Closing a home without New Builder Warranty in NJ (incentive, documentation, sales)
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We are buying a new construction home in New Jersey. As per NJ state regulations the builder is supposed to provide new construction warranty for 10 years on structure, 1 or 2 years on other electricals, heat, AC etc.
Our closing is scheduled for sept 26. Everything is taken care of except the warranty documentation from seller. Builder/Seller came back today that he is anticipating delay in getting the NJ state warranty plan as NJ state needs at least 20 days after he submits the application which is just initiated (now lets not divert into why he waited till now, if possible). I am being asked if we are willing to close without the proof of warranty or if we want to wait for a month to finish up that formality as well.
question: What is the risk for me if I close without the warranty document - Can the seller evade responsibility and not provide warranty at all? NJ state websites simply states that the seller should provide the proof of warranty plan on the day of closing. Has anyone closed without getting the warranty document?
I have asked my attorney if we can add a rider to the contract stating that seller is committing to provide the plan docs in say 30 days from closing - Havent heard back yet from attorney.
I prefer to close asap as my loan rate lock expires right after scheduled closing date. Also have to vacate my current home by Sept 30th.
If it were me I would refuse to close until all the terms of the sales contract are met, period. Once you close you have lost your major incentive for seller to meet your demands, legal or not.
However you are facing serious issues with the loan lock expiring and need to vacate. I would call that "between a rock and a hard place."
Will your lender even let you close without the necessary documents?
My only similar situation I wasn't between a rock and a hard place, and refused to close until seller had met all sales contract terms.
Kalia,
I have the exact same situation and I am very confused if I defer the closing or go as planned and ask the developer to provide in writing that it will obtain the new construction warranty within 30 days of closing.
Can you share what you finally did in your case and were there any complications?
Appreciate your earliest response as my closing is today and need to respond to my attorney in couple of hours.
Kalia,
I have the exact same situation and I am very confused if I defer the closing or go as planned and ask the developer to provide in writing that it will obtain the new construction warranty within 30 days of closing.
Can you share what you finally did in your case and were there any complications?
Appreciate your earliest response as my closing is today and need to respond to my attorney in couple of hours.
OP has not been around since February 2017 so don’t hold your breath on a response.
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