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NY Home Improvement Contractor
Exam Study Guide Questions and
Answers (Verified)
What is "home improvement" (H.I.)? (C R R R R A A I) - ✓✓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? - ✓✓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) - ✓✓Central heating/air conditioning, Central vacuum, Doors, windows, awnings, and Communication systems. What is NOT considered H.I.? - ✓✓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 When is Painting or decoration of a building, residence, home, or apartment considered H.I.? - ✓✓When there is painting work being done as part of other home improvement work.
consumer or tenant, or solicits a home improvement contract from an owner or tenant. Who must have a DCA license? - ✓✓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? - ✓✓No What is the maximum amount an H.I. job can be to not require a licensed contractor? - ✓✓$ Do plumbers and electricians who do not perform work outside their trade need a H.I. license? - ✓✓No, they have their own trade licenses. When would an architect or engineer involved with an H.I. project need a contractor's license? - ✓✓If they are physically performing H.I. functions outside the scope of an architect or engineer. Must a H.I. Contractor license be posted? - ✓✓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? - ✓✓ 10 days How many business locations can a H.I. Contractor's license cover? - ✓✓One. A seperate license is required for each place of business. When and how does a H.I. Contractor's license get renewed? - ✓✓About three months before license expiration, DCA will mail a renewal package. It can be renewed by mail, online, or in person at the DCA Licensing Center. May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the home owner (customer)? - ✓✓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. 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?
in the total estimated contract price. What is the fine for false or fraudulent representation? - ✓✓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? - ✓✓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? - ✓✓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 business? - ✓✓civil prosecution and $100 day fine. Can the DCA padlock (close down) and confiscate (take) the tools and trucks used in connection with unlicensed home improvement work? - ✓✓Yes! In what form must a home improvement contract be? - ✓✓Every home improvement contract must be in writing and signed by everyone involved. When must the consumer receive a completed, legible copy of the H.I. contract? - ✓✓At the time of signing and before any work is done. Does the H.I. contract have to be in englsh? - ✓✓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.
What dates should be on the H.I. contract? - ✓✓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? - ✓✓labor and materials What 3 notices must the H.I include? - ✓✓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? - ✓✓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? - ✓✓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? - ✓✓Until midnight of the third business day. Must a contractor or salesperson inform the consumer orally of the consumer's right to cancel? - ✓✓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? - ✓✓The consumer may cancel the contract at any time. How many days does a contractor or salesperson have to honor valid notice of cancellation? - ✓✓ 10 business days
Where does a contractor go to secure a permit for an addition or alteration to a house? - ✓✓The New York City Department of Buildings (DOB). Whose responsibility is it to make sure that any addition or alterations meet building code standards and do not violate local zoning laws? - ✓✓the H.I. Contractor What is net profit of a job? - ✓✓The final profit of any job after expenses. Must a subcontractor be seperately licensed by DCA? - ✓✓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? - ✓✓Every 2 years
