Home Improvement Laws in Your State
Whether you’re a homeowner, a renter, or a prospective home buyer, you’ll want to make sure you’re aware of the laws surrounding home improvement in your state. If you don’t, you could end up paying hundreds of dollars in fines for doing work on your home without a license.
In New York, you need to be licensed to do home improvement work. The law requires you to have a written contract with your contractor, which includes the timeline for the project, the total price, and an escrow account to hold payments.
You must also know if your contractor has insurance. It is important to ask for references from previous customers.
You may also want to check with your local building codes office to find out if there are any permits needed for your home improvement project.
Home improvement work is exempt from labor tax in most states. However, material costs are not tax-exempt. You can save money by comparing prices from several contractors.
You should also be aware of the Payment Protection Law and the Home Improvement Contract Law. You can be fined $500 for each violation. In addition, your customers may sue you for actual damages and reasonable attorneys’ fees.
The home improvement industry is growing. In fact, the Houzz Inc survey found that nearly one-third of homeowners are currently involved in a home improvement project. In addition, 37 percent of respondents completed a home improvement project in 2022.