Law Office Of Paul DePetris
paul@newjerseylemon.com

New Jersey Home Improvement Fraud

INTRODUCTION
Read below to learn more about this topic.  Or, to receive a no cost phone consultation, call Mr. DePetris at 609-714-2020 or send him an email.  Warning – this article does not necessarily include every New Jersey court rule, code or law that may apply to your New Jersey case!  The Law Office of Paul DePetris does not guarantee that the statutes, rules, codes, files or forms on this website are the latest versions, that they lack typographical errors or that they have not changed, repealed or superseded by other laws.  Before taking any action, read all applicable federal and state source law and case law and consult with an attorney.  Court addresses, hours of operation and directions may change so check with the court in advance of mailing documents to court or going there!  Some of the webpages on this site don’t apply to all types of New Jersey cases, since there are different rules for different case types!


NEW JERSEY HOME IMPROVEMENT FRAUD 


WHAT IS NEW JERSEY HOME IMPROVEMENT FRAUD?
New Jersey home improvement fraud occurs when a New Jersey home improvement contractor - a person or business making or selling home improvements – commits certain types of misconduct against their customers.  For most New Jersey homeowners, a home is the greatest single investment and many   New Jersey homeowners hire New Jersey home improvement contractors to renovate or repair or improve the New Jersey homeowners’ home.   Many New Jersey homeowners become the victims of New Jersey home repair fraud.  There are many types of New Jersey home improvement fraud cases.  Some New Jersey home improvement fraud cases involve specific violations of New Jersey home improvement regulations or New Jersey home improvement laws, while others involve less obvious types of misconduct.  For example, the New Jersey Consumer Fraud Act is a powerful law that regulates New Jersey home improvement contractors that sell New Jersey home improvement services to New Jersey homeowners.  New Jersey Consumer Fraud in New Jersey home improvement contracts is a very serious problem, causing many New Jersey homeowners financial losses and inconvenience.


NEW JERSEY HOME IMPROVEMENT UNCONSCIONABLE COMMERCIAL PRACTICES
New Jersey home improvement fraud may involve an unconscionable commercial practice -- an activity in the public marketplace, which is basically unfair or unjust, which materially departs from standards of good faith, honesty in fact and fair dealing.


NEW JERSEY HOME IMPROVEMENT DECEPTION
New Jersey home improvement fraud may involve conduct or an advertisement which is misleading to an average New Jersey homeowner to the extent that it is capable of and likely to mislead an average New Jersey homeowner.  It does not matter that, at a later time, it could have been explained to a more knowledgeable and inquisitive New Jersey homeowner, nor need the conduct or advertisement actually have misled the New Jersey homeowner.  It is not important that the New Jersey home improvement contractor  may have acted in good faith.  Instead, it is the capacity to mislead that is important.


NEW JERSEY HOME IMPROVEMENT FRAUDULENT CONDUCT
New Jersey home improvement fraud may involve the commission of fraudulent conduct -- a perversion of the truth, a misstatement or a falsehood communicated to another person and creating the possibility that that other person will be cheated.


NEW JERSEY HOME IMPROVEMENT FALSE PRETENSE 
New Jersey home improvement fraud may involve a false pretense -- an untruth knowingly expressed by a New Jersey home improvement contractor.  


NEW JERSEY HOME IMPROVEMENT FALSE PROMISE
New Jersey home improvement fraud may involve a false promise -- an untrue commitment or pledge, communicated to a New Jersey homeowner to create the possibility that the New Jersey homeowner will be misled.


NEW JERSEY HOME IMPROVEMENT MISREPRESENTATION
New Jersey home improvement fraud may involve a misrepresentation -- a statement made to deceive or mislead.  In this type of New Jersey home improvement fraud, a New Jersey home improvement contractor makes an untrue statement to the New Jersey homeowner about a fact which is important or significant to a New Jersey home improvement sale or advertisement and which is communicated to the New Jersey homeowner to create the possibility that the New Jersey homeowner will be misled.  


NEW JERSEY CONSUMER FRAUD HOME REPAIR KNOWING OMISSION VIOLATIONS
New Jersey home improvement fraud may involve an omission –  a New Jersey home repair contractor, New Jersey home improvement contractor or New Jersey seller of New Jersey home improvements’ failure to do something that the law requires be done.  Omissions that violate the New Jersey Consumer Fraud Act consist of any of the following:
knowing concealment of any material fact from the New Jersey homeowner.
suppression of any material fact from the New Jersey homeowner.
omission of any material fact from the New Jersey homeowner.


NEW JERSEY CONSUMER FRAUD PER SE HOME REPAIR VIOLATONS
New Jersey home improvement fraud may involve the violation of New Jersey Consumer Fraud Home Improvement Regulations or violations of the New Jersey Contractors’ Registration Act.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MAKING MODEL HOME MISREPRESENTATIONS 
Under the New Jersey home improvement regulations, the New Jersey home improvement contractor cannot misrepresent or falsely state to a prospective buyer that the buyer's residential or noncommercial property is to serve as a "model" or "advertising job", or use any other prospective buyer lure to mislead the New Jersey homeowner into believing that a price reduction or other compensation will be received by reason of such representations.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MAKING PRODUCT AND MATERIAL MISREPRESENTATIONS
Under the New Jersey home improvement regulations, the New Jersey home improvement contractor cannot misrepresent directly or by implication that products or materials to be used in the home improvement: 
i. Need no periodic repainting, finishing, maintenance or other service;
ii. Are of a specific or well-known brand name, or are produced by a specific manufacturer
or exclusively distributed by the seller;
iii. Are of a specific size, weight, grade or quality, or possess any other distinguishing characteristics
or features;
iv. Perform certain functions or substitute for, or are equal in performance to, other products
or materials;
v. Meet or exceed municipal, state, federal, or other applicable standards or requirements;
vi. Are approved or recommended by any governmental agency, person, firm or organization,
or that they are the users of such products or materials;
vii. Are of sufficient size, capacity, character or nature to do the job expected or represented;
viii. Are or will be custom-built or specially designed for the needs of the New Jersey homeowner; or
ix. May be serviced or repaired within the New Jersey homeowner's immediate trade area, or be maintained with replacement and repair parts which are readily available.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S ENGAGING IN BAIT SELLING
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot offer or represent specific products or materials as being for sale, where the purpose or
effect of the offer or representation is not to sell as represented but to bait or entice the
buyer into the purchase of other or higher priced substitute products or materials.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MAKING DISPARAGING, DEGRADING OR OTHERWISE DISCOURAGING REMARKS ABOUT THE PURCHASE OF PRODUCTS OR MATERIALS OFFERED OR REPRESENTED BY THE SELLER AS BEING FOR SALE BY THE NEW JERSEY HOME IMPROVEMENT CONTRACTOR
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot disparage, degrade or otherwise discourage the purchase of products or materials offered
or represented by the seller as being for sale to induce the New Jersey homeowner to purchase
other or higher priced substitute products or materials.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S REFUSAL TO SHOW, DEMONSTRATE OR SELL PRODUCTS OR MATERIALS
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot refuse to show, demonstrate or sell products or materials as advertised, offered, or represented
as being for sale.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MAKING A SUBSTITUTION OF PRODUCTS OR MATERIALS
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot substitute products or materials for those specified in the home improvement contract,
or otherwise represented or sold for use in the making of home improvements by sample,
illustration or model, without the knowledge or consent of the New Jersey homeowner.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S FAILURE TO HAVE PRODUCT MEET DEMANDS
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot Fail to have available a quantity of the advertised product sufficient to meet reasonably
anticipated demands or misrepresent that certain products or materials are unavailable or that there will be a long delay in their manufacture, delivery, service or installation in order to induce a
buyer to purchase other or higher priced substitute products or materials from the seller.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S DECEPTIVELY GAINING ENTRY INTO A HOME 
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot deceptively gain entry into the prospective buyer's home or onto the New Jersey homeowner's property under the guise of any governmental or public utility inspection, or otherwise misrepresent
that the seller has any official right, duty or authority to conduct an inspection.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MISREPRESENTATIONS THAT OTHERS WILL ASSUME OBLIGATIONS UNDER THE NEW JERSEY HOME IMPROVEMENT CONTRACT
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot misrepresent that the seller is an employee, office or representative of a manufacturer,
importer or any other person, firm or organization, or a member of any trade association, or that such person, firm or organization will assume some obligation in fulfilling the terms of the New Jersey home improvement contract.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MISREPRESENTATIONS AS TO STATUS AUTHORITY OR POSITION IN AN ORGANIZATION
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot misrepresent the status, authority or position of the sales representative in the organization
he represents.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MISREPRESENTATIONS AS TO RELATIONSHIP TO PARTICULAR SELLER
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot misrepresent that the sales representative is an employee or representative of or works
exclusively for a particular seller.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MISREPRESENTATIONS AS TO AFFILIATION WITH GOVERNMENT OR PUBLIC AGENCY
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot misrepresent that the seller is part of any governmental or public agency in any printed
or oral communication including but not limited to leaflets, tracts or other printed material,
or that any licensing denotes approval by the governmental agency.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MISREPRESENTATIONS AS TO GIFT OFFERS
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot offer or advertise any gift, free item or bonus without fully disclosing the terms or conditions
of the offer, including expiration date of the offer and when the gift, free item or bonus will be given or
fail to comply with the terms of such offer.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S PRICE AND FINANCING MISREPRESENTATIONS
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot:
 i. Misrepresent to a prospective buyer that an introductory, confidential, close-out, going
out of business, factory, wholesale, or any other special price or discount is being given,
or that any other concession is made because of a market survey or test, use of materials
left over from another job, or any other reason; 
ii. Misrepresent that any person, firm or organization, whether or not connected with the
seller, is especially interested in seeing that the prospective buyer gets a bargain, special
price, discount or any other benefit or concession;
iii. Misrepresent or mislead the prospective buyer into believing that insurance or some
other form of protection will be furnished to relieve the New Jersey homeowner from obligations under the
contract if the New Jersey homeowner becomes ill, dies or is unable to make payments;
iv. Misrepresent or mislead the New Jersey homeowner into believing that no obligation will be incurred because of the signing of any document, or that the New Jersey homeowner will be relieved of some or all obligations under the New Jersey home improvement contract by the signing of any documents;
v. Request the New Jersey homeowner to sign a certificate of completion, or make final payment on the New Jersey home improvement contract before the home improvement is completed in accordance with the terms of the
contract;
vi. Misrepresent or fail to disclose that the offered or contract price does not include delivery
or installation, or that other requirements must be fulfilled by the New Jersey homeowner as a condition
to the performance of labor, services, or the furnishing of products or materials at
the offered or contract price;
vii. Mislead the prospective buyer into believing that the down payment or any other sum
constitutes the full amount the New Jersey homeowner will be obligated to pay;
viii. Misrepresent or fail to disclose that the offered or contract price does not include all financing
charges, interest service charges, credit investigation costs, building or installation
permit fees, or other obligations, charges, cost or fees to be paid by the New Jersey homeowner;
ix. Advise or induce the New Jersey homeowner to inflate the value of the New Jersey homeowner's property or assets, or to misrepresent or falsify the New Jersey homeowner's true financial position in order to obtain credit; or x. Increase or falsify the New Jersey home improvement contract price, or induce the New Jersey homeowner by any means to misrepresent or falsify the New Jersey home improvement contract price or value of the home improvement for financing purposes or to obtain additional credit.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S NONPERFORMANCE OF CERTAIN OBLIGATIONS UNDER THE NEW JERSEY HOME IMPROVEMENT CONTRACT
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot: 
i. Deliver materials, begin work, or use any similar tactic to unduly pressure the New Jersey homeowner into a home improvement contract, or make any claim or assertion that a binding contract
has been agreed upon where no final agreement or understanding exists;
ii. Fail to begin or complete work on the date or within the time period specified in the
home improvement contract, or as otherwise represented, unless the delay is for reason
of labor stoppage; unavailability of supplies or materials, unavoidable casualties, or any
other cause beyond the seller's control. Any changes in the dates or time periods stated
in a written contract shall be agreed to in writing; or
iii. Fail to give timely written notice to the New Jersey homeowner of reasons beyond the seller's control for any delay in performance, and when the work will begin or be completed.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S DISPARAGEMENT OF COMPETITORS
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot: 
i. Misrepresent that the work of a competitor was performed by the seller;
ii. Misrepresent that the seller's products, materials or workmanship are equal to or better
than those of a competitor; or
iii. Use or imitate the trademarks, trade names, labels or other distinctive marks of a competitor.
9. Sales representations:
i. Misrepresent or mislead the New Jersey homeowner into believing that a purchase will aid or help some
public, charitable, religious, welfare or veterans' organization, or misrepresent the extent
of such aid or assistance;
ii. Knowingly fail to make any material statement of fact, qualification or explanation if the
omission of such statement, qualification or explanation causes an advertisement, announcement,
statement or representation to be false, deceptive or misleading; or
iii. Misrepresent that the customer's present equipment, material, product, home or a part
thereof is dangerous or defective, or in need of repair or replacement.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S OBLIGATIONS PERTAINING TO PERMITS
Under the New Jersey home improvement regulations, a New Jersey home improvement contractor cannot: 
i. commence work until he is sure that all applicable state or local building and construction permits have been issued as required under state laws or local ordinances; or
ii. Where midpoint or final inspections are required under state laws or local ordinances,
copies of inspection certificates shall be furnished to the New Jersey homeowner by the seller when construction is completed and before final payment is due or the signing of a completion slip
is requested of the New Jersey homeowner.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MANDATORY WARRANTY DISCLOSURES Under the New Jersey home improvement regulations, a New Jersey home improvement seller shall furnish the New Jersey homeowner a written copy of all guarantees or warranties made
with respect to labor services, products or materials furnished in connection with home
improvements. Such guarantees or warranties shall be specific, clear and definite and
shall include any exclusions or limitations as to their scope or duration. Copies of all
guarantees or warranties shall be furnished to the New Jersey homeowner at the time the seller presents
his bid as well as at the time of execution of the New Jersey home improvement contract, except that separate guarantees or warranties of the manufacturer of products or materials may be furnished at the
time such products or materials are installed.


REQUIREMENT THAT CERTAIN NEW JERSEY HOME IMPROVEMENT CONTRACTS BE IN WRITING
Under the New Jersey home improvement regulations, all home improvement contracts for a purchase price in excess of $500.00, and all changes in the terms and conditions thereof shall be in writing. Home improvement contracts which are required by this subsection to be in writing, and all changes in the terms and conditions thereof, shall be signed by all parties thereto, and shall clearly and accurately set forth in legible form and in understandable language all terms and conditions of the New Jersey home improvement contract, including, but not limited to, the following: 
i. The legal name and business address of the seller, including the legal name and business
address of the sales representative or agent who solicited or negotiated the New Jersey home improvement contract
for the seller;
ii. A description of the work to be done and the principal products and materials to be used
or installed in performance of the New Jersey home improvement contract. The description shall include, where applicable,
the name, make, size, capacity, model, and model year of principal products or fixtures
to be installed, and the type, grade, quality, size or quantity of principal building or
construction materials to be used. Where specific representations are made that certain
types of products or materials will be used, or the New Jersey homeowner has specified that certain types
of products are to be used, a description of such products or materials shall be clearly
set forth in the New Jersey home improvement contract;
iii. The total price or other consideration to be paid by the New Jersey homeowner, including all finance
charges. If the New Jersey home improvement contract is one for time and materials, the hourly rate for labor and all
other terms and conditions of the New Jersey home improvement contract affecting price shall be clearly stated;
 iv. The dates or time period on or within which the work is to begin and be completed by
the seller;
v. A description of any mortgage or security interest to be taken in connection with the financing
or sale of the home improvement; and
vi. A statement of any guarantee or warranty with respect to any products, materials, labor
or services made by the seller.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S MAKING MANDATORY DISCLOSURES AND OBLIGATIONS CONCERNING PRESERVATION OF BUYERS' CLAIMS AND DEFENSES
Under the New Jersey home improvement regulations, If a person other than the New Jersey home improvement seller is to act as the general contractor or assume responsibility for performance of the New Jersey home improvement contract, the name and address of such person shall be disclosed in the oral or written contract, except as otherwise agreed, and the New Jersey home improvement contract shall not be sold or assigned without the written consent of the New Jersey homeowner.  No New Jersey home improvement contract shall require or entail the execution of any note, unless such note shall have conspicuously printed thereon the disclosures required by either State law (N.J.S.A. 17:16C-64.2 (consumer note)) or Federal law (16 C.F.R. section 433.2) concerning the preservation of buyers' claims and defenses.


A NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S REGISTRATION WITH THE NEW JERSEY DIVISION OF CONSUMER AFFAIRS
On or after December 31, 2005, no person shall offer to perform, or engage, or attempt to engage in the business of making or selling New Jersey home improvements unless registered with the Division of Consumer Affairs in accordance with the provisions of the New Jersey Home Improvement Contractor Law, also known as the New Jersey Contractor’s Registration Act.  Every New Jersey home improvement contractor shall annually register with the New Jersey Division of Consumer Affairs. Application for registration shall be on a form provided by the division and shall be accompanied by a reasonable fee, set by the New Jersey Division of Consumer Affairs in an amount sufficient to defray the division's expenses incurred in administering and enforcing the New Jersey Home Improvement Contractor Law, also known as the New Jersey Contractor’s Registration Act.  Every New Jersey home improvement contractor required to register under the New Jersey Home Improvement Contractor Law, also known as the New Jersey Contractor’s Registration Act shall file an amended registration within 20 days after any change in the information required to be included thereon. No fee shall be required for the filing of an amendment.


THE NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S DISCLOSURE OF CRIMINAL HISTORY AND OTHER IMPORTANT INFORMATION FOR REGISTRATION
In addition to any other procedure, condition or information required by the New Jersey Home Improvement Contractor Law, also known as the New Jersey Contractor’s Registration Act:


a. Every New Jersey Home Improvement Contractor applicant shall file a disclosure statement with the New Jersey Division of Consumer Affairs stating whether the New Jersey Home Improvement Contractor applicant has been convicted of any crime, which for the purposes of the New Jersey Home Improvement Contractor Law, also known as the New Jersey Contractor’s Registration Act shall mean a violation of any of the following provisions of the "New Jersey Code of Criminal Justice," Title 2C of the New Jersey Statutes, or the equivalent under the laws of any other jurisdiction:


(1) Any crime of the first degree;


(2) Any crime which is a second or third degree crime and is a violation of chapter 20 or 21 of Title 2C of the New Jersey Statutes; or


(3) Any other crime which is a violation of N.J.S.2C:5-1, 2C:5-2, 2C:11-2 through 2C:11-4, 2C:12-1, 2C:12-3, 2C:13-1, 2C:14-2, 2C:15-1, subsection a. or b. of 2C:17-1, subsection a. or b. of 2C:17-2, 2C:18-2, 2C:20-4, 2C:20-5, 2C:20-7, 2C:20-9, 2C:21-2 through 2C:21-4, 2C:21-6, 2C:21-7, 2C:21-12, 2C:21-14, 2C:21-15, or 2C:21-19, chapter 27 or 28 of Title 2C of the New Jersey Statutes, N.J.S.2C:30-2, 2C:30-3, 2C:35-5, 2C:35-10, 2C:37-1 through 2C:37-4.


b. The New Jersey Division of Consumer Affairs may refuse to issue or may suspend or revoke any registration issued by him upon proof that the New Jersey Home Improvement Contractor applicant or holder of the registration:


(1) Has obtained a registration through fraud, deception or misrepresentation;


(2) Has engaged in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise or false pretense;


(3) Has engaged in gross negligence, gross malpractice or gross incompetence;


(4) Has engaged in repeated acts of negligence, malpractice or incompetence;


(5) Has engaged in professional or occupational misconduct as may be determined by the New Jersey Division of Consumer Affairs;


(6) Has been convicted of any crime involving moral turpitude or any crime relating adversely to the activity regulated by the New Jersey Home Improvement Contractor Law, also known as the New Jersey Contractor’s Registration Act. For the purpose of this subsection a plea of guilty, non vult, nolo contendere or any other such disposition of alleged criminal activity shall be deemed a conviction;


(7) Has had his authority to engage in the activity regulated by the New Jersey Division of Consumer Affairs revoked or suspended by any other state, agency or authority for reasons consistent with this section;


(8) Has violated or failed to comply with the provisions of any act or regulation administered by the New Jersey Division of Consumer Affairs;


(9) 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.


c. An New Jersey Home Improvement Contractor applicant whose registration is denied, suspended, or revoked pursuant to this section shall, upon a written request transmitted to the New Jersey Division of Consumer Affairs within 30 calendar days of that action, be afforded an opportunity for a hearing in a manner provided for contested cases pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).


d. An New Jersey Home Improvement Contractor applicant shall have the continuing duty to provide any assistance or information requested by the New Jersey Division of Consumer Affairs, and to cooperate in any inquiry, investigation, or hearing conducted by the New Jersey Division of Consumer Affairs.


e. If any of the information required to be included in the disclosure statement changes, or if additional information should be added after the filing of the statement, the New Jersey Home Improvement Contractor applicant shall provide that information to the New Jersey Division of Consumer Affairs, in writing, within 30 calendar days of the change or addition.


f. Notwithstanding the provisions of paragraph (6) of subsection b. of this section, no individual shall be disqualified from registration or shall have registration revoked on the basis of any conviction disclosed if the individual has affirmatively demonstrated to the New Jersey Division of Consumer Affairs clear and convincing evidence of the individual's rehabilitation. In determining whether an individual has affirmatively demonstrated rehabilitation, the following factors shall be considered:


(1) The nature and responsibility of the position which the convicted individual would hold;


(2) The nature and seriousness of the offense;


(3) The circumstances under which the offense occurred;


(4) The date of the offense;


(5) The age of the individual when the offense was committed;


(6) Whether the offense was an isolated or repeated incident;


(7) Any social conditions which may have contributed to the offense; and


(8) Any evidence of rehabilitation, including good conduct in prison or in the community, counseling or psychiatric treatment received, acquisition of additional academic or vocational schooling, successful participation in correctional work-release programs, or the recommendation of persons who have had the individual under their supervision.


THE NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S INSURANCE REQUIREMENTS 
On or after December 31, 2005, every New Jersey Home Improvement Contractor registered under the New Jersey Home Improvement Contract Law who is engaged in home improvements shall secure, maintain and file with the New Jersey Division of Consumer Affairs proof of a certificate of commercial general liability insurance in a minimum amount of $500,000 per occurrence.  Every New Jersey Home Improvement Contractor registered under the New Jersey Home Improvement Contract Law engaged in home improvements whose commercial general liability insurance policy is cancelled or nonrenewed shall submit to the New Jersey Division of Consumer Affairs a copy of the certificate of commercial general liability insurance for a new or replacement policy which meets the requirements of subsection a. of this section before the former policy is no longer effective.


THE NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S OBLIGATION TO DISPLAY THE NEW JERSEY HOME IMPROVEMENT CONTRACTOR LAW REGISTRATION NUMBER AT CERTAIN PLACES AND ON CERTAIN NEW JERSEY HOME IMPROVEMENT DOCUMENTS AND NEW JERSEY HOME IMPROVEMENT ADVERTISEMENTS
All New Jersey Home Improvement Contractor registrants shall prominently display their registration numbers within their places of business, in all advertisements distributed within this State, on business documents, contracts and correspondence with consumers of home improvement services in this State, and on all commercial vehicles registered in this State and leased or owned by New Jersey Home Improvement Contractor registrants and used by New Jersey Home Improvement Contractor registrants for the purpose of providing home improvements, except for vehicles leased or rented to customers of New Jersey Home Improvement Contractor registrants by a registrant or any agent or representative therof.  Any invoice, contract or correspondence given by a registrant to a consumer shall prominently contain the toll-free telephone number provided pursuant to section 14 of the New Jersey Home Improvement Contractor Law, also known as the New Jersey Contractor’s Registration Act.


FAILURE TO INCLUDE NEW JERSEY HOME IMPROVEMENT CONTRACT MANDATORY DISCLOSURES
On or after December 31, 2005, every New Jersey home improvement contract for a purchase price in excess of $500, and all changes in the terms and conditions of the contract, shall be in writing. The contract shall be signed by all parties thereto, and shall clearly and accurately set forth in legible form and in understandable language all terms and conditions of the contract, including but not limited to:


(1) The legal name, business address, and registration number of the New Jersey home improvement contractor;


(2) A copy of the certificate of commercial general liability insurance required of a contractor pursuant to section 7 of the New Jersey Home Improvement Contractor Law, also known as the New Jersey Contractor’s Registration Act and the telephone number of the insurance company issuing the certificate; and


(3) The total price or other consideration to be paid by the owner, including the finance charges.


(4) The contract shall contain a conspicuous notice printed in at least 10-point bold-faced type as follows:


"NOTICE TO CONSUMER


YOU MAY CANCEL THIS CONTRACT AT ANY TIME BEFORE MIDNIGHT OF THE THIRD BUSINESS DAY AFTER RECEIVING A COPY OF THIS CONTRACT. IF YOU WISH TO CANCEL THIS CONTRACT, YOU MUST EITHER:


1. SEND A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED; OR


2. PERSONALLY DELIVER A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION TO:


(Name of Contractor)


(Address of Contractor)


(Phone Number of Contractor)


If you cancel this contract within the three-day period, you are entitled to a full refund of your money. Refunds must be made within 30 days of the New Jersey home improvement contractor's receipt of the cancellation notice."


THE NEW JERSEY HOME IMPROVEMENT CONTRACTOR’S OBLIGATION TO CANCEL NEW JERSEY HOME IMPROVEMENT CONTRACT IN CERTAIN CIRCUMSTANCES
On or after December 31, 2005, a home improvement contract may be cancelled by a consumer for any reason at any time before midnight of the third business day after the consumer receives a copy of it. In order to cancel a contract the consumer shall notify the New Jersey home improvement contractor of the cancellation in writing, by registered or certified mail, return receipt requested, or by personal delivery, to the address specified in the contract. All moneys paid pursuant to the cancelled contract shall be fully refunded within 30 days of receipt of the notice of cancellation. If the consumer has executed any credit or loan agreement through the New Jersey home improvement contractor to pay all or part of the contract, the agreement or note shall be cancelled without penalty to the consumer and written notice of that cancellation shall be mailed to the consumer within 30 days of receipt of the notice of cancellation. 


WHAT PENALTIES DO NEW JERSEY HOME REPAIR CONTRACTORS FACE IF THEY VIOLATE THE NEW JERSEY CONSUMER FRAUD ACT?
If a New Jersey homeowner is a victim of New Jersey home repair fraud which also constitutes a New Jersey Consumer Fraud Act violation, the New Jersey homeowner may be entitled to the following types of relief:
Cancellation of fraudulent debts.
Treble damages for ascertainable loss of money or property caused by the New Jersey Consumer Fraud Act Violation.
Attorney’s fee award for prosecuting the New Jersey Consumer Fraud Act Violation or defending against lawsuits by contractors to collect a fraudulent debt.
Refund of money lost due to the New Jersey home improvement contractor’s New Jersey Consumer Fraud Act Violation.


HOW DO I RECOVER DAMAGES UNDER THE NEW JERSEY CONSUMER FRAUD ACT FOR NEW JERSEY HOME REPAIR FRAUD?
A New Jersey homeowner or customer who is able to prove that a New Jersey home repair contractor, New Jersey home improvement contractor or the seller of New Jersey home improvement services committed a violation of the New Jersey Consumer Fraud Act which directly cause of the victim to suffer an ascertainable loss of money or property is entitled to receive an award of triple damages, attorney’s fees and litigation costs.  In certain situations, a New Jersey consumer fraud victim may also be entitled to a refund or to cancel a New Jersey fraudulent debt.  However, under the New Jersey Consumer Fraud Act, a New Jersey fraud victim is not entitled to recover pain and suffering damages.  


WHAT HAPPENS IF A NEW JEREY HOME IMPROVEMENT CONTRACTOR TRIES TO COLLECT A FRAUDUENT HOME REPAIR BILL?
If a New Jersey homeowner is a victim of New Jersey Consumer Fraud, the New Jersey home repair bill may be uncollectible or void.   Consult with a New Jersey lawyer to find out if you qualify for that type of relief against a New Jersey home repair contractor.  The following are a few examples of New Jersey home repair fraud cases in which New Jersey courts refused to allow New Jersey home repair bills to be collected or in which New Jersey courts cancelled the New Jersey home repair bills:
An unlicensed landscape irrigation New Jersey home repair contractor sued a New Jersey homeowner to collect an unpaid New Jersey home repair contract bill for a sprinkling system and the New Jersey homeowner countersued the New Jersey home repair contractor, alleging that the New Jersey home repair contract was not enforceable because the New Jersey home repair contractor violated the New Jersey Consumer Fraud Act. 
An owner of a cleaning and restoration franchise specializing in mitigating damage following a fire or flood filed a New Jersey collection lawsuit against New Jersey homeowners and they countersued the New Jersey home repair contractor.  The New Jersey court found that the New Jersey home repair contractor caused the dispute and therefore that the New Jersey home repair contractor was not allowed to collect the unpaid New Jersey home repair contract bill.
A New Jersey home repair contractor sued a New Jersey homeowner to collect an unpaid New Jersey home repair contract bill.   But because the New Jersey home improvement contractor failed to display its New Jersey home improvement contractor registration number on the New Jersey home repair contract, on most invoices and change orders, failed to display the Division of Consumer Affairs’ toll-free number on its documents and failed to put every change order in writing, the New Jersey home repair contract bill was uncollectible.
A New Jersey home repair contractor sued a New Jersey homeowner to collect an unpaid New Jersey home repair contract bill and the New Jersey homeowner countersued the New Jersey home repair contractor because the work was shoddy.  Thereafter, the New Jersey court found that not only was the New Jersey home repair contractor’s work shoddy but that the New Jersey home repair contractor violated the New Jersey Consumer Fraud Act.   The New Jersey home repair contractor was prevented from recovering the unpaid New Jersey home repair contract bill. 

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