Illinois Home Repair
and Remodeling Act
(815 ILCS 513/)
(815 ILCS 513/1) Sec. 1. Short title. This Act may be cited
as the Home Repair and Remodeling Act. (Source: P.A. 91-230,
(815 ILCS 513/5) Sec. 5. Policy. It is the public policy
of this State that in order to safeguard the life, health,
property, and public welfare of its citizens, the business
of home repair and remodeling is a matter affecting the
public interest. The General Assembly recognizes that improved
communications and accurate representations between persons
engaged in the business of making home repairs or remodeling
and their consumers will increase consumer confidence, reduce
the likelihood of disputes, and promote fair and honest practices
in that business in this State. (Source: P.A. 91-230, eff. 1-1-00.)
(815 ILCS 513/10) Sec. 10. Definitions. As used in this
"Home repair and remodeling" means the fixing, replacing,
altering, converting, modernizing, improving, or making of an
addition to any real property primarily designed or used
as a residence other than maintenance, service, or repairs
"Home repair and remodeling" includes the construction,
installation, replacement, or improvement of driveways, swimming
pools, porches, kitchens, bathrooms, basements, chimneys, chimney
liners, garages, fences, fallout shelters, central air conditioning,
central heating, boilers, furnaces, electrical wiring, sewers,
plumbing fixtures, storm doors, windows, roofs, awnings, and
other improvements to structures within the residence or upon
the land adjacent to the residence. "Home repair and
remodeling" does not include the sale, installation, cleaning,
or repair of carpets; the repair, installation, replacement,
or connection of any home appliance including, but not limited
to, disposals, refrigerators, ranges, garage door openers,
televisions or television antennas, washing machines, telephones,
hot water heaters, satellite dishes, or other appliances
when the persons replacing, installing, repairing, or connecting
the home appliance are employees or agents of the merchant
that sold the home appliance or sold new products of the same
type; or landscaping.
"Person" means any individual, partnership, corporation,
business, trust, or other legal entity.
"Residence" means a single-family home or
dwelling or a multiple-family home or dwelling containing
6 or fewer apartments, condominiums, town houses, or dwelling
units, used or intended to be used by occupants as dwelling
places. This Act does not apply to original construction
of single-family or multi-family residences or repairs to
dwellings containing more than 6 apartments or family units.
(Source: P.A. 91-230, eff. 1-1-00.)
(815 ILCS 513/15)
Sec. 15. Written contract; costs enumerated. Prior to initiating
home repair or remodeling work for over $1,000, a person engaged
in the business of home repair or remodeling shall furnish to
the customer for signature a written contract or work order
that states the total cost, including parts and materials listed
with reasonable particularity and any charge for an estimate.
In addition, the contract shall state the business name and
address of the person engaged in the business of home repair
or remodeling. If the person engaged in the business of
home repair or remodeling uses a post office box or mail receiving
service or agent to receive home repair or remodeling business
correspondence, the contract also shall state the residence address
of the person engaged in the business of home repair or remodeling.
(Source: P.A. 91-230, eff. 1-1-00.)
(815 ILCS 513/20)
Sec. 20. Consumer rights brochure.
(a) For any contract over $1,000, any person engaging
in the business of home repair and remodeling shall provide
to its customers a copy of the "Home Repair: Know Your Consumer
Rights" pamphlet prior to the execution of any home repair
and remodeling contract. The consumer shall sign and date
an acknowledgment form entitled "Consumer Rights Acknowledgment
Form" that states: "I, the homeowner, have received
from the contractor a copy of the pamphlet entitled 'Home
Repair: Know Your Consumer Rights.'" The contractor or
his or her representative shall also sign and date the acknowledgment
form, which includes the name and address of the home repair
and remodeling business. The acknowledgment form shall be
in duplicate and incorporated into the pamphlet. The original
acknowledgment form shall be retained by the contractor and the
duplicate copy shall be retained within the pamphlet by the consumer.
(b) For any contract for $1,000 or under, any person engaging
in the business of home repair and remodeling shall
provide to its customers a copy of the "Home Repair:
Know Your Consumer Rights" pamphlet. No written
acknowledgment of receipt of the pamphlet is required for
a contract of $1,000 or under.
(c) The pamphlet must be a separate document, in at least
12 point type, and in legible ink. The pamphlet shall read
"HOME REPAIR: KNOW YOUR CONSUMER RIGHTS
As you plan for your home repair/improvement project,
it is important to ask the right questions in order
to protect your investment. The tips in this fact sheet should
allow you to protect yourself and minimize the possibility
that a misunderstanding may occur.
AVOIDING HOME REPAIR FRAUD
Please use extreme caution when confronted with the following
warning signs of a potential scam:
(1) Door-to-door salespersons with no local connections
who offer to do home repair work for substantially less than
the market price.
(2) Solicitations for repair work from a company that lists
only a telephone number or a post-office box number to contact,
particularly if it is an out-of-state company.
(3) Contractors who fail to provide customers references
(4) Persons offering to inspect your home for free. Do
not admit anyone into your home unless he or she can
present authentic identification establishing his or her
business status. When in doubt, do not hesitate to call the
worker's employer to verify his or her identity.
(5) Contractors demanding cash payment for a job or who
ask you to make a check payable to a person other than the owner
or company name.
(6) Offers from a contractor to drive you to the bank to
withdraw funds to pay for the work.
(1) Get all estimates in writing.
(2) Do not be induced into signing a contract by high-pressure
(3) Never sign a contract with blank spaces or one you do
not fully understand. If you are taking out a loan to finance
the work, do not sign the contract before your lender approves
(4) Remember, you have 3 business days from the time you
sign your contract to cancel any contract if the sale is made
at your home. The contractor cannot deprive you of this right
by initiating work, selling your contract to a lender, or any
(5) If the contractor does business under a name other
than the contractor's real name, the business must either
be incorporated or registered under the Assumed Business
Name Act. Check with the Secretary of State to see if the
business is incorporated or with the county clerk to see
if the business has registered under the Assumed Business Name
(6) Homeowners should check with local and county
units of government to determine if permits or inspections
(7) Determine whether the contractor will guarantee his
or her work and products.
(8) Determine whether the contractor has the proper insurance.
(9) Do not sign a certificate of completion or make final
payment until the work is done to your satisfaction.
(10) Remember, homeowners should know who provides supplies
and labor for any work performed on your home. Suppliers and
subcontractors have a right to file a lien against your
property if the general contractor fails to pay them. To protect
your property, request lien waivers from the general contractor.
BASIC TERMS TO BE INCLUDED IN A CONTRACT
(1) Contractor's full name, address, and telephone
number. Illinois law requires that persons selling home repair
and improvement services provide their customers with
notice of any change to their business name or address that comes
about prior to the agreed dates for beginning or completing
(2) A description of the work to be performed.
(3) Starting and estimated completion dates.
(4) Total cost of work to be performed.
(5) Schedule and method of payment, including down
payment, subsequent payments, and final payment.
(6) A provision stating the grounds for termination of the
contract by either party. However, the homeowner must pay the
contractor for work completed. If the contractor fails to commence
or complete work within the contracted time period, the homeowner
may cancel and may be entitled to a refund of any down payment
or other payments made towards the work, upon written demand
by certified mail.
Homeowners should obtain a copy of the signed contract
and keep it in a safe place for reference as needed.
IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
If you think you have been defrauded by a contractor or
have any questions, please bring it to the attention of your
State's Attorney or the Illinois Attorney General's Office.
Attorney General Toll-Free Numbers:
Carbondale (800) 243-0607
Springfield (800) 243-0618
Chicago (800) 386-5438".
(Source: P.A. 91-230, eff. 1-1-00.)
(815 ILCS 513/25) Sec. 25. Insurance required. Any person
engaged in the business of home repair and remodeling shall obtain
and maintain in full force and effect during the operation
of the business public liability and property damage insurance
in the amount of $100,000 per person and $300,000 per
occurrence of bodily injury and $50,000 per occurrence for property
damage, unless the person has a net worth of not less than
$1,000,000 as determined on the basis of the person's
most recent financial statement, prepared within 13 months.
On and after January 1, 2001, any person engaged in the business
of home repair and remodeling shall obtain and maintain in
full force and effect during the operation of the business
public liability and property damage insurance in the amount
of $10,000 per occurrence for home repair or remodeling not
in conformance with applicable State, county, or municipal
codes, unless the person has a net worth of not less than $1,000,000
as determined on the basis of the person's most recent financial
statement, prepared within 13 months. (Source: P.A. 91-230, eff.
1-1-00; 91-808, eff. 6-13-00.)
(815 ILCS 513/30) Sec. 30. Unlawful acts. It is unlawful
for any person engaged in the business of home repairs and
remodeling to remodel or make repairs or charge for remodeling
or repair work before obtaining a signed contract or work
order over $1,000. This conduct is unlawful but is not exclusive
nor meant to limit other kinds of methods, acts, or practices
that may be unfair or deceptive. (Source: P.A. 91-230, eff. 1-1-00.)
(815 ILCS 513/35) Sec. 35. Enforcement.
(a) The Attorney General or the State's Attorney of any
county in this State may bring an action in the name of the
people of this State against any person to restrain and prevent
any pattern or practice violation of this Act. In the
enforcement of this Act, the Attorney General or the State's
Attorney may accept an assurance of voluntary compliance
from anyone engaged in any conduct, act, or practice deemed
in violation of this Act. Failure to perform the terms of
any such assurance constitutes prima facie evidence of a violation
of this Act.
(b) All remedies, penalties, and authority granted to the
Attorney General or the State's Attorney of any county in
this State by the Consumer Fraud and Deceptive Business
Practices Act shall be available to him or her for enforcement
of this Act, and any violation of this Act shall constitute
a violation of the Consumer Fraud and Deceptive Business
Practices Act. (Source: P.A. 91-230, eff. 1-1-00.)
(815 ILCS 513/900) Sec. 900. (Amendatory provisions; text
omitted). (Source: P.A. 91-230, eff. 1-1-00; text omitted.)
(815 ILCS 513/999) Sec. 999. Effective date. This Act takes
effect January 1, 2000. (Source: P.A. 91-230, eff. 1-1-00.)
Question or Comment?