NYC Home Improvement Contractor Exam
Questions With Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A | Instant
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1. Which of the following is required before starting home
improvement work in NYC?
A. Only verbal approval from the homeowner
B. A building permit from the Department of Buildings
C. A notice to the neighbors
D. No approval is required
B
In NYC, most home improvement work requires a building permit
from the DOB to ensure compliance with codes.
2. What type of insurance is a Home Improvement Contractor
required to carry in NYC?
A. Auto insurance
B. Workers’ compensation and liability insurance
C. Homeowners insurance
D. Life insurance
B
Workers’ compensation protects employees on the job, and
liability insurance protects against property damage or injury
claims.
3. Before a contract is signed, a Home Improvement Contractor must
provide:
, A. Proof of employment
B. A written contract with terms, price, and work scope
C. Only a verbal estimate
D. A guarantee of no future repairs
B
NYC law requires a written contract detailing work scope, price,
and terms for consumer protection.
4. What is the maximum advance payment a contractor can legally
request before starting work?
A. 0%
B. 10% of the contract amount
C. 25% of the contract amount
D. 50% of the contract amount
C
New York State law limits advance payments to 25% of the total
contract to protect consumers.
5. How long must a Home Improvement Contractor retain records of
contracts and receipts?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
C
NY law requires retention of records for at least three years to
allow for audits or dispute resolution.
6. Which NYC code must a contractor comply with when performing
electrical work?
, A. NYC Plumbing Code
B. NYC Electrical Code
C. International Mechanical Code
D. National Fire Protection Code
B
Electrical work must comply with the NYC Electrical Code to ensure
safety and legal compliance.
7. What is considered deceptive advertising under NYC Home
Improvement laws?
A. Offering a discount
B. Falsely claiming licensure or insurance
C. Posting work hours
D. Listing material brands
B
Misrepresenting licensure or insurance is illegal and considered
fraudulent advertising.
8. Which of the following is a violation of NYC Home Improvement
regulations?
A. Performing work without a permit
B. Using licensed subcontractors
C. Providing a written contract
D. Completing work on schedule
A
Work without the required permit violates the law and can result
in fines or stop-work orders.
9. A homeowner cancels a signed contract within the statutory “right
to cancel” period. The contractor must:
, A. Keep all payments
B. Refund any deposit received
C. Charge double the deposit
D. Keep materials already purchased
B
NY law gives homeowners a 3-day right to cancel for contracts
over $500; deposits must be refunded.
10. Which material must a contractor handle with special
precautions due to NYC regulations?
A. Drywall
B. Lead-based paint
C. Carpet
D. Wood
B
Lead paint poses health hazards; contractors must follow NYC
lead-safe work practices.
11. What is the purpose of a lien waiver in home improvement
contracts?
A. To waive the contractor’s license
B. To confirm payment and prevent future lien claims
C. To allow extra work without payment
D. To cancel the contract
B
A lien waiver protects homeowners from future claims after
payment and documents proper payment.
12. When performing exterior work that affects sidewalks, what
must a contractor provide?
Questions With Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following is required before starting home
improvement work in NYC?
A. Only verbal approval from the homeowner
B. A building permit from the Department of Buildings
C. A notice to the neighbors
D. No approval is required
B
In NYC, most home improvement work requires a building permit
from the DOB to ensure compliance with codes.
2. What type of insurance is a Home Improvement Contractor
required to carry in NYC?
A. Auto insurance
B. Workers’ compensation and liability insurance
C. Homeowners insurance
D. Life insurance
B
Workers’ compensation protects employees on the job, and
liability insurance protects against property damage or injury
claims.
3. Before a contract is signed, a Home Improvement Contractor must
provide:
, A. Proof of employment
B. A written contract with terms, price, and work scope
C. Only a verbal estimate
D. A guarantee of no future repairs
B
NYC law requires a written contract detailing work scope, price,
and terms for consumer protection.
4. What is the maximum advance payment a contractor can legally
request before starting work?
A. 0%
B. 10% of the contract amount
C. 25% of the contract amount
D. 50% of the contract amount
C
New York State law limits advance payments to 25% of the total
contract to protect consumers.
5. How long must a Home Improvement Contractor retain records of
contracts and receipts?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
C
NY law requires retention of records for at least three years to
allow for audits or dispute resolution.
6. Which NYC code must a contractor comply with when performing
electrical work?
, A. NYC Plumbing Code
B. NYC Electrical Code
C. International Mechanical Code
D. National Fire Protection Code
B
Electrical work must comply with the NYC Electrical Code to ensure
safety and legal compliance.
7. What is considered deceptive advertising under NYC Home
Improvement laws?
A. Offering a discount
B. Falsely claiming licensure or insurance
C. Posting work hours
D. Listing material brands
B
Misrepresenting licensure or insurance is illegal and considered
fraudulent advertising.
8. Which of the following is a violation of NYC Home Improvement
regulations?
A. Performing work without a permit
B. Using licensed subcontractors
C. Providing a written contract
D. Completing work on schedule
A
Work without the required permit violates the law and can result
in fines or stop-work orders.
9. A homeowner cancels a signed contract within the statutory “right
to cancel” period. The contractor must:
, A. Keep all payments
B. Refund any deposit received
C. Charge double the deposit
D. Keep materials already purchased
B
NY law gives homeowners a 3-day right to cancel for contracts
over $500; deposits must be refunded.
10. Which material must a contractor handle with special
precautions due to NYC regulations?
A. Drywall
B. Lead-based paint
C. Carpet
D. Wood
B
Lead paint poses health hazards; contractors must follow NYC
lead-safe work practices.
11. What is the purpose of a lien waiver in home improvement
contracts?
A. To waive the contractor’s license
B. To confirm payment and prevent future lien claims
C. To allow extra work without payment
D. To cancel the contract
B
A lien waiver protects homeowners from future claims after
payment and documents proper payment.
12. When performing exterior work that affects sidewalks, what
must a contractor provide?
