NYC HOME IMPROVEMENT CONTRACTOR EXAM
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Home Improvement Trust Fund Answer: A fund that contractors can contribute to or
secure a bond with, required every two years.
Plain English Contracts Answer: Contracts must be in plain English unless another
language was used in any oral sales presentation, in which case the contract needs to be in
that language as well as English.
DCA Answer: Department of Consumer Affairs.
Salespersons Notification Requirement Answer: Salespersons must submit written
confirmation of their employment to DCA within 48 hours of appointment.
DOB Answer: Department of Buildings.
Sidewalk Work Permit Answer: A permit required from DOT to perform sidewalk work.
DOT Answer: Department of Transportation.
License Application Process Answer: You must submit an application to DCA for a new or
renewed license; a separate home-improvement contractor license is required for each
place of business.
Sales Tax Handling Answer: Contractors must collect sales tax for repairs from the
consumer and pay it.
Contract Amendment for Additional Work Answer: The contractor should provide a written
amendment to the contract, which must be signed by both the consumer and the
contractor.
Unlicensed Business Closure Answer: The DCA will padlock, close down, and confiscate
tools and trucks used in connection with unlicensed home-improvement work.
1
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, Home Improvement Contract Requirements Answer: Every home improvement contract
must be in writing, signed by everyone involved, and a complete legible copy must be given
to the consumer at the time of signing.
Licensed Electrician Requirement Answer: A licensed electrician must be used to install
anything related to light, heat, and power, regardless of voltage.
Written Estimate Requirement Answer: Contractors must furnish a written estimate if
requested by the consumer, which may include a fee disclosed beforehand.
Consumer Right to Cancel Answer: Contractors or salespersons must inform the
consumer of their right to cancel a home improvement contract within three business days
from the contract date.
Notice of Cancellation Requirement Answer: A separate notice of cancellation must be
provided to the consumer at the time they sign the contract.
Subcontractor Licensing Answer: A subcontractor must have a DCA license to perform
home improvement work in New York City.
Notice of Cancellation Form Answer: The contractor or salesperson must attach two
copies of a completed form titled 'Notice of Cancellation' to the signed contract, with text
in both English and at least 10-point font.
Employee Obligations Answer: You must cover employees with workers' compensation
and disability insurance.
Employee Wages Reporting Answer: Must report employee wages to the internal Revenue
Service, and you must withhold taxes.
Penalties for False Representation Answer: A contractor or sales person who lies is subject
to fines of up to 500 dollars for each separate misrepresentation; contracts entered into
after misrepresentation may be declared null and void, and restitution may be ordered.
Penalties for Operating Without a License Answer: Any person who owns or operates a
home improvement business without a license or after a license is suspended or revoked is
guilty of a misdemeanor and may face up to six months imprisonment or $1000 in fines.
Home Improvement Definition Answer: The construction, repair, replacement, remodeling,
alteration, conversion, rehabilitation, renovation, modernization, improvement, or addition
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
STUDY GUIDE 2024| TOP SCORES MADE SIMPLE |
TRUSTED TEST SOLUTIONS!
QUALITY CONTENT YOU CAN RELY ON!
Home Improvement Trust Fund Answer: A fund that contractors can contribute to or
secure a bond with, required every two years.
Plain English Contracts Answer: Contracts must be in plain English unless another
language was used in any oral sales presentation, in which case the contract needs to be in
that language as well as English.
DCA Answer: Department of Consumer Affairs.
Salespersons Notification Requirement Answer: Salespersons must submit written
confirmation of their employment to DCA within 48 hours of appointment.
DOB Answer: Department of Buildings.
Sidewalk Work Permit Answer: A permit required from DOT to perform sidewalk work.
DOT Answer: Department of Transportation.
License Application Process Answer: You must submit an application to DCA for a new or
renewed license; a separate home-improvement contractor license is required for each
place of business.
Sales Tax Handling Answer: Contractors must collect sales tax for repairs from the
consumer and pay it.
Contract Amendment for Additional Work Answer: The contractor should provide a written
amendment to the contract, which must be signed by both the consumer and the
contractor.
Unlicensed Business Closure Answer: The DCA will padlock, close down, and confiscate
tools and trucks used in connection with unlicensed home-improvement work.
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, Home Improvement Contract Requirements Answer: Every home improvement contract
must be in writing, signed by everyone involved, and a complete legible copy must be given
to the consumer at the time of signing.
Licensed Electrician Requirement Answer: A licensed electrician must be used to install
anything related to light, heat, and power, regardless of voltage.
Written Estimate Requirement Answer: Contractors must furnish a written estimate if
requested by the consumer, which may include a fee disclosed beforehand.
Consumer Right to Cancel Answer: Contractors or salespersons must inform the
consumer of their right to cancel a home improvement contract within three business days
from the contract date.
Notice of Cancellation Requirement Answer: A separate notice of cancellation must be
provided to the consumer at the time they sign the contract.
Subcontractor Licensing Answer: A subcontractor must have a DCA license to perform
home improvement work in New York City.
Notice of Cancellation Form Answer: The contractor or salesperson must attach two
copies of a completed form titled 'Notice of Cancellation' to the signed contract, with text
in both English and at least 10-point font.
Employee Obligations Answer: You must cover employees with workers' compensation
and disability insurance.
Employee Wages Reporting Answer: Must report employee wages to the internal Revenue
Service, and you must withhold taxes.
Penalties for False Representation Answer: A contractor or sales person who lies is subject
to fines of up to 500 dollars for each separate misrepresentation; contracts entered into
after misrepresentation may be declared null and void, and restitution may be ordered.
Penalties for Operating Without a License Answer: Any person who owns or operates a
home improvement business without a license or after a license is suspended or revoked is
guilty of a misdemeanor and may face up to six months imprisonment or $1000 in fines.
Home Improvement Definition Answer: The construction, repair, replacement, remodeling,
alteration, conversion, rehabilitation, renovation, modernization, improvement, or addition
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
