Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Public Act 101-0264


 

Public Act 0264 101ST GENERAL ASSEMBLY

  
  
  

 


 
Public Act 101-0264
 
HB2643 EnrolledLRB101 07018 TAE 52052 b

    AN ACT concerning business.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Home Repair and Remodeling Act is amended by
changing Section 20 and adding Section 22 as follows:
 
    (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 as
follows:
 
"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
when requested.
    (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.
 
CONTRACTS

 
    (1) Get all estimates in writing.
    (2) Do not be induced into signing a contract by
high-pressure sales tactics.
    (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
the loan.
    (4) Remember, you have 3 business days (or as provided in
Section 22 if you are age 65 or older) 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
other tactic.
    (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 Act.
    (6) Homeowners should check with local and county units of
government to determine if permits or inspections are required.
    (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) Before you pay your contractor, understand that the
Mechanics Lien Act requires that you shall request and the
contractor shall give you a signed and notarized written
statement (known as a "Sworn Statement") that lists all the
persons or companies your contractor hired to work on your
home, their addresses along with the amounts about to be paid,
and the total amount owed after the payment to those persons or
companies.
    Suppliers and subcontractors have a right to file a lien
against your home if they do not get paid for their labor or
materials. To protect yourself against liens, you should demand
that your contractor provide you with a Sworn Statement before
you pay the contractor. You should also obtain lien waivers
from all contractors and subcontractors if appropriate. You
should consult with an attorney to learn more about your rights
and obligations under the Mechanics Lien Act.
    Disclaimer: The contents of this paragraph are required to
be placed in the pamphlet for consumer guidance and information
only. The contents of this paragraph are not substantive
enforceable provisions of the Home Repair and Remodeling Act
and are not intended to affect the substantive law of the
Mechanics Lien Act.
 
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 the work.
    (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.
    (7) A provision stating the grounds for termination of the
contract if you are notified by your insurer that all or any
part of the claim or contract is not a covered loss under the
insurance policy, you may cancel the contract by mailing or
delivering written notice to (name of contractor) at (address
of contractor's place of business) at any time prior to the
earlier of midnight on the fifth business day after you have
received such notice from your insurer or the thirtieth
business day after receipt of a properly executed proof of loss
by the insurer from the insured. If you cancel, any payments
made by you under the contract will be returned to you within
10 business days following receipt by the contractor of your
cancellation notice. If, however, the contractor has provided
any goods or services related to a catastrophe, acknowledged
and agreed to by the insured homeowner in writing to be
necessary to prevent damage to the premises, the contractor is
entitled to the reasonable value of such goods and services.
    Homeowners should obtain a copy of the signed contract and
keep it in a safe place for reference as needed.
    To file a complaint against a roofing contractor, contact
the Illinois Department of Financial and Professional
Regulation at 312-814-6910 or file a complaint directly on its
website.
 
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. 100-670, eff. 1-1-19.)
 
    (815 ILCS 513/22 new)
    Sec. 22. Senior citizen; right of cancellation. A person
age 65 or older who purchases home repair or remodeling
services from an uninvited solicitor may cancel any contract
with a person engaged in home repair or remodeling by notifying
that person within 15 full business days following the day on
which the contract was signed if the agreement for the home
repair or remodeling was made at the home of the purchaser.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/9/2019