NYC HOME IMPROVEMENT END OF COURSE QUESTIONS
AND ANSWERS MARKED A+
✔✔License Application Process - ✔✔You must submit an application to DCWP for a
new or renewed license.
✔✔Home Improvement Contractor License - ✔✔A separate Home Improvement
Contractor license is required for each place of business.
✔✔Applying for a New License - ✔✔You can apply for a new license in person by
appointment only at the DCWP Licensing Center or NYC Small Business Support
Center, or online at nyc.gov/BusinessToolbox.
✔✔License Renewal Notification - ✔✔About three months before your license expires,
DCWP will mail you a license renewal package.
✔✔Renewal Methods - ✔✔You can renew by mail, in person at the DCWP Licensing
Center or NYC Small Business Support Center, or online at nyc.gov/BusinessToolbox.
✔✔Prime Contractor Duties - ✔✔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.
✔✔Record Keeping Requirement - ✔✔Each home improvement contractor must
maintain copies of contracts, books of account, and other records reflecting all
transactions related to the home improvement business for six (6) years or the length of
time of any contractual guarantee, whichever is longer.
✔✔Use of Funds - ✔✔The home improvement contractor must use all funds received to
pay expenses directly related to the home improvement.
✔✔Cancellation Period - ✔✔No work should be performed and no money should be
paid until after the 3-day cancellation period.
✔✔Contractor Prohibitions - ✔✔A contractor cannot abandon or fail to perform agreed-
upon work.
✔✔Misrepresentation in Contracts - ✔✔A contractor cannot make any substantial
misrepresentation in the solicitation of a home improvement contract.
✔✔Fraud in Execution - ✔✔A contractor cannot commit fraud in the execution of a
contract, mortgage, promissory note, or other document related to the home
improvement transaction.
,✔✔False Advertising - ✔✔A contractor cannot publish any advertisement that contains
false, deceptive, or misleading representations.
✔✔Legal Violations - ✔✔A contractor cannot violate the building, sanitary, fire, and
health laws.
✔✔Ownership Change Notification - ✔✔A contractor cannot fail to notify DCWP of any
change of ownership (management), business name, or business location.
✔✔DBA Name Requirement - ✔✔A contractor cannot conduct the home improvement
business in any name other than the name of the business or Doing Business As (DBA)
name listed on the license.
✔✔Agent Prohibition - ✔✔A contractor cannot act as an agent for, or advertise,
promote, or arrange a home loan or a home improvement loan for the consumer.
✔✔Written Estimate Requirement - ✔✔Yes, if the consumer requests one, a contractor
must furnish a consumer with a written estimate.
✔✔Estimate Fee Disclosure - ✔✔You can charge a reasonable fee for the estimate, but
you must disclose the fee to the consumer before you provide the estimate and you
must include and itemize the fee in the total estimated contract price.
✔✔Penalties for Misrepresentation - ✔✔A contractor who lies is subject to civil fines of
up to $500 for each separate misrepresentation.
✔✔Contract Nullification - ✔✔A contract entered into after misrepresentations are made
may be declared null and void, and a contractor may be ordered to pay restitution to the
consumer.
✔✔Unlicensed Home Improvement Business - ✔✔Any person who owns or operates a
home improvement business without a license or after a license is suspended or
revoked may be guilty of a misdemeanor and may be prosecuted criminally and subject
to up to six (6) months imprisonment and/or $1,000 in fines.
✔✔Civil Prosecution for Unlicensed Activity - ✔✔A person may be prosecuted civilly
and faces fines of up to $100 per day for engaging in unlicensed activity or aiding and
abetting the operation of an unlicensed person or business.
✔✔DCWP Actions - ✔✔DCWP can padlock (close down) and confiscate (take) the tools
and trucks used in connection with unlicensed home improvement work.
✔✔Home Improvement Contract Requirements - ✔✔Every home improvement contract
must be in writing and signed by everyone involved.
,✔✔Consumer Copy of Contract - ✔✔You must give the consumer a completed, legible
copy of the contract at the time of signing and before any work is done.
✔✔Language of Contract - ✔✔The contract must be in plain English, unless another
language was used in any oral (spoken) sales presentation.
✔✔Change Order - ✔✔The contractor should provide a written amendment to the
contract, known as a change order, which the consumer and the contractor must both
sign.
✔✔Information in Home Improvement Contract - ✔✔The contract must contain the date
of the transaction, the contractor's name, office address, telephone number, and DCWP
license number.
✔✔Work Schedule in Contract - ✔✔The contract must include approximate dates when
work will begin and be substantially completed, including a statement of anything that
would alter the approximate completion date.
✔✔Description of Work - ✔✔The contract must include a description of the work to be
done, materials to be provided, and the cost for labor and materials.
✔✔Owner's Payment Notice - ✔✔The contract must include a notice to the owner that if
the owner does not pay the contractor or subcontractor, the contractor or subcontractor
may have a claim against the owner.
✔✔Payment Deposit Requirement - ✔✔The contract must inform the owner that the
contractor is legally required to deposit all payments received prior to completion or
must post a bond or contract of indemnity with the owner.
✔✔Schedule of Payments - ✔✔The contract must include a schedule of payments and
the work/services to be performed if the contract calls for incremental payments.
✔✔Advertised Representations - ✔✔Any advertised representation, including charges,
guarantees, or warranties, must be clearly stated in the contract.
✔✔Certificate of Workers' Compensation Insurance - ✔✔The contract must inform the
consumer that the contractor will furnish a Certificate of Workers' Compensation
Insurance before beginning work.
✔✔Permit Procurement - ✔✔The contract must inform the consumer that the contractor
will procure all permits required by local law.
, ✔✔Cancellation Statement - ✔✔The contract must include a statement directly above
the signature lines informing the buyer they may cancel the transaction at any time prior
to midnight of the third business day.
✔✔Notice of Cancellation Requirement - ✔✔At the time the consumer signs the
contract, the contractor must attach to the signed contract two copies of a separate,
completed form titled 'Notice of Cancellation.'
✔✔Notice of Cancellation Form Requirements - ✔✔The form must include the
name/address of the contractor, date of transaction, and date until which the consumer
may give notice of cancellation.
✔✔Notice of Cancellation - ✔✔A statement that must be included in a transaction,
allowing a consumer to cancel the transaction.
✔✔Cancellation Period - ✔✔The time frame within which a consumer may cancel a
transaction, specifically within three (3) business days from the date of transaction.
✔✔Return of Property - ✔✔If a consumer cancels, any property traded in, payments
made, and negotiable instruments executed will be returned within 10 business days
following receipt of the cancellation notice.
✔✔Condition of Goods - ✔✔Goods delivered under a contract must be made available
to the seller in substantially as good condition as when received.
✔✔Seller's Pickup Timeframe - ✔✔If the seller does not pick up the goods within 20
days of the consumer's notice of cancellation, the consumer may retain or dispose of
the goods without further obligation.
✔✔Consumer's Liability - ✔✔If the consumer fails to make the goods available or fails
to return them, they remain liable for all obligations under the contract.
✔✔Cancellation Notice Delivery - ✔✔To cancel a transaction, a signed and dated
cancellation notice must be mailed or delivered to the seller no later than midnight of a
specified date.
✔✔Contractor's Obligation to Inform - ✔✔A contractor must inform the consumer orally
of their right to cancel a home improvement contract at the time of signing.
✔✔Contractor's Non-compliance - ✔✔If a contractor fails to provide oral and written
notice of the consumer's right to cancel, the consumer may cancel the contract.
AND ANSWERS MARKED A+
✔✔License Application Process - ✔✔You must submit an application to DCWP for a
new or renewed license.
✔✔Home Improvement Contractor License - ✔✔A separate Home Improvement
Contractor license is required for each place of business.
✔✔Applying for a New License - ✔✔You can apply for a new license in person by
appointment only at the DCWP Licensing Center or NYC Small Business Support
Center, or online at nyc.gov/BusinessToolbox.
✔✔License Renewal Notification - ✔✔About three months before your license expires,
DCWP will mail you a license renewal package.
✔✔Renewal Methods - ✔✔You can renew by mail, in person at the DCWP Licensing
Center or NYC Small Business Support Center, or online at nyc.gov/BusinessToolbox.
✔✔Prime Contractor Duties - ✔✔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.
✔✔Record Keeping Requirement - ✔✔Each home improvement contractor must
maintain copies of contracts, books of account, and other records reflecting all
transactions related to the home improvement business for six (6) years or the length of
time of any contractual guarantee, whichever is longer.
✔✔Use of Funds - ✔✔The home improvement contractor must use all funds received to
pay expenses directly related to the home improvement.
✔✔Cancellation Period - ✔✔No work should be performed and no money should be
paid until after the 3-day cancellation period.
✔✔Contractor Prohibitions - ✔✔A contractor cannot abandon or fail to perform agreed-
upon work.
✔✔Misrepresentation in Contracts - ✔✔A contractor cannot make any substantial
misrepresentation in the solicitation of a home improvement contract.
✔✔Fraud in Execution - ✔✔A contractor cannot commit fraud in the execution of a
contract, mortgage, promissory note, or other document related to the home
improvement transaction.
,✔✔False Advertising - ✔✔A contractor cannot publish any advertisement that contains
false, deceptive, or misleading representations.
✔✔Legal Violations - ✔✔A contractor cannot violate the building, sanitary, fire, and
health laws.
✔✔Ownership Change Notification - ✔✔A contractor cannot fail to notify DCWP of any
change of ownership (management), business name, or business location.
✔✔DBA Name Requirement - ✔✔A contractor cannot conduct the home improvement
business in any name other than the name of the business or Doing Business As (DBA)
name listed on the license.
✔✔Agent Prohibition - ✔✔A contractor cannot act as an agent for, or advertise,
promote, or arrange a home loan or a home improvement loan for the consumer.
✔✔Written Estimate Requirement - ✔✔Yes, if the consumer requests one, a contractor
must furnish a consumer with a written estimate.
✔✔Estimate Fee Disclosure - ✔✔You can charge a reasonable fee for the estimate, but
you must disclose the fee to the consumer before you provide the estimate and you
must include and itemize the fee in the total estimated contract price.
✔✔Penalties for Misrepresentation - ✔✔A contractor who lies is subject to civil fines of
up to $500 for each separate misrepresentation.
✔✔Contract Nullification - ✔✔A contract entered into after misrepresentations are made
may be declared null and void, and a contractor may be ordered to pay restitution to the
consumer.
✔✔Unlicensed Home Improvement Business - ✔✔Any person who owns or operates a
home improvement business without a license or after a license is suspended or
revoked may be guilty of a misdemeanor and may be prosecuted criminally and subject
to up to six (6) months imprisonment and/or $1,000 in fines.
✔✔Civil Prosecution for Unlicensed Activity - ✔✔A person may be prosecuted civilly
and faces fines of up to $100 per day for engaging in unlicensed activity or aiding and
abetting the operation of an unlicensed person or business.
✔✔DCWP Actions - ✔✔DCWP can padlock (close down) and confiscate (take) the tools
and trucks used in connection with unlicensed home improvement work.
✔✔Home Improvement Contract Requirements - ✔✔Every home improvement contract
must be in writing and signed by everyone involved.
,✔✔Consumer Copy of Contract - ✔✔You must give the consumer a completed, legible
copy of the contract at the time of signing and before any work is done.
✔✔Language of Contract - ✔✔The contract must be in plain English, unless another
language was used in any oral (spoken) sales presentation.
✔✔Change Order - ✔✔The contractor should provide a written amendment to the
contract, known as a change order, which the consumer and the contractor must both
sign.
✔✔Information in Home Improvement Contract - ✔✔The contract must contain the date
of the transaction, the contractor's name, office address, telephone number, and DCWP
license number.
✔✔Work Schedule in Contract - ✔✔The contract must include approximate dates when
work will begin and be substantially completed, including a statement of anything that
would alter the approximate completion date.
✔✔Description of Work - ✔✔The contract must include a description of the work to be
done, materials to be provided, and the cost for labor and materials.
✔✔Owner's Payment Notice - ✔✔The contract must include a notice to the owner that if
the owner does not pay the contractor or subcontractor, the contractor or subcontractor
may have a claim against the owner.
✔✔Payment Deposit Requirement - ✔✔The contract must inform the owner that the
contractor is legally required to deposit all payments received prior to completion or
must post a bond or contract of indemnity with the owner.
✔✔Schedule of Payments - ✔✔The contract must include a schedule of payments and
the work/services to be performed if the contract calls for incremental payments.
✔✔Advertised Representations - ✔✔Any advertised representation, including charges,
guarantees, or warranties, must be clearly stated in the contract.
✔✔Certificate of Workers' Compensation Insurance - ✔✔The contract must inform the
consumer that the contractor will furnish a Certificate of Workers' Compensation
Insurance before beginning work.
✔✔Permit Procurement - ✔✔The contract must inform the consumer that the contractor
will procure all permits required by local law.
, ✔✔Cancellation Statement - ✔✔The contract must include a statement directly above
the signature lines informing the buyer they may cancel the transaction at any time prior
to midnight of the third business day.
✔✔Notice of Cancellation Requirement - ✔✔At the time the consumer signs the
contract, the contractor must attach to the signed contract two copies of a separate,
completed form titled 'Notice of Cancellation.'
✔✔Notice of Cancellation Form Requirements - ✔✔The form must include the
name/address of the contractor, date of transaction, and date until which the consumer
may give notice of cancellation.
✔✔Notice of Cancellation - ✔✔A statement that must be included in a transaction,
allowing a consumer to cancel the transaction.
✔✔Cancellation Period - ✔✔The time frame within which a consumer may cancel a
transaction, specifically within three (3) business days from the date of transaction.
✔✔Return of Property - ✔✔If a consumer cancels, any property traded in, payments
made, and negotiable instruments executed will be returned within 10 business days
following receipt of the cancellation notice.
✔✔Condition of Goods - ✔✔Goods delivered under a contract must be made available
to the seller in substantially as good condition as when received.
✔✔Seller's Pickup Timeframe - ✔✔If the seller does not pick up the goods within 20
days of the consumer's notice of cancellation, the consumer may retain or dispose of
the goods without further obligation.
✔✔Consumer's Liability - ✔✔If the consumer fails to make the goods available or fails
to return them, they remain liable for all obligations under the contract.
✔✔Cancellation Notice Delivery - ✔✔To cancel a transaction, a signed and dated
cancellation notice must be mailed or delivered to the seller no later than midnight of a
specified date.
✔✔Contractor's Obligation to Inform - ✔✔A contractor must inform the consumer orally
of their right to cancel a home improvement contract at the time of signing.
✔✔Contractor's Non-compliance - ✔✔If a contractor fails to provide oral and written
notice of the consumer's right to cancel, the consumer may cancel the contract.
