07/18/2025
đ˘ My PSA for NY Homeowners & Contractors: Home Improvement Contracts
As an attorney, I've seen far too many disputes arise over home improvement projects âhomeowners paying for incomplete or shoddy work and/or contractors struggling with non-payment issues. Most disputes come from the lack of a legal contract! And it generally means the parties either donât know or donât follow the rules!
The good news? New York has clear laws to protect everyone involved. They're found in Article 36-A of the New York General Business Law. Knowing the rules can save you time, money, and aggravation. It pays to know, believe me!
For example, Homeowners, do you know what projects are defined as âhome improvementsâ?
⢠You might be surprised to learn that things like pools, driveways, and fences (with a value over $500) are considered "home improvements" and require written contracts that comply with the terms of the statute.
Homeowners & Contractors, do you know how âcustom & practiceâ can become a legal issue?
⢠You guessed it -- the "deposit." General Business Law §771 is required reading. âDepositsâ and initial payments are usually "progress payments," which have specific legal requirements and are considered trust funds subject to the NYS Lien Law.
Contractors, listen up!
⢠Article 36-A is the source for all the provisions that must be included in your home improvement contracts.
⢠Omitting any of these provisions can have unwanted consequences (including the loss of profit, even when the work itself is of the best quality). Protecting yourself and your business by knowing and following these requirements!
Want to learn more?
⢠You can read the full law here:
https://www.nysenate.gov/legislation/laws/GBS/A36-A
⢠For a helpful overview, check out the NY Attorney General's highlights:
https://ag.ny.gov/resources/individuals/consumer-issues/contractors-home-maintenance
I hope this helps! Knowledge promotes successful contracts and dispute-free outcomes.
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