NYC HOME IMPROVEMENT LATEST 2026 EXAM
QUESTIONS AND ANSWERS MARKED A+
✔✔Law Violations - ✔✔Must comply with building and health laws.
✔✔Ownership Change Notification - ✔✔Notify DCWP of ownership or name changes.
✔✔DBA Compliance - ✔✔Conduct business under licensed name only.
✔✔Loan Agent Restrictions - ✔✔Cannot act as agent for home improvement loans.
✔✔Written Estimate Requirement - ✔✔Provide written estimate if requested by
consumer.
✔✔Estimate Fee Disclosure - ✔✔Disclose estimate fee before providing it.
✔✔Civil Penalties - ✔✔Fines up to $500 for misrepresentation.
✔✔Contract Nullification - ✔✔Contracts may be voided after misrepresentation.
✔✔Restitution Requirement - ✔✔Contractors may owe restitution for misrepresentation.
✔✔Unlicensed Operation Penalties - ✔✔Penalties apply for operating without a license.
✔✔Unlicensed Activity - ✔✔Operating without a required home improvement license.
✔✔Misdemeanor - ✔✔Criminal offense punishable by up to 6 months.
✔✔Civil Prosecution - ✔✔Legal action for fines up to $100 daily.
✔✔Change Order - ✔✔Written amendment for additional work in contract.
✔✔Home Improvement Contract - ✔✔Must be written and signed by all parties.
✔✔Contract Requirements - ✔✔Includes contractor details, work description, and costs.
✔✔Cancellation Notice - ✔✔Consumer's right to cancel within three business days.
✔✔Certificate of Insurance - ✔✔Proof of workers' compensation insurance required
before work.
✔✔Permits Requirement - ✔✔Contractor must obtain all necessary local permits.
, ✔✔Contract Language - ✔✔Must be in plain English or language used in sales.
✔✔Consumer Rights - ✔✔Owner must be informed of payment claims against them.
✔✔Payment Schedule - ✔✔Details incremental payments and services in contract.
✔✔Contract Statement - ✔✔Cancellation rights must be bold and clear.
✔✔Contractor's Information - ✔✔Must include name, address, and license number.
✔✔Completion Dates - ✔✔Approximate start and completion dates must be stated.
✔✔Legible Copy - ✔✔Consumer must receive a clear copy of the contract.
✔✔Contract Amendments - ✔✔Changes to contract require mutual written agreement.
✔✔Fines for Violations - ✔✔Up to $1,000 for unlicensed business operations.
✔✔Tools Confiscation - ✔✔DCWP can seize tools used in unlicensed work.
✔✔Separate Cancellation Form - ✔✔Must be attached to the signed contract.
✔✔Contractual Guarantees - ✔✔Any warranties or guarantees must be clearly stated.
✔✔Owner's Payment Obligations - ✔✔Contractor can claim against owner for unpaid
work.
✔✔Notice of Cancellation - ✔✔Required statement for canceling a transaction.
✔✔Cancellation Period - ✔✔Three business days to cancel without penalty.
✔✔Return of Property - ✔✔Goods must be returned within 10 business days.
✔✔Condition of Goods - ✔✔Goods must be in substantially good condition.
✔✔Seller's Pickup Deadline - ✔✔Seller must pick up goods within 20 days.
✔✔Consumer's Liability - ✔✔Consumer liable if goods not made available.
✔✔Cancellation Notice - ✔✔Written notice must be signed and dated.
✔✔Oral Notification Requirement - ✔✔Contractor must inform consumer of cancellation
rights.
QUESTIONS AND ANSWERS MARKED A+
✔✔Law Violations - ✔✔Must comply with building and health laws.
✔✔Ownership Change Notification - ✔✔Notify DCWP of ownership or name changes.
✔✔DBA Compliance - ✔✔Conduct business under licensed name only.
✔✔Loan Agent Restrictions - ✔✔Cannot act as agent for home improvement loans.
✔✔Written Estimate Requirement - ✔✔Provide written estimate if requested by
consumer.
✔✔Estimate Fee Disclosure - ✔✔Disclose estimate fee before providing it.
✔✔Civil Penalties - ✔✔Fines up to $500 for misrepresentation.
✔✔Contract Nullification - ✔✔Contracts may be voided after misrepresentation.
✔✔Restitution Requirement - ✔✔Contractors may owe restitution for misrepresentation.
✔✔Unlicensed Operation Penalties - ✔✔Penalties apply for operating without a license.
✔✔Unlicensed Activity - ✔✔Operating without a required home improvement license.
✔✔Misdemeanor - ✔✔Criminal offense punishable by up to 6 months.
✔✔Civil Prosecution - ✔✔Legal action for fines up to $100 daily.
✔✔Change Order - ✔✔Written amendment for additional work in contract.
✔✔Home Improvement Contract - ✔✔Must be written and signed by all parties.
✔✔Contract Requirements - ✔✔Includes contractor details, work description, and costs.
✔✔Cancellation Notice - ✔✔Consumer's right to cancel within three business days.
✔✔Certificate of Insurance - ✔✔Proof of workers' compensation insurance required
before work.
✔✔Permits Requirement - ✔✔Contractor must obtain all necessary local permits.
, ✔✔Contract Language - ✔✔Must be in plain English or language used in sales.
✔✔Consumer Rights - ✔✔Owner must be informed of payment claims against them.
✔✔Payment Schedule - ✔✔Details incremental payments and services in contract.
✔✔Contract Statement - ✔✔Cancellation rights must be bold and clear.
✔✔Contractor's Information - ✔✔Must include name, address, and license number.
✔✔Completion Dates - ✔✔Approximate start and completion dates must be stated.
✔✔Legible Copy - ✔✔Consumer must receive a clear copy of the contract.
✔✔Contract Amendments - ✔✔Changes to contract require mutual written agreement.
✔✔Fines for Violations - ✔✔Up to $1,000 for unlicensed business operations.
✔✔Tools Confiscation - ✔✔DCWP can seize tools used in unlicensed work.
✔✔Separate Cancellation Form - ✔✔Must be attached to the signed contract.
✔✔Contractual Guarantees - ✔✔Any warranties or guarantees must be clearly stated.
✔✔Owner's Payment Obligations - ✔✔Contractor can claim against owner for unpaid
work.
✔✔Notice of Cancellation - ✔✔Required statement for canceling a transaction.
✔✔Cancellation Period - ✔✔Three business days to cancel without penalty.
✔✔Return of Property - ✔✔Goods must be returned within 10 business days.
✔✔Condition of Goods - ✔✔Goods must be in substantially good condition.
✔✔Seller's Pickup Deadline - ✔✔Seller must pick up goods within 20 days.
✔✔Consumer's Liability - ✔✔Consumer liable if goods not made available.
✔✔Cancellation Notice - ✔✔Written notice must be signed and dated.
✔✔Oral Notification Requirement - ✔✔Contractor must inform consumer of cancellation
rights.
