depisit dates

Facts about Deposits in NYS

Home Improvement Fact Sheet

State law regulates the sale of home improvement goods and services and applies to most types of improvements costing more than $500 purchased by homeowners, co-ops owners and tenants. Some important provision of the law are summarized below:
Progress Payments: Any schedule of progress agreed to in the contract must bear a "reasonable relationship" to the work done, materials purchased or other project-related costs. Escrow Accounts: Any contract payments received by a contractor from a customer prior to substantial completion of the job must be put into a trust (escrow) account in a bank located in New York State within five business days and the customer must be informed where the money is being held within ten business days. The contractor can withdraw the deposit only in the following circumstances:

TIPS FOR CONSUMERS:

• Determine exactly what work you want done.
• Get job estimates which includes specific information about the materials and services to be provided for the job.
• Get references. Check with the contractor’s prior customers, banks and suppliers.
• If any guarantees are promised, get them in writing in the contract.
• Do not pay unreasonable advance sums. Instead, negotiate a contract payment schedule tied to the completion of specific stages of the job.

If you have a compliant regarding a home improvement contractor, contact the Attorney General’s office at (800) 771-7755 or visit his web site at www.oag.state.ny.us.

• under the terms of the payment schedule agreed on by the contractor and the customers;
• upon substantial completion of the job; or
• if the customer violates the contract, but only to the extent that the amount covers the contractor’s reasonable costs.

Alternative Surety Bond: As an alternative to the escrow account, the contractor must deliver to the customer a "bond" or "contract of indemnity," guaranteeing that the customer’s money will be properly used or returned. The bond must be delivered within ten business days after the contractor receives the customer’s money.
Other Contract Requirements: Home improvement contracts must be in writing, legible and in plain English. A copy must be given to the customer before any work is done. The contract must contain:

• the contractor’s name, address and telephone number;
• the approximate start and completion dates, including any contingencies which would change the completion date;
• a specific description of the work and materials, including brands, model numbers and other identifying information, along with the price;
• a consumer notice that reads as follows:

Penalties Against Contractors: A customer may sue for actual damages, plus a $500 penalty and reasonable attorneys’ fees if the contractor has used fraudulent written statements to get the customer to sign the contract. The Attorney General is also authorized to go to court to stop illegal practices and order contractors to compensate defrauded customers. Contractors can also face $100 civil fines for violating the Home Improvement Contract Law, and fines from $250 to $2,500 for violating provisions of the law dealing with the protection of a customer’s payments. Local Licensing Laws: A contractor must also continue to comply with any local licensing laws. For further details, refer to Article 36-A of the General Business Law and Section 71-a(4) of the Lien Law.

bikerboy said:

You can't do that here. Customers are entitiled to thier money back if you did not provide a service. Even have 72 hours to change thier mind after signing contract. (which has to be spelled out in the contract.)

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Biker--

I should have been more explicit. After all, we are talking legalities which can be very tricky everywhere.

I would return a deposit within the 3 day cooling off period. It is a law and must, therefrore, be abided. The originial intent was to try and prevent unscrupulous people from fleecing the public--from vacumm cleaner salesman to general contractors, many homeowners were taken to the cleaners and deposits and or full payment not returned. And, it does provide a measure of safety for the remorseful home owner. So, as I mentioned, I would, of course return a deposit within the time frame.

As a matter of fact, I do have a painting deposit escrow account set up just for this intended purpose. I do not draw that money down to my working account until the job is completed.

The required deposit I demand holds the home owner's place in my schedule. I keep in contact with my customer to let them know when we expect to begin work.

In the event the h/o cancels the job past the 3 day cooling off period, they better have a very good explanation for such. No explanation for the cancellation or getting lowballed qualifies for me taking the full deposit.

This policy protects my schedule and livelihood. I only have two hands and so much time to do my work. I issue a binding receipt that spells out these terms specifically.

Under no circumstances, do I use deposit money in escrow until the work is substantially completed, and in almost all cases, totally completed with a happy and satisfied customer.

I am not an expert and cannot represent my deposit policy as legal advice. Please do not use this information verbatim. Consult an attorney for realistic advice that can have substantial effect upon your business, and therefore. life.

JTP