ABA Family Legal Guide

Contracts and Consumer Law

Special Consumer Protections

Home and Home Appliance Repair and Improvements

Are there special things to look for in a home-improvement contract?

Yes. Be sure the contract has all the details in writing. Too often a contract of this type will read "work as per agreement." Instead, it should specify who will do the work, and include a detailed description of the work, the materials to be used, and the dates of starting and completion. It also should contain all charges, including any finance charges if you are paying over a period of time. If the financing is to be provided by a third party, do not sign the repair contract before you sign the financing contract. In addition, the contract should include the hourly rate on which the total cost is to be based. Be sure any guarantee is in writing.

Be especially wary of any mortgage or security interest the contractor takes in your home, which means that you may lose your home if you don't meet the payments for the work. If the contractor takes a mortgage or security interest, federal law gives you three days to change your mind and cancel.

Consider having a lawyer look at the contract, especially if there's a security agreement. If problems do arise that threaten your rights to own your home, see a lawyer immediately.