Home Improvement Contracts
If you are a homeowner or contractor in the State of New Jersey and you are involved in performing repairs to a residential home, there are certain regulations you should be aware of. Many homeowners and contractors are unaware of the regulations, which may result in both criminal and civil liability. These regulations were passed to afford protections to homeowners and contractors involved in home improvement projects to residential homes. Our office has experience dealing with these particular issues from both a criminal and civil perspective as we have represented homeowners and contractors.
The Home Improvement Contractors Act and Contractors
New Jersey requires most home improvement contractors to register and comply with the Home Improvement Contractor Act. Although there are a few exceptions the general rule is that any person performing home improvement work in the State must register and meet the regulation standards in the State of New Jersey. The Act applies to contractors even if they are licensed and domiciled in another State. Homeowners and contractors should review the regulations to ensure compliance. If a contractor is performing services in the State of New Jersey without a proper license it is considered a fourth degree criminal offense. In addition to criminal sanctions, the contractor may also be liable for civil damages as well. It is strongly recommended to any contractor performing work in the State of New Jersey review and comply with the regulations to avoid these potential issues.
In addition to registering, the Act requires written contracts that contain specific language and information. By way of example but not limited to, the Contract must contain the home improvement contractor's number and insurance information. Simply neglecting to reduce this information to writing by way of contractual agreement may avail you to civil penalties and liability including but not limited to attorney's fees and treble damages. It is strongly recommended that your contract be reviewed to insure that the proper information and language is included.
In addition to registering, the Act requires written contracts that contain specific language and information. By way of example but not limited to, the Contract must contain the home improvement contractor's number and insurance information. Simply neglecting to reduce this information to writing by way of contractual agreement may avail you to civil penalties and liability including but not limited to attorney's fees and treble damages. It is strongly recommended that your contract be reviewed to insure that the proper information and language is included.
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Home Improvement Contractors Act and Homeowners
If you are a homeowner and you are considering hiring a contractor to perform home improvement work, you should review the Act to insure that your contractor is in compliance. If your contractor is not properly registered and insured, it may be a warning sign of things to come. The Act was passed in part to protect unsuspecting homeowners from predatory contractors using unfair business tactics. For many years homeowners were at the mercy of contractors who would take large deposits and either delay the completion or not return to the job site. Based on theses issues, the Legislation passed regulations to insure that contractors comply with certain conditions and refrain from unfair business tactics or face serious civil and criminal penalty.
Items you should look for when accepting proposals or estimates from contractors:
- Start and end date for work
- Insurance policy information
- Home improvement contractor license number
- Detail of work to be performed (ie. description of work and material to be used)
If a contractor does not provide or refuses to provide you with this information, you should contact the State to insure they are properly licensed before entering into a contract or making any payments. If you have already signed an agreement and/or provided payment to a contractor, and you suspect there is a violation of the Act you should contact our office to discuss this matter. If your contractor has violated the Act you may be entitled to civil remedies such as treble damages and attorneys' fees.
Items you should look for when accepting proposals or estimates from contractors:
- Start and end date for work
- Insurance policy information
- Home improvement contractor license number
- Detail of work to be performed (ie. description of work and material to be used)
If a contractor does not provide or refuses to provide you with this information, you should contact the State to insure they are properly licensed before entering into a contract or making any payments. If you have already signed an agreement and/or provided payment to a contractor, and you suspect there is a violation of the Act you should contact our office to discuss this matter. If your contractor has violated the Act you may be entitled to civil remedies such as treble damages and attorneys' fees.