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. 1125(a) (reproduced footnote 6, supra). C. Herbert O'HARA, Joseph F.X. 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. Many homeowners don't know, however, that contractors are also prohibited from using deceptive or unfair practices in their dealings with homeowners by state law. All Rights Reserved, Disclaimer| Site Map| Privacy Policy |Business Development Solutions by FindLaw, part of Thomson Reuters, Please send all correspondence to Pottstown Office, Pennsylvanias New Home Improvement Consumer Protection Act, Pennsylvanias Breach of Personal Information Notification Act, Statute of Limitations on Contract/Sales in Pennsylvania, Unfair Trade Practices and Consumer Protection, Your Downtown Business Local Compliance. The contract must set forth the entire agreement, including, among other things, the approximate start date and completion date, a complete description of the work to be performed, the total sales price due under the contract, and the amount of any down payment required plus any amount to be advanced for the purchase of special order materials. Yes. Do you need legal help with Pennsylvania unfair trade practices and consumer protection law? . 42 P.C.S. 5524(7) (two year limitation). The Act also prohibits a contractor from changing the contract specifications without a written change order signed by both the owner and contractor. v. Lazin, 57 Pa.Commw. Finding next that the purpose of the Unfair Trade Practices Statute were both remedial and penal, the Court emphasized: Id. Thus, any violation of the Act is subject to the award of not just actual damages, but also, potentially, treble damages and attorneys fees. The Court resting its holding on several bases, including the modern and traditional conceptions of leasing, held: Id. 201-3 ("Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce . The Act drastically alters the regulatory environment of the home . However, if you do more than $5,000 worth of 'home improvement' work per year, you must register with the Attorney General's Office. *398 Confronted by the same issue in Murry v. Western American Mortgage Co., 124 Ariz. 387, 604 P.2d 651 (1979), the Arizona Supreme Court applied that state's one-year "catchall" limitations period to the Arizona Consumer Fraud Act. . (i) The contractor shall provide an initial cost estimate in writing to the owner before any performance of the home improvement commences. 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. 559 (1979) (consent order against realtor for nondisclosure of unavailability of sewage and water); Kaufman & Broad, Inc., 93 F.T.C. (3) A confession of judgment clause. 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. Since section 201-9.2 of the UTPCPL provides for a civil action which is not subject to a limitations period, the Unfair Trade Practices and Consumer Protection Law is subject to the six-year "catchall" statute of limitations. . [21] Even if we were to conclude that all actions brought pursuant to the UTPCPL sounded in deceit or fraud, what with appellants' additional claims under UTPCPL the six-year "catchall" limitation of section 5527(6) would be applicable. Co., 360 Pa.Super. Hire the top business lawyers and save up to 60% on legal fees. 44-1521; Colo.Rev.Stat.Ann. How is emergency work handled under the Home Improvement Consumer Protection Act? Section 517.8 - Home improvement fraud (a) Offense defined.-- A person commits the offense of home improvement fraud if, with intent to defraud or injure anyone or with knowledge that he is facilitating a fraud or injury to be perpetrated by anyone, the actor: While it is likely take years for the courts to flesh out the details of the Act and interpret its many provisions, there can be no doubt that the Act will have broad consequences for both home improvement contractors and home owners. Sign up for our free summaries and get the latest delivered directly to you. [9] That sales of real property *392 would be protected by the UTPCPL is consonant with its broad remedial purposes. What information is required to register? The text of the clause is written in all capital letters and in 12 point boldface type; The parties assent to be bound by the clause as evidenced by a dated signature; The provision states whether the decision of the arbitration is binding or can be appealed; and. This section provides: Any civil action or proceeding which is neither subject to another limitation specified in this subchapter nor excluded from the application of a period of limitation by section 5531 (relating to no limitation) must be commenced within six years. 1979) (Pennsylvania Motor Vehicle Sales Finance Act); Pekular v. Eich, 355 Pa.Super. The Home Improvement Consumer Protection Act only applies to work done in connection with a "private residence," which term includes a single family dwelling, a multifamily dwelling consisting of not more than two units, or any single unit located within any multifamily dwelling, including condominiums and co-op units. . 1125(a), which provides: Any person who shall affix, apply, or annex, or use in connection with any goods or services, or any container or containers for goods, a false designation or origin, or any false description or representation, including words or symbols tending falsely to describe or represent the same, and shall cause such goods to enter into commerce . 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. 564, 568 (E.D.Pa. 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. Only the first 5 bills are included here. Construction, replacement, installation or improvement of driveways, swimming pools, pool houses, porches, garages, roofs, siding, insulation, solar energy systems, security systems, flooring, patios, fences, gazebos, sheds, cabanas, landscaping work (other than work performed under the Plant Pest Act), painting, doors and windows and waterproofing. The law also creates a criminal penalty for home improvement fraud, as defined by the statute. If these individuals/businesses perform home improvements including, but not limited to, repairs, replacements, remodeling, installations, alterations, or improvements on private residences, these individuals/businesses are considered contractors under the law and must register and comply with the act. [7] 15 U.S.C. What are the limits on down payments or deposits? 326, 1982 Pa.Laws 1409, 1440. Corp. v. Commonwealth, 44 Pa.Commw. Pennsylvania's UTPCPL is modeled on the Federal Trade Commission Act. 1 P.C.S. . Yes. 800 East High StreetP.O. Contractors with questions about the law can call or email: Pennsylvania Office of Attorney General Strawberry Square Before that, there was no requirement that an agreement for home improvement be in writing. 258, 478 A.2d 456 (1984). HOA LAWS AND REGULATIONS. Contractors can register by online or by sending in the registration form. are hereby declared unlawful." Cf. (1) "Documentary material" means the original or a copy of any book, record, report, memorandum, (xvi). Barr, supra, 520 A.2d at 490. [23] "When the words of a statute are clear and free from all ambiguity, the letter of it is not to be disregarded under the pretext of pursuing its spirit." A separate line item recording any down payments. . and the Lantram Trademark Act were models for Pennsylvania's (UTPCPL)"). This amendment applies only to causes of action accruing after its effective date in February, 1983. 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. What needs to be in contracts for home improvements? 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. Want High Quality, Transparent, and Affordable Legal Services? We suggest that you include the following language in your contracts, and display it prominently so your customers can review it: The official registration number of [contractor name] can be obtained from the Pennsylvania Office of Attorney Generals Bureau of Consumer Protection by calling toll-free within Pennsylvania 1-888-520-6680. For a full discussion and comparison of state unfair competition statutes, see generally, Sibert, Enforcement of State Deceptive Trade Practice Statutes, 42 Tenn.L.Rev. tit. Initially, we must determine whether the order denying amendment of appellants' complaint is appealable. 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. Act of March 27, 1713, 1 Sm.L. 714.16(1)(b); Kan.Stat.Ann. In short, no home improvement contractor will be permitted to use any form of advertising or promotional material that does not allow the consumer to trace that contractor through a registration number to the Pennsylvania Bureau of Consumer Protection. In addition, in applying for such registration, the applicant must state whether the individuals making the application, even if applying as part of a larger business entity, have ever been convicted of any criminal offense related to a home improvement transaction, fraud, theft, a crime of deception or any crime involving fraudulent business practices, as well as a statement of whether the applicant has ever filed a petition of bankruptcy or, within the last ten years had a final civil judgment entered against the applicant or business in which the applicant held an interest that was related to a home improvement transaction. 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 . For example, contractors are not permitted to waive federal, state, or local health, safety, or building code requirements. For cases applying these statutes to real estate transactions, see, e.g., Klotz v. Underwood, 563 F. Supp. See, e.g., Bolden v. Potamkin-Auerbach Chevrolet, Inc., 470 F. Supp. 1981); Rosenthal v. Perkins, 42 N.C.App. [5] As such, denial of the petition to amend constitutes an appealable order. 404, 408 (E.D.Pa. 59-1601; Nev.Rev.Stat.Ann. 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 No sweeping changes in legal relationships were occasioned by the CPL, since prevention of deception and the exploitation of unfair advantage has always been an object of remedial legislation. The law also limits down payments or deposits for any home improvement project for which the total price is more than $5,000. 201-3 (emphasis added). 201-2(4)(viii). On July 1, 2009, a new consumer protection law goes into effect. This provision states: The following actions and proceedings must be commenced within two years: (7) Any other action or proceeding to recover damages for injury to person or property which is founded on negligent, intentional, or otherwise tortious conduct including deceit or fraud, except an action or proceeding subject to another limitation specified in this subchapter. The essence of appellants' assertions were that the existence of the defects constituted a breach of the agreement of sale and that appellee falsely represented the quality of the premises and failed to disclose the existence of the defects. Is new home building included in the law? Check or add your phone numbers to the Pennsylvania Do Not Call Registry. 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. The Pennsylvania legislature in 1976 enacted a new, all-inclusive limitation of actions statute. Under Section 517.6 of the Act, this registration number must be included in all of the contractors advertisements, contracts, estimates and proposals created by the contractor after July 1, 2009. 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. Many homeowners dont know, however, that contractors are also prohibited from using deceptive or unfair practices in their dealings with homeowners by state law. In Barr v. General Accident Group Ins. Thus, the statute of limitations for fraud and deceit claims cannot apply to the instant case as the court below incorrectly held because appellants' cause of action accrued in 1980, almost three years before the effective date of the two-year period of *396 limitations for fraud actions. Pennsylvania Rule of Civil Procedure 1033 provides that "[a] party, either by filed consent of the adverse party or by leave of court, may at any time change the form of action, correct the name of a party, or amend his pleading." Accordingly, the order of the *399 trial court is reversed and permission to amend the complaint is granted. (C) The total potential cost of the services to be performed under the time and materials provision, including the initial cost estimate and the 10% referenced in clause (B), expressed in actual dollars. If a contractor has an ad for their business on their vehicle, the ad must include their registration number. A description of the work to be performed; The approximate start and completion dates for the project; Any specifications that cannot be changed in the absence of a written change order that is signed by both parties; The total sales price due upon completion of the job; and. In fact, this state law also applies to construction done on swimming pools, porches, driveways, garages, patios, fences, and sheds. Section 517.5 - Application fees. 1033, 42 Pa.C.S.A. The Pennsylvania Home Improvement Consumer Protection Act There are a number of federal laws in place that aim to protect homeowners from unscrupulous contractors. 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? A copy of that law can be found here. (CCH) 22, 226 (1985) (cease and desist order against real estate developer for misrepresenting actual land values); Las Animas Ranch, Inc., 3 Trade Reg.Rep. 5522-5527. A link to that law is provided here. You and your office staff are the "Creme de la Creme" of legal knowledge. The law does not require contractors to show copies of their registration. See Saunders, The Pennsylvania Automobile Lemon Law Uncharted Terrain, 57 Pa.B.A.Q. Registration does not imply endorsement.. Awards may also include things such as reimbursement of court and attorney fees. Section 517.1 - Short title. Please note that this exception is limited to emergencies meeting the criteria set forth in Section 201-7 of the Unfair Trade Practices and Consumer Protection Law and the contractor must obtain the emergency waiver required by the law in each case. If contractors wish to display it, they may but they are not required to do so. Id. . 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