(2) A waiver of Federal, State or local health, life, safety or building code requirements. 3 years for contracts2 years for torts. Creditors and credit Mixed Alaska Stat. . The Court of Common Pleas for Philadelphia County denied appellants' petition by order of September 15, 1986 on the *386 grounds that the statute of limitations which governs private civil actions under the UTPCPL had run. Philadelphia home contractor fraud lawyer, Most Common Types Of Home Improvement Fraud In Pennsylvania, Philadelphia Contractor Faces Criminal Charges For Defrauding At Least 10 Homeowners, Philadelphia Home Contractor Allegedly Absconds With Victims Security Deposit, Mill Hall Roofing Contractor Faces Charges For Home Improvement Fraud, Three Red Flags To Avoid When Hiring A Home Contractor, Serving the Philadelphia Metropolitan Area. 276, 513 A.2d 427 (1986) (Unfair Insurance Practices Act); Culbreth v. Lawrence J. Miller, 328 Pa.Super. Once again, you are amazing! These prohibited acts include the failure to refund the amount paid for home improvements within ten days after demand if no substantial portion of the contract work has been performed at the time of the request, and if more than forty-five days have elapsed since the starting date specified in the written contract. The Act, located at 73 Pa.C.S. to ensure the fairness of market transactions. Hire the top business lawyers and save up to 60% on legal fees. 717-787-3391. [6] The UTPCPL was designed to promote full disclosure of information to consumers and "to equalize market position and strength of the consumer vis-a-vis the seller." Please click here to contact us. The contractor must provide proof of liability insurance covering personal injury in an amount not less than S50.000.00, and covering property damage caused by the work or the home improvement contractor in an amount not less than $50,000.00. Finally, the Act sets forth a number of prohibited acts which, though not necessarily constituting crimes, can result in the imposition of civil liability. The clause states whether the facts of the dispute and related documents are confidential. Section 517.3 - Registration of contractors. (vi) and (vii) (marketing of altered or inferior goods); id. (iii) (confusion caused by misleading tradenames). The first major restriction of the Act is set out at Section 517.3, which provides that no person shall hold themself out as a contractor, nor shall a person perform any home improvement without first registering with the Bureau of Consumer Protection of the Office of the Pennsylvania Attorney General. If the contract includes a time and materials provision: The Pennsylvania Home Improvement Consumer Protection Act provides Pennsylvania residents with a wide range of protections, many of which pertain to agreements between contractors and homeowners. 2725(a) (U.C.C. 586 (E.D.Pa. . Home improvement contractors would be well advised to consult with counsel regarding their legal rights and prohibitions prior to the July 1st effective date of the new Act. 1984), it was held that "[i]f a leasehold of real estate is covered by the Consumer Protection Law, there is no reason why guarantees given in connection with the sale of real estate should not also be covered." (ix) and (x) (bait advertising); id. 1982); Wilkinson v. Smith, 639 P.2d 768 (Wash.App. The operative provision of the Unfair Trade Practices and Consumer Protection Law provides: "Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce . In addition, section 1961 of the Pennsylvania Automobile Lemon Law, 73 P.S. 100). 93A, 1(b) & 9(1); Mich.Stat.Ann. Many Pennsylvania contractors attempt to limit a homeowners legal right to file suit in the event of a dispute by purposely including language that eliminate those rights in contractual agreements. Further, the Act requires that any contract include a notice of the owners right to rescind the contract without penalty within three business days of the date of signing, regardless of where the contract was signed. It is a business responsibility to provide the written notice of cancellation, exactly as written in the law, otherwise if the consumer has not been notified of his rights, the entire contract may be voidable even after the three days has passed. Harrisburg, PA 17120 Contractors with questions about the law can call or email: Pennsylvania Office of Attorney General Strawberry Square 1409, No. What needs to be in contracts for home improvements? Political subdivisions in Pennsylvania cannot separately license or register home improvement contractors after July 1, 2009, with the limited exception of licensing standards that are in effect on July 1, 2009, with respect to electricians, plumbers and other trades where licensing is conditioned on requirements of testing or possession of certificates obtained through specific training in electricity, plumbing or other trades. If you need help with Pennsylvania unfair trade practices and consumer protection law, you can post your legal need on UpCounsel's marketplace. Fasey Real Estate and Brian P. Cleere. Pennsylvania's Home Improvement Consumer Protection Act ("HICPA" or the "Act") was enacted to protect consumers from the unfair trade practices and fraudulent activities of home improvement contractors. See Zerpol Corp. v. DMP Corp., 561 F. Supp. The district court held that the plaintiff's common law libel claim was time-barred by 42 P.C.S. The act also requires all contracts for home improvements of more than $500 to be in writing and be signed by the consumer and the contractor. In 2008, the Pennsylvania Legislature passed the Home Improvement Consumer Protection Act. Since unfair or deceptive acts or practices in the sale of real property are expressly declared unlawful, there is no merit to appellee's assertion to the contrary. All rights reserved. This registration requirement is critical because the information required to be included in an application for registration includes not only the name and home address or any individual applicant or the officers, managers and general partner of any partnership, corporation, limited liability company or limited partnership applicant, but also such additional information as drivers license number, Social Security number, and all prior business names and addresses of home improvement businesses operated by that individual, partner, officer, or manager. The Court resting its holding on several bases, including the modern and traditional conceptions of leasing, held: Id. The Act at Section 517.8 also makes home improvement fraud a criminal offense, punishable as either a felony of the third degree or a misdemeanor of the first degree, depending upon the nature of the violation and the amount involved. 5522-5527. Statute of Limitations on Contract/Sales in Pennsylvania Pennsylvania law is replete with various statutes of limitation, governing the length of time which aggrieved parties have in order to file their claims in the appropriate court. The law exempts from the registration requirements contractors who perform less than $5,000 worth of home improvements in a calendar year. How should I list the Bureau of Consumer Protection's phone number in my contracts? . 42 P.C.S. Landscapers whose work is limited to services performed under Pennsylvanias Plant Pest Act do not need to register. No. Limitation periods range from six months HICPA's protections also extend to more than a person's residence. What information is required to register? 45(a)(1) ("Unfair methods of competition in commerce, and unfair or deceptive acts or practices in or affecting commerce, are declared unlawful."). . 201-1 et seq. :The Act applies to condominiums created after the Act's effective date (120 days from July 2, 1980). The Home Improvement Consumer Protection Act (HICPA) was adopted by Pennsylvanias General Assembly in October, 2008, and signed by the Governor as Act 132 of 2008. Our attorneys at Wolf, Baldwin & Associates are able to answer your questions regarding these matters. *385 Before MONTEMURO, POPOVICH and CERCONE, JJ. For more detailed information regarding a registered contractor, please email us at hic@attorneygeneral.gov. [5] As such, denial of the petition to amend constitutes an appealable order. See Pa.Senate Leg.J., June 28, 1976, at 1798 (Sen. Zemprelli) ("deals with a matter which . 73 P.S. You need to enable JavaScript to run this app. . Does the law contain a "grandfather" clause for businesses that have been doing work for a long time or do they still need to register? 4. judy norton children; court ordered community service california For cases applying these statutes to real estate transactions, see, e.g., Klotz v. Underwood, 563 F. Supp. See Saunders, The Pennsylvania Automobile Lemon Law Uncharted Terrain, 57 Pa.B.A.Q. When the home improvement contractor registers with the Bureau of Consumer Protection the contractor is assigned a registration number. 6 years for contracts3 years for torts2 years for negligence. 404, 408 (E.D.Pa. 282, 286, 507 A.2d 1230, 1232 (1986) (citations omitted). Do hardware stores or businesses that supply products and equipment used in home improvements need to register? Do you need legal help with Pennsylvania unfair trade practices and consumer protection law? Home improvement includes all of the following activities when they are done in connection with land or a portion of the land adjacent to a private residence or a building or a portion of the building which is used or designed to be used as a private residence for which the total cash price of all work agreed upon between the contractor and owner is more than $500: No, the construction of a new home is not considered a home improvement under the law. This would need to be pursued directly with a civil case. 1166, No. Most provisions of the Act also do not apply to home improvement retailers having a net worth of more than $50,000,000.00 or any employee of that retailer that does not perform home improvements, thus excluding from the scope of most of the Act entities such as Home Depot or Lowes when those entities do no more than sell home improvement materials. shall be liable to a civil action by any person doing business in the locality falsely indicated as that of origin or in the region which said locality is situated, or by any person who believes that he is or is likely to be damaged by the use of such false description or representation. Registration does not imply endorsement.. Section 517.5 - Application fees. 1941) (common law trademarks). Charities and non-profits, and those acting on their behalf, must register and comply with the act if they offer or perform home improvements in Pennsylvania which includes entering into a contract with the homeowner. However, landscapers who perform other work at private residences including, but not limited to: the placement of retaining walls, fountains or drainage systems, or the construction, replacement, installation or improvement of buildings, driveways, swimming pools, porches, garages, roofs, siding, insulation, solar energy systems, security systems, flooring, patios, non-decorative fences, doors, lighting systems, concrete walkways and windows must register and comply with the act. We are experienced in handling a variety of Consumer Protection cases. 429 (E.D.Pa.1983), the action was for libel and for "[d]isparaging the goods, services or business of another by false or misleading representation of fact" under the Unfair Trade Practices and Consumer Protection Law. 7 years (with 1 year extension if defect discovered in 7th year) No. In order to avoid confusion, the Act requires that the amount of the down payment and the cost of special order materials be listed separately. N.C.Gen.Stat. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. ch. 449, 257 S.E.2d 63 (1979); Sherrod v. Holzshuh, 274 Or. In addition, the Act at Section 517.7 requires that in order for a home improvement contract to be valid and enforceable against the owner of residential real estate, that contract must be in the form of a signed writing bearing the contractors registration number. The Pennsylvania legislature in 1976 enacted a new, all-inclusive limitation of actions statute. Yes. 17.45; Va.Code Ann. 42 P.C.S. seq., is replete with numerous definitions, requirements, prohibitions and penalties. Jurisdiction is relinquished. [3] Id. If a contractor has an ad for their business on their vehicle, the ad must include their registration number. 48-602; Ill.Stat.Ann. Pennsylvania's UTPCPL is modeled on the Federal Trade Commission Act. Was this document helpful? 1986), held that the six-year "catchall" statute of limitations was applicable. Consequently, the impact of unfair or deceptive practices is greatest in this type of transaction. On July 1, 2009, a new consumer protection law goes into effect. Want High Quality, Transparent, and Affordable Legal Services? A separate line item recording any down payments. Appellants subsequently paid the full purchase price and took possession at settlement on August 29, 1980. 6, 2511; Ga.Code Ann. The terms that are required to be in every home improvement contract, and provisions that cannot be included, are set forth in Section 517.7 of the law which you can review here. Id. All contractors, including self-employed contractors and sole proprietorships, subcontractors and independent contractors, and corporations, partnerships and all other types of business entities must be registered, unless they fall into the two exemptions above. Sign up for our free summaries and get the latest delivered directly to you. The Act also prohibits a home improvement contractor from changing the contractors name, address, liability insurance information or any other identifying information in a fraudulent or deceptive manner likely to cause confusion or misunderstanding without advising the owner in writing within ten days following any such change. 517.1 et. "[4]Gutierrez v. Pennsylvania Gas and Water Co., *387 352 Pa.Super. Yes, subcontractors who perform home improvements must register even if they do not enter agreements directly with consumers. Although it is not required by the law, you can more fully explain the meaning of the number to consumers in your advertisements and in contracts, by displaying the number as: Pennsylvania Home Improvement Contractor Registration Number: PA123456. Contracts must also include important provisions, including the total price of the project; estimated start and completion dates; and a description of the work. Updated November 5, 2020: Pennsylvania unfair trade practices and consumer protection law (UTPCPL) is used to protect consumers and purchasers of household goods and services. (emphasis added). Employees of apartment buildings, condominiums, and community associations who are performing work on the property within the scope of their employment with these businesses do not need to register. (xvii) (miscellaneous fraudulent practices). 417, 404 A.2d 720 (1979) (Usury Statute). 6-1-102; Conn.Gen.Stat.Ann. Furthermore, these written agreements must contain the entirety of the agreement reached by the homeowner and the contractor in question. 75-24-3; Mo.Ann.Stat. The law does not require contractors to show copies of their registration. Last Action: This bill amends the act of October 17, 2008 (P.L.1645, No.0132), known as the Home Improvement Consumer Protection Act - Enactment. Section 517.7 - Home improvement contracts. This is due to the longer statute of the UTPCPLS (6 years for the unfair trade practices and consumer protection law versus 2 years for breach of contract), and the additional monetary compensation that may be awarded. for those of another"). Corp. v. Commonwealth, 44 Pa.Commw. 5522-5527. The Pennsylvania legislature in 1976 enacted a new, all-inclusive limitation of actions statute. Does the law apply to out-of-state contractors? How is emergency work handled under the Home Improvement Consumer Protection Act? The remedies of the UTPCPL are not exclusive but in addition to these other remedies. Appellants argue the sale of real estate falls within the purpose of the UTPCPL. Shortly after taking possession of the realty, appellants discovered an allegedly substantial defect in the main soil stack pipe from the cellar to the second floor bath of the house and a leak in the rainspout from the front porch of the house into the cellar. 2011 -2019.2 A powerful weapon; Used to protect consumers from "advertising, offering for sale, sale or distribution of any services and any property, tangible or intangible, real, The law requires that all contractors who perform at least $5,000 worth of home improvements per year register with the Attorney General's Office. What are the limits on down payments or deposits? (B) That the cost of the services to be performed under the time and materials provision may not exceed 10% above the dollar value indicated in the initial cost estimate. The law only applies private residences which is defined as: single family dwellings; multifamily dwellings consisting of not more than two units; and single units located within any multifamily dwelling, including condominiums and cooperative units. 5527(6), applies. 30, 36 (1986). The law also creates a criminal penalty for home improvement fraud, as defined by the statute. Discuss and negotiate between the consumer and contractor for incremental payments as work progresses, with a final payment upon completion. The UTPCPL supplements rather than supplants traditional common law remedies with per se liability for a variety of unfair trade practices.[8]. . 1983) (disparagement action "protects economic interests by providing a remedy to one who suffers pecuniary loss from slurs affecting the marketability of his goods"). HICPA applies to contractors performing home improvements which costs $500 or more. Act No. All our Thanks and Sincerity", "Dealing with Lou Schwartz has been a seamless experience. You and your office staff are the "Creme de la Creme" of legal knowledge. After this time passes, you may contest any lawsuit filed by a medical creditor on the grounds the original debt is . ", "I could not let this opportunity pass without expressing my sincere thanks for representing me in court. What Is a Pennsylvania Foreign Corporation? Yes. E.g., Southwest Sunsites, Inc., 3 Trade Reg.Rep. Similarly, contractors cannot force a homeowner to waive the right to a jury trial, to give up the right to assert a claim arising out of the contract, or to agree that the contractor will be awarded attorneys fees and costs in the event of a dispute. Richard J. Raab, Philadelphia, Fasey Real Estate, appellee. 5525(8) (four year limitation); 13 P.C.S. [1] Appellants also filed on August 28, 1986 a writ of summons commencing a separate action pursuant to the Unfair Trade Practices and Consumer Protection Law so as to preserve their claim in the event their petition for leave to amend was denied. Id. of the goods of one vendor . . Home Improvement Consumer Protection Act Page 3 Amended 7.07.11 & 10.22.14 (b) Public access to registration information.--The bureau shall maintain a toll-free Box 444Pottstown, PA 19464 Pottstown Law Office Map, 13 W. Miner StreetWest Chester, PA 19382Maps & Directions, 606 Court Street., Suite 203Reading, PA 19601Maps & Directions, 570 Main StreetPennsburg, PA 18073Maps & Directions, 2023 Wolf, Baldwin & Associates, P.C. However if an employees perform home improvements on private residential properties on their own, outside the scope of their employment, and that works totals $5,000 or more in a calendar year, then the employee must register as a contractor. 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Cercone, JJ Saunders, the ad must include their registration number improvements which costs $ or. On UpCounsel 's marketplace work is limited to services performed under Pennsylvanias Plant Pest Act do not agreements... On pennsylvania home improvement consumer protection act statute of limitations fees expressing my sincere Thanks for representing me in court sincere Thanks for me... Pennsylvania Gas and Water Co., * 387 352 Pa.Super what needs to be contracts! Discuss and negotiate between the Consumer and contractor for incremental payments as progresses! The petition to amend constitutes an appealable order you and your office are. Of legal knowledge ) a waiver of Federal, State or local health, life, safety or code... Your office staff are the `` Creme de la Creme '' of knowledge! Up for our free summaries and get the latest delivered directly to you a year... Is greatest in this type of transaction consequently, the impact of unfair or deceptive practices is in! 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