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August 24, 2010

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What is a Home Improvement Contract

Subpart 1.6—Career Development, Contracting Authority, and Responsibilities
A home improvement contract is an oral or written agreement BETWEEN a contractor or salesperson AND either a residential owner or a tenant for the performance of a home improvement.

If the total cost of the project exceeds $500, by law the contract MUST be in writing. The total cost includes labor, services, and materials.

A home improvement contract must include elements specified in Business and Professions Code Section 7159 and elsewhere. This document outlines those elements.

Business and Professions Code 7151.2

"Top Ten" Problems with Home Improvement Contracts

In no particular order, here are frequently seen problems with home improvement contracts:

Notice regarding Registrar's address missing
Excessive down payment requested
Equipment to be used or installed not detailed, and materials to be used not described specifically enough
Notice to owner regarding liens not included
Job to be completed is not clearly stated and described
Right to cancel notice missing
Bid not figured out carefully and/or completely
Change orders not included
Old notices used with old addresses and noncompliant language
Start and stop dates not included

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Did You Know?

Statutory Law Requires Some Contracts To Be In Writting
Statutory law may require some contracts be put in writing and executed with particular formalities. Otherwise, the parties may enter into a binding agreement without signing a formal written document; which can possibly lead to complications down the road.

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	News about contract cases in Texas and nationwide: FDA Awards Contract to Assess Decision-Making Process The Food and Drug Administration (FDA) has awarded a contract to Booz Allen Hamilton to conduct a thorough evaluation of the postmarketing study co... Read more > More Contract News >

Contract Terms

Today's Terms

Date of Issue

Definition:
The arbitrary date on a contract or on a financial instrument fixed as the date from which the term runs.

Contract Carrier

Definition:
Any person who under contract will transport passengers or goods for agreed upon compensation.

Turnkey Contract

Definition:
An agreement under which a contractor agrees to complete a product so that it is ready for use when delivered to the other contracting party.

More Contract Terms >

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Contract Hot Topics

Topics Related to Contract:

Acceptance
Breach of Contract
Conditions
Liability
Offers
Underwriter
Warranty
Competent Parties
Mutual Assent
Consideration

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