2023 Illinois Compiled Statutes › Chapter 815 - BUSINESS TRANSACTIONS › 815 ILCS 513/ - Home Repair and Remodeling Act.

(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, eff. 1-1-00.)
(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 Act:
"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 under $500.
"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 requirements; contents. 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. 94-490, eff. 1-1-06.)
(815 ILCS 513/15.1)
Sec. 15.1. Notice of contractual provisions.
(a) A person engaged in the business of home repair and remodeling, that prepares or presents a written offer for home repair and remodeling to a consumer, shall advise the consumer, before the contract or agreement is accepted and executed, of the presence of any contractual provision that requires the consumer to: (i) submit all contract or agreement disputes to binding arbitration in place
of a hearing in court before a judge or jury; and (ii)
waive his or her right to a trial by jury.
(b) The consumer shall be given the option of accepting or rejecting both the binding arbitration clause and the jury trial waiver clause before the contract or agreement is accepted and executed by the consumer. If the consumer rejects either the binding arbitration clause or the jury trial waiver clause, or rejects both clauses, it shall be viewed as a counter offer to proceed with the proposed contract or agreement without the clause or clauses rejected. A person engaged in the business of home repair and remodeling shall have the right to reject the proposed contract or agreement. Proof that the consumer was given the option of accepting or rejecting both the binding arbitration clause and the jury trial waiver clause shall be demonstrated by having the consumer sign his or her name and write the word "accept" or "reject" in the margin next to each of the above clauses where it appears in the executed contract or agreement.
(c) Failure to advise a consumer of the presence of the binding arbitration clause or the jury trial waiver clause or to secure the necessary acceptance, rejection or consumer signature as provided in this Section shall render null and void each clause that has not been accepted or rejected and signed by the consumer.
(Source: P.A. 94-490, eff. 1-1-06.)
(815 ILCS 513/18)
Sec. 18. Repairs following damaging weather.
(a) As used in this Section, "catastrophe" means a natural occurrence, including but not limited to flood, drought, earthquake, tornado, windstorm, or hailstorm, which damages or destroys more than one residence.
(b) A contractor offering home repair or remodeling services shall not advertise or promise to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of goods or services.  As used in this Section, a promise to pay or rebate includes granting any allowance or offering any discount against the fees to be charged or paying the insured or any person directly or indirectly associated with the property any form of compensation.
(c) A contractor offering home repair or remodeling services shall not accept money or any form of compensation in exchange for allowing an out of area contractor to use its business name or license.
(d) A contractor offering home repair or remodeling services shall include its Illinois State roofing contractor license name and number as it appears on its Illinois State roofing license on all contracts, bids, and advertisements involving roofing work as required by the Illinois Roofing Industry Licensing Act.
(e) A person who has entered into a written contract with a contractor offering home repair or remodeling services to provide goods or services to be paid from the proceeds of a property and casualty insurance policy may cancel the contract prior to midnight on the earlier of the fifth business day after the insured has received written notice from the insurer that all or any part of the claim or contract is not a covered loss under the insurance policy or the thirtieth business day after receipt of a properly executed proof of loss by the insurer from the insured.  Cancellation is evidenced by the insured giving written notice of cancellation to the contractor offering home repair or remodeling services at the address stated in the contract.  Notice of cancellation, if given by mail, is effective upon deposit into the United States mail, postage prepaid and properly addressed to the contractor.  Notice of cancellation may be given by delivering or mailing a signed and dated copy of the written notice of cancellation to the contractor's business address as stated in the contract.  Notice of cancellation shall include a copy of the written notice from the insurer to the effect that all or part of the claim is not a covered loss under the insurance policy. Notice of cancellation need not take a particular form and is sufficient if it indicates, by any form of written expression, the intention of the insured not to be bound by the contract.
(f) Any contract referred to in subsection (e), must contain a statement in at least 10 point boldface, in substantially the following form:
"You may cancel this contract at any time before         midnight on the earlier of the fifth business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy or the thirtieth business day after your insurer has received properly executed proof(s) of loss from you. See attached notice of cancellation form for an explanation of this right."
(g) Upon executing a contract referred to in subsection (e), furnish each insured a fully completed form in duplicate, captioned "NOTICE OF CANCELLATION", which shall be attached to the contract but easily detachable, and which shall contain boldface type of a minimum size of 10 points the following statement with the appropriate fields completed by the contractor: "NOTICE OF CANCELLATION
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 a signed and dated copy of this cancellation notice or any other written notice to (name of contractor) at (address of contractor's place of business) at any time prior to midnight on the earlier of the fifth business day after you have received such notice from your insurer or the thirtieth business day after your insurer has received properly executed proof(s) of loss from you.  If you cancel, any payments made by you under the contract, other than payments for goods or services related to a catastrophe which you agreed in writing to be necessary to prevent damage to your property, will be returned to you within 10 business days following receipt by the contractor of your cancellation notice.
I HEREBY CANCEL THIS TRANSACTION
................................
(date)
................................
(insured's signature)".
(h) Within 10 days after a contract referred to in subsection (e) has been cancelled, the contractor offering home repair or remodeling services shall tender to the insured any payments, partial payments, or deposits made by the insured and any note or other evidence of indebtedness.  If, however, the contractor has provided any goods or services related to a catastrophe, acknowledged and agreed to by the insured in writing to be necessary to prevent damage to the premises, the contractor is entitled to the reasonable value of such goods and services.  Any provision in a contract referred to in subsection (e) that requires the payment of any fee for anything except goods or services related to a catastrophe shall not be enforceable against any insured who has cancelled a contract pursuant to this Section.
(i) A contractor offering home repair or remodeling services shall not represent, or offer or advertise to represent, on behalf of a homeowner on any insurance claim in connection with the repair or replacement of roof systems, or the performance of any other interior or exterior repair, replacement, construction or reconstruction work; or otherwise violate the Public Adjusters Law (Public Act 96-1332). A Public Adjuster means any person who acts on behalf of the insured in preparing and adjusting a claim for loss or damage covered by an insurance contract.  A contractor offering home repair or remodeling services shall not call in or file a claim to an insurance carrier on the insured's behalf. A contractor offering home repair or remodeling services shall not climb on a roof or inspect for exterior damage without the insured's express permission. Nothing in this subsection shall be construed to prohibit a residential contractor from:  (1) providing an insured an estimate for repair, replacement, construction, or reconstruction of the insured's property and any such estimate may be submitted to the insured's insurance company; (2) conferring with an insurance company's representative about damage to an insured's property; or (3) discussing repair or replacement options with an insurance company's representative or the insured about options for the repair or replacement of the damage.
(Source: P.A. 97-235, eff. 1-1-12.)
(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; 101-264, eff. 8-9-19.)
(815 ILCS 513/22)
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.
(Source: P.A. 101-264, eff. 8-9-19.)
(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. Action for actual damages. Any person who suffers actual damage as a result of a violation of this Act may bring an action pursuant to Section 10a of the Consumer Fraud and Deceptive Business Practices Act.
(Source: P.A. 96-1023, eff. 7-12-10.)
(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.)