NYC HOME IMPROVEMENT 2026 CORE EXAM MANUAL
QUESTIONS AND ANSWERS MARKED A+
✔✔Penalties for False Representation - ✔✔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 - ✔✔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 - ✔✔The construction, repair, replacement,
remodeling, alteration, conversion, rehabilitation, renovation, modernization,
improvement, or addition to any land or building used as a residence, including
basements, driveways, fences, garages, landscaping, patios, porches, sidewalks,
swimming pools, and terraces.
✔✔Home Improvement Contract - ✔✔A 'home improvement contract' is an agreement,
whether or not in writing, between a contractor and a consumer or tenant for
performance of a home improvement, including all labor, services, and materials.
✔✔Consumer's Right to Cancel - ✔✔Until the contractor or sales person complies with
the requirements for the oral and written notice of the consumer's right to cancel, the
consumer may cancel the contract.
✔✔Employee Legal Authority - ✔✔You must comply with the Federal Immigration laws,
which require employers to ensure that employees have legal authority to work in the
United States.
✔✔Additional Penalty for Operating Without a License - ✔✔A person may be
prosecuted civilly and face fines of up to $100 per day for engaging in unlicensed
activity or aiding and abetting the operation of an unlicensed person or business.
✔✔Painting Exterior of Multi-Story House - ✔✔You may require a suspended scaffold
and a rigging permit from DOB to paint the exterior of a home that is one story or more,
unless you can use a ladder.
✔✔Net Profit Definition - ✔✔Net profit is the final profit of any job after expenses.
✔✔What is NOT Home Improvement - ✔✔Construction of a new home or building, sale
of goods or materials in connection with the installation of goods, work performed on a
residence owned by the state or municipality, painting or decoration not related to home
improvement work.
, ✔✔Subcontractor vs Employee - ✔✔A subcontractor is an individual or firm contracting
to do part of a home improvement contract, while an employee works for wages under
the employer's direct supervision.
✔✔Contractor's Action on Consumer Cancellation - ✔✔Within 10 business days, refund
all payments made under the contract, cancel and return money paid, terminate any
security interest, and notify the consumer about repossession or abandonment of
materials.
✔✔Transporting Waste from Home Improvement Work - ✔✔What should a contractor
do to haul or transport waste resulting from home improvement work?
✔✔Class One Self Hauler Registration - ✔✔If you plan to haul or transport waste
resulting from your business operations, you must obtain a Class One Self Hauler
Registration from the New York City Business Integrity Commission.
✔✔Capital Improvement - ✔✔Adding a bathroom to a home is an example of a capital
improvement.
✔✔Non-qualifying Work for Capital Improvement - ✔✔Repairs such as repairing a
window frame or painting the living room do not qualify as capital improvement.
✔✔Consulting Before Home Extension - ✔✔The first thing a contractor should do before
beginning work on a home is to consult with a licensed architect or engineer to
determine if the owner can put in the extension and still comply with the applicable
zoning law.
✔✔Dumpster Permit - ✔✔A Contractor should contact the DOT for a dumpster permit.
✔✔Building Permit - ✔✔A contractor secures all necessary permits from the New York
City Department of Buildings (DOB). A contractor must make sure that any addition or
alterations meet building code standards and do not violate local zoning laws.
✔✔Posting HIC License - ✔✔You must post your license in your office where all
consumers can see it or show it to consumers upon request.
✔✔Salesperson Definition - ✔✔A salesperson is someone who negotiates a home
improvement contract with a consumer or tenant, or solicits a home improvement
contract from an owner or tenant.
✔✔Contractor Definition - ✔✔A contractor is anyone who owns, operates, maintains,
conducts, controls, or transacts a home improvement business and undertakes or
agrees to perform any home improvement.
QUESTIONS AND ANSWERS MARKED A+
✔✔Penalties for False Representation - ✔✔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 - ✔✔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 - ✔✔The construction, repair, replacement,
remodeling, alteration, conversion, rehabilitation, renovation, modernization,
improvement, or addition to any land or building used as a residence, including
basements, driveways, fences, garages, landscaping, patios, porches, sidewalks,
swimming pools, and terraces.
✔✔Home Improvement Contract - ✔✔A 'home improvement contract' is an agreement,
whether or not in writing, between a contractor and a consumer or tenant for
performance of a home improvement, including all labor, services, and materials.
✔✔Consumer's Right to Cancel - ✔✔Until the contractor or sales person complies with
the requirements for the oral and written notice of the consumer's right to cancel, the
consumer may cancel the contract.
✔✔Employee Legal Authority - ✔✔You must comply with the Federal Immigration laws,
which require employers to ensure that employees have legal authority to work in the
United States.
✔✔Additional Penalty for Operating Without a License - ✔✔A person may be
prosecuted civilly and face fines of up to $100 per day for engaging in unlicensed
activity or aiding and abetting the operation of an unlicensed person or business.
✔✔Painting Exterior of Multi-Story House - ✔✔You may require a suspended scaffold
and a rigging permit from DOB to paint the exterior of a home that is one story or more,
unless you can use a ladder.
✔✔Net Profit Definition - ✔✔Net profit is the final profit of any job after expenses.
✔✔What is NOT Home Improvement - ✔✔Construction of a new home or building, sale
of goods or materials in connection with the installation of goods, work performed on a
residence owned by the state or municipality, painting or decoration not related to home
improvement work.
, ✔✔Subcontractor vs Employee - ✔✔A subcontractor is an individual or firm contracting
to do part of a home improvement contract, while an employee works for wages under
the employer's direct supervision.
✔✔Contractor's Action on Consumer Cancellation - ✔✔Within 10 business days, refund
all payments made under the contract, cancel and return money paid, terminate any
security interest, and notify the consumer about repossession or abandonment of
materials.
✔✔Transporting Waste from Home Improvement Work - ✔✔What should a contractor
do to haul or transport waste resulting from home improvement work?
✔✔Class One Self Hauler Registration - ✔✔If you plan to haul or transport waste
resulting from your business operations, you must obtain a Class One Self Hauler
Registration from the New York City Business Integrity Commission.
✔✔Capital Improvement - ✔✔Adding a bathroom to a home is an example of a capital
improvement.
✔✔Non-qualifying Work for Capital Improvement - ✔✔Repairs such as repairing a
window frame or painting the living room do not qualify as capital improvement.
✔✔Consulting Before Home Extension - ✔✔The first thing a contractor should do before
beginning work on a home is to consult with a licensed architect or engineer to
determine if the owner can put in the extension and still comply with the applicable
zoning law.
✔✔Dumpster Permit - ✔✔A Contractor should contact the DOT for a dumpster permit.
✔✔Building Permit - ✔✔A contractor secures all necessary permits from the New York
City Department of Buildings (DOB). A contractor must make sure that any addition or
alterations meet building code standards and do not violate local zoning laws.
✔✔Posting HIC License - ✔✔You must post your license in your office where all
consumers can see it or show it to consumers upon request.
✔✔Salesperson Definition - ✔✔A salesperson is someone who negotiates a home
improvement contract with a consumer or tenant, or solicits a home improvement
contract from an owner or tenant.
✔✔Contractor Definition - ✔✔A contractor is anyone who owns, operates, maintains,
conducts, controls, or transacts a home improvement business and undertakes or
agrees to perform any home improvement.
