San Francisco real estate
What to Know Before Signing a Home Improvement Contract
by Susan Chana Lask
It is important to be a very careful consumer when it comes to home improvement
contractors. For instance, I had a case where my client, an elderly and blind
woman, signed a contract and paid $30,000.00 to a home improvement company that
disappeared with all of her money! Unfortunately, the company was a scam
operation, my client lost her life's savings and it will take some time in court
before my client may ever see her money again however, her mistake will be a
lesson to all of you because this article explains how to protect yourself from
home improvement fraud.
Before signing any contract with a home improvement company, first ask that
company for its license number and check it out with your State or County
Consumer Affairs' Business License Division. Find the License Division on the
web or call information and get their number. You want to find out (1) the name
and address of the company associated with the license number given to you, (2)
if the company is currently licensed and the license expiration date and (3)
whether any complaints have been made against that company. The answers to those
questions will help you determine if you want to proceed with signing a
contract. Make sure both the contractor and the company he works for are
licensed to work in your State.
If your going to sign the contract then make sure certain things are included
pursuant to your understanding and as required by your State's Home Improvement
Business Law. The contracting company's name, address and phone number should be
printed on the contract. Also, it is important that the contracting company's
home improvement license number is printed on the contract and that it is not
different from the number you called and inquired about with Consumer Affairs.
Lastly, make sure that all of the work to be performed is listed in the contract
and that the approximate start and end dates of work are included. You should
put a penalty clause in the contract regarding the contractor's failure to
timely complete the work because contractors are notorious for starting jobs and
then leaving for a few days or weeks to do other jobs while you sit and wait in
your dismantled kitchen for him to return. Once the contract terms are
satisfactory then the contract should be signed by both you and the company's
representative.
An example of a consumer protection law is New York's General
Business Law §771
("GBL") requiring all home improvement contracts shall be in writing and contain
certain terms of payment, fees for services and materials and start and
completion dates, among other terms. GBL §771 is a consumer protection statute
to prevent the misunderstandings between contractor had consumer and to protect
the consumer from overreaching of the contractor, such as charging for work that
was not agreed upon. GBL §771 limits the contractor who disregards its written
contract requirements to satisfactorily proving to a court each and every item
of work he did and the reasonable value of each item by detailed invoices,
timesheets and proof of hourly rates, among other proofs. So, if the contractor
who failed to put your home improvement work in writing attempts to collect
$20,000.00 from you, he has to prove the value of his services in detail before
scaring you into paying an amount you had no idea about. New Jersey's Consumer
Fraud Act and the Home Improvement Act protect the consumer even more by denying
the contractor from recovering any monies if he violates any of the consumer
laws AND he will pay three times the amount of damages (called treble damages)
to the consumer for his failing to obtain proper permits or licenses or any
other violation of those laws.
Lastly, protect yourself by not paying 100% upfront. Most contracting companies
ask for a deposit upon your signing the contract. I suggest that you put down as
little as possible and arrange a payment schedule with the company where you
will pay a certain amount as certain work is completed. Of course, always get a
receipt, signed by the company and stating the date and amount of any monies
paid to the company if you pay anything in cash.
This article is certainly not all inclusive and is intended only as a brief
explanation of the legal issue presented. Not all cases are alike and it is
strongly recommended that you
consult an attorney if you have any questions with
respect to any legal matters.
Any questions and/or comments with respect to this topic or any other topic,
contact:
http://www.appellate-brief.com
Law Offices of Susan Chana Lask
853 Broadway, Suite 1516
New York, NY 10003
(212) 358-5762
Susan Chana Lask, Esq. c 2004
Susan Chana Lask is named in the media as New York's "high powered attorney".
She practices sucessfully all
civil, criminal & appeals cases in State & Federal
courts nationwide. http://www.appellate-brief.com
scl@appellate-brief.com
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