7150. "Person" as used in this article is limited to natural
persons, notwithstanding the definition of person in Section 7025.
7150.1. A home improvement contractor, including a swimming pool
contractor, is a contractor as defined and licensed under this
chapter who is engaged in the business of home improvement either
full time or part time. A home improvement contractor shall satisfy
all requirements imposed by this article.
7151. "Home improvement" means the repairing, remodeling, altering,
converting, or modernizing of, or adding to, residential property
and shall include, but not be limited to, the construction, erection,
replacement, or improvement of driveways, swimming pools, including
spas and hot tubs, terraces, patios, awnings, storm windows,
landscaping, fences, porches, garages, fallout shelters, basements,
and other improvements of the structures or land which is adjacent to
a dwelling house. "Home improvement" shall also mean the
installation of home improvement goods or the furnishing of home
improvement services.
For purposes of this chapter, "home improvement goods or services"
means goods and services, as defined in Section 1689.5 of the Civil
Code, which are bought in connection with the improvement of real
property. Such home improvement goods and services include, but are
not limited to, carpeting, texture coating, fencing, air conditioning
or heating equipment, and termite extermination. Home improvement
goods include goods which are to be so affixed to real property as to
become a part of real property whether or not severable therefrom.
7151.2. "Home improvement contract" means an agreement, whether
oral or written, or contained in one or more documents, between a
contractor and an owner or between a contractor and a tenant,
regardless of the number of residence or dwelling units contained in
the building in which the tenant resides, if the work is to be
performed in, to, or upon the residence or dwelling unit of the
tenant, for the performance of a home improvement as defined in
Section 7151, and includes all labor, services, and materials to be
furnished and performed thereunder. "Home improvement contract" also
means an agreement, whether oral or written, or contained in one or
more documents, between a salesperson, whether or not he or she is a
home improvement salesperson, and (a) an owner or (b) a tenant,
regardless of the number of residence or dwelling units contained in
the building in which the tenant resides, which provides for the
sale, installation, or furnishing of home improvement goods or
services.
7152. (a) "Home improvement salesperson" is a person employed by a
home improvement contractor licensed under this chapter to solicit,
sell, negotiate, or execute contracts for home improvements, for the
sale, installation or furnishing of home improvement goods or
services, or of swimming pools, spas, or hot tubs.
(b) The following shall not be required to be registered as home
improvement salespersons:
(1) An officer of record of a corporation licensed pursuant to
this chapter, or a manager of record of a limited liability company
licensed pursuant to this chapter.
(2) A general partner listed on the license record of a
partnership licensed pursuant to this chapter.
(3) A qualifying person, as defined in Section 7025.
(4) A salesperson whose sales are all made pursuant to
negotiations between the parties if the negotiations are initiated by
the prospective buyer at or with a general merchandise retail
establishment that operates from a fixed location where goods or
services are offered for sale.
(5) A person who contacts the prospective buyer for the exclusive
purpose of scheduling appointments for a registered home improvement
salesperson.
(6) A bona fide service repairperson who is in the employ of a
licensed contractor and whose repair or service call is limited to
the service, repair, or emergency repair initially requested by the
buyer of the service.
(c) The exemption to registration provided under paragraphs (1),
(2), and (3) of subdivision (b) shall apply only to those individuals
who, at the time of the sales transaction, are listed as personnel
of record for the licensee responsible for soliciting, negotiating,
or contracting for a service or improvement that is subject to
regulation under this article.
7153. (a) It is a misdemeanor for any person to engage in the
occupation of salesperson for one or more home improvement
contractors within this state without having a registration issued by
the registrar for each of the home improvement contractors by whom
he or she is employed as a home improvement salesperson. If, upon
investigation, the registrar has probable cause to believe that a
salesperson is in violation of this section, the registrar may issue
a citation pursuant to Section 7028.7.
It is a misdemeanor for any person to engage in the occupation of
salesperson of home improvement goods or services within this state
without having a registration issued by the registrar.
(b) Any security interest taken by a contractor, to secure any
payment for the performance of any act or conduct described in
Section 7151 that occurs on or after January 1, 1995, is
unenforceable if the person soliciting the act or contract was not a
duly registered salesperson or was not exempt from registration
pursuant to Section 7152 at the time the homeowner signs the home
improvement contract solicited by the salesperson.
7153.1. (a) The home improvement salesperson shall submit to the
registrar an application in writing containing the statement that he
or she desires the issuance of a registration under the terms of this
article.
The application shall be made on a form prescribed by the
registrar and shall be accompanied by the fee fixed by this chapter.
(b) The registrar may refuse to register the applicant under the
grounds specified in Section 480.
(c) As part of an application for a home improvement salesperson,
the board shall require an applicant to furnish a full set of
fingerprints for purposes of conducting criminal history record
checks. Fingerprints furnished pursuant to this subdivision shall be
submitted in an electronic format where readily available. Requests
for alternative methods of furnishing fingerprints are subject to the
approval of the registrar. The board shall use the fingerprints
furnished by an applicant to obtain criminal history information on
the applicant from the Department of Justice and the United States
Federal Bureau of Investigation, including any subsequent arrest
information available.
7153.2. All registrations issued under the provisions of this
article shall expire on a date established pursuant to Section 152.6.
7153.3. (a) To renew a registration, the registrant shall before
the time at which the registration would otherwise expire, apply for
renewal on a form prescribed by the registrar and pay a renewal fee
prescribed by this chapter.
(b) An application for renewal of registration is delinquent if
the application is not postmarked by the date on which the
registration would otherwise expire. A registration may, however,
still be renewed at any time within three years after its expiration
upon the filing of an application for renewal on a form prescribed by
the registrar and the payment of the renewal fee prescribed by this
chapter and a delinquent renewal penalty in the amount of twenty-five
dollars ($25). If a registration is not renewed within three years,
the person shall make application for registration pursuant to
Section 7153.1.
(c) The registrar may refuse to renew a registration for failure
by the registrant to complete the application for renewal of
registration. If a registrant fails to return the application
rejected for insufficiency or incompleteness within 90 days from the
original date of rejection, the application and fee shall be deemed
abandoned. Any application abandoned may not be reinstated. However,
the person may file a new application for registration pursuant to
Section 7153.1.
The registrar may review and accept the petition of a person who
disputes the abandonment of his or her renewal application upon a
showing of good cause. This petition shall be received within 90 days
of the date the application for renewal is deemed abandoned.
7154. A home improvement contractor who employs a person to sell
home improvement contracts while such person is not registered by the
registrar as a home improvement salesman as provided in this
article, is subject to disciplinary action by the registrar.
7155. Violation of any provision of this chapter by a home
improvement salesman constitutes cause for disciplinary action. The
registrar may suspend or revoke the registration of the home
improvement salesman if he is found to be in violation. The
disciplinary proceedings shall be conducted in accordance with the
provisions of Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code.
7155.5. Violations of any provisions of this chapter by a home
improvement salesperson, likewise constitutes a cause for
disciplinary action against the contractor, whether or not he or she
had knowledge of or participated in the act or omission constituting
violations of this chapter.
7156. It shall be a misdemeanor and a cause for disciplinary action
to commit any of the following acts:
(a) For any salesperson to fail to account for or to remit to his
or her employing contractor any payment received in connection with
any home improvement transaction or any other transaction involving a
work of improvement.
(b) For any person to use a contract form in connection with any
home improvement transaction or any other transaction involving a
work of improvement if the form fails to disclose the name of the
contractor principal by whom he or she is employed.
7157. (a) Except as otherwise provided in subdivision (b), as a
part of or in connection with the inducement to enter into any home
improvement contract or other contract, which may be performed by a
contractor, no person may promise or offer to pay, credit, or allow
to any owner, compensation or reward for the procurement or placing
of home improvement business with others.
(b) A contractor or his or her agent or salesperson may give
tangible items to prospective customers for advertising or sales
promotion purposes where the gift is not conditioned upon obtaining a
contract for home improvement work if the gift does not exceed a
value of five dollars ($5) and only one such gift is given in
connection with any one transaction.
(c) No salesperson or contractor's agent may accept any
compensation of any kind, for or on account of a home improvement
transaction, or any other transaction involving a work of
improvement, from any person other than the contractor whom he or she
represents with respect to the transaction, nor shall the
salesperson or agent make any payment to any person other than his or
her employer on account of the sales transaction.
(d) No contractor shall pay, credit, or allow any consideration or
compensation of any kind to any other contractor or salesperson
other than a licensee for or on account of the performance of any
work of improvement or services, including, but not limited to, home
improvement work or services, except: (1) where the person to or from
whom the consideration is to be paid is not subject to or is
exempted from the licensing requirements of this chapter, or (2)
where the transaction is not subject to the requirements of this
chapter.
As used in this section "owners" shall also mean "tenant."
Commission of any act prohibited by this section is a misdemeanor
and constitutes a cause for disciplinary action.
7158. (a) Any person who shall accept or receive a completion
certificate or other evidence that performance of a contract for a
work of improvement, including but not limited to a home improvement,
is complete or satisfactorily concluded, with knowledge that the
document is false and that the performance is not substantially
completed, and who shall utter, offer, or use the document in
connection with the making or accepting of any assignment or
negotiation of the right to receive any payment from the owner, under
or in connection with a contract, or for the purpose of obtaining or
granting any credit or loan on the security of the right to receive
any payment shall be guilty of a misdemeanor and subject to a fine of
not less than five hundred dollars ($500) nor more than five
thousand dollars ($5,000), or to imprisonment in the county jail for
a term of not less than one month nor more than one year, or both.
(b) Any person who violates this section as part of a plan or
scheme to defraud an owner of a residential or nonresidential
structure, including a mobilehome or manufactured home, in connection
with the offer or performance of repairs to the structure for damage
caused by a natural disaster, shall be ordered by the court to make
full restitution to the victim based on the person's ability to pay,
as defined in subdivision (e) of Section 1203.1b of the Penal Code.
In addition to full restitution, and imprisonment authorized by
subdivision (a), the court may impose a fine of not less than five
hundred dollars ($500) nor more than twenty-five thousand dollars
($25,000), based upon the defendant's ability to pay. This
subdivision applies to natural disasters for which a state of
emergency is proclaimed by the Governor pursuant to Section 8625 of
the Government Code or for which an emergency or major disaster is
declared by the President of the United States.
7159. (a) (1) This section identifies the projects for which a home
improvement contract is required, outlines the contract
requirements, and lists the items that shall be included in the
contract, or may be provided as an attachment.
(2) This section does not apply to service and repair contracts
that are subject to Section 7159.10, if the contract for the
applicable services complies with Sections 7159.10 to 7159.14,
inclusive.
(3) This section does not apply to the sale, installation, and
servicing of a fire alarm sold in conjunction with an alarm system,
as defined in subdivision (n) of Section 7590.1, if all costs
attributable to making the fire alarm system operable, including sale
and installation costs, do not exceed five hundred dollars ($500),
and the licensee complies with the requirements set forth in Section
7159.9.
(4) This section does not apply to any costs associated with
monitoring a burglar or fire alarm system.
(5) Failure by the licensee, his or her agent or salesperson, or
by a person subject to be licensed under this chapter, to provide the
specified information, notices, and disclosures in the contract, or
to otherwise fail to comply with any provision of this section, is
cause for discipline.
(b) For purposes of this section, "home improvement contract"
means an agreement, whether oral or written, or contained in one or
more documents, between a contractor and an owner or between a
contractor and a tenant, regardless of the number of residence or
dwelling units contained in the building in which the tenant resides,
if the work is to be performed in, to, or upon the residence or
dwelling unit of the tenant, for the performance of a home
improvement, as defined in Section 7151, and includes all labor,
services, and materials to be furnished and performed thereunder, if
the aggregate contract price specified in one or more improvement
contracts, including all labor, services, and materials to be
furnished by the contractor, exceeds five hundred dollars ($500).
"Home improvement contract" also means an agreement, whether oral or
written, or contained in one or more documents, between a
salesperson, whether or not he or she is a home improvement
salesperson, and an owner or a tenant, regardless of the number of
residence or dwelling units contained in the building in which the
tenant resides, which provides for the sale, installation, or
furnishing of home improvement goods or services.
(c) In addition to the specific requirements listed under this
section, every home improvement contract and any person subject to
licensure under this chapter or his or her agent or salesperson shall
comply with all of the following:
(1) The writing shall be legible.
(2) Any printed form shall be readable. Unless a larger typeface
is specified in this article, text in any printed form shall be in at
least 10-point typeface and the headings shall be in at least
10-point boldface type.
(3) (A) Before any work is started, the contractor shall give the
buyer a copy of the contract signed and dated by both the contractor
and the buyer. The buyer's receipt of the copy of the contract
initiates the buyer's rights to cancel the contract pursuant to
Sections 1689.5 to 1689.14, inclusive, of the Civil Code.
(B) The contract shall contain on the first page, in a typeface no
smaller than that generally used in the body of the document, both
of the following:
(i) The date the buyer signed the contract.
(ii) The name and address of the contractor to which the
applicable "Notice of Cancellation" is to be mailed, immediately
preceded by a statement advising the buyer that the "Notice of
Cancellation" may be sent to the contractor at the address noted on
the contract.
(4) The contract shall include a statement that, upon satisfactory
payment being made for any portion of the work performed, the
contractor, prior to any further payment being made, shall furnish to
the person contracting for the home improvement or swimming pool
work a full and unconditional release from any potential lien
claimant claim or mechanic's lien authorized pursuant to Section 3110
of the Civil Code for that portion of the work for which payment has
been made.
(5) A change-order form for changes or extra work shall be
incorporated into the contract and shall become part of the contract
only if it is in writing and signed by the parties prior to the
commencement of any work covered by a change order.
(6) The contract shall contain, in close proximity to the
signatures of the owner and contractor, a notice stating that the
owner or tenant has the right to require the contractor to have a
performance and payment bond.
(7) If the contract provides for a contractor to furnish joint
control, the contractor shall not have any financial or other
interest in the joint control.
(8) The provisions of this section are not exclusive and do not
relieve the contractor from compliance with any other applicable
provision of law.
(d) A home improvement contract and any changes to the contract
shall be in writing and signed by the parties to the contract prior
to the commencement of work covered by the contract or an applicable
change order and, except as provided in paragraph (8) of subdivision
(a) of Section 7159.5, shall include or comply with all of the
following:
(1) The name, business address, and license number of the
contractor.
(2) If applicable, the name and registration number of the home
improvement salesperson that solicited or negotiated the contract.
(3) The following heading on the contract form that identifies the
type of contract in at least 10-point boldface type: "Home
Improvement."
(4) The following statement in at least 12-point boldface type:
"You are entitled to a completely filled in copy of this agreement,
signed by both you and the contractor, before any work may be
started."
(5) The heading: "Contract Price," followed by the amount of the
contract in dollars and cents.
(6) If a finance charge will be charged, the heading: "Finance
Charge," followed by the amount in dollars and cents. The finance
charge is to be set out separately from the contract amount.
(7) The heading: "Description of the Project and Description of
the Significant Materials to be Used and Equipment to be Installed,"
followed by a description of the project and a description of the
significant materials to be used and equipment to be installed. For
swimming pools, the project description required under this paragraph
also shall include a plan and scale drawing showing the shape, size,
dimensions, and the construction and equipment specifications.
(8) If a downpayment will be charged, the details of the
downpayment shall be expressed in substantially the following form,
and shall include the text of the notice as specified in subparagraph
(C):
(A) The heading: "Downpayment."
(B) A space where the actual downpayment appears.
(C) The following statement in at least 12-point boldface type:
"THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE
CONTRACT PRICE, WHICHEVER IS LESS."
(9) If payments, other than the downpayment, are to be made before
the project is completed, the details of these payments, known as
progress payments, shall be expressed in substantially the following
form, and shall include the text of the statement as specified in
subparagraph (C):
(A) A schedule of progress payments shall be preceded by the
heading: "Schedule of Progress Payments."
(B) Each progress payment shall be stated in dollars and cents and
specifically reference the amount of work or services to be
performed and materials and equipment to be supplied.
(C) The section of the contract reserved for the progress payments
shall include the following statement in at least 12-point boldface
type:
"The schedule of progress payments must specifically describe each
phase of work, including the type and amount of work or services
scheduled to be supplied in each phase, along with the amount of each
proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO
COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET
DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT."
(10) The contract shall address the commencement of work to be
performed in substantially the following form:
(A) A statement that describes what constitutes substantial
commencement of work under the contract.
(B) The heading: "Approximate Start Date."
(C) The approximate date on which work will be commenced.
(11) The estimated completion date of the work shall be referenced
in the contract in substantially the following form:
(A) The heading: "Approximate Completion Date."
(B) The approximate date of completion.
(12) If applicable, the heading: "List of Documents to be
Incorporated into the Contract," followed by the list of documents
incorporated into the contract.
(13) The heading: "Note About Extra Work and Change Orders,"
followed by the following statement:
"Extra Work and Change Orders become part of the contract once the
order is prepared in writing and signed by the parties prior to the
commencement of work covered by the new change order. The order must
describe the scope of the extra work or change, the cost to be added
or subtracted from the contract, and the effect the order will have
on the schedule of progress payments."
(e) Except as provided in paragraph (8) of subdivision (a) of
Section 7159.5, all of the following notices shall be provided to the
owner as part of the contract form as specified or, if otherwise
authorized under this subdivision, may be provided as an attachment
to the contract:
(1) A notice concerning commercial general liability insurance.
This notice may be provided as an attachment to the contract if the
contract includes the following statement: "A notice concerning
commercial general liability insurance is attached to this contract."
The notice shall include the heading "Commercial General Liability
Insurance (CGL)," followed by whichever of the following statements
is both relevant and correct:
(A) "(The name on the license or "This contractor') does not carry
commercial general liability insurance."
(B) "(The name on the license or "This contractor') carries
commercial general liability insurance written by (the insurance
company). You may call (the insurance company) at __________ to check
the contractor's insurance coverage."
(C) "(The name on the license or "This contractor') is
self-insured."
(D) "(The name on the license or 'This contractor') is a limited
liability company that carries liability insurance or maintains other
security as required by law. You may call (the insurance company or
trust company or bank) at ____ to check on the contractor's insurance
coverage or security."
(2) A notice concerning workers' compensation insurance. This
notice may be provided as an attachment to the contract if the
contract includes the statement: "A notice concerning workers'
compensation insurance is attached to this contract." The notice
shall include the heading "Workers' Compensation Insurance" followed
by whichever of the following statements is correct:
(A) "(The name on the license or "This contractor') has no
employees and is exempt from workers' compensation requirements."
(B) "(The name on the license or "This contractor') carries
workers' compensation insurance for all employees."
(3) A notice that provides the buyer with the following
information about the performance of extra or change-order work:
(A) A statement that the buyer may not require a contractor to
perform extra or change-order work without providing written
authorization prior to the commencement of work covered by the new
change order.
(B) A statement informing the buyer that extra work or a change
order is not enforceable against a buyer unless the change order also
identifies all of the following in writing prior to the commencement
of work covered by the new change order:
(i) The scope of work encompassed by the order.
(ii) The amount to be added or subtracted from the contract.
(iii) The effect the order will make in the progress payments or
the completion date.
(C) A statement informing the buyer that the contractor's failure
to comply with the requirements of this paragraph does not preclude
the recovery of compensation for work performed based upon legal or
equitable remedies designed to prevent unjust enrichment.
(4) A notice with the heading "Mechanics' Lien Warning" written as
follows:
"MECHANICS' LIEN WARNING:
Anyone who helps improve your property, but who is not paid, may
record what is called a mechanics' lien on your property. A mechanics'
lien is a claim, like a mortgage or home equity loan, made against
your property and recorded with the county recorder.
Even if you pay your contractor in full, unpaid subcontractors,
suppliers, and laborers who helped to improve your property may
record mechanics' liens and sue you in court to foreclose the lien.
If a court finds the lien is valid, you could be forced to pay twice
or have a court officer sell your home to pay the lien. Liens can
also affect your credit.
To preserve their right to record a lien, each subcontractor and
material supplier must provide you with a document called a "20-day
Preliminary Notice.' This notice is not a lien. The purpose of the
notice is to let you know that the person who sends you the notice
has the right to record a lien on your property if he or she is not
paid.
BE CAREFUL. The Preliminary Notice can be sent up to 20 days
after the subcontractor starts work or the supplier provides
material. This can be a big problem if you pay your contractor before
you have received the Preliminary Notices.
You will not get Preliminary Notices from your prime contractor or
from laborers who work on your project. The law assumes that you
already know they are improving your property.
PROTECT YOURSELF FROM LIENS. You can protect yourself from liens
by getting a list from your contractor of all the subcontractors and
material suppliers that work on your project. Find out from your
contractor when these subcontractors started work and when these
suppliers delivered goods or materials. Then wait 20 days, paying
attention to the Preliminary Notices you receive.
PAY WITH JOINT CHECKS. One way to protect yourself is to pay with
a joint check. When your contractor tells you it is time to pay for
the work of a subcontractor or supplier who has provided you with a
Preliminary Notice, write a joint check payable to both the
contractor and the subcontractor or material supplier.
For other ways to prevent liens, visit CSLB's Internet Web site at
www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752).
REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR
HOME. This can mean that you may have to pay twice, or face the
forced sale of your home to pay what you owe."
(5) The following notice shall be provided in at least 12-point
typeface:
"Information about the Contractors' State License Board (CSLB):
CSLB is the state consumer protection agency that licenses and
regulates construction contractors.
Contact CSLB for information about the licensed contractor you are
considering, including information about disclosable complaints,
disciplinary actions, and civil judgments that are reported to CSLB.
Use only licensed contractors. If you file a complaint against a
licensed contractor within the legal deadline (usually four years),
CSLB has authority to investigate the complaint. If you use an
unlicensed contractor, CSLB may not be able to help you resolve your
complaint. Your only remedy may be in civil court, and you may be
liable for damages arising out of any injuries to the unlicensed
contractor or the unlicensed contractor's employees.
For more information:
Visit CSLB's Internet Web site at www.cslb.ca.gov
Call CSLB at 800-321-CSLB (2752)
Write CSLB at P.O. Box 26000, Sacramento, CA 95826."
(6) (A) The notice set forth in subparagraph (B) and entitled
"Three-Day Right to Cancel," shall be provided to the buyer unless
the contract is:
(i) Negotiated at the contractor's place of business.
(ii) Subject to the "Seven-Day Right to Cancel," as set forth in
paragraph (7).
(iii) Subject to licensure under the Alarm Company Act (Chapter
11.6 (commencing with Section 7590)), provided the alarm company
licensee complies with Sections 1689.5, 1689.6, and 1689.7 of the
Civil Code, as applicable.
(B) "Three-Day Right to Cancel
You, the buyer, have the right to cancel this contract within
three business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor's
place of business by midnight of the third business day after you
received a signed and dated copy of the contract that includes this
notice. Include your name, your address, and the date you received
the signed copy of the contract and this notice.
If you cancel, the contractor must return to you anything you paid
within 10 days of receiving the notice of cancellation. For your
part, you must make available to the contractor at your residence, in
substantially as good condition as you received them, goods
delivered to you under this contract or sale. Or, you may, if you
wish, comply with the contractor's instructions on how to return the
goods at the contractor's expense and risk. If you do make the goods
available to the contractor and the contractor does not pick them up
within 20 days of the date of your notice of cancellation, you may
keep them without any further obligation. If you fail to make the
goods available to the contractor, or if you agree to return the
goods to the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract."
(C) The "Three-Day Right to Cancel" notice required by this
paragraph shall comply with all of the following:
(i) The text of the notice is at least 12-point boldface type.
(ii) The notice is in immediate proximity to a space reserved for
the owner's signature.
(iii) The owner acknowledges receipt of the notice by signing and
dating the notice form in the signature space.
(iv) The notice is written in the same language, e.g., Spanish, as
that principally used in any oral sales presentation.
(v) The notice may be attached to the contract if the contract
includes, in at least 12-point boldface type, a checkbox with the
following statement: "The law requires that the contractor give you a
notice explaining your right to cancel. Initial the checkbox if the
contractor has given you a "Notice of the Three-Day Right to Cancel.'
"
(vi) The notice shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation," which also shall be
attached to the agreement or offer to purchase and be easily
detachable, and which shall contain the following statement written
in the same language, e.g., Spanish, as used in the contract:
"Notice of Cancellation"
/enter date of transaction/
______________________________
(Date)
"You may cancel this transaction, without any penalty or
obligation, within three business days from the above date.
If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by
you will be returned within 10 days following receipt by the seller
of your cancellation notice, and any security interest arising out of
the transaction will be canceled.
If you cancel, you must make available to the seller at your
residence, in substantially as good condition as when received, any
goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the
return shipment of the goods at the seller's expense and risk.
If you do make the goods available to the seller and the seller
does not pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to
do so, then you remain liable for performance of all obligations
under the contract."
To cancel
this
transaction,
mail or
deliver a
signed and
dated copy of
this
cancellation
notice, or
any other
written
notice, or
send a
telegram
to___________,
/name of
seller/
at____________
/address of
seller's
place of
business/
not later
than midnight
of___________.
(Date)
I hereby
cancel this
transaction. _
(Date)
______________
(Buyer's
signature)
(7) (A) The following notice entitled "Seven-Day Right to Cancel"
shall be provided to the buyer for any contract that is written for
the repair or restoration of residential premises damaged by any
sudden or catastrophic event for which a state of emergency has been
declared by the President of the United States or the Governor, or
for which a local emergency has been declared by the executive
officer or governing body of any city, county, or city and county:
"Seven-Day Right to Cancel
You, the buyer, have the right to cancel this contract within
seven business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor's
place of business by midnight of the seventh business day after you
received a signed and dated copy of the contract that includes this
notice. Include your name, your address, and the date you received
the signed copy of the contract and this notice.
If you cancel, the contractor must return to you anything you paid
within 10 days of receiving the notice of cancellation. For your
part, you must make available to the contractor at your residence, in
substantially as good condition as you received them, goods
delivered to you under this contract or sale. Or, you may, if you
wish, comply with the contractor's instructions on how to return the
goods at the contractor's expense and risk. If you do make the goods
available to the contractor and the contractor does not pick them up
within 20 days of the date of your notice of cancellation, you may
keep them without any further obligation. If you fail to make the
goods available to the contractor, or if you agree to return the
goods to the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract."
(B) The "Seven-Day Right to Cancel" notice required by this
subdivision shall comply with all of the following:
(i) The text of the notice is at least 12-point boldface type.
(ii) The notice is in immediate proximity to a space reserved for
the owner's signature.
(iii) The owner acknowledges receipt of the notice by signing and
dating the notice form in the signature space.
(iv) The notice is written in the same language, e.g., Spanish, as
that principally used in any oral sales presentation.
(v) The notice may be attached to the contract if the contract
includes, in at least 12-point boldface type, a checkbox with the
following statement: "The law requires that the contractor give you a
notice explaining your right to cancel. Initial the checkbox if the
contractor has given you a "Notice of the Seven-Day Right to Cancel.'
"
(vi) The notice shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation," which shall also be
attached to the agreement or offer to purchase and be easily
detachable, and which shall contain the following statement written
in the same language, e.g., Spanish, as used in the contract:
"Notice of Cancellation"
/enter date of transaction/
______________________________
(Date)
"You may cancel this transaction, without any penalty or
obligation, within seven business days from the above date.
If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by
you will be returned within 10 days following receipt by the seller
of your cancellation notice, and any security interest arising out of
the transaction will be canceled.
If you cancel, you must make available to the seller at your
residence, in substantially as good condition as when received, any
goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the
return shipment of the goods at the seller's expense and risk.
If you do make the goods available to the seller and the seller
does not pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to
do so, then you remain liable for performance of all obligations
under the contract."
To cancel
this
transaction,
mail or
deliver
a signed and
dated copy of
this
cancellation
notice, or
any other
written
notice, or
send a
telegram
to___________,
/name of
seller/
at____________
/address of
seller's
place of
business/
not later
than midnight
of___________.
(Date)
I hereby
cancel this
transaction. _
(Date)
______________
(Buyer's
signature)
7159.1. In any contract for the sale of home improvement goods or
services offered by door-to-door sale that contains or is secured by
a lien on real property, the contract shall be accompanied by the
following notice in 18-point boldfaced type:
"WARNING TO BUYER: IF YOU SIGN THE CONTRACT WHICH ACCOMPANIES THIS
NOTICE, YOU WILL BE PUTTING UP YOUR HOME AS SECURITY. THIS MEANS
THAT YOUR HOME COULD BE SOLD WITHOUT YOUR PERMISSION AND WITHOUT ANY
COURT ACTION IF YOU MISS ANY PAYMENT REQUIRED BY THIS CONTRACT."
This notice shall be written in the same language as the rest of
the contract. It shall be on a separate piece of paper from the rest
of the contract and shall be signed and dated by the buyer. The home
improvement contractor or home improvement salesperson shall deliver
to the buyer at the time of the buyer's signing and dating of the
notice a legible copy of the signed and dated notice. A security
interest created in any contract described in this section that does
not provide the notice as required by this section shall be void and
unenforceable.
This section shall not apply to any of the following:
(a) Any contract that is subject to Chapter 1 (commencing with
Section 1801) of Title 2 of Part 4 of Division 3 of the Civil Code.
(b) A mechanic's lien established pursuant to Chapter 2
(commencing with Section 3109) of Title 15 of Part 4 of Division 3 of
the Civil Code.
(c) Any contract that is subject to subdivision (a) of Section
7159.2.
7159.1. (a) In any contract for the sale of home improvement goods
or services offered by door-to-door sale that contains or is secured
by a lien on real property, the contract shall be accompanied by the
following notice in 18-point boldfaced type:
"WARNING TO BUYER: IF YOU SIGN THE CONTRACT WHICH ACCOMPANIES THIS
NOTICE, YOU WILL BE PUTTING UP YOUR HOME AS SECURITY. THIS MEANS
THAT YOUR HOME COULD BE SOLD WITHOUT YOUR PERMISSION AND WITHOUT ANY
COURT ACTION IF YOU MISS ANY PAYMENT REQUIRED BY THIS CONTRACT."
This notice shall be written in the same language as the rest of
the contract. It shall be on a separate piece of paper from the rest
of the contract and shall be signed and dated by the buyer. The home
improvement contractor or home improvement salesperson shall deliver
to the buyer at the time of the buyer's signing and dating of the
notice a legible copy of the signed and dated notice. A security
interest created in any contract described in this section that does
not provide the notice as required by this section shall be void and
unenforceable.
(b) This section shall not apply to any of the following:
(1) Any contract that is subject to Chapter 1 (commencing with
Section 1801) of Title 2 of Part 4 of Division 3 of the Civil Code.
(2) A mechanics lien established pursuant to Chapter 4 (commencing
with Section 8400) of Title 2 of Part 6 of Division 4 of the Civil
Code.
(3) Any contract that is subject to subdivision (a) of Section
7159.2.
7159.2. (a) No home improvement goods or services contract of a
value of five thousand dollars ($5,000) or less shall provide for a
security interest in real property, except for a mechanic's lien or
other interest in property that arises by operation of law. Any lien
in violation of this subdivision is void and unenforceable.
(b) When the proceeds of a loan secured by a mortgage on real
property are used to fund goods or services pursuant to a home
improvement goods or services contract of more than five thousand
dollars ($5,000), the person or entity making the loan shall only pay
a contractor under the home improvement goods or services contract
from the proceeds of the loan by either of the following methods:
(1) By an instrument payable to the borrower or jointly to the
borrower and the contractor.
(2) At the election of the borrower, through a third-party escrow
agent pursuant to the terms of a written agreement signed by the
borrower, the person or entity making the loan, and the contractor
prior to the disbursement.
(c) Any person or entity who violates any provision of this
section shall be liable for actual damages suffered by the borrower
for damages that proximately result from the violation.
(d) Any person or entity who intentionally or as a pattern or
practice violates any provision of this section shall be additionally
liable for three times the contract price for the home improvement.
(e) Any person who is a senior citizen or disabled person, as
defined in subdivisions (f) and (g) of Section 1761 of the Civil
Code, as part of any action for a violation of this section, may seek
and be awarded, in addition to the remedies provided in this
section, up to five thousand dollars ($5,000) as provided in
subdivision (b) of Section 1780 of the Civil Code.
(f) The court shall award court costs and attorney's fees to a
prevailing plaintiff in an action brought pursuant to this section.
Reasonable attorney's fees may be awarded to a prevailing defendant
upon a finding by the court that the plaintiff's prosecution of the
action was not in good faith.
7159.5. This section applies to all home improvement contracts, as
defined in Section 7151.2, between an owner or tenant and a
contractor, whether a general contractor or a specialty contractor,
who is licensed or subject to be licensed pursuant to this chapter
with regard to the transaction.
(a) Failure by the licensee or a person subject to be licensed
under this chapter, or by his or her agent or salesperson, to comply
with the following provisions is cause for discipline:
(1) The contract shall be in writing and shall include the agreed
contract amount in dollars and cents. The contract amount shall
include the entire cost of the contract, including profit, labor, and
materials, but excluding finance charges.
(2) If there is a separate finance charge between the contractor
and the person contracting for home improvement, the finance charge
shall be set out separately from the contract amount.
(3) If a downpayment will be charged, the downpayment may not
exceed one thousand dollars ($1,000) or 10 percent of the contract
amount, whichever is less.
(4) If, in addition to a downpayment, the contract provides for
payments to be made prior to completion of the work, the contract
shall include a schedule of payments in dollars and cents
specifically referencing the amount of work or services to be
performed and any materials and equipment to be supplied.
(5) Except for a downpayment, the contractor may neither request
nor accept payment that exceeds the value of the work performed or
material delivered.
(6) Upon any payment by the person contracting for home
improvement, and prior to any further payment being made, the
contractor shall, if requested, obtain and furnish to the person a
full and unconditional release from any potential lien claimant claim
or mechanic's lien authorized pursuant to Section 3110 of the Civil
Code for any portion of the work for which payment has been made. The
person contracting for home improvement may withhold all further
payments until these releases are furnished.
(7) If the contract provides for a payment of a salesperson's
commission out of the contract price, that payment shall be made on a
pro rata basis in proportion to the schedule of payments made to the
contractor by the disbursing party in accordance with paragraph (4).
(8) A contractor furnishing a performance and payment bond, lien
and completion bond, or a bond equivalent or joint control approved
by the registrar covering full performance and payment is exempt from
paragraphs (3), (4), and (5), and need not include, as part of the
contract, the statement regarding the downpayment specified in
subparagraph (C) of paragraph (8) of subdivision (d) of Section 7159,
the details and statement regarding progress payments specified in
paragraph (9) of subdivision (d) of Section 7159, or the Mechanics'
Lien Warning specified in paragraph (4) of subdivision (e) of Section
7159. A contractor furnishing these bonds, bond equivalents, or a
joint control approved by the registrar may accept payment prior to
completion. If the contract provides for a contractor to furnish
joint control, the contractor shall not have any financial or other
interest in the joint control.
(b) A violation of paragraph (1), (3), or (5) of subdivision (a)
by a licensee or a person subject to be licensed under this chapter,
or by his or her agent or salesperson, is a misdemeanor punishable by
a fine of not less than one hundred dollars ($100) nor more than
five thousand dollars ($5,000), or by imprisonment in a county jail
not exceeding one year, or by both that fine and imprisonment.
(1) An indictment or information against a person who is not
licensed but who is required to be licensed under this chapter shall
be brought, or a criminal complaint filed, for a violation of this
section, in accordance with paragraph (4) of subdivision (d) of
Section 802 of the Penal Code, within four years from the date of the
contract or, if the contract is not reduced to writing, from the
date the buyer makes the first payment to the contractor.
(2) An indictment or information against a person who is licensed
under this chapter shall be brought, or a criminal complaint filed,
for a violation of this section, in accordance with paragraph (2) of
subdivision (d) of Section 802 of the Penal Code, within two years
from the date of the contract or, if the contract is not reduced to
writing, from the date the buyer makes the first payment to the
contractor.
(3) The limitations on actions in this subdivision shall not apply
to any administrative action filed against a licensed contractor.
(c) Any person who violates this section as part of a plan or
scheme to defraud an owner or tenant of a residential or
nonresidential structure, including a mobilehome or manufactured
home, in connection with the offer or performance of repairs to the
structure for damage caused by a natural disaster, shall be ordered
by the court to make full restitution to the victim based on the
person's ability to pay, as defined in subdivision (e) of Section
1203.1b of the Penal Code. In addition to full restitution, and
imprisonment authorized by this section, the court may impose a fine
of not less than five hundred dollars ($500) nor more than
twenty-five thousand dollars ($25,000), based upon the defendant's
ability to pay. This subdivision applies to natural disasters for
which a state of emergency is proclaimed by the Governor pursuant to
Section 8625 of the Government Code, or for which an emergency or
major disaster is declared by the President of the United States.
7159.5. This section applies to all home improvement contracts, as
defined in Section 7151.2, between an owner or tenant and a
contractor, whether a general contractor or a specialty contractor,
that is licensed or subject to be licensed pursuant to this chapter
with regard to the transaction.
(a) Failure by the licensee or a person subject to be licensed
under this chapter, or by his or her agent or salesperson, to comply
with the following provisions is cause for discipline:
(1) The contract shall be in writing and shall include the agreed
contract amount in dollars and cents. The contract amount shall
include the entire cost of the contract, including profit, labor, and
materials, but excluding finance charges.
(2) If there is a separate finance charge between the contractor
and the person contracting for home improvement, the finance charge
shall be set out separately from the contract amount.
(3) If a downpayment will be charged, the downpayment may not
exceed one thousand dollars ($1,000) or 10 percent of the contract
amount, whichever is less.
(4) If, in addition to a downpayment, the contract provides for
payments to be made prior to completion of the work, the contract
shall include a schedule of payments in dollars and cents
specifically referencing the amount of work or services to be
performed and any materials and equipment to be supplied.
(5) Except for a downpayment, the contractor may neither request
nor accept payment that exceeds the value of the work performed or
material delivered.
(6) Upon any payment by the person contracting for home
improvement, and prior to any further payment being made, the
contractor shall, if requested, obtain and furnish to the person a
full and unconditional release from any potential lien claimant claim
or mechanics lien authorized pursuant to Section 8410 of the Civil
Code for any portion of the work for which payment has been made. The
person contracting for home improvement may withhold all further
payments until these releases are furnished.
(7) If the contract provides for a payment of a salesperson's
commission out of the contract price, that payment shall be made on a
pro rata basis in proportion to the schedule of payments made to the
contractor by the disbursing party in accordance with paragraph (4).
(8) A contractor furnishing a performance and payment bond, lien
and completion bond, or a bond equivalent or joint control approved
by the registrar covering full performance and payment is exempt from
paragraphs (3), (4), and (5), and need not include, as part of the
contract, the statement regarding the downpayment specified in
subparagraph (C) of paragraph (8) of subdivision (d) of Section 7159,
the details and statement regarding progress payments specified in
paragraph (9) of subdivision (d) of Section 7159, or the Mechanics
Lien Warning specified in paragraph (4) of subdivision (e) of Section
7159. A contractor furnishing these bonds, bond equivalents, or a
joint control approved by the registrar may accept payment prior to
completion. If the contract provides for a contractor to furnish
joint control, the contractor shall not have any financial or other
interest in the joint control.
(b) A violation of paragraph (1), (3), or (5) of subdivision (a)
by a licensee or a person subject to be licensed under this chapter,
or by his or her agent or salesperson, is a misdemeanor punishable by
a fine of not less than one hundred dollars ($100) nor more than
five thousand dollars ($5,000), or by imprisonment in a county jail
not exceeding one year, or by both that fine and imprisonment.
(1) An indictment or information against a person who is not
licensed but who is required to be licensed under this chapter shall
be brought, or a criminal complaint filed, for a violation of this
section, in accordance with paragraph (4) of subdivision (d) of
Section 802 of the Penal Code, within four years from the date of the
contract or, if the contract is not reduced to writing, from the
date the buyer makes the first payment to the contractor.
(2) An indictment or information against a person who is licensed
under this chapter shall be brought, or a criminal complaint filed,
for a violation of this section, in accordance with paragraph (2) of
subdivision (d) of Section 802 of the Penal Code, within two years
from the date of the contract or, if the contract is not reduced to
writing, from the date the buyer makes the first payment to the
contractor.
(3) The limitations on actions in this subdivision shall not apply
to any administrative action filed against a licensed contractor.
(c) Any person who violates this section as part of a plan or
scheme to defraud an owner or tenant of a residential or
nonresidential structure, including a mobilehome or manufactured
home, in connection with the offer or performance of repairs to the
structure for damage caused by a natural disaster, shall be ordered
by the court to make full restitution to the victim based on the
person's ability to pay, as defined in subdivision (e) of Section
1203.1b of the Penal Code. In addition to full restitution, and
imprisonment authorized by this section, the court may impose a fine
of not less than five hundred dollars ($500) nor more than
twenty-five thousand dollars ($25,000), based upon the defendant's
ability to pay. This subdivision applies to natural disasters for
which a state of emergency is proclaimed by the Governor pursuant to
Section 8625 of the Government Code, or for which an emergency or
major disaster is declared by the President of the United States.
7159.6. (a) An extra work or change order is not enforceable
against a buyer unless the change order sets forth all of the
following:
(1) The scope of work encompassed by the order.
(2) The amount to be added or subtracted from the contract.
(3) The effect the order will make in the progress payments or the
completion date.
(b) The buyer may not require a contractor to perform extra or
change-order work without providing written authorization.
(c) Failure to comply with the requirements of this section does
not preclude the recovery of compensation for work performed based
upon legal or equitable remedies designed to prevent unjust
enrichment.
(d) This section shall become operative on January 1, 2006.
7159.9. (a) Section 7159 does not apply to the sale, installation,
and servicing of a fire alarm sold in conjunction with an alarm
system, as defined in subdivision (n) of Section 7590.1 of the Alarm
Company Act (Chapter 11.6 (commencing with Section 7590)), provided
the licensee does all of the following:
(1) Complies with the contract requirements set forth in Section
7599.54.
(2) Complies with Sections 1689.5, 1689.6, and 1689.7 of the Civil
Code, as applicable.
(3) Executes the following certification statement in the contract
or in a separate certification document signed by all parties to the
contract:
"All costs attributable to making the fire alarm system operable
for the residence identified by this document, including sale and
installation costs, do not exceed five hundred dollars ($500)."
(4) Certifies to the following if the certification statement
described in paragraph (3) is in a separate document:
"I certify that all statements and representations made by me in
this document are true and accurate."
(b) The contract or separate certification document shall also
include both of the following:
(1) The physical address of the residence for which the
certification is applicable.
(2) The name, business address, and license number of the
contractor as contained in the official records of the board.
(c) The licensee shall give an exact copy of all documents
required pursuant to this section to the party who is contracting to
have the alarm system installed.
(d) All documents required pursuant to this section shall be
retained by the licensee for a period of five years in accordance
with the provisions of Section 7111, and shall be made available to
the board within 30 days of a written request.
(e) Failure by the contractor to provide the board with the
certification or contract within 30 days of a written request is
cause for discipline.
(f) Failure by the licensee to provide the board with the
certification or contract within 30 days of a written request creates
a presumption that the licensee has violated the provisions of
Section 7159, unless evidence to the contrary is presented within the
timeframe specified by the board.
7159.10. (a) (1) "Service and repair contract" means an agreement
between a contractor or salesperson for a contractor, whether a
general contractor or a specialty contractor, who is licensed or
subject to be licensed pursuant to this chapter with regard to the
transaction, and a homeowner or a tenant, for the performance of a
home improvement as defined in Section 7151, that conforms to the
following requirements:
(A) The contract amount is seven hundred fifty dollars ($750) or
less.
(B) The prospective buyer initiated contact with the contractor to
request the work.
(C) The contractor does not sell the buyer goods or services
beyond those reasonably necessary to take care of the particular
problem that caused the buyer to contact the contractor.
(D) No payment is due, or accepted by the contractor, until the
work is completed.
(2) As used in this subdivision, "the work is completed" means
that all of the conditions that caused the buyer to contact the
contractor for service and repairs have been fully corrected and, if
applicable, the building department has accepted and approved the
corrective work.
(b) For any contract written pursuant to subdivision (a) or
otherwise presented to the buyer as a service and repair contract,
unless all of the conforming requirements for service and repair
contracts specified in subdivision (a) are met, the contract
requirements for home improvements set forth in subdivisions (c),
(d), and (e) of Section 7159 shall be applicable, including any
rights to rescind the contract as set forth in Section 1689.6 or
1689.7 of the Civil Code, regardless of the aggregate contract price.
(c) If all of the requirements of subdivision (a) are met, only
those notices and other requirements set forth in this section are
applicable to the contract.
(d) Every service and repair contract described in subdivision (a)
shall include, or otherwise comply with, all of the following:
(1) The contract, any changes to the contract, and any attachments
shall be in writing and signed or acknowledged by the parties as set
forth in this section, and shall be written in the same language
(for example Spanish) as principally used in the oral sales
presentation.
(2) The writing shall be legible.
(3) Any printed form shall be readable. Unless a larger typeface
is specified in this article, the text shall be in at least 10-point
typeface and the headings shall be in at least 10-point boldface
type.
(4) Before any work is started, the contractor shall give the
buyer a copy of the contract signed and dated by the buyer and by the
contractor or the contractor's representative.
(5) The name, business address, and license number of the
contractor.
(6) The date the contract was signed.
(7) A notice concerning commercial general liability insurance.
This notice may be provided as an attachment to the contract if the
contract includes the statement, "A notice concerning commercial
general liability insurance is attached to this contract." The notice
shall include the heading "Commercial General Liability Insurance
(CGL)" followed by whichever of the following statements is both
relevant and correct:
(A) "(The name on the license or 'This contractor') does not carry
commercial general liability insurance."
(B) "(The name on the license or 'This contractor') carries
commercial general liability insurance written by (the insurance
company). You may call the (insurance company) at ____ to check the
contractor's insurance coverage."
(C) "(The name on the license or 'This contractor') is
self-insured."
(D) "(The name on the license or 'This contractor') is a limited
liability company that carries liability insurance or maintains other
security as required by law. You may call (the insurance company or
trust company or bank) at ____ to check on the contractor's insurance
coverage or security."
(8) A notice concerning workers' compensation insurance. This
notice may be provided as an attachment to the contract if the
contract includes the statement "A notice concerning workers'
compensation insurance is attached to this contract." The notice
shall include the heading "Workers' Compensation Insurance" followed
by whichever of the following statements is both relevant and
correct:
(A) "(The name on the license or 'This contractor') has no
employees and is exempt from workers' compensation requirements."
(B) "(The name on the license or 'This contractor') carries
workers' compensation insurance for all employees."
(e) Every service and repair contract described in subdivision (a)
shall provide the following information, notices, and disclosures in
the contract:
(1) Notice of the type of contract in at least 10-point boldface
type: "Service and Repair."
(2) A notice in at least 12-point boldface type, signed and dated
by the buyer: "Notice to the Buyer: The law requires that service and
repair contracts must meet all of the following requirements:
(A) The price must be no more than seven hundred and fifty dollars
($750).
(B) You, the buyer, must have initiated contact with the
contractor to request the work.
(C) The contractor must not sell you goods or services beyond
those reasonably necessary to take care of the particular problem
that caused you to contact the contractor.
(D) No payment is due and the contractor may not accept any
payment until the work is completed."
(3) The notice in at least 12-point boldface type: "Notice to the
Buyer: You are entitled to a completely filled in and signed copy of
this agreement before any work may be started."
(4) If applicable, the heading "List of Documents to be
Incorporated into the Contract," followed by the list of documents to
be incorporated into the contract.
(5) Where the contract is a fixed contract amount, the heading:
"Contract Price" followed by the amount of the contract in dollars
and cents.
(6) If a finance charge will be charged, the heading: "Finance
Charge" followed by the amount in dollars and cents. The finance
charge is to be set out separately from the contract amount.
(7) Where the contract is estimated by a time and materials
for
7150. "Person" as used in this article is limited to natural
persons, notwithstanding the definition of person in Section 7025.
7150.1. A home improvement contractor, including a swimming pool
contractor, is a contractor as defined and licensed under this
chapter who is engaged in the business of home improvement either
full time or part time. A home improvement contractor shall satisfy
all requirements imposed by this article.
7151. "Home improvement" means the repairing, remodeling, altering,
converting, or modernizing of, or adding to, residential property
and shall include, but not be limited to, the construction, erection,
replacement, or improvement of driveways, swimming pools, including
spas and hot tubs, terraces, patios, awnings, storm windows,
landscaping, fences, porches, garages, fallout shelters, basements,
and other improvements of the structures or land which is adjacent to
a dwelling house. "Home improvement" shall also mean the
installation of home improvement goods or the furnishing of home
improvement services.
For purposes of this chapter, "home improvement goods or services"
means goods and services, as defined in Section 1689.5 of the Civil
Code, which are bought in connection with the improvement of real
property. Such home improvement goods and services include, but are
not limited to, carpeting, texture coating, fencing, air conditioning
or heating equipment, and termite extermination. Home improvement
goods include goods which are to be so affixed to real property as to
become a part of real property whether or not severable therefrom.
7151.2. "Home improvement contract" means an agreement, whether
oral or written, or contained in one or more documents, between a
contractor and an owner or between a contractor and a tenant,
regardless of the number of residence or dwelling units contained in
the building in which the tenant resides, if the work is to be
performed in, to, or upon the residence or dwelling unit of the
tenant, for the performance of a home improvement as defined in
Section 7151, and includes all labor, services, and materials to be
furnished and performed thereunder. "Home improvement contract" also
means an agreement, whether oral or written, or contained in one or
more documents, between a salesperson, whether or not he or she is a
home improvement salesperson, and (a) an owner or (b) a tenant,
regardless of the number of residence or dwelling units contained in
the building in which the tenant resides, which provides for the
sale, installation, or furnishing of home improvement goods or
services.
7152. (a) "Home improvement salesperson" is a person employed by a
home improvement contractor licensed under this chapter to solicit,
sell, negotiate, or execute contracts for home improvements, for the
sale, installation or furnishing of home improvement goods or
services, or of swimming pools, spas, or hot tubs.
(b) The following shall not be required to be registered as home
improvement salespersons:
(1) An officer of record of a corporation licensed pursuant to
this chapter, or a manager of record of a limited liability company
licensed pursuant to this chapter.
(2) A general partner listed on the license record of a
partnership licensed pursuant to this chapter.
(3) A qualifying person, as defined in Section 7025.
(4) A salesperson whose sales are all made pursuant to
negotiations between the parties if the negotiations are initiated by
the prospective buyer at or with a general merchandise retail
establishment that operates from a fixed location where goods or
services are offered for sale.
(5) A person who contacts the prospective buyer for the exclusive
purpose of scheduling appointments for a registered home improvement
salesperson.
(6) A bona fide service repairperson who is in the employ of a
licensed contractor and whose repair or service call is limited to
the service, repair, or emergency repair initially requested by the
buyer of the service.
(c) The exemption to registration provided under paragraphs (1),
(2), and (3) of subdivision (b) shall apply only to those individuals
who, at the time of the sales transaction, are listed as personnel
of record for the licensee responsible for soliciting, negotiating,
or contracting for a service or improvement that is subject to
regulation under this article.
7153. (a) It is a misdemeanor for any person to engage in the
occupation of salesperson for one or more home improvement
contractors within this state without having a registration issued by
the registrar for each of the home improvement contractors by whom
he or she is employed as a home improvement salesperson. If, upon
investigation, the registrar has probable cause to believe that a
salesperson is in violation of this section, the registrar may issue
a citation pursuant to Section 7028.7.
It is a misdemeanor for any person to engage in the occupation of
salesperson of home improvement goods or services within this state
without having a registration issued by the registrar.
(b) Any security interest taken by a contractor, to secure any
payment for the performance of any act or conduct described in
Section 7151 that occurs on or after January 1, 1995, is
unenforceable if the person soliciting the act or contract was not a
duly registered salesperson or was not exempt from registration
pursuant to Section 7152 at the time the homeowner signs the home
improvement contract solicited by the salesperson.
7153.1. (a) The home improvement salesperson shall submit to the
registrar an application in writing containing the statement that he
or she desires the issuance of a registration under the terms of this
article.
The application shall be made on a form prescribed by the
registrar and shall be accompanied by the fee fixed by this chapter.
(b) The registrar may refuse to register the applicant under the
grounds specified in Section 480.
(c) As part of an application for a home improvement salesperson,
the board shall require an applicant to furnish a full set of
fingerprints for purposes of conducting criminal history record
checks. Fingerprints furnished pursuant to this subdivision shall be
submitted in an electronic format where readily available. Requests
for alternative methods of furnishing fingerprints are subject to the
approval of the registrar. The board shall use the fingerprints
furnished by an applicant to obtain criminal history information on
the applicant from the Department of Justice and the United States
Federal Bureau of Investigation, including any subsequent arrest
information available.
7153.2. All registrations issued under the provisions of this
article shall expire on a date established pursuant to Section 152.6.
7153.3. (a) To renew a registration, the registrant shall before
the time at which the registration would otherwise expire, apply for
renewal on a form prescribed by the registrar and pay a renewal fee
prescribed by this chapter.
(b) An application for renewal of registration is delinquent if
the application is not postmarked by the date on which the
registration would otherwise expire. A registration may, however,
still be renewed at any time within three years after its expiration
upon the filing of an application for renewal on a form prescribed by
the registrar and the payment of the renewal fee prescribed by this
chapter and a delinquent renewal penalty in the amount of twenty-five
dollars ($25). If a registration is not renewed within three years,
the person shall make application for registration pursuant to
Section 7153.1.
(c) The registrar may refuse to renew a registration for failure
by the registrant to complete the application for renewal of
registration. If a registrant fails to return the application
rejected for insufficiency or incompleteness within 90 days from the
original date of rejection, the application and fee shall be deemed
abandoned. Any application abandoned may not be reinstated. However,
the person may file a new application for registration pursuant to
Section 7153.1.
The registrar may review and accept the petition of a person who
disputes the abandonment of his or her renewal application upon a
showing of good cause. This petition shall be received within 90 days
of the date the application for renewal is deemed abandoned.
7154. A home improvement contractor who employs a person to sell
home improvement contracts while such person is not registered by the
registrar as a home improvement salesman as provided in this
article, is subject to disciplinary action by the registrar.
7155. Violation of any provision of this chapter by a home
improvement salesman constitutes cause for disciplinary action. The
registrar may suspend or revoke the registration of the home
improvement salesman if he is found to be in violation. The
disciplinary proceedings shall be conducted in accordance with the
provisions of Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code.
7155.5. Violations of any provisions of this chapter by a home
improvement salesperson, likewise constitutes a cause for
disciplinary action against the contractor, whether or not he or she
had knowledge of or participated in the act or omission constituting
violations of this chapter.
7156. It shall be a misdemeanor and a cause for disciplinary action
to commit any of the following acts:
(a) For any salesperson to fail to account for or to remit to his
or her employing contractor any payment received in connection with
any home improvement transaction or any other transaction involving a
work of improvement.
(b) For any person to use a contract form in connection with any
home improvement transaction or any other transaction involving a
work of improvement if the form fails to disclose the name of the
contractor principal by whom he or she is employed.
7157. (a) Except as otherwise provided in subdivision (b), as a
part of or in connection with the inducement to enter into any home
improvement contract or other contract, which may be performed by a
contractor, no person may promise or offer to pay, credit, or allow
to any owner, compensation or reward for the procurement or placing
of home improvement business with others.
(b) A contractor or his or her agent or salesperson may give
tangible items to prospective customers for advertising or sales
promotion purposes where the gift is not conditioned upon obtaining a
contract for home improvement work if the gift does not exceed a
value of five dollars ($5) and only one such gift is given in
connection with any one transaction.
(c) No salesperson or contractor's agent may accept any
compensation of any kind, for or on account of a home improvement
transaction, or any other transaction involving a work of
improvement, from any person other than the contractor whom he or she
represents with respect to the transaction, nor shall the
salesperson or agent make any payment to any person other than his or
her employer on account of the sales transaction.
(d) No contractor shall pay, credit, or allow any consideration or
compensation of any kind to any other contractor or salesperson
other than a licensee for or on account of the performance of any
work of improvement or services, including, but not limited to, home
improvement work or services, except: (1) where the person to or from
whom the consideration is to be paid is not subject to or is
exempted from the licensing requirements of this chapter, or (2)
where the transaction is not subject to the requirements of this
chapter.
As used in this section "owners" shall also mean "tenant."
Commission of any act prohibited by this section is a misdemeanor
and constitutes a cause for disciplinary action.
7158. (a) Any person who shall accept or receive a completion
certificate or other evidence that performance of a contract for a
work of improvement, including but not limited to a home improvement,
is complete or satisfactorily concluded, with knowledge that the
document is false and that the performance is not substantially
completed, and who shall utter, offer, or use the document in
connection with the making or accepting of any assignment or
negotiation of the right to receive any payment from the owner, under
or in connection with a contract, or for the purpose of obtaining or
granting any credit or loan on the security of the right to receive
any payment shall be guilty of a misdemeanor and subject to a fine of
not less than five hundred dollars ($500) nor more than five
thousand dollars ($5,000), or to imprisonment in the county jail for
a term of not less than one month nor more than one year, or both.
(b) Any person who violates this section as part of a plan or
scheme to defraud an owner of a residential or nonresidential
structure, including a mobilehome or manufactured home, in connection
with the offer or performance of repairs to the structure for damage
caused by a natural disaster, shall be ordered by the court to make
full restitution to the victim based on the person's ability to pay,
as defined in subdivision (e) of Section 1203.1b of the Penal Code.
In addition to full restitution, and imprisonment authorized by
subdivision (a), the court may impose a fine of not less than five
hundred dollars ($500) nor more than twenty-five thousand dollars
($25,000), based upon the defendant's ability to pay. This
subdivision applies to natural disasters for which a state of
emergency is proclaimed by the Governor pursuant to Section 8625 of
the Government Code or for which an emergency or major disaster is
declared by the President of the United States.
7159. (a) (1) This section identifies the projects for which a home
improvement contract is required, outlines the contract
requirements, and lists the items that shall be included in the
contract, or may be provided as an attachment.
(2) This section does not apply to service and repair contracts
that are subject to Section 7159.10, if the contract for the
applicable services complies with Sections 7159.10 to 7159.14,
inclusive.
(3) This section does not apply to the sale, installation, and
servicing of a fire alarm sold in conjunction with an alarm system,
as defined in subdivision (n) of Section 7590.1, if all costs
attributable to making the fire alarm system operable, including sale
and installation costs, do not exceed five hundred dollars ($500),
and the licensee complies with the requirements set forth in Section
7159.9.
(4) This section does not apply to any costs associated with
monitoring a burglar or fire alarm system.
(5) Failure by the licensee, his or her agent or salesperson, or
by a person subject to be licensed under this chapter, to provide the
specified information, notices, and disclosures in the contract, or
to otherwise fail to comply with any provision of this section, is
cause for discipline.
(b) For purposes of this section, "home improvement contract"
means an agreement, whether oral or written, or contained in one or
more documents, between a contractor and an owner or between a
contractor and a tenant, regardless of the number of residence or
dwelling units contained in the building in which the tenant resides,
if the work is to be performed in, to, or upon the residence or
dwelling unit of the tenant, for the performance of a home
improvement, as defined in Section 7151, and includes all labor,
services, and materials to be furnished and performed thereunder, if
the aggregate contract price specified in one or more improvement
contracts, including all labor, services, and materials to be
furnished by the contractor, exceeds five hundred dollars ($500).
"Home improvement contract" also means an agreement, whether oral or
written, or contained in one or more documents, between a
salesperson, whether or not he or she is a home improvement
salesperson, and an owner or a tenant, regardless of the number of
residence or dwelling units contained in the building in which the
tenant resides, which provides for the sale, installation, or
furnishing of home improvement goods or services.
(c) In addition to the specific requirements listed under this
section, every home improvement contract and any person subject to
licensure under this chapter or his or her agent or salesperson shall
comply with all of the following:
(1) The writing shall be legible.
(2) Any printed form shall be readable. Unless a larger typeface
is specified in this article, text in any printed form shall be in at
least 10-point typeface and the headings shall be in at least
10-point boldface type.
(3) (A) Before any work is started, the contractor shall give the
buyer a copy of the contract signed and dated by both the contractor
and the buyer. The buyer's receipt of the copy of the contract
initiates the buyer's rights to cancel the contract pursuant to
Sections 1689.5 to 1689.14, inclusive, of the Civil Code.
(B) The contract shall contain on the first page, in a typeface no
smaller than that generally used in the body of the document, both
of the following:
(i) The date the buyer signed the contract.
(ii) The name and address of the contractor to which the
applicable "Notice of Cancellation" is to be mailed, immediately
preceded by a statement advising the buyer that the "Notice of
Cancellation" may be sent to the contractor at the address noted on
the contract.
(4) The contract shall include a statement that, upon satisfactory
payment being made for any portion of the work performed, the
contractor, prior to any further payment being made, shall furnish to
the person contracting for the home improvement or swimming pool
work a full and unconditional release from any potential lien
claimant claim or mechanic's lien authorized pursuant to Section 3110
of the Civil Code for that portion of the work for which payment has
been made.
(5) A change-order form for changes or extra work shall be
incorporated into the contract and shall become part of the contract
only if it is in writing and signed by the parties prior to the
commencement of any work covered by a change order.
(6) The contract shall contain, in close proximity to the
signatures of the owner and contractor, a notice stating that the
owner or tenant has the right to require the contractor to have a
performance and payment bond.
(7) If the contract provides for a contractor to furnish joint
control, the contractor shall not have any financial or other
interest in the joint control.
(8) The provisions of this section are not exclusive and do not
relieve the contractor from compliance with any other applicable
provision of law.
(d) A home improvement contract and any changes to the contract
shall be in writing and signed by the parties to the contract prior
to the commencement of work covered by the contract or an applicable
change order and, except as provided in paragraph (8) of subdivision
(a) of Section 7159.5, shall include or comply with all of the
following:
(1) The name, business address, and license number of the
contractor.
(2) If applicable, the name and registration number of the home
improvement salesperson that solicited or negotiated the contract.
(3) The following heading on the contract form that identifies the
type of contract in at least 10-point boldface type: "Home
Improvement."
(4) The following statement in at least 12-point boldface type:
"You are entitled to a completely filled in copy of this agreement,
signed by both you and the contractor, before any work may be
started."
(5) The heading: "Contract Price," followed by the amount of the
contract in dollars and cents.
(6) If a finance charge will be charged, the heading: "Finance
Charge," followed by the amount in dollars and cents. The finance
charge is to be set out separately from the contract amount.
(7) The heading: "Description of the Project and Description of
the Significant Materials to be Used and Equipment to be Installed,"
followed by a description of the project and a description of the
significant materials to be used and equipment to be installed. For
swimming pools, the project description required under this paragraph
also shall include a plan and scale drawing showing the shape, size,
dimensions, and the construction and equipment specifications.
(8) If a downpayment will be charged, the details of the
downpayment shall be expressed in substantially the following form,
and shall include the text of the notice as specified in subparagraph
(C):
(A) The heading: "Downpayment."
(B) A space where the actual downpayment appears.
(C) The following statement in at least 12-point boldface type:
"THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE
CONTRACT PRICE, WHICHEVER IS LESS."
(9) If payments, other than the downpayment, are to be made before
the project is completed, the details of these payments, known as
progress payments, shall be expressed in substantially the following
form, and shall include the text of the statement as specified in
subparagraph (C):
(A) A schedule of progress payments shall be preceded by the
heading: "Schedule of Progress Payments."
(B) Each progress payment shall be stated in dollars and cents and
specifically reference the amount of work or services to be
performed and materials and equipment to be supplied.
(C) The section of the contract reserved for the progress payments
shall include the following statement in at least 12-point boldface
type:
"The schedule of progress payments must specifically describe each
phase of work, including the type and amount of work or services
scheduled to be supplied in each phase, along with the amount of each
proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO
COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET
DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT."
(10) The contract shall address the commencement of work to be
performed in substantially the following form:
(A) A statement that describes what constitutes substantial
commencement of work under the contract.
(B) The heading: "Approximate Start Date."
(C) The approximate date on which work will be commenced.
(11) The estimated completion date of the work shall be referenced
in the contract in substantially the following form:
(A) The heading: "Approximate Completion Date."
(B) The approximate date of completion.
(12) If applicable, the heading: "List of Documents to be
Incorporated into the Contract," followed by the list of documents
incorporated into the contract.
(13) The heading: "Note About Extra Work and Change Orders,"
followed by the following statement:
"Extra Work and Change Orders become part of the contract once the
order is prepared in writing and signed by the parties prior to the
commencement of work covered by the new change order. The order must
describe the scope of the extra work or change, the cost to be added
or subtracted from the contract, and the effect the order will have
on the schedule of progress payments."
(e) Except as provided in paragraph (8) of subdivision (a) of
Section 7159.5, all of the following notices shall be provided to the
owner as part of the contract form as specified or, if otherwise
authorized under this subdivision, may be provided as an attachment
to the contract:
(1) A notice concerning commercial general liability insurance.
This notice may be provided as an attachment to the contract if the
contract includes the following statement: "A notice concerning
commercial general liability insurance is attached to this contract."
The notice shall include the heading "Commercial General Liability
Insurance (CGL)," followed by whichever of the following statements
is both relevant and correct:
(A) "(The name on the license or "This contractor') does not carry
commercial general liability insurance."
(B) "(The name on the license or "This contractor') carries
commercial general liability insurance written by (the insurance
company). You may call (the insurance company) at __________ to check
the contractor's insurance coverage."
(C) "(The name on the license or "This contractor') is
self-insured."
(D) "(The name on the license or 'This contractor') is a limited
liability company that carries liability insurance or maintains other
security as required by law. You may call (the insurance company or
trust company or bank) at ____ to check on the contractor's insurance
coverage or security."
(2) A notice concerning workers' compensation insurance. This
notice may be provided as an attachment to the contract if the
contract includes the statement: "A notice concerning workers'
compensation insurance is attached to this contract." The notice
shall include the heading "Workers' Compensation Insurance" followed
by whichever of the following statements is correct:
(A) "(The name on the license or "This contractor') has no
employees and is exempt from workers' compensation requirements."
(B) "(The name on the license or "This contractor') carries
workers' compensation insurance for all employees."
(3) A notice that provides the buyer with the following
information about the performance of extra or change-order work:
(A) A statement that the buyer may not require a contractor to
perform extra or change-order work without providing written
authorization prior to the commencement of work covered by the new
change order.
(B) A statement informing the buyer that extra work or a change
order is not enforceable against a buyer unless the change order also
identifies all of the following in writing prior to the commencement
of work covered by the new change order:
(i) The scope of work encompassed by the order.
(ii) The amount to be added or subtracted from the contract.
(iii) The effect the order will make in the progress payments or
the completion date.
(C) A statement informing the buyer that the contractor's failure
to comply with the requirements of this paragraph does not preclude
the recovery of compensation for work performed based upon legal or
equitable remedies designed to prevent unjust enrichment.
(4) A notice with the heading "Mechanics' Lien Warning" written as
follows:
"MECHANICS' LIEN WARNING:
Anyone who helps improve your property, but who is not paid, may
record what is called a mechanics' lien on your property. A mechanics'
lien is a claim, like a mortgage or home equity loan, made against
your property and recorded with the county recorder.
Even if you pay your contractor in full, unpaid subcontractors,
suppliers, and laborers who helped to improve your property may
record mechanics' liens and sue you in court to foreclose the lien.
If a court finds the lien is valid, you could be forced to pay twice
or have a court officer sell your home to pay the lien. Liens can
also affect your credit.
To preserve their right to record a lien, each subcontractor and
material supplier must provide you with a document called a "20-day
Preliminary Notice.' This notice is not a lien. The purpose of the
notice is to let you know that the person who sends you the notice
has the right to record a lien on your property if he or she is not
paid.
BE CAREFUL. The Preliminary Notice can be sent up to 20 days
after the subcontractor starts work or the supplier provides
material. This can be a big problem if you pay your contractor before
you have received the Preliminary Notices.
You will not get Preliminary Notices from your prime contractor or
from laborers who work on your project. The law assumes that you
already know they are improving your property.
PROTECT YOURSELF FROM LIENS. You can protect yourself from liens
by getting a list from your contractor of all the subcontractors and
material suppliers that work on your project. Find out from your
contractor when these subcontractors started work and when these
suppliers delivered goods or materials. Then wait 20 days, paying
attention to the Preliminary Notices you receive.
PAY WITH JOINT CHECKS. One way to protect yourself is to pay with
a joint check. When your contractor tells you it is time to pay for
the work of a subcontractor or supplier who has provided you with a
Preliminary Notice, write a joint check payable to both the
contractor and the subcontractor or material supplier.
For other ways to prevent liens, visit CSLB's Internet Web site at
www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752).
REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR
HOME. This can mean that you may have to pay twice, or face the
forced sale of your home to pay what you owe."
(5) The following notice shall be provided in at least 12-point
typeface:
"Information about the Contractors' State License Board (CSLB):
CSLB is the state consumer protection agency that licenses and
regulates construction contractors.
Contact CSLB for information about the licensed contractor you are
considering, including information about disclosable complaints,
disciplinary actions, and civil judgments that are reported to CSLB.
Use only licensed contractors. If you file a complaint against a
licensed contractor within the legal deadline (usually four years),
CSLB has authority to investigate the complaint. If you use an
unlicensed contractor, CSLB may not be able to help you resolve your
complaint. Your only remedy may be in civil court, and you may be
liable for damages arising out of any injuries to the unlicensed
contractor or the unlicensed contractor's employees.
For more information:
Visit CSLB's Internet Web site at www.cslb.ca.gov
Call CSLB at 800-321-CSLB (2752)
Write CSLB at P.O. Box 26000, Sacramento, CA 95826."
(6) (A) The notice set forth in subparagraph (B) and entitled
"Three-Day Right to Cancel," shall be provided to the buyer unless
the contract is:
(i) Negotiated at the contractor's place of business.
(ii) Subject to the "Seven-Day Right to Cancel," as set forth in
paragraph (7).
(iii) Subject to licensure under the Alarm Company Act (Chapter
11.6 (commencing with Section 7590)), provided the alarm company
licensee complies with Sections 1689.5, 1689.6, and 1689.7 of the
Civil Code, as applicable.
(B) "Three-Day Right to Cancel
You, the buyer, have the right to cancel this contract within
three business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor's
place of business by midnight of the third business day after you
received a signed and dated copy of the contract that includes this
notice. Include your name, your address, and the date you received
the signed copy of the contract and this notice.
If you cancel, the contractor must return to you anything you paid
within 10 days of receiving the notice of cancellation. For your
part, you must make available to the contractor at your residence, in
substantially as good condition as you received them, goods
delivered to you under this contract or sale. Or, you may, if you
wish, comply with the contractor's instructions on how to return the
goods at the contractor's expense and risk. If you do make the goods
available to the contractor and the contractor does not pick them up
within 20 days of the date of your notice of cancellation, you may
keep them without any further obligation. If you fail to make the
goods available to the contractor, or if you agree to return the
goods to the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract."
(C) The "Three-Day Right to Cancel" notice required by this
paragraph shall comply with all of the following:
(i) The text of the notice is at least 12-point boldface type.
(ii) The notice is in immediate proximity to a space reserved for
the owner's signature.
(iii) The owner acknowledges receipt of the notice by signing and
dating the notice form in the signature space.
(iv) The notice is written in the same language, e.g., Spanish, as
that principally used in any oral sales presentation.
(v) The notice may be attached to the contract if the contract
includes, in at least 12-point boldface type, a checkbox with the
following statement: "The law requires that the contractor give you a
notice explaining your right to cancel. Initial the checkbox if the
contractor has given you a "Notice of the Three-Day Right to Cancel.'
"
(vi) The notice shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation," which also shall be
attached to the agreement or offer to purchase and be easily
detachable, and which shall contain the following statement written
in the same language, e.g., Spanish, as used in the contract:
"Notice of Cancellation"
/enter date of transaction/
______________________________
(Date)
"You may cancel this transaction, without any penalty or
obligation, within three business days from the above date.
If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by
you will be returned within 10 days following receipt by the seller
of your cancellation notice, and any security interest arising out of
the transaction will be canceled.
If you cancel, you must make available to the seller at your
residence, in substantially as good condition as when received, any
goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the
return shipment of the goods at the seller's expense and risk.
If you do make the goods available to the seller and the seller
does not pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to
do so, then you remain liable for performance of all obligations
under the contract."
To cancel
this
transaction,
mail or
deliver a
signed and
dated copy of
this
cancellation
notice, or
any other
written
notice, or
send a
telegram
to___________,
/name of
seller/
at____________
/address of
seller's
place of
business/
not later
than midnight
of___________.
(Date)
I hereby
cancel this
transaction. _
(Date)
______________
(Buyer's
signature)
(7) (A) The following notice entitled "Seven-Day Right to Cancel"
shall be provided to the buyer for any contract that is written for
the repair or restoration of residential premises damaged by any
sudden or catastrophic event for which a state of emergency has been
declared by the President of the United States or the Governor, or
for which a local emergency has been declared by the executive
officer or governing body of any city, county, or city and county:
"Seven-Day Right to Cancel
You, the buyer, have the right to cancel this contract within
seven business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor's
place of business by midnight of the seventh business day after you
received a signed and dated copy of the contract that includes this
notice. Include your name, your address, and the date you received
the signed copy of the contract and this notice.
If you cancel, the contractor must return to you anything you paid
within 10 days of receiving the notice of cancellation. For your
part, you must make available to the contractor at your residence, in
substantially as good condition as you received them, goods
delivered to you under this contract or sale. Or, you may, if you
wish, comply with the contractor's instructions on how to return the
goods at the contractor's expense and risk. If you do make the goods
available to the contractor and the contractor does not pick them up
within 20 days of the date of your notice of cancellation, you may
keep them without any further obligation. If you fail to make the
goods available to the contractor, or if you agree to return the
goods to the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract."
(B) The "Seven-Day Right to Cancel" notice required by this
subdivision shall comply with all of the following:
(i) The text of the notice is at least 12-point boldface type.
(ii) The notice is in immediate proximity to a space reserved for
the owner's signature.
(iii) The owner acknowledges receipt of the notice by signing and
dating the notice form in the signature space.
(iv) The notice is written in the same language, e.g., Spanish, as
that principally used in any oral sales presentation.
(v) The notice may be attached to the contract if the contract
includes, in at least 12-point boldface type, a checkbox with the
following statement: "The law requires that the contractor give you a
notice explaining your right to cancel. Initial the checkbox if the
contractor has given you a "Notice of the Seven-Day Right to Cancel.'
"
(vi) The notice shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation," which shall also be
attached to the agreement or offer to purchase and be easily
detachable, and which shall contain the following statement written
in the same language, e.g., Spanish, as used in the contract:
"Notice of Cancellation"
/enter date of transaction/
______________________________
(Date)
"You may cancel this transaction, without any penalty or
obligation, within seven business days from the above date.
If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by
you will be returned within 10 days following receipt by the seller
of your cancellation notice, and any security interest arising out of
the transaction will be canceled.
If you cancel, you must make available to the seller at your
residence, in substantially as good condition as when received, any
goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the
return shipment of the goods at the seller's expense and risk.
If you do make the goods available to the seller and the seller
does not pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to
do so, then you remain liable for performance of all obligations
under the contract."
To cancel
this
transaction,
mail or
deliver
a signed and
dated copy of
this
cancellation
notice, or
any other
written
notice, or
send a
telegram
to___________,
/name of
seller/
at____________
/address of
seller's
place of
business/
not later
than midnight
of___________.
(Date)
I hereby
cancel this
transaction. _
(Date)
______________
(Buyer's
signature)
7159.1. In any contract for the sale of home improvement goods or
services offered by door-to-door sale that contains or is secured by
a lien on real property, the contract shall be accompanied by the
following notice in 18-point boldfaced type:
"WARNING TO BUYER: IF YOU SIGN THE CONTRACT WHICH ACCOMPANIES THIS
NOTICE, YOU WILL BE PUTTING UP YOUR HOME AS SECURITY. THIS MEANS
THAT YOUR HOME COULD BE SOLD WITHOUT YOUR PERMISSION AND WITHOUT ANY
COURT ACTION IF YOU MISS ANY PAYMENT REQUIRED BY THIS CONTRACT."
This notice shall be written in the same language as the rest of
the contract. It shall be on a separate piece of paper from the rest
of the contract and shall be signed and dated by the buyer. The home
improvement contractor or home improvement salesperson shall deliver
to the buyer at the time of the buyer's signing and dating of the
notice a legible copy of the signed and dated notice. A security
interest created in any contract described in this section that does
not provide the notice as required by this section shall be void and
unenforceable.
This section shall not apply to any of the following:
(a) Any contract that is subject to Chapter 1 (commencing with
Section 1801) of Title 2 of Part 4 of Division 3 of the Civil Code.
(b) A mechanic's lien established pursuant to Chapter 2
(commencing with Section 3109) of Title 15 of Part 4 of Division 3 of
the Civil Code.
(c) Any contract that is subject to subdivision (a) of Section
7159.2.
7159.1. (a) In any contract for the sale of home improvement goods
or services offered by door-to-door sale that contains or is secured
by a lien on real property, the contract shall be accompanied by the
following notice in 18-point boldfaced type:
"WARNING TO BUYER: IF YOU SIGN THE CONTRACT WHICH ACCOMPANIES THIS
NOTICE, YOU WILL BE PUTTING UP YOUR HOME AS SECURITY. THIS MEANS
THAT YOUR HOME COULD BE SOLD WITHOUT YOUR PERMISSION AND WITHOUT ANY
COURT ACTION IF YOU MISS ANY PAYMENT REQUIRED BY THIS CONTRACT."
This notice shall be written in the same language as the rest of
the contract. It shall be on a separate piece of paper from the rest
of the contract and shall be signed and dated by the buyer. The home
improvement contractor or home improvement salesperson shall deliver
to the buyer at the time of the buyer's signing and dating of the
notice a legible copy of the signed and dated notice. A security
interest created in any contract described in this section that does
not provide the notice as required by this section shall be void and
unenforceable.
(b) This section shall not apply to any of the following:
(1) Any contract that is subject to Chapter 1 (commencing with
Section 1801) of Title 2 of Part 4 of Division 3 of the Civil Code.
(2) A mechanics lien established pursuant to Chapter 4 (commencing
with Section 8400) of Title 2 of Part 6 of Division 4 of the Civil
Code.
(3) Any contract that is subject to subdivision (a) of Section
7159.2.
7159.2. (a) No home improvement goods or services contract of a
value of five thousand dollars ($5,000) or less shall provide for a
security interest in real property, except for a mechanic's lien or
other interest in property that arises by operation of law. Any lien
in violation of this subdivision is void and unenforceable.
(b) When the proceeds of a loan secured by a mortgage on real
property are used to fund goods or services pursuant to a home
improvement goods or services contract of more than five thousand
dollars ($5,000), the person or entity making the loan shall only pay
a contractor under the home improvement goods or services contract
from the proceeds of the loan by either of the following methods:
(1) By an instrument payable to the borrower or jointly to the
borrower and the contractor.
(2) At the election of the borrower, through a third-party escrow
agent pursuant to the terms of a written agreement signed by the
borrower, the person or entity making the loan, and the contractor
prior to the disbursement.
(c) Any person or entity who violates any provision of this
section shall be liable for actual damages suffered by the borrower
for damages that proximately result from the violation.
(d) Any person or entity who intentionally or as a pattern or
practice violates any provision of this section shall be additionally
liable for three times the contract price for the home improvement.
(e) Any person who is a senior citizen or disabled person, as
defined in subdivisions (f) and (g) of Section 1761 of the Civil
Code, as part of any action for a violation of this section, may seek
and be awarded, in addition to the remedies provided in this
section, up to five thousand dollars ($5,000) as provided in
subdivision (b) of Section 1780 of the Civil Code.
(f) The court shall award court costs and attorney's fees to a
prevailing plaintiff in an action brought pursuant to this section.
Reasonable attorney's fees may be awarded to a prevailing defendant
upon a finding by the court that the plaintiff's prosecution of the
action was not in good faith.
7159.5. This section applies to all home improvement contracts, as
defined in Section 7151.2, between an owner or tenant and a
contractor, whether a general contractor or a specialty contractor,
who is licensed or subject to be licensed pursuant to this chapter
with regard to the transaction.
(a) Failure by the licensee or a person subject to be licensed
under this chapter, or by his or her agent or salesperson, to comply
with the following provisions is cause for discipline:
(1) The contract shall be in writing and shall include the agreed
contract amount in dollars and cents. The contract amount shall
include the entire cost of the contract, including profit, labor, and
materials, but excluding finance charges.
(2) If there is a separate finance charge between the contractor
and the person contracting for home improvement, the finance charge
shall be set out separately from the contract amount.
(3) If a downpayment will be charged, the downpayment may not
exceed one thousand dollars ($1,000) or 10 percent of the contract
amount, whichever is less.
(4) If, in addition to a downpayment, the contract provides for
payments to be made prior to completion of the work, the contract
shall include a schedule of payments in dollars and cents
specifically referencing the amount of work or services to be
performed and any materials and equipment to be supplied.
(5) Except for a downpayment, the contractor may neither request
nor accept payment that exceeds the value of the work performed or
material delivered.
(6) Upon any payment by the person contracting for home
improvement, and prior to any further payment being made, the
contractor shall, if requested, obtain and furnish to the person a
full and unconditional release from any potential lien claimant claim
or mechanic's lien authorized pursuant to Section 3110 of the Civil
Code for any portion of the work for which payment has been made. The
person contracting for home improvement may withhold all further
payments until these releases are furnished.
(7) If the contract provides for a payment of a salesperson's
commission out of the contract price, that payment shall be made on a
pro rata basis in proportion to the schedule of payments made to the
contractor by the disbursing party in accordance with paragraph (4).
(8) A contractor furnishing a performance and payment bond, lien
and completion bond, or a bond equivalent or joint control approved
by the registrar covering full performance and payment is exempt from
paragraphs (3), (4), and (5), and need not include, as part of the
contract, the statement regarding the downpayment specified in
subparagraph (C) of paragraph (8) of subdivision (d) of Section 7159,
the details and statement regarding progress payments specified in
paragraph (9) of subdivision (d) of Section 7159, or the Mechanics'
Lien Warning specified in paragraph (4) of subdivision (e) of Section
7159. A contractor furnishing these bonds, bond equivalents, or a
joint control approved by the registrar may accept payment prior to
completion. If the contract provides for a contractor to furnish
joint control, the contractor shall not have any financial or other
interest in the joint control.
(b) A violation of paragraph (1), (3), or (5) of subdivision (a)
by a licensee or a person subject to be licensed under this chapter,
or by his or her agent or salesperson, is a misdemeanor punishable by
a fine of not less than one hundred dollars ($100) nor more than
five thousand dollars ($5,000), or by imprisonment in a county jail
not exceeding one year, or by both that fine and imprisonment.
(1) An indictment or information against a person who is not
licensed but who is required to be licensed under this chapter shall
be brought, or a criminal complaint filed, for a violation of this
section, in accordance with paragraph (4) of subdivision (d) of
Section 802 of the Penal Code, within four years from the date of the
contract or, if the contract is not reduced to writing, from the
date the buyer makes the first payment to the contractor.
(2) An indictment or information against a person who is licensed
under this chapter shall be brought, or a criminal complaint filed,
for a violation of this section, in accordance with paragraph (2) of
subdivision (d) of Section 802 of the Penal Code, within two years
from the date of the contract or, if the contract is not reduced to
writing, from the date the buyer makes the first payment to the
contractor.
(3) The limitations on actions in this subdivision shall not apply
to any administrative action filed against a licensed contractor.
(c) Any person who violates this section as part of a plan or
scheme to defraud an owner or tenant of a residential or
nonresidential structure, including a mobilehome or manufactured
home, in connection with the offer or performance of repairs to the
structure for damage caused by a natural disaster, shall be ordered
by the court to make full restitution to the victim based on the
person's ability to pay, as defined in subdivision (e) of Section
1203.1b of the Penal Code. In addition to full restitution, and
imprisonment authorized by this section, the court may impose a fine
of not less than five hundred dollars ($500) nor more than
twenty-five thousand dollars ($25,000), based upon the defendant's
ability to pay. This subdivision applies to natural disasters for
which a state of emergency is proclaimed by the Governor pursuant to
Section 8625 of the Government Code, or for which an emergency or
major disaster is declared by the President of the United States.
7159.5. This section applies to all home improvement contracts, as
defined in Section 7151.2, between an owner or tenant and a
contractor, whether a general contractor or a specialty contractor,
that is licensed or subject to be licensed pursuant to this chapter
with regard to the transaction.
(a) Failure by the licensee or a person subject to be licensed
under this chapter, or by his or her agent or salesperson, to comply
with the following provisions is cause for discipline:
(1) The contract shall be in writing and shall include the agreed
contract amount in dollars and cents. The contract amount shall
include the entire cost of the contract, including profit, labor, and
materials, but excluding finance charges.
(2) If there is a separate finance charge between the contractor
and the person contracting for home improvement, the finance charge
shall be set out separately from the contract amount.
(3) If a downpayment will be charged, the downpayment may not
exceed one thousand dollars ($1,000) or 10 percent of the contract
amount, whichever is less.
(4) If, in addition to a downpayment, the contract provides for
payments to be made prior to completion of the work, the contract
shall include a schedule of payments in dollars and cents
specifically referencing the amount of work or services to be
performed and any materials and equipment to be supplied.
(5) Except for a downpayment, the contractor may neither request
nor accept payment that exceeds the value of the work performed or
material delivered.
(6) Upon any payment by the person contracting for home
improvement, and prior to any further payment being made, the
contractor shall, if requested, obtain and furnish to the person a
full and unconditional release from any potential lien claimant claim
or mechanics lien authorized pursuant to Section 8410 of the Civil
Code for any portion of the work for which payment has been made. The
person contracting for home improvement may withhold all further
payments until these releases are furnished.
(7) If the contract provides for a payment of a salesperson's
commission out of the contract price, that payment shall be made on a
pro rata basis in proportion to the schedule of payments made to the
contractor by the disbursing party in accordance with paragraph (4).
(8) A contractor furnishing a performance and payment bond, lien
and completion bond, or a bond equivalent or joint control approved
by the registrar covering full performance and payment is exempt from
paragraphs (3), (4), and (5), and need not include, as part of the
contract, the statement regarding the downpayment specified in
subparagraph (C) of paragraph (8) of subdivision (d) of Section 7159,
the details and statement regarding progress payments specified in
paragraph (9) of subdivision (d) of Section 7159, or the Mechanics
Lien Warning specified in paragraph (4) of subdivision (e) of Section
7159. A contractor furnishing these bonds, bond equivalents, or a
joint control approved by the registrar may accept payment prior to
completion. If the contract provides for a contractor to furnish
joint control, the contractor shall not have any financial or other
interest in the joint control.
(b) A violation of paragraph (1), (3), or (5) of subdivision (a)
by a licensee or a person subject to be licensed under this chapter,
or by his or her agent or salesperson, is a misdemeanor punishable by
a fine of not less than one hundred dollars ($100) nor more than
five thousand dollars ($5,000), or by imprisonment in a county jail
not exceeding one year, or by both that fine and imprisonment.
(1) An indictment or information against a person who is not
licensed but who is required to be licensed under this chapter shall
be brought, or a criminal complaint filed, for a violation of this
section, in accordance with paragraph (4) of subdivision (d) of
Section 802 of the Penal Code, within four years from the date of the
contract or, if the contract is not reduced to writing, from the
date the buyer makes the first payment to the contractor.
(2) An indictment or information against a person who is licensed
under this chapter shall be brought, or a criminal complaint filed,
for a violation of this section, in accordance with paragraph (2) of
subdivision (d) of Section 802 of the Penal Code, within two years
from the date of the contract or, if the contract is not reduced to
writing, from the date the buyer makes the first payment to the
contractor.
(3) The limitations on actions in this subdivision shall not apply
to any administrative action filed against a licensed contractor.
(c) Any person who violates this section as part of a plan or
scheme to defraud an owner or tenant of a residential or
nonresidential structure, including a mobilehome or manufactured
home, in connection with the offer or performance of repairs to the
structure for damage caused by a natural disaster, shall be ordered
by the court to make full restitution to the victim based on the
person's ability to pay, as defined in subdivision (e) of Section
1203.1b of the Penal Code. In addition to full restitution, and
imprisonment authorized by this section, the court may impose a fine
of not less than five hundred dollars ($500) nor more than
twenty-five thousand dollars ($25,000), based upon the defendant's
ability to pay. This subdivision applies to natural disasters for
which a state of emergency is proclaimed by the Governor pursuant to
Section 8625 of the Government Code, or for which an emergency or
major disaster is declared by the President of the United States.
7159.6. (a) An extra work or change order is not enforceable
against a buyer unless the change order sets forth all of the
following:
(1) The scope of work encompassed by the order.
(2) The amount to be added or subtracted from the contract.
(3) The effect the order will make in the progress payments or the
completion date.
(b) The buyer may not require a contractor to perform extra or
change-order work without providing written authorization.
(c) Failure to comply with the requirements of this section does
not preclude the recovery of compensation for work performed based
upon legal or equitable remedies designed to prevent unjust
enrichment.
(d) This section shall become operative on January 1, 2006.
7159.9. (a) Section 7159 does not apply to the sale, installation,
and servicing of a fire alarm sold in conjunction with an alarm
system, as defined in subdivision (n) of Section 7590.1 of the Alarm
Company Act (Chapter 11.6 (commencing with Section 7590)), provided
the licensee does all of the following:
(1) Complies with the contract requirements set forth in Section
7599.54.
(2) Complies with Sections 1689.5, 1689.6, and 1689.7 of the Civil
Code, as applicable.
(3) Executes the following certification statement in the contract
or in a separate certification document signed by all parties to the
contract:
"All costs attributable to making the fire alarm system operable
for the residence identified by this document, including sale and
installation costs, do not exceed five hundred dollars ($500)."
(4) Certifies to the following if the certification statement
described in paragraph (3) is in a separate document:
"I certify that all statements and representations made by me in
this document are true and accurate."
(b) The contract or separate certification document shall also
include both of the following:
(1) The physical address of the residence for which the
certification is applicable.
(2) The name, business address, and license number of the
contractor as contained in the official records of the board.
(c) The licensee shall give an exact copy of all documents
required pursuant to this section to the party who is contracting to
have the alarm system installed.
(d) All documents required pursuant to this section shall be
retained by the licensee for a period of five years in accordance
with the provisions of Section 7111, and shall be made available to
the board within 30 days of a written request.
(e) Failure by the contractor to provide the board with the
certification or contract within 30 days of a written request is
cause for discipline.
(f) Failure by the licensee to provide the board with the
certification or contract within 30 days of a written request creates
a presumption that the licensee has violated the provisions of
Section 7159, unless evidence to the contrary is presented within the
timeframe specified by the board.
7159.10. (a) (1) "Service and repair contract" means an agreement
between a contractor or salesperson for a contractor, whether a
general contractor or a specialty contractor, who is licensed or
subject to be licensed pursuant to this chapter with regard to the
transaction, and a homeowner or a tenant, for the performance of a
home improvement as defined in Section 7151, that conforms to the
following requirements:
(A) The contract amount is seven hundred fifty dollars ($750) or
less.
(B) The prospective buyer initiated contact with the contractor to
request the work.
(C) The contractor does not sell the buyer goods or services
beyond those reasonably necessary to take care of the particular
problem that caused the buyer to contact the contractor.
(D) No payment is due, or accepted by the contractor, until the
work is completed.
(2) As used in this subdivision, "the work is completed" means
that all of the conditions that caused the buyer to contact the
contractor for service and repairs have been fully corrected and, if
applicable, the building department has accepted and approved the
corrective work.
(b) For any contract written pursuant to subdivision (a) or
otherwise presented to the buyer as a service and repair contract,
unless all of the conforming requirements for service and repair
contracts specified in subdivision (a) are met, the contract
requirements for home improvements set forth in subdivisions (c),
(d), and (e) of Section 7159 shall be applicable, including any
rights to rescind the contract as set forth in Section 1689.6 or
1689.7 of the Civil Code, regardless of the aggregate contract price.
(c) If all of the requirements of subdivision (a) are met, only
those notices and other requirements set forth in this section are
applicable to the contract.
(d) Every service and repair contract described in subdivision (a)
shall include, or otherwise comply with, all of the following:
(1) The contract, any changes to the contract, and any attachments
shall be in writing and signed or acknowledged by the parties as set
forth in this section, and shall be written in the same language
(for example Spanish) as principally used in the oral sales
presentation.
(2) The writing shall be legible.
(3) Any printed form shall be readable. Unless a larger typeface
is specified in this article, the text shall be in at least 10-point
typeface and the headings shall be in at least 10-point boldface
type.
(4) Before any work is started, the contractor shall give the
buyer a copy of the contract signed and dated by the buyer and by the
contractor or the contractor's representative.
(5) The name, business address, and license number of the
contractor.
(6) The date the contract was signed.
(7) A notice concerning commercial general liability insurance.
This notice may be provided as an attachment to the contract if the
contract includes the statement, "A notice concerning commercial
general liability insurance is attached to this contract." The notice
shall include the heading "Commercial General Liability Insurance
(CGL)" followed by whichever of the following statements is both
relevant and correct:
(A) "(The name on the license or 'This contractor') does not carry
commercial general liability insurance."
(B) "(The name on the license or 'This contractor') carries
commercial general liability insurance written by (the insurance
company). You may call the (insurance company) at ____ to check the
contractor's insurance coverage."
(C) "(The name on the license or 'This contractor') is
self-insured."
(D) "(The name on the license or 'This contractor') is a limited
liability company that carries liability insurance or maintains other
security as required by law. You may call (the insurance company or
trust company or bank) at ____ to check on the contractor's insurance
coverage or security."
(8) A notice concerning workers' compensation insurance. This
notice may be provided as an attachment to the contract if the
contract includes the statement "A notice concerning workers'
compensation insurance is attached to this contract." The notice
shall include the heading "Workers' Compensation Insurance" followed
by whichever of the following statements is both relevant and
correct:
(A) "(The name on the license or 'This contractor') has no
employees and is exempt from workers' compensation requirements."
(B) "(The name on the license or 'This contractor') carries
workers' compensation insurance for all employees."
(e) Every service and repair contract described in subdivision (a)
shall provide the following information, notices, and disclosures in
the contract:
(1) Notice of the type of contract in at least 10-point boldface
type: "Service and Repair."
(2) A notice in at least 12-point boldface type, signed and dated
by the buyer: "Notice to the Buyer: The law requires that service and
repair contracts must meet all of the following requirements:
(A) The price must be no more than seven hundred and fifty dollars
($750).
(B) You, the buyer, must have initiated contact with the
contractor to request the work.
(C) The contractor must not sell you goods or services beyond
those reasonably necessary to take care of the particular problem
that caused you to contact the contractor.
(D) No payment is due and the contractor may not accept any
payment until the work is completed."
(3) The notice in at least 12-point boldface type: "Notice to the
Buyer: You are entitled to a completely filled in and signed copy of
this agreement before any work may be started."
(4) If applicable, the heading "List of Documents to be
Incorporated into the Contract," followed by the list of documents to
be incorporated into the contract.
(5) Where the contract is a fixed contract amount, the heading:
"Contract Price" followed by the amount of the contract in dollars
and cents.
(6) If a finance charge will be charged, the heading: "Finance
Charge" followed by the amount in dollars and cents. The finance
charge is to be set out separately from the contract amount.
(7) Where the contract is estimated by a time and materials
for
7150. "Person" as used in this article is limited to natural
persons, notwithstanding the definition of person in Section 7025.
7150.1. A home improvement contractor, including a swimming pool
contractor, is a contractor as defined and licensed under this
chapter who is engaged in the business of home improvement either
full time or part time. A home improvement contractor shall satisfy
all requirements imposed by this article.
7151. "Home improvement" means the repairing, remodeling, altering,
converting, or modernizing of, or adding to, residential property
and shall include, but not be limited to, the construction, erection,
replacement, or improvement of driveways, swimming pools, including
spas and hot tubs, terraces, patios, awnings, storm windows,
landscaping, fences, porches, garages, fallout shelters, basements,
and other improvements of the structures or land which is adjacent to
a dwelling house. "Home improvement" shall also mean the
installation of home improvement goods or the furnishing of home
improvement services.
For purposes of this chapter, "home improvement goods or services"
means goods and services, as defined in Section 1689.5 of the Civil
Code, which are bought in connection with the improvement of real
property. Such home improvement goods and services include, but are
not limited to, carpeting, texture coating, fencing, air conditioning
or heating equipment, and termite extermination. Home improvement
goods include goods which are to be so affixed to real property as to
become a part of real property whether or not severable therefrom.
7151.2. "Home improvement contract" means an agreement, whether
oral or written, or contained in one or more documents, between a
contractor and an owner or between a contractor and a tenant,
regardless of the number of residence or dwelling units contained in
the building in which the tenant resides, if the work is to be
performed in, to, or upon the residence or dwelling unit of the
tenant, for the performance of a home improvement as defined in
Section 7151, and includes all labor, services, and materials to be
furnished and performed thereunder. "Home improvement contract" also
means an agreement, whether oral or written, or contained in one or
more documents, between a salesperson, whether or not he or she is a
home improvement salesperson, and (a) an owner or (b) a tenant,
regardless of the number of residence or dwelling units contained in
the building in which the tenant resides, which provides for the
sale, installation, or furnishing of home improvement goods or
services.
7152. (a) "Home improvement salesperson" is a person employed by a
home improvement contractor licensed under this chapter to solicit,
sell, negotiate, or execute contracts for home improvements, for the
sale, installation or furnishing of home improvement goods or
services, or of swimming pools, spas, or hot tubs.
(b) The following shall not be required to be registered as home
improvement salespersons:
(1) An officer of record of a corporation licensed pursuant to
this chapter, or a manager of record of a limited liability company
licensed pursuant to this chapter.
(2) A general partner listed on the license record of a
partnership licensed pursuant to this chapter.
(3) A qualifying person, as defined in Section 7025.
(4) A salesperson whose sales are all made pursuant to
negotiations between the parties if the negotiations are initiated by
the prospective buyer at or with a general merchandise retail
establishment that operates from a fixed location where goods or
services are offered for sale.
(5) A person who contacts the prospective buyer for the exclusive
purpose of scheduling appointments for a registered home improvement
salesperson.
(6) A bona fide service repairperson who is in the employ of a
licensed contractor and whose repair or service call is limited to
the service, repair, or emergency repair initially requested by the
buyer of the service.
(c) The exemption to registration provided under paragraphs (1),
(2), and (3) of subdivision (b) shall apply only to those individuals
who, at the time of the sales transaction, are listed as personnel
of record for the licensee responsible for soliciting, negotiating,
or contracting for a service or improvement that is subject to
regulation under this article.
7153. (a) It is a misdemeanor for any person to engage in the
occupation of salesperson for one or more home improvement
contractors within this state without having a registration issued by
the registrar for each of the home improvement contractors by whom
he or she is employed as a home improvement salesperson. If, upon
investigation, the registrar has probable cause to believe that a
salesperson is in violation of this section, the registrar may issue
a citation pursuant to Section 7028.7.
It is a misdemeanor for any person to engage in the occupation of
salesperson of home improvement goods or services within this state
without having a registration issued by the registrar.
(b) Any security interest taken by a contractor, to secure any
payment for the performance of any act or conduct described in
Section 7151 that occurs on or after January 1, 1995, is
unenforceable if the person soliciting the act or contract was not a
duly registered salesperson or was not exempt from registration
pursuant to Section 7152 at the time the homeowner signs the home
improvement contract solicited by the salesperson.
7153.1. (a) The home improvement salesperson shall submit to the
registrar an application in writing containing the statement that he
or she desires the issuance of a registration under the terms of this
article.
The application shall be made on a form prescribed by the
registrar and shall be accompanied by the fee fixed by this chapter.
(b) The registrar may refuse to register the applicant under the
grounds specified in Section 480.
(c) As part of an application for a home improvement salesperson,
the board shall require an applicant to furnish a full set of
fingerprints for purposes of conducting criminal history record
checks. Fingerprints furnished pursuant to this subdivision shall be
submitted in an electronic format where readily available. Requests
for alternative methods of furnishing fingerprints are subject to the
approval of the registrar. The board shall use the fingerprints
furnished by an applicant to obtain criminal history information on
the applicant from the Department of Justice and the United States
Federal Bureau of Investigation, including any subsequent arrest
information available.
7153.2. All registrations issued under the provisions of this
article shall expire on a date established pursuant to Section 152.6.
7153.3. (a) To renew a registration, the registrant shall before
the time at which the registration would otherwise expire, apply for
renewal on a form prescribed by the registrar and pay a renewal fee
prescribed by this chapter.
(b) An application for renewal of registration is delinquent if
the application is not postmarked by the date on which the
registration would otherwise expire. A registration may, however,
still be renewed at any time within three years after its expiration
upon the filing of an application for renewal on a form prescribed by
the registrar and the payment of the renewal fee prescribed by this
chapter and a delinquent renewal penalty in the amount of twenty-five
dollars ($25). If a registration is not renewed within three years,
the person shall make application for registration pursuant to
Section 7153.1.
(c) The registrar may refuse to renew a registration for failure
by the registrant to complete the application for renewal of
registration. If a registrant fails to return the application
rejected for insufficiency or incompleteness within 90 days from the
original date of rejection, the application and fee shall be deemed
abandoned. Any application abandoned may not be reinstated. However,
the person may file a new application for registration pursuant to
Section 7153.1.
The registrar may review and accept the petition of a person who
disputes the abandonment of his or her renewal application upon a
showing of good cause. This petition shall be received within 90 days
of the date the application for renewal is deemed abandoned.
7154. A home improvement contractor who employs a person to sell
home improvement contracts while such person is not registered by the
registrar as a home improvement salesman as provided in this
article, is subject to disciplinary action by the registrar.
7155. Violation of any provision of this chapter by a home
improvement salesman constitutes cause for disciplinary action. The
registrar may suspend or revoke the registration of the home
improvement salesman if he is found to be in violation. The
disciplinary proceedings shall be conducted in accordance with the
provisions of Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code.
7155.5. Violations of any provisions of this chapter by a home
improvement salesperson, likewise constitutes a cause for
disciplinary action against the contractor, whether or not he or she
had knowledge of or participated in the act or omission constituting
violations of this chapter.
7156. It shall be a misdemeanor and a cause for disciplinary action
to commit any of the following acts:
(a) For any salesperson to fail to account for or to remit to his
or her employing contractor any payment received in connection with
any home improvement transaction or any other transaction involving a
work of improvement.
(b) For any person to use a contract form in connection with any
home improvement transaction or any other transaction involving a
work of improvement if the form fails to disclose the name of the
contractor principal by whom he or she is employed.
7157. (a) Except as otherwise provided in subdivision (b), as a
part of or in connection with the inducement to enter into any home
improvement contract or other contract, which may be performed by a
contractor, no person may promise or offer to pay, credit, or allow
to any owner, compensation or reward for the procurement or placing
of home improvement business with others.
(b) A contractor or his or her agent or salesperson may give
tangible items to prospective customers for advertising or sales
promotion purposes where the gift is not conditioned upon obtaining a
contract for home improvement work if the gift does not exceed a
value of five dollars ($5) and only one such gift is given in
connection with any one transaction.
(c) No salesperson or contractor's agent may accept any
compensation of any kind, for or on account of a home improvement
transaction, or any other transaction involving a work of
improvement, from any person other than the contractor whom he or she
represents with respect to the transaction, nor shall the
salesperson or agent make any payment to any person other than his or
her employer on account of the sales transaction.
(d) No contractor shall pay, credit, or allow any consideration or
compensation of any kind to any other contractor or salesperson
other than a licensee for or on account of the performance of any
work of improvement or services, including, but not limited to, home
improvement work or services, except: (1) where the person to or from
whom the consideration is to be paid is not subject to or is
exempted from the licensing requirements of this chapter, or (2)
where the transaction is not subject to the requirements of this
chapter.
As used in this section "owners" shall also mean "tenant."
Commission of any act prohibited by this section is a misdemeanor
and constitutes a cause for disciplinary action.
7158. (a) Any person who shall accept or receive a completion
certificate or other evidence that performance of a contract for a
work of improvement, including but not limited to a home improvement,
is complete or satisfactorily concluded, with knowledge that the
document is false and that the performance is not substantially
completed, and who shall utter, offer, or use the document in
connection with the making or accepting of any assignment or
negotiation of the right to receive any payment from the owner, under
or in connection with a contract, or for the purpose of obtaining or
granting any credit or loan on the security of the right to receive
any payment shall be guilty of a misdemeanor and subject to a fine of
not less than five hundred dollars ($500) nor more than five
thousand dollars ($5,000), or to imprisonment in the county jail for
a term of not less than one month nor more than one year, or both.
(b) Any person who violates this section as part of a plan or
scheme to defraud an owner of a residential or nonresidential
structure, including a mobilehome or manufactured home, in connection
with the offer or performance of repairs to the structure for damage
caused by a natural disaster, shall be ordered by the court to make
full restitution to the victim based on the person's ability to pay,
as defined in subdivision (e) of Section 1203.1b of the Penal Code.
In addition to full restitution, and imprisonment authorized by
subdivision (a), the court may impose a fine of not less than five
hundred dollars ($500) nor more than twenty-five thousand dollars
($25,000), based upon the defendant's ability to pay. This
subdivision applies to natural disasters for which a state of
emergency is proclaimed by the Governor pursuant to Section 8625 of
the Government Code or for which an emergency or major disaster is
declared by the President of the United States.
7159. (a) (1) This section identifies the projects for which a home
improvement contract is required, outlines the contract
requirements, and lists the items that shall be included in the
contract, or may be provided as an attachment.
(2) This section does not apply to service and repair contracts
that are subject to Section 7159.10, if the contract for the
applicable services complies with Sections 7159.10 to 7159.14,
inclusive.
(3) This section does not apply to the sale, installation, and
servicing of a fire alarm sold in conjunction with an alarm system,
as defined in subdivision (n) of Section 7590.1, if all costs
attributable to making the fire alarm system operable, including sale
and installation costs, do not exceed five hundred dollars ($500),
and the licensee complies with the requirements set forth in Section
7159.9.
(4) This section does not apply to any costs associated with
monitoring a burglar or fire alarm system.
(5) Failure by the licensee, his or her agent or salesperson, or
by a person subject to be licensed under this chapter, to provide the
specified information, notices, and disclosures in the contract, or
to otherwise fail to comply with any provision of this section, is
cause for discipline.
(b) For purposes of this section, "home improvement contract"
means an agreement, whether oral or written, or contained in one or
more documents, between a contractor and an owner or between a
contractor and a tenant, regardless of the number of residence or
dwelling units contained in the building in which the tenant resides,
if the work is to be performed in, to, or upon the residence or
dwelling unit of the tenant, for the performance of a home
improvement, as defined in Section 7151, and includes all labor,
services, and materials to be furnished and performed thereunder, if
the aggregate contract price specified in one or more improvement
contracts, including all labor, services, and materials to be
furnished by the contractor, exceeds five hundred dollars ($500).
"Home improvement contract" also means an agreement, whether oral or
written, or contained in one or more documents, between a
salesperson, whether or not he or she is a home improvement
salesperson, and an owner or a tenant, regardless of the number of
residence or dwelling units contained in the building in which the
tenant resides, which provides for the sale, installation, or
furnishing of home improvement goods or services.
(c) In addition to the specific requirements listed under this
section, every home improvement contract and any person subject to
licensure under this chapter or his or her agent or salesperson shall
comply with all of the following:
(1) The writing shall be legible.
(2) Any printed form shall be readable. Unless a larger typeface
is specified in this article, text in any printed form shall be in at
least 10-point typeface and the headings shall be in at least
10-point boldface type.
(3) (A) Before any work is started, the contractor shall give the
buyer a copy of the contract signed and dated by both the contractor
and the buyer. The buyer's receipt of the copy of the contract
initiates the buyer's rights to cancel the contract pursuant to
Sections 1689.5 to 1689.14, inclusive, of the Civil Code.
(B) The contract shall contain on the first page, in a typeface no
smaller than that generally used in the body of the document, both
of the following:
(i) The date the buyer signed the contract.
(ii) The name and address of the contractor to which the
applicable "Notice of Cancellation" is to be mailed, immediately
preceded by a statement advising the buyer that the "Notice of
Cancellation" may be sent to the contractor at the address noted on
the contract.
(4) The contract shall include a statement that, upon satisfactory
payment being made for any portion of the work performed, the
contractor, prior to any further payment being made, shall furnish to
the person contracting for the home improvement or swimming pool
work a full and unconditional release from any potential lien
claimant claim or mechanic's lien authorized pursuant to Section 3110
of the Civil Code for that portion of the work for which payment has
been made.
(5) A change-order form for changes or extra work shall be
incorporated into the contract and shall become part of the contract
only if it is in writing and signed by the parties prior to the
commencement of any work covered by a change order.
(6) The contract shall contain, in close proximity to the
signatures of the owner and contractor, a notice stating that the
owner or tenant has the right to require the contractor to have a
performance and payment bond.
(7) If the contract provides for a contractor to furnish joint
control, the contractor shall not have any financial or other
interest in the joint control.
(8) The provisions of this section are not exclusive and do not
relieve the contractor from compliance with any other applicable
provision of law.
(d) A home improvement contract and any changes to the contract
shall be in writing and signed by the parties to the contract prior
to the commencement of work covered by the contract or an applicable
change order and, except as provided in paragraph (8) of subdivision
(a) of Section 7159.5, shall include or comply with all of the
following:
(1) The name, business address, and license number of the
contractor.
(2) If applicable, the name and registration number of the home
improvement salesperson that solicited or negotiated the contract.
(3) The following heading on the contract form that identifies the
type of contract in at least 10-point boldface type: "Home
Improvement."
(4) The following statement in at least 12-point boldface type:
"You are entitled to a completely filled in copy of this agreement,
signed by both you and the contractor, before any work may be
started."
(5) The heading: "Contract Price," followed by the amount of the
contract in dollars and cents.
(6) If a finance charge will be charged, the heading: "Finance
Charge," followed by the amount in dollars and cents. The finance
charge is to be set out separately from the contract amount.
(7) The heading: "Description of the Project and Description of
the Significant Materials to be Used and Equipment to be Installed,"
followed by a description of the project and a description of the
significant materials to be used and equipment to be installed. For
swimming pools, the project description required under this paragraph
also shall include a plan and scale drawing showing the shape, size,
dimensions, and the construction and equipment specifications.
(8) If a downpayment will be charged, the details of the
downpayment shall be expressed in substantially the following form,
and shall include the text of the notice as specified in subparagraph
(C):
(A) The heading: "Downpayment."
(B) A space where the actual downpayment appears.
(C) The following statement in at least 12-point boldface type:
"THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE
CONTRACT PRICE, WHICHEVER IS LESS."
(9) If payments, other than the downpayment, are to be made before
the project is completed, the details of these payments, known as
progress payments, shall be expressed in substantially the following
form, and shall include the text of the statement as specified in
subparagraph (C):
(A) A schedule of progress payments shall be preceded by the
heading: "Schedule of Progress Payments."
(B) Each progress payment shall be stated in dollars and cents and
specifically reference the amount of work or services to be
performed and materials and equipment to be supplied.
(C) The section of the contract reserved for the progress payments
shall include the following statement in at least 12-point boldface
type:
"The schedule of progress payments must specifically describe each
phase of work, including the type and amount of work or services
scheduled to be supplied in each phase, along with the amount of each
proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO
COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET
DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT."
(10) The contract shall address the commencement of work to be
performed in substantially the following form:
(A) A statement that describes what constitutes substantial
commencement of work under the contract.
(B) The heading: "Approximate Start Date."
(C) The approximate date on which work will be commenced.
(11) The estimated completion date of the work shall be referenced
in the contract in substantially the following form:
(A) The heading: "Approximate Completion Date."
(B) The approximate date of completion.
(12) If applicable, the heading: "List of Documents to be
Incorporated into the Contract," followed by the list of documents
incorporated into the contract.
(13) The heading: "Note About Extra Work and Change Orders,"
followed by the following statement:
"Extra Work and Change Orders become part of the contract once the
order is prepared in writing and signed by the parties prior to the
commencement of work covered by the new change order. The order must
describe the scope of the extra work or change, the cost to be added
or subtracted from the contract, and the effect the order will have
on the schedule of progress payments."
(e) Except as provided in paragraph (8) of subdivision (a) of
Section 7159.5, all of the following notices shall be provided to the
owner as part of the contract form as specified or, if otherwise
authorized under this subdivision, may be provided as an attachment
to the contract:
(1) A notice concerning commercial general liability insurance.
This notice may be provided as an attachment to the contract if the
contract includes the following statement: "A notice concerning
commercial general liability insurance is attached to this contract."
The notice shall include the heading "Commercial General Liability
Insurance (CGL)," followed by whichever of the following statements
is both relevant and correct:
(A) "(The name on the license or "This contractor') does not carry
commercial general liability insurance."
(B) "(The name on the license or "This contractor') carries
commercial general liability insurance written by (the insurance
company). You may call (the insurance company) at __________ to check
the contractor's insurance coverage."
(C) "(The name on the license or "This contractor') is
self-insured."
(D) "(The name on the license or 'This contractor') is a limited
liability company that carries liability insurance or maintains other
security as required by law. You may call (the insurance company or
trust company or bank) at ____ to check on the contractor's insurance
coverage or security."
(2) A notice concerning workers' compensation insurance. This
notice may be provided as an attachment to the contract if the
contract includes the statement: "A notice concerning workers'
compensation insurance is attached to this contract." The notice
shall include the heading "Workers' Compensation Insurance" followed
by whichever of the following statements is correct:
(A) "(The name on the license or "This contractor') has no
employees and is exempt from workers' compensation requirements."
(B) "(The name on the license or "This contractor') carries
workers' compensation insurance for all employees."
(3) A notice that provides the buyer with the following
information about the performance of extra or change-order work:
(A) A statement that the buyer may not require a contractor to
perform extra or change-order work without providing written
authorization prior to the commencement of work covered by the new
change order.
(B) A statement informing the buyer that extra work or a change
order is not enforceable against a buyer unless the change order also
identifies all of the following in writing prior to the commencement
of work covered by the new change order:
(i) The scope of work encompassed by the order.
(ii) The amount to be added or subtracted from the contract.
(iii) The effect the order will make in the progress payments or
the completion date.
(C) A statement informing the buyer that the contractor's failure
to comply with the requirements of this paragraph does not preclude
the recovery of compensation for work performed based upon legal or
equitable remedies designed to prevent unjust enrichment.
(4) A notice with the heading "Mechanics' Lien Warning" written as
follows:
"MECHANICS' LIEN WARNING:
Anyone who helps improve your property, but who is not paid, may
record what is called a mechanics' lien on your property. A mechanics'
lien is a claim, like a mortgage or home equity loan, made against
your property and recorded with the county recorder.
Even if you pay your contractor in full, unpaid subcontractors,
suppliers, and laborers who helped to improve your property may
record mechanics' liens and sue you in court to foreclose the lien.
If a court finds the lien is valid, you could be forced to pay twice
or have a court officer sell your home to pay the lien. Liens can
also affect your credit.
To preserve their right to record a lien, each subcontractor and
material supplier must provide you with a document called a "20-day
Preliminary Notice.' This notice is not a lien. The purpose of the
notice is to let you know that the person who sends you the notice
has the right to record a lien on your property if he or she is not
paid.
BE CAREFUL. The Preliminary Notice can be sent up to 20 days
after the subcontractor starts work or the supplier provides
material. This can be a big problem if you pay your contractor before
you have received the Preliminary Notices.
You will not get Preliminary Notices from your prime contractor or
from laborers who work on your project. The law assumes that you
already know they are improving your property.
PROTECT YOURSELF FROM LIENS. You can protect yourself from liens
by getting a list from your contractor of all the subcontractors and
material suppliers that work on your project. Find out from your
contractor when these subcontractors started work and when these
suppliers delivered goods or materials. Then wait 20 days, paying
attention to the Preliminary Notices you receive.
PAY WITH JOINT CHECKS. One way to protect yourself is to pay with
a joint check. When your contractor tells you it is time to pay for
the work of a subcontractor or supplier who has provided you with a
Preliminary Notice, write a joint check payable to both the
contractor and the subcontractor or material supplier.
For other ways to prevent liens, visit CSLB's Internet Web site at
www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752).
REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR
HOME. This can mean that you may have to pay twice, or face the
forced sale of your home to pay what you owe."
(5) The following notice shall be provided in at least 12-point
typeface:
"Information about the Contractors' State License Board (CSLB):
CSLB is the state consumer protection agency that licenses and
regulates construction contractors.
Contact CSLB for information about the licensed contractor you are
considering, including information about disclosable complaints,
disciplinary actions, and civil judgments that are reported to CSLB.
Use only licensed contractors. If you file a complaint against a
licensed contractor within the legal deadline (usually four years),
CSLB has authority to investigate the complaint. If you use an
unlicensed contractor, CSLB may not be able to help you resolve your
complaint. Your only remedy may be in civil court, and you may be
liable for damages arising out of any injuries to the unlicensed
contractor or the unlicensed contractor's employees.
For more information:
Visit CSLB's Internet Web site at www.cslb.ca.gov
Call CSLB at 800-321-CSLB (2752)
Write CSLB at P.O. Box 26000, Sacramento, CA 95826."
(6) (A) The notice set forth in subparagraph (B) and entitled
"Three-Day Right to Cancel," shall be provided to the buyer unless
the contract is:
(i) Negotiated at the contractor's place of business.
(ii) Subject to the "Seven-Day Right to Cancel," as set forth in
paragraph (7).
(iii) Subject to licensure under the Alarm Company Act (Chapter
11.6 (commencing with Section 7590)), provided the alarm company
licensee complies with Sections 1689.5, 1689.6, and 1689.7 of the
Civil Code, as applicable.
(B) "Three-Day Right to Cancel
You, the buyer, have the right to cancel this contract within
three business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor's
place of business by midnight of the third business day after you
received a signed and dated copy of the contract that includes this
notice. Include your name, your address, and the date you received
the signed copy of the contract and this notice.
If you cancel, the contractor must return to you anything you paid
within 10 days of receiving the notice of cancellation. For your
part, you must make available to the contractor at your residence, in
substantially as good condition as you received them, goods
delivered to you under this contract or sale. Or, you may, if you
wish, comply with the contractor's instructions on how to return the
goods at the contractor's expense and risk. If you do make the goods
available to the contractor and the contractor does not pick them up
within 20 days of the date of your notice of cancellation, you may
keep them without any further obligation. If you fail to make the
goods available to the contractor, or if you agree to return the
goods to the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract."
(C) The "Three-Day Right to Cancel" notice required by this
paragraph shall comply with all of the following:
(i) The text of the notice is at least 12-point boldface type.
(ii) The notice is in immediate proximity to a space reserved for
the owner's signature.
(iii) The owner acknowledges receipt of the notice by signing and
dating the notice form in the signature space.
(iv) The notice is written in the same language, e.g., Spanish, as
that principally used in any oral sales presentation.
(v) The notice may be attached to the contract if the contract
includes, in at least 12-point boldface type, a checkbox with the
following statement: "The law requires that the contractor give you a
notice explaining your right to cancel. Initial the checkbox if the
contractor has given you a "Notice of the Three-Day Right to Cancel.'
"
(vi) The notice shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation," which also shall be
attached to the agreement or offer to purchase and be easily
detachable, and which shall contain the following statement written
in the same language, e.g., Spanish, as used in the contract:
"Notice of Cancellation"
/enter date of transaction/
______________________________
(Date)
"You may cancel this transaction, without any penalty or
obligation, within three business days from the above date.
If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by
you will be returned within 10 days following receipt by the seller
of your cancellation notice, and any security interest arising out of
the transaction will be canceled.
If you cancel, you must make available to the seller at your
residence, in substantially as good condition as when received, any
goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the
return shipment of the goods at the seller's expense and risk.
If you do make the goods available to the seller and the seller
does not pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to
do so, then you remain liable for performance of all obligations
under the contract."
To cancel
this
transaction,
mail or
deliver a
signed and
dated copy of
this
cancellation
notice, or
any other
written
notice, or
send a
telegram
to___________,
/name of
seller/
at____________
/address of
seller's
place of
business/
not later
than midnight
of___________.
(Date)
I hereby
cancel this
transaction. _
(Date)
______________
(Buyer's
signature)
(7) (A) The following notice entitled "Seven-Day Right to Cancel"
shall be provided to the buyer for any contract that is written for
the repair or restoration of residential premises damaged by any
sudden or catastrophic event for which a state of emergency has been
declared by the President of the United States or the Governor, or
for which a local emergency has been declared by the executive
officer or governing body of any city, county, or city and county:
"Seven-Day Right to Cancel
You, the buyer, have the right to cancel this contract within
seven business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor's
place of business by midnight of the seventh business day after you
received a signed and dated copy of the contract that includes this
notice. Include your name, your address, and the date you received
the signed copy of the contract and this notice.
If you cancel, the contractor must return to you anything you paid
within 10 days of receiving the notice of cancellation. For your
part, you must make available to the contractor at your residence, in
substantially as good condition as you received them, goods
delivered to you under this contract or sale. Or, you may, if you
wish, comply with the contractor's instructions on how to return the
goods at the contractor's expense and risk. If you do make the goods
available to the contractor and the contractor does not pick them up
within 20 days of the date of your notice of cancellation, you may
keep them without any further obligation. If you fail to make the
goods available to the contractor, or if you agree to return the
goods to the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract."
(B) The "Seven-Day Right to Cancel" notice required by this
subdivision shall comply with all of the following:
(i) The text of the notice is at least 12-point boldface type.
(ii) The notice is in immediate proximity to a space reserved for
the owner's signature.
(iii) The owner acknowledges receipt of the notice by signing and
dating the notice form in the signature space.
(iv) The notice is written in the same language, e.g., Spanish, as
that principally used in any oral sales presentation.
(v) The notice may be attached to the contract if the contract
includes, in at least 12-point boldface type, a checkbox with the
following statement: "The law requires that the contractor give you a
notice explaining your right to cancel. Initial the checkbox if the
contractor has given you a "Notice of the Seven-Day Right to Cancel.'
"
(vi) The notice shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation," which shall also be
attached to the agreement or offer to purchase and be easily
detachable, and which shall contain the following statement written
in the same language, e.g., Spanish, as used in the contract:
"Notice of Cancellation"
/enter date of transaction/
______________________________
(Date)
"You may cancel this transaction, without any penalty or
obligation, within seven business days from the above date.
If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by
you will be returned within 10 days following receipt by the seller
of your cancellation notice, and any security interest arising out of
the transaction will be canceled.
If you cancel, you must make available to the seller at your
residence, in substantially as good condition as when received, any
goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the
return shipment of the goods at the seller's expense and risk.
If you do make the goods available to the seller and the seller
does not pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to
do so, then you remain liable for performance of all obligations
under the contract."
To cancel
this
transaction,
mail or
deliver
a signed and
dated copy of
this
cancellation
notice, or
any other
written
notice, or
send a
telegram
to___________,
/name of
seller/
at____________
/address of
seller's
place of
business/
not later
than midnight
of___________.
(Date)
I hereby
cancel this
transaction. _
(Date)
______________
(Buyer's
signature)
7159.1. In any contract for the sale of home improvement goods or
services offered by door-to-door sale that contains or is secured by
a lien on real property, the contract shall be accompanied by the
following notice in 18-point boldfaced type:
"WARNING TO BUYER: IF YOU SIGN THE CONTRACT WHICH ACCOMPANIES THIS
NOTICE, YOU WILL BE PUTTING UP YOUR HOME AS SECURITY. THIS MEANS
THAT YOUR HOME COULD BE SOLD WITHOUT YOUR PERMISSION AND WITHOUT ANY
COURT ACTION IF YOU MISS ANY PAYMENT REQUIRED BY THIS CONTRACT."
This notice shall be written in the same language as the rest of
the contract. It shall be on a separate piece of paper from the rest
of the contract and shall be signed and dated by the buyer. The home
improvement contractor or home improvement salesperson shall deliver
to the buyer at the time of the buyer's signing and dating of the
notice a legible copy of the signed and dated notice. A security
interest created in any contract described in this section that does
not provide the notice as required by this section shall be void and
unenforceable.
This section shall not apply to any of the following:
(a) Any contract that is subject to Chapter 1 (commencing with
Section 1801) of Title 2 of Part 4 of Division 3 of the Civil Code.
(b) A mechanic's lien established pursuant to Chapter 2
(commencing with Section 3109) of Title 15 of Part 4 of Division 3 of
the Civil Code.
(c) Any contract that is subject to subdivision (a) of Section
7159.2.
7159.1. (a) In any contract for the sale of home improvement goods
or services offered by door-to-door sale that contains or is secured
by a lien on real property, the contract shall be accompanied by the
following notice in 18-point boldfaced type:
"WARNING TO BUYER: IF YOU SIGN THE CONTRACT WHICH ACCOMPANIES THIS
NOTICE, YOU WILL BE PUTTING UP YOUR HOME AS SECURITY. THIS MEANS
THAT YOUR HOME COULD BE SOLD WITHOUT YOUR PERMISSION AND WITHOUT ANY
COURT ACTION IF YOU MISS ANY PAYMENT REQUIRED BY THIS CONTRACT."
This notice shall be written in the same language as the rest of
the contract. It shall be on a separate piece of paper from the rest
of the contract and shall be signed and dated by the buyer. The home
improvement contractor or home improvement salesperson shall deliver
to the buyer at the time of the buyer's signing and dating of the
notice a legible copy of the signed and dated notice. A security
interest created in any contract described in this section that does
not provide the notice as required by this section shall be void and
unenforceable.
(b) This section shall not apply to any of the following:
(1) Any contract that is subject to Chapter 1 (commencing with
Section 1801) of Title 2 of Part 4 of Division 3 of the Civil Code.
(2) A mechanics lien established pursuant to Chapter 4 (commencing
with Section 8400) of Title 2 of Part 6 of Division 4 of the Civil
Code.
(3) Any contract that is subject to subdivision (a) of Section
7159.2.
7159.2. (a) No home improvement goods or services contract of a
value of five thousand dollars ($5,000) or less shall provide for a
security interest in real property, except for a mechanic's lien or
other interest in property that arises by operation of law. Any lien
in violation of this subdivision is void and unenforceable.
(b) When the proceeds of a loan secured by a mortgage on real
property are used to fund goods or services pursuant to a home
improvement goods or services contract of more than five thousand
dollars ($5,000), the person or entity making the loan shall only pay
a contractor under the home improvement goods or services contract
from the proceeds of the loan by either of the following methods:
(1) By an instrument payable to the borrower or jointly to the
borrower and the contractor.
(2) At the election of the borrower, through a third-party escrow
agent pursuant to the terms of a written agreement signed by the
borrower, the person or entity making the loan, and the contractor
prior to the disbursement.
(c) Any person or entity who violates any provision of this
section shall be liable for actual damages suffered by the borrower
for damages that proximately result from the violation.
(d) Any person or entity who intentionally or as a pattern or
practice violates any provision of this section shall be additionally
liable for three times the contract price for the home improvement.
(e) Any person who is a senior citizen or disabled person, as
defined in subdivisions (f) and (g) of Section 1761 of the Civil
Code, as part of any action for a violation of this section, may seek
and be awarded, in addition to the remedies provided in this
section, up to five thousand dollars ($5,000) as provided in
subdivision (b) of Section 1780 of the Civil Code.
(f) The court shall award court costs and attorney's fees to a
prevailing plaintiff in an action brought pursuant to this section.
Reasonable attorney's fees may be awarded to a prevailing defendant
upon a finding by the court that the plaintiff's prosecution of the
action was not in good faith.
7159.5. This section applies to all home improvement contracts, as
defined in Section 7151.2, between an owner or tenant and a
contractor, whether a general contractor or a specialty contractor,
who is licensed or subject to be licensed pursuant to this chapter
with regard to the transaction.
(a) Failure by the licensee or a person subject to be licensed
under this chapter, or by his or her agent or salesperson, to comply
with the following provisions is cause for discipline:
(1) The contract shall be in writing and shall include the agreed
contract amount in dollars and cents. The contract amount shall
include the entire cost of the contract, including profit, labor, and
materials, but excluding finance charges.
(2) If there is a separate finance charge between the contractor
and the person contracting for home improvement, the finance charge
shall be set out separately from the contract amount.
(3) If a downpayment will be charged, the downpayment may not
exceed one thousand dollars ($1,000) or 10 percent of the contract
amount, whichever is less.
(4) If, in addition to a downpayment, the contract provides for
payments to be made prior to completion of the work, the contract
shall include a schedule of payments in dollars and cents
specifically referencing the amount of work or services to be
performed and any materials and equipment to be supplied.
(5) Except for a downpayment, the contractor may neither request
nor accept payment that exceeds the value of the work performed or
material delivered.
(6) Upon any payment by the person contracting for home
improvement, and prior to any further payment being made, the
contractor shall, if requested, obtain and furnish to the person a
full and unconditional release from any potential lien claimant claim
or mechanic's lien authorized pursuant to Section 3110 of the Civil
Code for any portion of the work for which payment has been made. The
person contracting for home improvement may withhold all further
payments until these releases are furnished.
(7) If the contract provides for a payment of a salesperson's
commission out of the contract price, that payment shall be made on a
pro rata basis in proportion to the schedule of payments made to the
contractor by the disbursing party in accordance with paragraph (4).
(8) A contractor furnishing a performance and payment bond, lien
and completion bond, or a bond equivalent or joint control approved
by the registrar covering full performance and payment is exempt from
paragraphs (3), (4), and (5), and need not include, as part of the
contract, the statement regarding the downpayment specified in
subparagraph (C) of paragraph (8) of subdivision (d) of Section 7159,
the details and statement regarding progress payments specified in
paragraph (9) of subdivision (d) of Section 7159, or the Mechanics'
Lien Warning specified in paragraph (4) of subdivision (e) of Section
7159. A contractor furnishing these bonds, bond equivalents, or a
joint control approved by the registrar may accept payment prior to
completion. If the contract provides for a contractor to furnish
joint control, the contractor shall not have any financial or other
interest in the joint control.
(b) A violation of paragraph (1), (3), or (5) of subdivision (a)
by a licensee or a person subject to be licensed under this chapter,
or by his or her agent or salesperson, is a misdemeanor punishable by
a fine of not less than one hundred dollars ($100) nor more than
five thousand dollars ($5,000), or by imprisonment in a county jail
not exceeding one year, or by both that fine and imprisonment.
(1) An indictment or information against a person who is not
licensed but who is required to be licensed under this chapter shall
be brought, or a criminal complaint filed, for a violation of this
section, in accordance with paragraph (4) of subdivision (d) of
Section 802 of the Penal Code, within four years from the date of the
contract or, if the contract is not reduced to writing, from the
date the buyer makes the first payment to the contractor.
(2) An indictment or information against a person who is licensed
under this chapter shall be brought, or a criminal complaint filed,
for a violation of this section, in accordance with paragraph (2) of
subdivision (d) of Section 802 of the Penal Code, within two years
from the date of the contract or, if the contract is not reduced to
writing, from the date the buyer makes the first payment to the
contractor.
(3) The limitations on actions in this subdivision shall not apply
to any administrative action filed against a licensed contractor.
(c) Any person who violates this section as part of a plan or
scheme to defraud an owner or tenant of a residential or
nonresidential structure, including a mobilehome or manufactured
home, in connection with the offer or performance of repairs to the
structure for damage caused by a natural disaster, shall be ordered
by the court to make full restitution to the victim based on the
person's ability to pay, as defined in subdivision (e) of Section
1203.1b of the Penal Code. In addition to full restitution, and
imprisonment authorized by this section, the court may impose a fine
of not less than five hundred dollars ($500) nor more than
twenty-five thousand dollars ($25,000), based upon the defendant's
ability to pay. This subdivision applies to natural disasters for
which a state of emergency is proclaimed by the Governor pursuant to
Section 8625 of the Government Code, or for which an emergency or
major disaster is declared by the President of the United States.
7159.5. This section applies to all home improvement contracts, as
defined in Section 7151.2, between an owner or tenant and a
contractor, whether a general contractor or a specialty contractor,
that is licensed or subject to be licensed pursuant to this chapter
with regard to the transaction.
(a) Failure by the licensee or a person subject to be licensed
under this chapter, or by his or her agent or salesperson, to comply
with the following provisions is cause for discipline:
(1) The contract shall be in writing and shall include the agreed
contract amount in dollars and cents. The contract amount shall
include the entire cost of the contract, including profit, labor, and
materials, but excluding finance charges.
(2) If there is a separate finance charge between the contractor
and the person contracting for home improvement, the finance charge
shall be set out separately from the contract amount.
(3) If a downpayment will be charged, the downpayment may not
exceed one thousand dollars ($1,000) or 10 percent of the contract
amount, whichever is less.
(4) If, in addition to a downpayment, the contract provides for
payments to be made prior to completion of the work, the contract
shall include a schedule of payments in dollars and cents
specifically referencing the amount of work or services to be
performed and any materials and equipment to be supplied.
(5) Except for a downpayment, the contractor may neither request
nor accept payment that exceeds the value of the work performed or
material delivered.
(6) Upon any payment by the person contracting for home
improvement, and prior to any further payment being made, the
contractor shall, if requested, obtain and furnish to the person a
full and unconditional release from any potential lien claimant claim
or mechanics lien authorized pursuant to Section 8410 of the Civil
Code for any portion of the work for which payment has been made. The
person contracting for home improvement may withhold all further
payments until these releases are furnished.
(7) If the contract provides for a payment of a salesperson's
commission out of the contract price, that payment shall be made on a
pro rata basis in proportion to the schedule of payments made to the
contractor by the disbursing party in accordance with paragraph (4).
(8) A contractor furnishing a performance and payment bond, lien
and completion bond, or a bond equivalent or joint control approved
by the registrar covering full performance and payment is exempt from
paragraphs (3), (4), and (5), and need not include, as part of the
contract, the statement regarding the downpayment specified in
subparagraph (C) of paragraph (8) of subdivision (d) of Section 7159,
the details and statement regarding progress payments specified in
paragraph (9) of subdivision (d) of Section 7159, or the Mechanics
Lien Warning specified in paragraph (4) of subdivision (e) of Section
7159. A contractor furnishing these bonds, bond equivalents, or a
joint control approved by the registrar may accept payment prior to
completion. If the contract provides for a contractor to furnish
joint control, the contractor shall not have any financial or other
interest in the joint control.
(b) A violation of paragraph (1), (3), or (5) of subdivision (a)
by a licensee or a person subject to be licensed under this chapter,
or by his or her agent or salesperson, is a misdemeanor punishable by
a fine of not less than one hundred dollars ($100) nor more than
five thousand dollars ($5,000), or by imprisonment in a county jail
not exceeding one year, or by both that fine and imprisonment.
(1) An indictment or information against a person who is not
licensed but who is required to be licensed under this chapter shall
be brought, or a criminal complaint filed, for a violation of this
section, in accordance with paragraph (4) of subdivision (d) of
Section 802 of the Penal Code, within four years from the date of the
contract or, if the contract is not reduced to writing, from the
date the buyer makes the first payment to the contractor.
(2) An indictment or information against a person who is licensed
under this chapter shall be brought, or a criminal complaint filed,
for a violation of this section, in accordance with paragraph (2) of
subdivision (d) of Section 802 of the Penal Code, within two years
from the date of the contract or, if the contract is not reduced to
writing, from the date the buyer makes the first payment to the
contractor.
(3) The limitations on actions in this subdivision shall not apply
to any administrative action filed against a licensed contractor.
(c) Any person who violates this section as part of a plan or
scheme to defraud an owner or tenant of a residential or
nonresidential structure, including a mobilehome or manufactured
home, in connection with the offer or performance of repairs to the
structure for damage caused by a natural disaster, shall be ordered
by the court to make full restitution to the victim based on the
person's ability to pay, as defined in subdivision (e) of Section
1203.1b of the Penal Code. In addition to full restitution, and
imprisonment authorized by this section, the court may impose a fine
of not less than five hundred dollars ($500) nor more than
twenty-five thousand dollars ($25,000), based upon the defendant's
ability to pay. This subdivision applies to natural disasters for
which a state of emergency is proclaimed by the Governor pursuant to
Section 8625 of the Government Code, or for which an emergency or
major disaster is declared by the President of the United States.
7159.6. (a) An extra work or change order is not enforceable
against a buyer unless the change order sets forth all of the
following:
(1) The scope of work encompassed by the order.
(2) The amount to be added or subtracted from the contract.
(3) The effect the order will make in the progress payments or the
completion date.
(b) The buyer may not require a contractor to perform extra or
change-order work without providing written authorization.
(c) Failure to comply with the requirements of this section does
not preclude the recovery of compensation for work performed based
upon legal or equitable remedies designed to prevent unjust
enrichment.
(d) This section shall become operative on January 1, 2006.
7159.9. (a) Section 7159 does not apply to the sale, installation,
and servicing of a fire alarm sold in conjunction with an alarm
system, as defined in subdivision (n) of Section 7590.1 of the Alarm
Company Act (Chapter 11.6 (commencing with Section 7590)), provided
the licensee does all of the following:
(1) Complies with the contract requirements set forth in Section
7599.54.
(2) Complies with Sections 1689.5, 1689.6, and 1689.7 of the Civil
Code, as applicable.
(3) Executes the following certification statement in the contract
or in a separate certification document signed by all parties to the
contract:
"All costs attributable to making the fire alarm system operable
for the residence identified by this document, including sale and
installation costs, do not exceed five hundred dollars ($500)."
(4) Certifies to the following if the certification statement
described in paragraph (3) is in a separate document:
"I certify that all statements and representations made by me in
this document are true and accurate."
(b) The contract or separate certification document shall also
include both of the following:
(1) The physical address of the residence for which the
certification is applicable.
(2) The name, business address, and license number of the
contractor as contained in the official records of the board.
(c) The licensee shall give an exact copy of all documents
required pursuant to this section to the party who is contracting to
have the alarm system installed.
(d) All documents required pursuant to this section shall be
retained by the licensee for a period of five years in accordance
with the provisions of Section 7111, and shall be made available to
the board within 30 days of a written request.
(e) Failure by the contractor to provide the board with the
certification or contract within 30 days of a written request is
cause for discipline.
(f) Failure by the licensee to provide the board with the
certification or contract within 30 days of a written request creates
a presumption that the licensee has violated the provisions of
Section 7159, unless evidence to the contrary is presented within the
timeframe specified by the board.
7159.10. (a) (1) "Service and repair contract" means an agreement
between a contractor or salesperson for a contractor, whether a
general contractor or a specialty contractor, who is licensed or
subject to be licensed pursuant to this chapter with regard to the
transaction, and a homeowner or a tenant, for the performance of a
home improvement as defined in Section 7151, that conforms to the
following requirements:
(A) The contract amount is seven hundred fifty dollars ($750) or
less.
(B) The prospective buyer initiated contact with the contractor to
request the work.
(C) The contractor does not sell the buyer goods or services
beyond those reasonably necessary to take care of the particular
problem that caused the buyer to contact the contractor.
(D) No payment is due, or accepted by the contractor, until the
work is completed.
(2) As used in this subdivision, "the work is completed" means
that all of the conditions that caused the buyer to contact the
contractor for service and repairs have been fully corrected and, if
applicable, the building department has accepted and approved the
corrective work.
(b) For any contract written pursuant to subdivision (a) or
otherwise presented to the buyer as a service and repair contract,
unless all of the conforming requirements for service and repair
contracts specified in subdivision (a) are met, the contract
requirements for home improvements set forth in subdivisions (c),
(d), and (e) of Section 7159 shall be applicable, including any
rights to rescind the contract as set forth in Section 1689.6 or
1689.7 of the Civil Code, regardless of the aggregate contract price.
(c) If all of the requirements of subdivision (a) are met, only
those notices and other requirements set forth in this section are
applicable to the contract.
(d) Every service and repair contract described in subdivision (a)
shall include, or otherwise comply with, all of the following:
(1) The contract, any changes to the contract, and any attachments
shall be in writing and signed or acknowledged by the parties as set
forth in this section, and shall be written in the same language
(for example Spanish) as principally used in the oral sales
presentation.
(2) The writing shall be legible.
(3) Any printed form shall be readable. Unless a larger typeface
is specified in this article, the text shall be in at least 10-point
typeface and the headings shall be in at least 10-point boldface
type.
(4) Before any work is started, the contractor shall give the
buyer a copy of the contract signed and dated by the buyer and by the
contractor or the contractor's representative.
(5) The name, business address, and license number of the
contractor.
(6) The date the contract was signed.
(7) A notice concerning commercial general liability insurance.
This notice may be provided as an attachment to the contract if the
contract includes the statement, "A notice concerning commercial
general liability insurance is attached to this contract." The notice
shall include the heading "Commercial General Liability Insurance
(CGL)" followed by whichever of the following statements is both
relevant and correct:
(A) "(The name on the license or 'This contractor') does not carry
commercial general liability insurance."
(B) "(The name on the license or 'This contractor') carries
commercial general liability insurance written by (the insurance
company). You may call the (insurance company) at ____ to check the
contractor's insurance coverage."
(C) "(The name on the license or 'This contractor') is
self-insured."
(D) "(The name on the license or 'This contractor') is a limited
liability company that carries liability insurance or maintains other
security as required by law. You may call (the insurance company or
trust company or bank) at ____ to check on the contractor's insurance
coverage or security."
(8) A notice concerning workers' compensation insurance. This
notice may be provided as an attachment to the contract if the
contract includes the statement "A notice concerning workers'
compensation insurance is attached to this contract." The notice
shall include the heading "Workers' Compensation Insurance" followed
by whichever of the following statements is both relevant and
correct:
(A) "(The name on the license or 'This contractor') has no
employees and is exempt from workers' compensation requirements."
(B) "(The name on the license or 'This contractor') carries
workers' compensation insurance for all employees."
(e) Every service and repair contract described in subdivision (a)
shall provide the following information, notices, and disclosures in
the contract:
(1) Notice of the type of contract in at least 10-point boldface
type: "Service and Repair."
(2) A notice in at least 12-point boldface type, signed and dated
by the buyer: "Notice to the Buyer: The law requires that service and
repair contracts must meet all of the following requirements:
(A) The price must be no more than seven hundred and fifty dollars
($750).
(B) You, the buyer, must have initiated contact with the
contractor to request the work.
(C) The contractor must not sell you goods or services beyond
those reasonably necessary to take care of the particular problem
that caused you to contact the contractor.
(D) No payment is due and the contractor may not accept any
payment until the work is completed."
(3) The notice in at least 12-point boldface type: "Notice to the
Buyer: You are entitled to a completely filled in and signed copy of
this agreement before any work may be started."
(4) If applicable, the heading "List of Documents to be
Incorporated into the Contract," followed by the list of documents to
be incorporated into the contract.
(5) Where the contract is a fixed contract amount, the heading:
"Contract Price" followed by the amount of the contract in dollars
and cents.
(6) If a finance charge will be charged, the heading: "Finance
Charge" followed by the amount in dollars and cents. The finance
charge is to be set out separately from the contract amount.
(7) Where the contract is estimated by a time and materials
for
