NYC HOME IMPROVEMENT CONTRACTOR EXAM
(100+ QS) – STUDY GUIDE WITH VERIFIED
ANSWERS | LAWS, PERMITS, CONTRACTS,
LICENSING | 2025/2026 | NEW YORK CITY
May a H.I. Contractor assign the task of getting permits, exemptions or
C/O to the home owner (customer)?
No, The prime contractor must secure all necessary permits, licenses,
Certificates of Occupancy, or exemptions necessary to complete the
contract in accordance with state and local building laws.
How many years must a H.I. Contractor maintain copies of contracts,
books of account, and other records reflecting all transactions related to
the home improvement business?
Six (6) years or the length of time of any contractual guarantee,
whichever is longer.
What percentage of a customers payments can a Contractor use for
administrative, overhead, and other projects?
The contractor may not use funds received to pay expenses unrelated to
the home improvement, unless the home improvement is completed and
all expenses for direct labor, material, and subcontractors related to the
home improvement have been paid.
No work should be performed and no money should be paid until after the
____ day cancellation period?
3 days
Can a H.I. Contractor arrange a home loan or a home improvement loan
for a consumer?
No, nor can they act as an agent for, advertise, or promote loans.
, Must a contractor furnish a consumer with a written estimate?
Yes, if the consumer requests one.
Can a Contractor charge a fee for an estimate?
Yes, but they must disclose the fee to the consumer before providing the
estimate and must include and itemize the fee in the total estimated
contract price.
What is the fine for false or fraudulent representation?
A contractor or salesperson who lies is subject to fines of up to $500 for
each separate misrepresentation.
What becomes of the contract entered into after misrepresentations?
It may be declared null and void, and contractor may be ordered to pay
restitution to the consumer.
What is the prosecution and fine penalties for operating a home
improvement business without a license or with a suspended or revoked
license?
Guilty of a misdemeanor and may be prosecuted criminally and subject to
up to six (6) months imprisonment and/or $1,000 in fines.
What is the prosecution and fine penalties for engaging in unlicensed
activity or aiding and abetting the operation of an unlicensed person or
business?
civil prosecution and $100 day fine.
Can the DCA padlock (close down) and confiscate (take) the tools and
trucks used in connection with unlicensed home improvement work?
Yes!
What is "home improvement" (H.I.)? (C R R R R A A I)
the construction, repair, remodeling, alteration, rehabilitation,
renovation, improvement, or addition to any land or building used as a
residence or dwelling place.
(100+ QS) – STUDY GUIDE WITH VERIFIED
ANSWERS | LAWS, PERMITS, CONTRACTS,
LICENSING | 2025/2026 | NEW YORK CITY
May a H.I. Contractor assign the task of getting permits, exemptions or
C/O to the home owner (customer)?
No, The prime contractor must secure all necessary permits, licenses,
Certificates of Occupancy, or exemptions necessary to complete the
contract in accordance with state and local building laws.
How many years must a H.I. Contractor maintain copies of contracts,
books of account, and other records reflecting all transactions related to
the home improvement business?
Six (6) years or the length of time of any contractual guarantee,
whichever is longer.
What percentage of a customers payments can a Contractor use for
administrative, overhead, and other projects?
The contractor may not use funds received to pay expenses unrelated to
the home improvement, unless the home improvement is completed and
all expenses for direct labor, material, and subcontractors related to the
home improvement have been paid.
No work should be performed and no money should be paid until after the
____ day cancellation period?
3 days
Can a H.I. Contractor arrange a home loan or a home improvement loan
for a consumer?
No, nor can they act as an agent for, advertise, or promote loans.
, Must a contractor furnish a consumer with a written estimate?
Yes, if the consumer requests one.
Can a Contractor charge a fee for an estimate?
Yes, but they must disclose the fee to the consumer before providing the
estimate and must include and itemize the fee in the total estimated
contract price.
What is the fine for false or fraudulent representation?
A contractor or salesperson who lies is subject to fines of up to $500 for
each separate misrepresentation.
What becomes of the contract entered into after misrepresentations?
It may be declared null and void, and contractor may be ordered to pay
restitution to the consumer.
What is the prosecution and fine penalties for operating a home
improvement business without a license or with a suspended or revoked
license?
Guilty of a misdemeanor and may be prosecuted criminally and subject to
up to six (6) months imprisonment and/or $1,000 in fines.
What is the prosecution and fine penalties for engaging in unlicensed
activity or aiding and abetting the operation of an unlicensed person or
business?
civil prosecution and $100 day fine.
Can the DCA padlock (close down) and confiscate (take) the tools and
trucks used in connection with unlicensed home improvement work?
Yes!
What is "home improvement" (H.I.)? (C R R R R A A I)
the construction, repair, remodeling, alteration, rehabilitation,
renovation, improvement, or addition to any land or building used as a
residence or dwelling place.
