If one was to name the most highly regulated profession in the State of California, you would probably choose doctors or lawyers or morticians and you would be wrong – very wrong. Contractors who perform home improvements for residential homeowners are the most tightly regulated profession in the State of California. The laws regulating the drafting of Home Improvement Contracts are extremely specific and difficult to put into practice. In fact, it would not be surprising if most home improvement contracts being used today are not statutorily compliant. The requirements are confusing and redundant, making compliance difficult for contractors. Further, the requirements do not take into account the realities of home improvement work. Lastly, the provisions are a real trap to the practitioner who may be unwary of the legal requirements. A home improvement contract should be a simple thing to draft – and easy to understand for the Homeowner, but, as you will see, there is no such thing as a simple one-page construction contract when it comes to home improvement work.
AB316 specifically amended section 7159 of the Business & Professions Code creating compliance issues regarding Home Improvement contract formatting, the list of required provisions, required notices, penalties for failure to comply, the effect of non-compliance, and added a brand new section for service and repairs of less than $750 in value.
For more information about this topic please contact:
Marion T. Hack, Esq.
Gibbs Giden Locher Turner Senet & Wittbrodt LLP
1880 Century Park East, 12th Floor
Los Angeles, California 90067
Phone: (310) 552-3400
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