NY Home Improvement Contractor Study
Exam with Complete Solutions
A "savings" claim in an adv ertisment cannot imply what? - ANSWER-The amount
specified is the selling price.
Can a Contractor charge a fee for an estimate? - ANSWER-Yes, but they must disclose
the fee to the consumer before providing the estimate and must include and itemize the
fee in the total estimated contract price.
Can a H.I. Contractor arrange a home loan or a home improvement loan for a
consumer? - ANSWER-No, nor can they act as an agent for, advertise, or promote
loans.
Can the DCA padlock (close down) and confiscate (take) the tools and trucks used in
connection with unlicensed home improvement work? - ANSWER-Yes!
Change of business address, ownership, management, or trade name must be reported
to DCA within how many days? - ANSWER-10 days
Do plumbers and electricians who do not perform work outside their trade need a H.I.
license? - ANSWER-No, they have their own trade licenses.
Do salespersons need to notify DCA about their employers? - ANSWER-Yes within 48
hours of new employment.
Does an individual employee of a contractor, who does not solicit or negotiate contracts,
need to be licensed? - ANSWER-No
Does the H.I. contract have to be in englsh? - ANSWER-Yes, unless another language
was used in any oral (spoken) sales presentation, in which case the contract needs to
be in that language and in English.
How long can a contractor elect to secure a bond or participate in DCA's Home
Improvement Trust Fund? - ANSWER-Every 2 years
How many business locations can a H.I. Contractor's license cover? - ANSWER-One. A
seperate license is required for each place of business.
How many days does a contractor or salesperson have to honor valid notice of
cancellation? - ANSWER-10 business days
, How many years must a H.I. Contractor maintain copies of contracts, books of account,
and other records reflecting all transactions related to the home improvement business?
- ANSWER-Six (6) years or the length of time of any contractual guarantee, whichever
is longer.
How much time does the home owner have to cancel the contract? - ANSWER-Until
midnight of the third business day.
If a consumer wants more work done beyond what's in the original contract, what should
a contractor do? - ANSWER-Provide a written amendment to the contract, which both
parties must sign.
In what form must a home improvement contract be? - ANSWER-Every home
improvement contract must be in writing and signed by everyone involved.
May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the home
owner (customer)? - ANSWER-No, The prime contractor must secure all necessary
permits, licenses, Certificates of Occupancy, or exemptions necessary to complete the
contract in accordance with state and local building laws.
Must a contractor furnish a consumer with a written estimate? - ANSWER-Yes, if the
consumer requests one.
Must a contractor or salesperson inform the consumer orally of the consumer's right to
cancel? - ANSWER-Yes, verbally and written notice.
Must a contractor or salesperson provide the consumer with a separate Notice of
Cancellation? - ANSWER-Yes. At the time of signing the contractor or salesperson must
attach to the signed contract two copies of a separate, completed form titled "Notice of
Cancellation."
Must a H.I. Contractor license be posted? - ANSWER-Yes, it must be posted in the
Contractor's office where all consumers can see it, or show it to consumers upon
request.
Must a subcontractor be seperately licensed by DCA? - ANSWER-Yes, this includes
electricians and plumbers.
No work should be performed and no money should be paid until after the ____ day
cancellation period? - ANSWER-3 days
What 3 notices must the H.I include? - ANSWER-If the owner does not pay the
contractor they may have a claim against the owner, that the contractor is legally
required to deposit all payments received prior to completion or the contractor must post
a bond or contract of indemnity, and the cancellation notice wording.
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