42 P.C.S. [7] 15 U.S.C. A home improvement retailer having a net worth of more than $50,000,000 or an employee of that retailer that does not perform home improvements. Do building superintendents or the maintenance staff for apartment buildings, condominiums, or community associations need to register? . The premises were previously owned by appellee. 50-624(g); Ky.Rev.Stat. 40-12-102. to ensure the fairness of market transactions. The amendment also requires additional written disclosures about the cost of time and materials contracts in the form of a written initial cost estimate and within the actual home improvement contract. Bob and I were truly confident you would put us on the right path. Act of March 27, 1713, 1 Sm.L. Pennsylvania's Home Improvement Consumer Protection Act ("HICPA" or the "Act") was enacted to protect consumers from the unfair trade practices and fraudulent activities of home improvement contractors. . 5522-5527. 5, 213; Md.Com.Law Code Ann. The term includes a subcontractor or independent contractor who has contracted with a home improvement retailer, regardless of the retailers net worth, to provide home improvement services to the retailers customers. (D) A statement that the cost of the services to be performed under the time and materials provision shall not be increased over the initial cost estimate plus a 10% increase without a written change order signed by the owner and contractor. For instance, it is not uncommon for contractors to include clauses that mandate arbitration in the event of a dispute. Co. v. Greenspan, 360 Pa. 542, 63 A.2d 72 (1949). 53, 1978 Pa.Laws 202, 2). See Pa.Senate Leg.J., June 28, 1976, at 1798 (Sen. Zemprelli) ("deals with a matter which . 34-5-10; Tex.Bus. 689 (1975); Lovett, State Deceptive Trade Practice Legislation, 46 Tulane L.Rev. Are there additional requirements in the act besides the registration requirement? In the case sub judice, the denial of appellants' petition to amend their complaint to include an UTPCPL claim has the effect of putting appellants out of court on a cause of action they seek to litigate. In order to avoid confusion, the Act requires that the amount of the down payment and the cost of special order materials be listed separately. In Anderson v. Kessler, 32 D. & C.3d 623 (Allegh. 5525(8) (four year limitation); 13 P.C.S. Our attorneys at Wolf, Baldwin & Associates are able to answer your questions regarding these matters. At the courts discretion, individuals can be awarded up to three times the amount of the economic loss sustained, or "treble." 404, 408 (E.D.Pa. The Act, located at 73 Pa.C.S. Is there an exemption for work performed by or on behalf of a charity or a non-profit corporation? a time and materials provision wherein contractor and owner agree in writing to the performance of the home improvement by the contractor and payment for the home improvement by the owner, based on time and materials. 45(a)(1) ("Unfair methods of competition in commerce, and unfair or deceptive acts or practices in or affecting commerce, are declared unlawful."). In 2008, the Pennsylvania Legislature passed the Home Improvement Consumer Protection Act. "Trade" and "commerce" are defined by section 201-2(3) to include "the advertising, offering for sale, sale or distribution of any . [3] Id. Inexplicably, the legislature, in enacting the UTPCPL failed to include a statute of repose for either actions for damages or injunctive relief under section 201-9.2. Pennsylvania unfair trade practices and consumer protection law (UTPCPL) is used to protect consumers and purchasers of household goods and services. 276, 513 A.2d 427 (1986) (Unfair Insurance Practices Act); Culbreth v. Lawrence J. Miller, 328 Pa.Super. 4. Does the Home Improvement Consumer Protection Act affect the licensing or registration of home improvement contractors by counties, cities or towns? Fasey Real Estate and Brian P. Cleere. But the Act does not apply to a person for whom the total cash value of all of that persons home improvements is less than $5,000.00 during the previous taxable year. 714.16(1)(b); Kan.Stat.Ann. C. Herbert O'HARA, Joseph F.X. While it is likely take years for the courts to flesh out the details of the Act and interpret its many provisions, there can be no doubt that the Act will have broad consequences for both home improvement contractors and home owners. 517.1, et seq. [9] That sales of real property *392 would be protected by the UTPCPL is consonant with its broad remedial purposes. Statute of Limitations on Contract/Sales in Pennsylvania Pennsylvania law is replete with various statutes of limitation, governing the length of time which aggrieved parties have in order to file their claims in the appropriate court. is regarded as a breach [sic] contract"). . Federal HOA Laws - In addition to state law regulations, the federal government has laws that govern homeowners' associations, condominiums, and other residential properties in Pennsylvania.. Pennsylvania Uniform Condominium Act (UCA), Pa. Cons. Yet other types of actions, such as actions under Pennsylvania's Unfair Trade Practice and Consumer Protection Law, have a six-year statute of limitations. Section 517.2 - Definitions. Get free summaries of new Supreme Court of Pennsylvania opinions delivered to your inbox! On or about June 19, 1980, appellants agreed to purchase the premises for the sum of $20,500.00. 1941) (common law trademarks). Do you need legal help with Pennsylvania unfair trade practices and consumer protection law? [16] Id. C.P. (B) That the cost of the services to be performed under the time and materials provision may not exceed 10% above the dollar value indicated in the initial cost estimate. Contractors can register by online or by sending in the registration form. 717-787-3391. 1984), it was held that "[i]f a leasehold of real estate is covered by the Consumer Protection Law, there is no reason why guarantees given in connection with the sale of real estate should not also be covered." Registration does not imply endorsement.. The Act also prohibits a home improvement contractor from changing the contractors name, address, liability insurance information or any other identifying information in a fraudulent or deceptive manner likely to cause confusion or misunderstanding without advising the owner in writing within ten days following any such change. *398 Confronted by the same issue in Murry v. Western American Mortgage Co., 124 Ariz. 387, 604 P.2d 651 (1979), the Arizona Supreme Court applied that state's one-year "catchall" limitations period to the Arizona Consumer Fraud Act. Do you receive unwanted calls? 646.605; R.I.Gen.Laws Ann. The operative provision of the Unfair Trade Practices and Consumer Protection Law provides: "Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce . Fox Rothschild LLP Attorneys at Law. 724 (1972). What is the toll-free telephone number for the Bureau of Consumer Protection that needs to be included in home improvement contracts? The law establishes a mandatory registration program for contractors who offer or perform home improvements in Pennsylvania. The law also creates a criminal penalty for home improvement fraud, as defined by the statute. Click here for more information. Contact and identifying information for the applicant, including information on any prior home improvement businesses operated by the applicant; For corporations and business entities, information on partners, officers, managers and other parties with an interest in the business; Information on other contractor licenses and registrations held by the applicant; A description of the applicants business; Background disclosures, including information on prior bankruptcies and criminal pleas or convictions; Insurance policy information showing at least $50,000 of personal injury liability coverage and $50,000 of property damage coverage (this is not related to contractor performance or quality of work); A signed and dated certification by the applicant; and. seq., is replete with numerous definitions, requirements, prohibitions and penalties. This amendment applies only to causes of action accruing after its effective date in February, 1983. Thus, if a six-year statute of limitation is allowable for UTPCPL claims, appellants' claim for treble damages and reasonable attorney's fees, although under UTPCPL, would justify an amended complaint pursuant to section 201-9.2(a) of the statute: Thus, while appellants would not technically be out of court because the claims for fraud and breach of contract and warranty were timely filed, the de facto result would be that appellants would be precluded from seeking recovery of damages and attorney's fees to which they may be entitled under the UTPCPL. The term does not include any of the following: Anyone who owns or operates a home improvement business or who offers, performs, or agrees to perform home improvements in Pennsylvania must register with the Office of Attorney General unless they fall within two exceptions: small contractors (less than $5,000 of work in a calendar year) and large retailers (net worth or more than $50 million). Pa.R. 76 (repealed by Act No. However, landscapers who perform other work at private residences including, but not limited to: the placement of retaining walls, fountains or drainage systems, or the construction, replacement, installation or improvement of buildings, driveways, swimming pools, porches, garages, roofs, siding, insulation, solar energy systems, security systems, flooring, patios, non-decorative fences, doors, lighting systems, concrete walkways and windows must register and comply with the act. and the Lantram Trademark Act were models for Pennsylvania's (UTPCPL)"). For cases applying these statutes to real estate transactions, see, e.g., Klotz v. Underwood, 563 F. Supp. 1961, expressly provides "[a] violation of this act shall also be a violation of the [UTPCPL]." Last Action: This bill amends the act of October 17, 2008 (P.L.1645, No.0132), known as the Home Improvement Consumer Protection Act - Enactment. You can explore additional available newsletters here. Section 517.8 - Home improvement fraud. Short title This act shall be known and may be cited as the "Unfair Trade Practices and Consumer Protection Law." 201-2. Act of December 17, 1968, No. In 1982, the legislature amended the Judicial Code to provide a two-year limitation period specifically for fraud and deceit actions. The contract must set forth the entire agreement, including, among other things, the approximate start date and completion date, a complete description of the work to be performed, the total sales price due under the contract, and the amount of any down payment required plus any amount to be advanced for the purchase of special order materials. 258, 478 A.2d 456 (1984). Id. A copy of that law can be found here. Do contractors need to show their registration to their customers or display the registration in their business? A person for whom the total cash value of all of that persons home improvements is less than $5,000 during the previous taxable year. Home improvement contractor registrations are valid for two years, and must be renewed biennially. Box 444Pottstown, PA 19464 Pottstown Law Office Map, 13 W. Miner StreetWest Chester, PA 19382Maps & Directions, 606 Court Street., Suite 203Reading, PA 19601Maps & Directions, 570 Main StreetPennsburg, PA 18073Maps & Directions, 2023 Wolf, Baldwin & Associates, P.C. A non-refundable fee of $50.00, payable to Commonwealth of Pennsylvania must accompany each application. If you were misled or defrauded by a home contractor, you could be entitled to compensation for your losses. 326, 1982 Pa.Laws 1409, 1440. Meanwhile, Pennsylvania home improvement contractors should consult with their legal counsel before July 1, 2009 to ensure that they are in compliance with the Act prior to its effective date. However if an employees perform home improvements on private residential properties on their own, outside the scope of their employment, and that works totals $5,000 or more in a calendar year, then the employee must register as a contractor. 100). This provision states: The following actions and proceedings must be commenced within two years: (7) Any other action or proceeding to recover damages for injury to person or property which is founded on negligent, intentional, or otherwise tortious conduct including deceit or fraud, except an action or proceeding subject to another limitation specified in this subchapter. We suggest that you include the following language in your contracts, and display it prominently so your customers can review it: The official registration number of [contractor name] can be obtained from the Pennsylvania Office of Attorney Generals Bureau of Consumer Protection by calling toll-free within Pennsylvania 1-888-520-6680. It exists to prevent businesses from participating in deceptive or unfair practices or inequitable competition. 282, 286, 507 A.2d 1230, 1232 (1986) (citations omitted). 2011 -2019.2 A powerful weapon; Used to protect consumers from "advertising, offering for sale, sale or distribution of any services and any property, tangible or intangible, real, E.g., Southwest Sunsites, Inc., 3 Trade Reg.Rep. This approach, however, yielded inconsistent determinations. (C) The total potential cost of the services to be performed under the time and materials provision, including the initial cost estimate and the 10% referenced in clause (B), expressed in actual dollars. The timely appeal of this important question followed. Yes, subcontractors who perform home improvements must register even if they do not enter agreements directly with consumers. What are the limits on down payments or deposits? 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