NYC Home Improvement Contractor Exam (100+ Qs) – Study Guide with Verified Answers | Laws, Permits, Contracts, Licensing | 2025/2026 | New York City

NYC Home Improvement Contractor Exam (100+ Qs) – Study Guide with Verified Answers | Laws, Permits, Contracts, Licensing | 2025/2026 | New York City Permit Responsibility - ANSWER -It is the duty and obligation of the prime contractor to secure all necessary permits, licenses, and Certificates of Occupancy or special exceptions in accordance with applicable state or local building laws. Amended Certificate of Occupancy Responsibility - ANSWER -If an amended Certificate of Occupancy is needed, it is the contractor's responsibility to obtain it for the consumer. Notification of Change to DCA - ANSWER -Within 10 days. Savings Claim in Advertisement - ANSWER -A 'savings' claim in an advertisement cannot imply that the amount specified is the selling price. Estimate Fee Disclosure - ANSWER -Yes, but they must disclose the fee to the consumer before providing the estimate and must include and itemize the fee in the total estimated contract price. Home Improvement Loan Arrangement - ANSWER -No, nor can they act as an agent for, advertise, or promote loans. DCA Authority on Unlicensed Work - ANSWER -Yes! The DCA can padlock and confiscate the tools and trucks used in connection with unlicensed home improvement work. Change of Business Reporting - ANSWER -Change of business address, ownership, management, or trade name must be reported to DCA within 10 days. H.I. License for Plumbers and Electricians - ANSWER -No, they have their own trade licenses. Salesperson Employment Notification - ANSWER -Yes within 48 hours of new employment. Employee Licensing Requirement - ANSWER -Does an individual employee of a contractor, who does not solicit or negotiate contracts, need to be licensed? Does an individual employee of a contractor, who does not solicit or negotiate contracts, need to be licensed? - ANSWER -No Does the H.I. contract have to be in English? - ANSWER -Yes, unless another language was used in any oral (spoken) sales presentation, in which case the contract needs to be in that language and in English. How long can a contractor elect to secure a bond or participate in DCA's Home Improvement Trust Fund? - ANSWER -Every 2 years How many business locations can a H.I. Contractor's license cover? - ANSWER One. A separate license is required for each place of business. How many days does a contractor or salesperson have to honor valid notice of cancellation? - ANSWER -10 business days How many years must a H.I. Contractor maintain copies of contracts, books of account, and other records reflecting all transactions related to the home improvement business? - ANSWER -Six (6) years or the length of time of any contractual guarantee, whichever is longer. How much time does the home owner have to cancel the contract? - ANSWER Until midnight of the third business day. If a consumer wants more work done beyond what's in the original contract, what should a contractor do? - ANSWER -Provide a written amendment to the contract, which both parties must sign. In what form must a home improvement contract be? - ANSWER -Every home improvement contract must be in writing and signed by everyone involved. May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the home owner (customer)? - ANSWER -No, The prime contractor must secure all necessary permits, licenses, Certificates of Occupancy, or exemptions necessary to complete the contract in accordance with state and local building laws. Must a contractor furnish a consumer with a written estimate? - ANSWER -Yes, if the consumer requests one. Must a contractor or salesperson inform the consumer orally of the consumer's right to cancel? - ANSWER -Yes, verbally and written notice. Must a contractor or salesperson provide the consumer with a separate Notice of Cancellation? - ANSWER -Yes. At the time of signing the contractor or salesperson must attach to the signed contract two copies of a separate, completed form titled 'Notice of Cancellation.' Must a H.I. Contractor license be posted? - ANSWER -Yes, it must be posted in the Contractor's office where all consumers can see it, or show it to consumers upon request. Must a subcontractor be separately licensed by DCA? - ANSWER -Yes, this includes electricians and plumbers. No work should be performed and no money should be paid until after the ____ day cancellation period? - ANSWER -3 days What 3 notices must the H.I include? - ANSWER -If the owner does not pay the contractor they may have a claim against the owner, that the contractor is legally required to deposit all payments received prior to completion or the contractor must post a bond or contract of indemnity, and the cancellation notice wording. What becomes of the contract entered into after misrepresentations? - ANSWER It may be declared null and void, and contractor may be ordered to pay restitution to the consumer. What costs must be included in the H.I. contract? - ANSWER -labor and materials What dates should be on the H.I. contract? - ANSWER -the contract date, approximate date when work will begin and date to be substantially completed.