Contract News

What is a Home Improvement Contract

Subpart 1.6—Career Development, Contracting Authority, and Responsibilities
A home improvement contract is an oral or written agreement BETWEEN a contractor or salesperson AND either a residential owner or a tenant for the performance of a home improvement.

If the total cost of the project exceeds $500, by law the contract MUST be in writing. The total cost includes labor, services, and materials.

A home improvement contract must include elements specified in Business and Professions Code Section 7159 and elsewhere. This document outlines those elements.

Business and Professions Code 7151.2

"Top Ten" Problems with Home Improvement Contracts

In no particular order, here are frequently seen problems with home improvement contracts:

Notice regarding Registrar's address missing
Excessive down payment requested
Equipment to be used or installed not detailed, and materials to be used not described specifically enough
Notice to owner regarding liens not included
Job to be completed is not clearly stated and described
Right to cancel notice missing
Bid not figured out carefully and/or completely
Change orders not included
Old notices used with old addresses and noncompliant language
Start and stop dates not included

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	Did You Know?
	If You Co-Signing For Someone Else You Are Responsible For Their Debt If you co-sign, you are responsible for their entire debt. Therefore, if the other person chooses not to pay you will have to pay the full amount, even if you had no part of the services or goods.