§ 771 — Contract provisions

New York § 771

• Jurisdiction: New York
• Law GBS: General Business
• Art. 36-A: Home Improvement Contracts

Text

§ 771. Contract provisions. 1. Every home improvement contract subject\nto the provisions of this article, and all amendments thereto, shall be\nevidenced by a writing and shall be signed by all the parties to the\ncontract. The writing shall contain the following:\n (a) The name, address, telephone number and license number, if\napplicable, of the contractor.\n (b) The approximate dates, or estimated dates, when the work will\nbegin and be substantially completed, including a statement of any\ncontingencies that would materially change the approximate or estimated\ncompletion date. In addition to the estimated or approximate dates, the\ncontract shall also specify whether or not the contractor and the owner\nhave determined a definite completion date to be of the essence.\n (c) A description of the work to be performed, the materials to be\nprovided to the owner, including make, model number or any other\nidentifying information, and the agreed upon consideration for the work\nand materials.\n (d) A notice to the owner purchasing the home improvement that the\ncontractor or subcontractor who performs on the contract or the\nmaterialman who provides home improvement goods or services and is not\npaid may have a claim against the owner which may be enforced against\nthe property in accordance with the applicable lien laws. Such home\nimprovement contract shall also contain the following notice to the\nowner in clear and conspicuous bold face type:\n "Any contractor, subcontractor, or materialman who provides home\nimprovement goods or services pursuant to your home improvement contract\nand who is not paid may have a valid legal claim against your property\nknown as a mechanic's lien. Any mechanic's lien filed against your\nproperty may be discharged. Payment of the agreed-upon price under the\nhome improvement contract prior to filing of a mechanic's lien may\ninvalidate such lien. The owner may contact an attorney to determine his\nrights to discharge a mechanic's lien".\n (e) A notice to the owner purchasing the home improvement that, except\nas otherwise provided in paragraph (g) of this subdivision, the home\nimprovement contractor is legally required to deposit all payments\nreceived prior to completion in accordance with subdivision four of\nsection seventy-one-a of the lien law and that, in lieu of such deposit,\nthe home improvement contractor may post a bond, contract of indemnity\nor irrevocable letter of credit with the owner guaranteeing the return\nor proper application of such payments to the purposes of the contract.\n (f) If the contract provides for one or more progress payments to be\npaid to the home improvement contractor by the owner before substantial\ncompletion of the work, a schedule of such progress payments showing the\namount of each payment, as a sum in dollars and cents, and specifically\nidentifying the state of completion of the work or services to be\nperformed, including any materials to be supplied before each such\nprogress payment is due. The amount of any such progress payments shall\nbear a reasonable relationship to the amount of work to be performed,\nmaterials to be purchased, or expenses for which the contractor would be\nobligated at the time of payment.\n (g) If the contract provides that the home improvement contractor will\nbe paid on a specified hourly or time basis for work that has been\nperformed or charges for materials that have been supplied prior to the\ntime that payment is due, such payments for such work or materials shall\nnot be deemed to be progress payments for the purposes of paragraph (f)\nof this subdivision, and shall not be required to be deposited in\naccordance with the provisions of paragraph (e) of this subdivision.\n (h) A notice to the owner that, in addition to any right otherwise to\nrevoke an offer, the owner may cancel the home improvement contract\nuntil midnight of the third business day after the day on which the\nowner has signed an agreement or offer to purchase relating to such\ncontract. Cancellation occurs when written notice of cancellation is\ngiven to the home improvement contractor. Notice of cancellation, if\ngiven by mail, shall be deemed given when deposited in a mailbox\nproperly addressed and postage prepaid. Notice of cancellation shall be\nsufficient if it indicates the intention of the owner not to be bound.\nNotwithstanding the foregoing, this paragraph shall not apply to a\ntransaction in which the owner has initiated the contact and the home\nimprovement is needed to meet a bona fide emergency of the owner, and\nthe owner furnishes the home improvement contractor with a separate\ndated and signed personal statement in the owner's handwriting\ndescribing the situation requiring immediate remedy and expressly\nacknowledging and waiving the right to cancel the home improvement\ncontract within three business days. For the purposes of this paragraph\nthe term "owner" shall mean an owner or any representative of an owner.\n * (i) Before a contractor or subcontractor begins work on a home, such\nwriting shall disclose to the homeowner the existence of a property\nand/or casualty insurance policy that covers the scope of such\ncontractor or subcontractor's employment should an insurance claim be\nfiled resulting from losses arising from the work at such property. Such\ndisclosure shall also include the contact information of the insurance\ncompany providing such property and/or casualty insurance, including a\nphone number and address.\n * NB Effective April 23, 2022\n 2. The writing shall be legible, in plain English, and shall be in\nsuch form to describe clearly any other document which is to be\nincorporated into the contract. Before any work is done, the owner shall\nbe furnished a copy of the written agreement, signed by the contractor.\nThe writing may also contain other matters agreed to by the parties to\nthe contract.\n