2013 New York Consolidated Laws
GBS - General Business
Article 36-A - (770 - 776) HOME IMPROVEMENT CONTRACTS
771 - Contract provisions.


NY Gen Bus L § 771 (2012) What's This?
 
    § 771. Contract provisions. 1. Every home improvement contract subject
  to  the provisions of this article, and all amendments thereto, shall be
  evidenced by a writing and shall be signed by all  the  parties  to  the
  contract. The writing shall contain the following:
    (a) The  name,  address,  telephone  number  and  license  number,  if
  applicable, of the contractor.
    (b) The approximate dates, or estimated  dates,  when  the  work  will
  begin  and  be  substantially  completed,  including  a statement of any
  contingencies that would materially change the approximate or  estimated
  completion  date. In addition to the estimated or approximate dates, the
  contract shall also specify whether or not the contractor and the  owner
  have determined a definite completion date to be of the essence.
    (c)  A  description  of  the work to be performed, the materials to be
  provided to the  owner,  including  make,  model  number  or  any  other
  identifying  information, and the agreed upon consideration for the work
  and materials.
    (d) A notice to the owner purchasing the  home  improvement  that  the
  contractor  or  subcontractor  who  performs  on  the  contract  or  the
  materialman who provides home improvement goods or services and  is  not
  paid  may  have  a claim against the owner which may be enforced against
  the property in accordance with the applicable lien  laws.    Such  home
  improvement  contract  shall  also  contain  the following notice to the
  owner in clear and conspicuous bold face type:
    "Any contractor,  subcontractor,  or  materialman  who  provides  home
  improvement goods or services pursuant to your home improvement contract
  and  who  is not paid may have a valid legal claim against your property
  known as a mechanic's lien.  Any  mechanic's  lien  filed  against  your
  property  may  be discharged. Payment of the agreed-upon price under the
  home improvement contract prior to  filing  of  a  mechanic's  lien  may
  invalidate such lien. The owner may contact an attorney to determine his
  rights to discharge a mechanic's lien".
    (e) A notice to the owner purchasing the home improvement that, except
  as  otherwise  provided  in  paragraph (g) of this subdivision, the home
  improvement contractor is  legally  required  to  deposit  all  payments
  received  prior  to  completion  in  accordance with subdivision four of
  section seventy-one-a of the lien law and that, in lieu of such deposit,
  the home improvement contractor may post a bond, contract  of  indemnity
  or  irrevocable  letter of credit with the owner guaranteeing the return
  or proper application of such payments to the purposes of the contract.
    (f) If the contract provides for one or more progress payments  to  be
  paid  to the home improvement contractor by the owner before substantial
  completion of the work, a schedule of such progress payments showing the
  amount of each payment, as a sum in dollars and cents, and  specifically
  identifying  the  state  of  completion  of  the  work or services to be
  performed, including any materials  to  be  supplied  before  each  such
  progress  payment is due. The amount of any such progress payments shall
  bear a reasonable relationship to the amount of work  to  be  performed,
  materials to be purchased, or expenses for which the contractor would be
  obligated at the time of payment.
    (g) If the contract provides that the home improvement contractor will
  be  paid  on  a  specified  hourly  or time basis for work that has been
  performed or charges for materials that have been supplied prior to  the
  time that payment is due, such payments for such work or materials shall
  not  be deemed to be progress payments for the purposes of paragraph (f)
  of this subdivision, and shall  not  be  required  to  be  deposited  in
  accordance with the provisions of paragraph (e) of this subdivision.
    (h)  A notice to the owner that, in addition to any right otherwise to
  revoke an offer, the owner may  cancel  the  home  improvement  contract

  until  midnight  of  the  third  business day after the day on which the
  owner has signed an agreement or offer  to  purchase  relating  to  such
  contract.    Cancellation  occurs when written notice of cancellation is
  given  to  the  home  improvement contractor. Notice of cancellation, if
  given by mail, shall  be  deemed  given  when  deposited  in  a  mailbox
  properly  addressed and postage prepaid. Notice of cancellation shall be
  sufficient if it indicates the intention of the owner not to  be  bound.
  Notwithstanding  the  foregoing,  this  paragraph  shall  not apply to a
  transaction in which the owner has initiated the contact  and  the  home
  improvement  is  needed  to meet a bona fide emergency of the owner, and
  the owner furnishes the home  improvement  contractor  with  a  separate
  dated   and   signed  personal  statement  in  the  owner's  handwriting
  describing  the  situation  requiring  immediate  remedy  and  expressly
  acknowledging  and  waiving  the  right  to  cancel the home improvement
  contract within three business days. For the purposes of this  paragraph
  the term "owner" shall mean an owner or any representative of an owner.
    2.  The  writing  shall  be legible, in plain English, and shall be in
  such form to  describe  clearly  any  other  document  which  is  to  be
  incorporated  into  the  contract.    Before any work is done, the owner
  shall be furnished a copy  of  the  written  agreement,  signed  by  the
  contractor.  The writing may also contain other matters agreed to by the
  parties to the contract.

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