NYC Home Improvement Exam (Latest
Update ) Examination Guide
Questions with Verified Answers 100%
Correct [Grade A]
What percentage of a customers payments can a Contractor use for administrative,
overhead, and other projects? - correct answer 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? - correct answer 3 days
Can a H.I. Contractor arrange a home loan or a home improvement loan for a
consumer? - correct answer No, nor can they act as an agent for, advertise, or
promote loans.
Must a contractor furnish a consumer with a written estimate? - correct answer Yes, if
the consumer requests one.
Can a Contractor charge a fee for an estimate? - correct answer 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? - correct answer 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? - correct answer
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? - correct answer 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? - correct answer civil
prosecution and $100 day fine.
, NYC Home Improvement Exam (Latest
Update ) Examination Guide
Questions with Verified Answers 100%
Correct [Grade A]
Can the DCA padlock (close down) and confiscate (take) the tools and trucks used in
connection with unlicensed home improvement work? - correct answer Yes!
In what form must a home improvement contract be? - correct answer Every home
improvement contract must be in writing and signed by everyone involved.
When must the consumer receive a completed, legible copy of the H.I. contract? -
correct answer At the time of signing and before any work is done.
Does the H.I. contract have to be in englsh? - correct answer Yes, unless another
language was used in any oral (spoken) sales presentation, in which case the contract
needs to be in that language and in English.
If a consumer wants more work done beyond what's in the original contract, what
should a contractor do? - correct answer Provide a written amendment to the contract,
which both parties must sign.
What information should be at the heading of a H.I. contract? - correct answer
contractor's name, office address, telephone number, and DCA license number and the
salesperson's name and DCA license number.
What dates should be on the H.I. contract? - correct answer the contract date,
approximate date when work will begin and date to be substantially completed.
What costs must be included in the H.I. contract? - correct answer labor and materials
What 3 notices must the H.I include? - correct answer If the owner does not pay the
contractor they may have a claim against the owner, that the contractor is legally
required to deposit all payments received prior to completion or the contractor must
post a bond or contract of indemnity, and the cancellation notice wording.
What schedule should be inclduded with the H.I. contract? - correct answer Schedule
of payments and the work/services to be performed if the contract calls for
incremental payments.
Must a contractor or salesperson provide the consumer with a separate Notice of
Cancellation? - correct answer Yes. At the time of signing the contractor or
Update ) Examination Guide
Questions with Verified Answers 100%
Correct [Grade A]
What percentage of a customers payments can a Contractor use for administrative,
overhead, and other projects? - correct answer 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? - correct answer 3 days
Can a H.I. Contractor arrange a home loan or a home improvement loan for a
consumer? - correct answer No, nor can they act as an agent for, advertise, or
promote loans.
Must a contractor furnish a consumer with a written estimate? - correct answer Yes, if
the consumer requests one.
Can a Contractor charge a fee for an estimate? - correct answer 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? - correct answer 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? - correct answer
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? - correct answer 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? - correct answer civil
prosecution and $100 day fine.
, NYC Home Improvement Exam (Latest
Update ) Examination Guide
Questions with Verified Answers 100%
Correct [Grade A]
Can the DCA padlock (close down) and confiscate (take) the tools and trucks used in
connection with unlicensed home improvement work? - correct answer Yes!
In what form must a home improvement contract be? - correct answer Every home
improvement contract must be in writing and signed by everyone involved.
When must the consumer receive a completed, legible copy of the H.I. contract? -
correct answer At the time of signing and before any work is done.
Does the H.I. contract have to be in englsh? - correct answer Yes, unless another
language was used in any oral (spoken) sales presentation, in which case the contract
needs to be in that language and in English.
If a consumer wants more work done beyond what's in the original contract, what
should a contractor do? - correct answer Provide a written amendment to the contract,
which both parties must sign.
What information should be at the heading of a H.I. contract? - correct answer
contractor's name, office address, telephone number, and DCA license number and the
salesperson's name and DCA license number.
What dates should be on the H.I. contract? - correct answer the contract date,
approximate date when work will begin and date to be substantially completed.
What costs must be included in the H.I. contract? - correct answer labor and materials
What 3 notices must the H.I include? - correct answer If the owner does not pay the
contractor they may have a claim against the owner, that the contractor is legally
required to deposit all payments received prior to completion or the contractor must
post a bond or contract of indemnity, and the cancellation notice wording.
What schedule should be inclduded with the H.I. contract? - correct answer Schedule
of payments and the work/services to be performed if the contract calls for
incremental payments.
Must a contractor or salesperson provide the consumer with a separate Notice of
Cancellation? - correct answer Yes. At the time of signing the contractor or
