New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 25 - REGULATIONS GOVERNING NEW HOME WARRANTIES AND BUILDERS' REGISTRATION
Subchapter 2 - BUILDER REGISTRATION
Section 5:25-2.5 - Denial, suspension, or revocation of registration

Universal Citation: NJ Admin Code 5:25-2.5

Current through Register Vol. 56, No. 18, September 16, 2024

(a) A certificate of registration may be denied, suspended, or revoked if the registrant or applicant or an officer, partner, director, or stockholder of the registrant or applicant has at any time:

1. Willfully made a misstatement of material fact in his application for registration or renewal;

2. Willfully committed fraud in the practice of his occupation;

3. Practiced his occupation in a grossly negligent manner;

4. Willfully violated the New Jersey State Uniform Construction Code to any substantial degree; or

5. Habitually or egregiously engaged in any act or omission set forth in (b)1 through 7 below.

(b) A certificate of registration may be denied or suspended, pending compliance with the Act, with this chapter and with the orders of the Commissioner, if the registrant or applicant, or an officer, partner, director, or stockholder of the registrant or applicant, has at any time:

1. Failed to continue his participation in either the State Plan or a private plan;

2. Failed or enroll or warrant any new home with either the State Plan or an approved private plan;

3. Failed to correct or settle any claim arising out of any defect after his responsibility has been established through the dispute settlement procedure of the State Plan or of a private plan, as the case may be, unless such determination is appealed and a stay of the order to correct the defect is issued by the Commissioner or by a court having jurisdiction;

4. Failed to file an amended application for or to a certificate of registration within 30 days of any material change in the information provided in the most recent application or amendment thereto;

5. Had as an officer, partner, director or stockholder any person who was serving as an officer, partner, director or stockholder of a builder that is not registered or the certificate of registration of which has been revoked or is currently suspended; provided that this paragraph shall not apply to any person who was not affiliated with such builder at the time that the incident or practice that led to revocation or suspension occurred;

6. Incurred, or been responsible for incurring, an award against the New Home Warranty Security Fund for which the fund has not been fully compensated; or

7. Failed to participate in the dispute settlement process, in which case any suspension shall continue in effect pending resolution of the dispute and full compensation for any payments made, or expenses incurred, by the Fund.

(c) A certificate of registration may be denied or revoked, or suspended, depending on the nature and severity of the violation, if the applicant or registrant, or an officer, partner, director or stockholder of the applicant or registrant, has at any time, violated any provision of the Act or of this chapter, or any order of the Commissioner, with regard to any matter not referred to in either (a) or (b) above.

(d) Whenever the Department shall find cause to deny an application for a certificate of registration, or to suspend or revoke same, it shall notify the registrant or applicant of the reasons therefor, in writing, and provide opportunity for a hearing in accordance with the Administrative Procedure Act, 52:14B-1 et seq., and the Uniform Administrative Procedure Rules, N.J.A.C. 1:1 when an appeal is filed within 15 days from the date of receipt of the notice. The Commissioner shall issue the final decision in accordance with the applicable provisions of the Administrative Procedure Act and the Uniform Administrative Procedure Rules.

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