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NY Home Improvement Contractor 57
Exam Study guide Questions
What 3 notices must the H.I include? - Correct 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.
What schedule should be inclduded with the H.I. contract? - Correct
Answer ✔️ ✔️ Schedule of payments and the work/services to be performed if the contract calls for incremental payments.
Must a contractor or salesperson provide the consumer with a separate Notice of Cancellation? - Correct 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."
How much time does the home owner have to cancel the contract? - Correct Answer ✔️ ✔️ Until midnight of the third business day.
Must a contractor or salesperson inform the consumer orally of the consumer's right to cancel? - Correct Answer ✔️ ✔️ Yes, verbally and written notice.
What if a contractor or salesperson fails to comply with the provisions requiring oral (spoken) and written notice of the consumer's right to cancel? - Correct Answer ✔️ ✔️ The consumer may cancel the contract at any time.
How many days does a contractor or salesperson have to honor valid notice of cancellation? - Correct Answer ✔️ ✔️ 10 business days
Do salespersons need to notify DCA about their employers? - Correct
Answer ✔️ ✔️ Yes within 48 hours of new employment.
What must all advertising and sales literature contain? - Correct
Answer ✔️ ✔️ DCA Home Improvement Contractor license number.
What is net profit of a job? - Correct Answer ✔️ ✔️ The final profit of any job after expenses.
Must a subcontractor be seperately licensed by DCA? - Correct Answer ✔️ ✔️ Yes, this includes electricians and plumbers.
How long can a contractor elect to secure a bond or participate in DCA's Home Improvement Trust Fund? - Correct Answer ✔️ ✔️ Every 2 years
Can a H.I. Contractor arrange a home loan or a home improvement loan for a consumer? - Correct Answer ✔️ ✔️ No, nor can they act as an agent for, advertise, or promote loans.
Must a contractor furnish a consumer with a written estimate? - Correct Answer ✔️ ✔️ Yes, if the consumer requests one.
Can a Contractor charge a fee for an estimate? - Correct 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.
What is the fine for false or fraudulent representation? - Correct
Answer ✔️ ✔️ A contractor or salesperson who lies is subject to fines of up to $500 for each separate misrepresentation.
What becomes of the contract entered into after misrepresentations? - Correct Answer ✔️ ✔️ It may be declared null and void, and contractor may be ordered to pay restitution to the consumer.
What is the prosecution and fine penalties for operating a home improvement business without a license or with a suspended or revoked license? - Correct Answer ✔️ ✔️ Guilty of a misdemeanor and may be prosecuted criminally and subject to up to six (6) months imprisonment and/or $1,000 in fines.
What is the prosecution and fine penalties for engaging in unlicensed activity or aiding and abetting the operation of an unlicensed person or
If a consumer wants more work done beyond what's in the original contract, what should a contractor do? - Correct Answer ✔️ ✔️ Provide a written amendment to the contract, which both parties must sign.
What information should be at the heading of a H.I. contract? - Correct Answer ✔️ ✔️ contractor's name, office address, telephone number, and DCA license number and the salesperson's name and DCA license number.
What dates should be on the H.I. contract? - Correct Answer ✔️ ✔️ the contract date, approximate date when work will begin and date to be substantially completed.
What costs must be included in the H.I. contract? - Correct Answer
✔️ ✔️ labor and materials
What is "home improvement" (H.I.)? (C R R R R A A I) - Correct Answer ✔️ ✔️ the construction, repair, remodeling, alteration,
rehabilitation, renovation, improvement, or addition to any land or building used as a residence or dwelling place.
What parts of a home can a H.I. include? - Correct Answer ✔️ ✔️
Any part of the home OR land (including basements, driveways, fences, garages, landscaping, patios, porches, sidewalks, swimming pools, and terraces.)
What system installations are part of H.I.? (4) - Correct Answer ✔️
✔️ Central heating/air conditioning, Central vacuum, Doors, windows, awnings, and Communication systems.
What is NOT considered H.I.? - Correct Answer ✔️ ✔️
Construction of a new home or building, Sale of goods or materials in connection with the installation of or application of goods or materials, Work performed on a residence owned or controlled by the state or municipality
What is a H.I. contract? - Correct Answer ✔️ ✔️ An agreement between a contractor and a consumer or tenant for performance of a home improvement
What must a H.I. contract detail? - Correct Answer ✔️ ✔️ All labor, services, and materials to be furnished and performed.
Who is a "salesperson"? - Correct Answer ✔️ ✔️ Someone who negotiates a H.I. contract with a consumer or tenant, or solicits a home improvement contract from an owner or tenant.
Who must have a DCA license? - Correct Answer ✔️ ✔️ Any person who solicits, canvasses, sells, performs, or obtains a H.I. contract as a contractor or salesperson must have a DCA license.
Does an individual employee of a contractor, who does not solicit or negotiate contracts, need to be licensed? - Correct Answer ✔️ ✔️ No
What is the maximum amount an H.I. job can be to not require a licensed contractor? - Correct Answer ✔️ ✔️ $
Do plumbers and electricians who do not perform work outside their trade need a H.I. license? - Correct Answer ✔️ ✔️ No, they have their own trade licenses.
When would an architect or engineer involved with an H.I. project need a contractor's license? - Correct Answer ✔️ ✔️ If they are physically performing H.I. functions outside the scope of an architect or engineer.
Must a H.I. Contractor license be posted? - Correct Answer ✔️ ✔️ Yes, it must be posted in the Contractor's office where all consumers can see it, or show it to consumers upon request.
Change of business address, ownership, management, or trade name must be reported to DCA within how many days? - Correct Answer ✔️
✔️ 10 days
(6) years or the length of time of any contractual guarantee, whichever is longer.
What percentage of a customers payments can a Contractor use for administrative, overhead, and other projects? - Correct Answer ✔️
✔️ The contractor may not use funds received to pay expenses unrelated to the home improvement, unless the home improvement is completed and all expenses for direct labor, material, and subcontractors related to the home improvement have been paid.
No work should be performed and no money should be paid until after the ____ day cancellation period? - Correct Answer ✔️ ✔️ 3 days
