Illinois General Assembly - Full Text of HB4268
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Full Text of HB4268  100th General Assembly




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1    AN ACT concerning business.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Home Repair and Remodeling Act is amended by
5changing Section 20 as follows:
6    (815 ILCS 513/20)
7    Sec. 20. Consumer rights brochure.
8    (a) For any contract over $1,000, any person engaging in
9the business of home repair and remodeling shall provide to its
10customers a copy of the "Home Repair: Know Your Consumer
11Rights" pamphlet prior to the execution of any home repair and
12remodeling contract. The consumer shall sign and date an
13acknowledgment form entitled "Consumer Rights Acknowledgment
14Form" that states: "I, the homeowner, have received from the
15contractor a copy of the pamphlet entitled 'Home Repair: Know
16Your Consumer Rights.'" The contractor or his or her
17representative shall also sign and date the acknowledgment
18form, which includes the name and address of the home repair
19and remodeling business. The acknowledgment form shall be in
20duplicate and incorporated into the pamphlet. The original
21acknowledgment form shall be retained by the contractor and the
22duplicate copy shall be retained within the pamphlet by the



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1    (b) For any contract for $1,000 or under, any person
2engaging in the business of home repair and remodeling shall
3provide to its customers a copy of the "Home Repair: Know Your
4Consumer Rights" pamphlet. No written acknowledgment of
5receipt of the pamphlet is required for a contract of $1,000 or
7    (c) The pamphlet must be a separate document, in at least
812 point type, and in legible ink. The pamphlet shall read as

11    As you plan for your home repair/improvement project, it is
12important to ask the right questions in order to protect your
13investment. The tips in this fact sheet should allow you to
14protect yourself and minimize the possibility that a
15misunderstanding may occur.

17Please use extreme caution when confronted with the following
18warning signs of a potential scam:
19    (1) Door-to-door salespersons with no local connections
20who offer to do home repair work for substantially less than
21the market price.
22    (2) Solicitations for repair work from a company that lists



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1only a telephone number or a post-office box number to contact,
2particularly if it is an out-of-state company.
3    (3) Contractors who fail to provide customers references
4when requested.
5    (4) Persons offering to inspect your home for free. Do not
6admit anyone into your home unless he or she can present
7authentic identification establishing his or her business
8status. When in doubt, do not hesitate to call the worker's
9employer to verify his or her identity.
10    (5) Contractors demanding cash payment for a job or who ask
11you to make a check payable to a person other than the owner or
12company name.
13    (6) Offers from a contractor to drive you to the bank to
14withdraw funds to pay for the work.

16    (1) Get all estimates in writing.
17    (2) Do not be induced into signing a contract by
18high-pressure sales tactics.
19    (3) Never sign a contract with blank spaces or one you do
20not fully understand. If you are taking out a loan to finance
21the work, do not sign the contract before your lender approves
22the loan.
23    (4) Remember, you have 3 business days from the time you
24sign your contract to cancel any contract if the sale is made



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1at your home. The contractor cannot deprive you of this right
2by initiating work, selling your contract to a lender, or any
3other tactic.
4    (5) If the contractor does business under a name other than
5the contractor's real name, the business must either be
6incorporated or registered under the Assumed Business Name Act.
7Check with the Secretary of State to see if the business is
8incorporated or with the county clerk to see if the business
9has registered under the Assumed Business Name Act.
10    (6) Homeowners should check with local and county units of
11government to determine if permits or inspections are required.
12    (7) Determine whether the contractor will guarantee his or
13her work and products.
14    (8) Determine whether the contractor has the proper
16    (9) Do not sign a certificate of completion or make final
17payment until the work is done to your satisfaction.
18    (10) Before you pay your contractor, understand that the
19Mechanics Lien Act requires that you shall request and the
20contractor shall give you a signed and notarized written
21statement (known as a "Sworn Statement") that lists all the
22persons or companies your contractor hired to work on your
23home, their addresses along with the amounts about to be paid,
24and the total amount owed after the payment to those persons or
26    Suppliers and subcontractors have a right to file a lien



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1against your home if they do not get paid for their labor or
2materials. To protect yourself against liens, you should demand
3that your contractor provide you with a Sworn Statement before
4you pay the contractor. You should also obtain lien waivers
5from all contractors and subcontractors if appropriate. You
6should consult with an attorney to learn more about your rights
7and obligations under the Mechanics Lien Act.
8    Disclaimer: The contents of this paragraph are required to
9be placed in the pamphlet for consumer guidance and information
10only. The contents of this paragraph are not substantive
11enforceable provisions of the Home Repair and Remodeling Act
12and are not intended to affect the substantive law of the
13Mechanics Lien Act. Remember, homeowners should know who
14provides supplies and labor for any work performed on your
15home. Suppliers and subcontractors have a right to file a lien
16against your property if the general contractor fails to pay
17them. To protect your property, request lien waivers from the
18general contractor.

20    (1) Contractor's full name, address, and telephone number.
21Illinois law requires that persons selling home repair and
22improvement services provide their customers with notice of any
23change to their business name or address that comes about prior
24to the agreed dates for beginning or completing the work.



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1    (2) A description of the work to be performed.
2    (3) Starting and estimated completion dates.
3    (4) Total cost of work to be performed.
4    (5) Schedule and method of payment, including down payment,
5subsequent payments, and final payment.
6    (6) A provision stating the grounds for termination of the
7contract by either party. However, the homeowner must pay the
8contractor for work completed. If the contractor fails to
9commence or complete work within the contracted time period,
10the homeowner may cancel and may be entitled to a refund of any
11down payment or other payments made towards the work, upon
12written demand by certified mail.
13    (7) A provision stating the grounds for termination of the
14contract if you are notified by your insurer that all or any
15part of the claim or contract is not a covered loss under the
16insurance policy, you may cancel the contract by mailing or
17delivering written notice to (name of contractor) at (address
18of contractor's place of business) at any time prior to the
19earlier of midnight on the fifth business day after you have
20received such notice from your insurer or the thirtieth
21business day after receipt of a properly executed proof of loss
22by the insurer from the insured. If you cancel, any payments
23made by you under the contract will be returned to you within
2410 business days following receipt by the contractor of your
25cancellation notice. If, however, the contractor has provided
26any goods or services related to a catastrophe, acknowledged



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1and agreed to by the insured homeowner in writing to be
2necessary to prevent damage to the premises, the contractor is
3entitled to the reasonable value of such goods and services.
4    Homeowners should obtain a copy of the signed contract and
5keep it in a safe place for reference as needed.
6    To file a complaint against a roofing contractor, contact
7the Illinois Department of Financial and Professional
8Regulation at 312-814-6910 or file a complaint directly on its
11    If you think you have been defrauded by a contractor or
12have any questions, please bring it to the attention of your
13State's Attorney or the Illinois Attorney General's Office.
14Attorney General Toll-Free Numbers
15Carbondale         (800) 243-0607
16Springfield        (800) 243-0618
17Chicago            (800) 386-5438".
18(Source: P.A. 97-235, eff. 1-1-12.)