Division of Consumer Affairs receives year after year," Acting Attorney General John J. Hoffman said. "With this action we are demanding more than $1 million in restitution for consumers who paid for work that allegedly was never finished. We also are giving these contractors the opportunity to come into compliance with the law, and reminding New Jersey consumers to protect themselves by conducting basic research before hiring a contractor." Harbor Compliance is not acting as your attorney and does not review information you provide to us for legal accuracy or sufficiency.
The Division has cited all 68 contractors for violations of New Jersey’s Contractor’s Registration Act, such as failure to provide consumers with detailed, written contracts for home improvement projects costing more than $500. In addition, 44 of the companies have also been cited for operating without being registered as home improvement contractors in New Jersey. The State has assessed a total of $276,250 in civil penalties against the 68 contractors, for a combined total assessment, including civil penalties and consumer restitution, of more than $1.3 million.
A home repair contractor who deals strictly in cash installment payments over a period of 90 days or less or accepts credit card payments does not need to obtain this license. All Home Improvement Contracts in excess of $500, and all changes in the terms and conditions of the contract, must be in writing. It also is advisable to ask the contractor for references and speak with those references about the contractor’s work. Make sure all warranties and guarantees are in writing, and that the contract states the name brands or quality/grades of the materials to be used. • any evidence of rehabilitation including, among other things, good conduct in prison or in the community, counseling, or psychiatric treatment received.
Each contractor also may contest the Division`s assessment of consumer restitution. Consumer Affairs investigators cited 22 of the 31 contractors for not being registered with the Division as legally required. To become registered, a contractor must disclose the physical location of the business and provide proof of having a minimum of $500,000 in liability insurance, among other requirements. The 31 contractors issued Notices of Violation have been directed to pay a total of $266,526.60 in restitution to consumers, in amounts ranging from $400 to $81,050, for allegedly failing to complete work that consumers had paid for in advance, failing to refund deposits, or other issues.
If you're thinking about setting up a business as a home improvement contractor, start here for a checklist of items to consider and permits that you may need to obtain to get your business off the ground. Please note that this guide does not substitute for legal or professional advice, and additional permits may be required depending on the circumstances of your business. You should not construe or consider anything on this website as legal advice, and you should consult with an attorney for advice on your specific legal issues. This web site does not create, and your viewing of it does not constitute, an attorney-client relationship between you and Didieo Law Firm, LLC. You should not act upon any information on this website without seeking advice from a lawyer licensed in your state or country. We and all other attorneys who provide bankruptcy assistance are "debt relief agencies". We help people file for bankruptcy relief under 11 U.S.C., the Bankruptcy Code.
The Division will continue to take such actions against allegedly unregistered and/or otherwise non-compliant home improvement contractors throughout the year, in order to protect New Jersey’s consumers. Violators of the Contractors’ Registration Act are subject to civil penalties of up to $10,000 for the first violation, and up to $20,000 for subsequent violations. Before hiring the contractor, demand a copy of the contractor`s liability insurance policy and contact the insurer to learn whether the policy is valid. Violators of the Contractors` Registration Act are subject to civil penalties of up to $10,000 for the first violation, and up to $20,000 for subsequent violations.
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