In New Jersey, a home improvement contract costing more than $500 must be in writing and signed by all parties. You generally may cancel for any reason before midnight of the third business day after you receive a copy of the contract. Put that cancellation in writing and keep proof of delivery.

What has to be in the written contract?

N.J.S.A. 56:8-151 requires certain home improvement contracts to be in writing. The contract should include, at a minimum:

• The contractor's legal name, business address, and registration number, matching the Division's lookup.
• A copy or description of the required insurance, including how to contact the insurer.
• A clear description of the work, including materials or allowances if those are part of the price.
• The total price, the payment schedule, and what is due at signing, at the start, at inspection, and at completion.
• Start and completion information, and how change orders will be written and priced.
• The required notice of your right to cancel.

Read the payment schedule against the work. A demand for most of the money before materials arrive, or for full payment before final inspection, is a reason to revise the contract or hire someone else. Keep a copy of every signed change order. A text that says "sure, add the window" is a poor substitute when the invoice arrives.

If the job starts under $500 and then grows, treat the total as the number that matters. Don't agree to split invoices to dodge the written-contract rule.

How does the 3-day cancellation right work?

You may cancel for any reason before midnight of the third business day after you receive a copy of the contract. Count business days, not calendar days. A contract you receive on Saturday typically starts a different count than one you receive on a Monday. Send written notice of cancellation by registered or certified mail, or deliver it in person, and keep the receipt. Any payment should be refunded within 30 days, under the cancellation rules.

This right is especially important after an in-home sales visit, a "free inspection" that becomes a pitch, or a storm-chaser visit following wind or hail. If you already paid a deposit and the contractor refuses to refund it after a timely cancellation, contact the Division of Consumer Affairs and consider a private claim.

During those three business days, do not let the crew start work if you think you may cancel. A project that has already begun is harder to unwind, even if the law is on your side about the deposit.

The cancellation right described here is the home-improvement contract right in the consumer-fraud statutes. It is not the same as the three-business-day attorney review period on a real estate sale contract, and it is not a substitute for checking the contractor's registration.

Where do you complain if the work is poor or incomplete?

Start with a written punch list and a reasonable deadline. Then you can file a complaint with the Division of Consumer Affairs against a registered home improvement contractor. Local building officials may also have permit and inspection issues to address. For disputes over money, the Special Civil Part or Small Claims, or a private attorney, may still be necessary. A licensing or registration complaint can affect a contractor's ability to work. It is not always a substitute for getting your money back.

Ask for lien waivers from subcontractors and suppliers before you make a final payment, so you are less likely to pay twice if a bill was not passed on. If a lien notice arrives, get legal advice quickly rather than ignoring it.

Take photos before, during, and after the work. If a later buyer disclosure or an insurance claim becomes necessary, those photos are more persuasive than a memory of what the roof looked like in March.

The Division's home improvement contractor page, and the Consumer Affairs complaint process, are the official starting points. You can also call the Division if you're not sure which unit handles the complaint.

FAQ

When does New Jersey require a written home improvement contract?

When the contract price is more than $500. It must be in writing and signed by all parties, and it should include the registration number, insurance information, the work, and the total price.

How long do I have to cancel?

Generally until midnight of the third business day after you receive a copy of the contract. Send written notice by registered or certified mail, or deliver it in person, and keep proof.

Does a verbal agreement under $500 have to be written?

The written-contract statute is tied to contracts for more than $500. If the job grows past that amount, get the agreement in writing. A written scope is still a good idea on smaller jobs.

Who takes complaints about a registered contractor?

The Division of Consumer Affairs. You may also need local building officials or a private claim for money damages.

Next step

Before you sign a New Jersey home improvement contract, talk with a licensed local agent if the work is part of a sale or an insurance claim, and look the contractor up with the Division of Consumer Affairs. Get the terms in writing if the price is over $500, and calendar the three-business-day cancellation window in case you need to get out.

Sources: Division of Consumer Affairs, home improvement contractors; Division of Consumer Affairs, HIC FAQ; N.J.S.A. 56:8-138, registration for contractors.

Businesses that sell or perform home improvements in New Jersey generally must register with the Division of Consumer Affairs. Look the company up before you sign a contract or pay a deposit. A trade license or a truck logo is not a substitute for that registration.

Who has to register, and what should the lookup show?

The Contractors' Registration Act requires registration for businesses and individuals who advertise, sell, offer, or perform home improvements in this state, including many part-time contractors and subcontractors. There are exemptions, including some work on property you own, certain licensed professionals acting only within their licensed trade, and other listed categories in N.J.S.A. 56:8-140. If someone claims to be exempt, ask which exemption applies and still verify whatever license they do hold.

Registration is a business credential. Search by the legal name on the contract and the truck, not only a trade name from an ad. The Division's license-verification system treats home improvement contractors as a business search. Start at the official HIC page and follow the current directory or verification link, because portals change. Call the Division if the name does not come up.

The registration record should be current, not expired. If disciplinary history appears, read it, and consider hiring someone else. An out-of-state reference or a social media page is not a New Jersey registration.

Some jobs also require a separate trade license, such as electrical, plumbing, or heating and cooling work, and a local permit. A home improvement contractor registration does not automatically replace those credentials. Ask who is pulling the permit and whose license will be on it, then confirm both the registration and the trade license.

What else should you check besides the registration?

• Get a written contract if the price is more than $500, which New Jersey law requires, including the contractor's legal name, address, registration number, insurance information, and the total price.
• Avoid large upfront deposits that aren't tied to a material order, and never pay in full before the work is done and inspected.
• Confirm local permits with the town, not only with the contractor.
• Ask for proof of insurance, and consider whether a building permit should be mentioned to your homeowners insurer.
• Save photos, text messages, and change orders as the job proceeds.

If a salesperson presses you to sign the same day, take the draft with you and do the lookup first. A short delay is cheaper than a bad contract. Storm-chasing crews sometimes work a neighborhood after wind or hail and then leave town. A current New Jersey registration, a verifiable local address, and a written contract are more useful than a door-hanger and a "today-only" price.

For a job that's also an insurance claim, tell the contractor you want the scope to match the insurer's estimate or a written change order. Don't sign a blank assignment of benefits if you don't understand it.

A careful hire is easier than a complaint after a half-finished roof or a disappeared deposit. Ordinary projects such as siding, windows, decks, bathrooms, and kitchens are the kinds of home improvements the registration law is meant to cover.

If two companies look similar in the search, compare written contracts and insurance certificates, not only the registration listing. Registration means the business is allowed to offer the work. It does not tell you how carefully the crew installs windows, or how quickly it answers a punch list.

Ask neighbors for names, then verify those names in the official search anyway. A good reputation and a current registration should go together.

For a roof or a large addition, also ask how long the contractor has held the registration, whether subcontractors will be used, and whether those subs are registered too. Put the answers in the contract file.

If you still cannot verify the company, walk away. There are enough registered contractors in New Jersey that you do not have to hire someone you cannot find in the Division's records. Take a screenshot or print the search result on the day you sign, so you have proof of what the registry showed.

FAQ

Where do I look up a New Jersey home improvement contractor?

Start at the Division of Consumer Affairs home improvement contractor page and use the official license or registration search. Match the legal name on the contract with the name in the database.

Does every handyman have to register?

Businesses that advertise, offer, or perform home improvements generally must register. There are listed exemptions. If someone says they don't need to register, ask which exemption they are using, and don't hire an unregistered contractor for a job the law covers.

Is a plumber's or electrician's license enough?

Not always. Those trades have their own licenses, and a home improvement registration may still be required if the person is selling a home improvement. Confirm both credentials and the local permit.

What if the registration is expired?

Don't hire that company until the record is current. An expired registration is not "close enough."

Next step

Before you hire someone for a New Jersey home project, talk with a licensed local agent if the work ties into a sale or an insurance claim, and look the contractor up on the Division of Consumer Affairs HIC page yourself. Confirm the registration, any trade license, and the name on the contract.

Sources: Division of Consumer Affairs, home improvement contractors; Division of Consumer Affairs, HIC FAQ; N.J.S.A. 56:8-138, registration for contractors.