(a) Prior to entering into a contract for sale or construction of a new home, the builder shall disclose in writing to the owner whether:

(1) The builder participates in a new home warranty security plan through which:

(i) The builder must provide the owner with a new home warranty; or

(ii) The builder may provide a new home warranty to the owner at the owner’s option; or

(2) The builder does not participate in a new home warranty security plan.

(b) The disclosure will be made on a form approved by the Division.