2005 Idaho Code - 45-525 — GENERAL CONTRACTORS -- RESIDENTIAL PROPERTY -- DISCLOSURES

                                  TITLE  45
                         LIENS, MORTGAGES AND PLEDGES
                                  CHAPTER 5
                      LIENS OF MECHANICS AND MATERIALMEN
    45-525.  GENERAL CONTRACTORS -- RESIDENTIAL PROPERTY -- DISCLOSURES. (1)
Legislative intent. This section is intended to protect owners and purchasers
of residential real property by requiring that general contractors provide
adequate disclosure of potential liens.
    (2)  General contractor information. Prior to entering into any contract
in an amount exceeding two thousand dollars ($2,000) with a homeowner or
residential real property purchaser to construct, alter or repair any
improvements on residential real property, or with a residential real property
purchaser for the purchase and sale of newly constructed property, the general
contractor shall provide to the homeowner a disclosure statement setting forth
the information specified in this subsection. The statement shall contain an
acknowledgment of receipt to be executed by the homeowner or residential real
property purchaser. The general contractor shall retain proof of receipt and
shall provide a copy to the homeowner or residential real property purchaser.
The disclosure shall include the following:
    (a)  The homeowner or residential real property purchaser shall have the
    right at the reasonable expense of the homeowner or residential real
    property purchaser to require that the general contractor obtain lien
    waivers from any subcontractors providing services or materials to the
    general contractor;
    (b)  The homeowner or residential real property purchaser shall have the
    right to receive from the general contractor proof that the general
    contractor has a general liability insurance policy including completed
    operations in effect and proof that the general contractor has worker's
    compensation insurance for his employees as required by Idaho law;
    (c)  The homeowner or residential real property purchaser shall be
    informed of the opportunity to purchase an extended policy of title
    insurance covering certain unfiled or unrecorded liens; and
    (d)  The homeowner or residential real property purchaser shall have the
    right to require, at the homeowner's or residential real property
    purchaser's expense, a surety bond in an amount up to the value of the
    construction project.
    (3)  Subcontractor, materialmen and rental equipment information.
    (a)  A general contractor shall provide to a prospective residential real
    property purchaser or homeowner a written disclosure statement, which
    shall be signed by the general contractor listing the business names,
    addresses and telephone numbers of all  subcontractors, materialmen and
    rental equipment providers having a direct contractual relationship with
    the general contractor and who have supplied materials or performed work
    on the residential property of a value in excess of five hundred dollars
    ($500). A general contractor is not required under this subsection to
    disclose subcontractors, materialmen or rental equipment providers not
    directly hired by or directly working for the general contractor. Such
    information shall be provided within a reasonable time prior to:
         (i)   The closing on any purchase and sales agreement with a
         prospective residential real property purchaser; or
         (ii)  The final payment to the general contractor by a homeowner or
         residential real property purchaser for construction, alteration, or
         repair of any improvement of residential real property.
    (b)  All subcontractors, materialmen and rental equipment providers listed
    in the disclosure statement are authorized to disclose balances owed to
    the prospective real property purchasers or homeowners and to the agents
    of such purchasers or homeowners.
    (c)  The general contractor shall not be liable for any error, inaccuracy
    or omission of any information delivered pursuant to this section if the
    error, inaccuracy or omission was not within the personal knowledge of the
    general contractor.
    (4)  Failure to disclose. Failure to provide complete disclosures as
required by this section to the homeowner or prospective residential real
property purchaser shall constitute an unlawful and deceptive act or practice
in trade or commerce under the provisions of the Idaho consumer protection
act, chapter 6, title 48, Idaho Code.
    (5)  Definitions. For purposes of this section:
    (a)  "General contractor" means a person who enters into an agreement in
    excess of two thousand dollars ($2,000) with:
         (i)   A homeowner or prospective residential real property purchaser
         for the construction, alteration or repair of residential real
         property; or
         (ii)  A prospective residential real property purchaser for the
         purchase and sale of newly constructed property.
    The term "general contractor" does not include subcontractors, materialmen
    or rental equipment providers who do not have a direct contractual
    relationship with the homeowner or residential real property purchaser.
    (b)  "Residential real property" shall include owner and nonowner occupied
    real property consisting of not less than one (1) nor more than four (4)
    dwelling units.
    (6)  This section shall not apply to instances in which a homeowner or the
agent of the homeowner initiates the contact with the general contractor for
purposes of providing repairs necessary to meet a bona fide emergency of the
homeowner or to make necessary repairs to an electrical, plumbing or water
system of the homeowner.