NYC Home Improvement Question and Answer
2026/2027 | 100% Verified A+ | Key Areas
• Plain English Contracts -✓✓Contracts must be in plain English unless another
language was used in any oral sales presentation, in which case the contract needs to
be in that language as well as English.
• DCA -✓✓Department of Consumer Affairs.
• Salespersons Notification Requirement -✓✓Salespersons must submit written
confirmation of their employment to DCA within 48 hours of appointment.
• DOB -✓✓Department of Buildings.
• Sidewalk Work Permit -✓✓A permit required from DOT to perform sidewalk work.
• DOT -✓✓Department of Transportation.
• License Application Process -✓✓You must submit an application to DCA for a new or
renewed license; a separate home-improvement contractor license is required for each
place of business.
• Sales Tax Handling -✓✓Contractors must collect sales tax for repairs from the
consumer and pay it.
• Contract Amendment for Additional Work -✓✓The contractor should provide a written
amendment to the contract, which must be signed by both the consumer and the
contractor.
• Unlicensed Business Closure -✓✓The DCA will padlock, close down, and confiscate
tools and trucks used in connection with unlicensed home-improvement work.
• Home Improvement Contract Requirements -✓✓Every home improvement contract
must be in writing, signed by everyone involved, and a complete legible copy must be
given to the consumer at the time of signing.
• Licensed Electrician Requirement -✓✓A licensed electrician must be used to install
anything related to light, heat, and power, regardless of voltage.
• Written Estimate Requirement -✓✓Contractors must furnish a written estimate if
requested by the consumer, which may include a fee disclosed beforehand.
, • Consumer Right to Cancel -✓✓Contractors or salespersons must inform the consumer
of their right to cancel a home improvement contract within three business days from
the contract date.
• Notice of Cancellation Requirement -✓✓A separate notice of cancellation must be
provided to the consumer at the time they sign the contract.
• Subcontractor Licensing -✓✓A subcontractor must have a DCA license to perform
home improvement work in New York City.
• Notice of Cancellation Form -✓✓The contractor or salesperson must attach two copies
of a completed form titled 'Notice of Cancellation' to the signed contract, with text in both
English and at least 10-point font.
• Employee Obligations -✓✓You must cover employees with workers' compensation
and disability insurance.
• Employee Wages Reporting -✓✓Must report employee wages to the internal Revenue
Service, and you must withhold taxes.
• Penalties for False Representation -✓✓A contractor or sales person who lies is subject
to fines of up to 500 dollars for each separate misrepresentation; contracts entered into
after misrepresentation may be declared null and void, and restitution may be ordered.
• Penalties for Operating Without a License -✓✓Any person who owns or operates a
home improvement business without a license or after a license is suspended or
revoked is guilty of a misdemeanor and may face up to six months imprisonment or
$1000 in fines.
• Home Improvement Definition -✓✓The construction, repair, replacement, remodeling,
alteration, conversion, rehabilitation, renovation, modernization, improvement, or
addition to any land or building used as a residence, including basements, driveways,
fences, garages, landscaping, patios, porches, sidewalks, swimming pools, and
terraces.
• Home Improvement Contract -✓✓A 'home improvement contract' is an agreement,
whether or not in writing, between a contractor and a consumer or tenant for
performance of a home improvement, including all labor, services, and materials.
• Consumer's Right to Cancel -✓✓Until the contractor or sales person complies with the
requirements for the oral and written notice of the consumer's right to cancel, the
consumer may cancel the contract.
2026/2027 | 100% Verified A+ | Key Areas
• Plain English Contracts -✓✓Contracts must be in plain English unless another
language was used in any oral sales presentation, in which case the contract needs to
be in that language as well as English.
• DCA -✓✓Department of Consumer Affairs.
• Salespersons Notification Requirement -✓✓Salespersons must submit written
confirmation of their employment to DCA within 48 hours of appointment.
• DOB -✓✓Department of Buildings.
• Sidewalk Work Permit -✓✓A permit required from DOT to perform sidewalk work.
• DOT -✓✓Department of Transportation.
• License Application Process -✓✓You must submit an application to DCA for a new or
renewed license; a separate home-improvement contractor license is required for each
place of business.
• Sales Tax Handling -✓✓Contractors must collect sales tax for repairs from the
consumer and pay it.
• Contract Amendment for Additional Work -✓✓The contractor should provide a written
amendment to the contract, which must be signed by both the consumer and the
contractor.
• Unlicensed Business Closure -✓✓The DCA will padlock, close down, and confiscate
tools and trucks used in connection with unlicensed home-improvement work.
• Home Improvement Contract Requirements -✓✓Every home improvement contract
must be in writing, signed by everyone involved, and a complete legible copy must be
given to the consumer at the time of signing.
• Licensed Electrician Requirement -✓✓A licensed electrician must be used to install
anything related to light, heat, and power, regardless of voltage.
• Written Estimate Requirement -✓✓Contractors must furnish a written estimate if
requested by the consumer, which may include a fee disclosed beforehand.
, • Consumer Right to Cancel -✓✓Contractors or salespersons must inform the consumer
of their right to cancel a home improvement contract within three business days from
the contract date.
• Notice of Cancellation Requirement -✓✓A separate notice of cancellation must be
provided to the consumer at the time they sign the contract.
• Subcontractor Licensing -✓✓A subcontractor must have a DCA license to perform
home improvement work in New York City.
• Notice of Cancellation Form -✓✓The contractor or salesperson must attach two copies
of a completed form titled 'Notice of Cancellation' to the signed contract, with text in both
English and at least 10-point font.
• Employee Obligations -✓✓You must cover employees with workers' compensation
and disability insurance.
• Employee Wages Reporting -✓✓Must report employee wages to the internal Revenue
Service, and you must withhold taxes.
• Penalties for False Representation -✓✓A contractor or sales person who lies is subject
to fines of up to 500 dollars for each separate misrepresentation; contracts entered into
after misrepresentation may be declared null and void, and restitution may be ordered.
• Penalties for Operating Without a License -✓✓Any person who owns or operates a
home improvement business without a license or after a license is suspended or
revoked is guilty of a misdemeanor and may face up to six months imprisonment or
$1000 in fines.
• Home Improvement Definition -✓✓The construction, repair, replacement, remodeling,
alteration, conversion, rehabilitation, renovation, modernization, improvement, or
addition to any land or building used as a residence, including basements, driveways,
fences, garages, landscaping, patios, porches, sidewalks, swimming pools, and
terraces.
• Home Improvement Contract -✓✓A 'home improvement contract' is an agreement,
whether or not in writing, between a contractor and a consumer or tenant for
performance of a home improvement, including all labor, services, and materials.
• Consumer's Right to Cancel -✓✓Until the contractor or sales person complies with the
requirements for the oral and written notice of the consumer's right to cancel, the
consumer may cancel the contract.
