tag:blogger.com,1999:blog-251166974651227742.post2467843417228992557..comments2024-03-05T22:33:02.837-08:00Comments on State-by-State Construction Contract Law: 3-Day Right to Cancel – Contractors BewareGary W. Mosellehttp://www.blogger.com/profile/17009609522933917075noreply@blogger.comBlogger103125tag:blogger.com,1999:blog-251166974651227742.post-78314497865941902802024-01-21T15:23:55.357-08:002024-01-21T15:23:55.357-08:00If you have not received a check by now, you have ...If you have not received a check by now, you have three options (in order of the best to the worst): (1) Contact your state license board and file a complaint. In many states, the board will notify the contractor and schedule a hearing. (2) File a complaint in small claims court. In most states this can be done on the web or through the mail. (3) File suit in federal court. The 3-day right to cancel is federal law and has to be enforced in federal court (unless your state has a similar 3-day right to cancel).Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-50033897691377369012023-11-30T21:15:59.973-08:002023-11-30T21:15:59.973-08:00Hired a bath remodel company to redo my shower Oct...Hired a bath remodel company to redo my shower Oct 31/23 and put a $4500 check down. I had to unexpectedly cancel the job within the three day cancellation clause. It is now Oc 31/23 and I still don’t have my money back. I have been told several different time frames to expect the check. I was told a check was mailed out Oct 24…I didn’t get it. Then I was told a check was overnighted to me Oct 28/23….didn’t get that one either. It’s pretty clear to me that this company has no intentions of returning my money. <br />What are my options. Ruth Wnoreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-76890958343802852592022-12-30T09:56:44.944-08:002022-12-30T09:56:44.944-08:00Thank you Gary for your quick response and detaile...Thank you Gary for your quick response and detailed information specific to my state. This is extremely helpful.<br /><br />Thank you again,<br />JrAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-22090187691610280912022-12-30T09:03:43.602-08:002022-12-30T09:03:43.602-08:00Thanks for the question. I’m going to assume this ...Thanks for the question. I’m going to assume this work was on your primary residence. If so, New Jersey Administrative Code § 13:45A-16.1 to 16.2 (Home Improvement Practices) and New Jersey Administrative Code § 13:45A-17.1 to 17.14 (Home Improvement Contractor Registration) require a written agreement with specific notices and disclosures. Failure to comply with the code is a violation of New Jersey's Consumer Fraud Act. Penalties for violation can include a refund of all money collected (New Jersey Statutes Annotated § 56:8-2.11) or treble damages plus legal fees (New Jersey Statutes Annotated § 56:8-19). I don’t recommend paying the first contractor until you have checked the following:<br /><br />Did the agreement you signed include the notices and disclosures required by New Jersey Administrative Code § 13:45A-17.13 and New Jersey Statutes Annotated § 56:8-151? (1) The legal name, business address, and registration number of the contractor; (2) A copy of the certificate of commercial general liability insurance required of a contractor pursuant to section 7 [New Jersey Statutes Annotated section 56:9-142] and the telephone number of the insurance company issuing the certificate; (3) The total price or other consideration to be paid by the owner, including any finance charges; (4) A conspicuous notice of the right to cancel printed in at least 10-point bold-faced type; (5) The toll-free telephone number of the New Jersey Department of Law and Public Safety (New Jersey Administrative Code § 13:45A-17.11-f). <br /><br />Did you receive two copies of the federal notice of right to rescind? This “Reg Z” notice is required even if you received the New Jersey 3-day notice. If you did not receive this Reg Z notice, you have three years to cancel the contract under federal law.<br /><br />My recommendation: If you see any problem with any of the issues listed above, inform the first contractor that you have no obligation to pay. Explain the reason. Then make it clear that you are entitled to a prompt refund of money paid. If not received in 5 days, you intend to both (1) file suit and ask for attorney fees (under New Jersey Statutes Annotated § 56:8-19) and (2) file a complaint with the New Jersey Department of Law and Public Safety.<br />Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-38723978124862302982022-12-30T07:49:30.105-08:002022-12-30T07:49:30.105-08:00Hello Gary,
I live In New Jersey and this is my pr...Hello Gary,<br />I live In New Jersey and this is my primary residence. My boiler broke this past Dec 23rd. (During the cold snap we had) I got a plumbing company out on Christmas Eve to fix it. Unfortunately the company could not fix it. I paid the plumber $400 fee just to come out for an emergency. On Christmas day they came out again and said he need to replace the whole boiler. I paid the plumber $400 fee just to come out for an emergency. After a back and forth, I signed a contract to replace it. I was going to use a State funded program to get it partially paid for (NJNG Save Green Program) and the rest I would of been financed thru a bank. I filled out the States form on Christmas Eve online. The contract also stated the same in their summary in their agreement. (That the job would be funded by the State program and the bank loan) Now, I had to wait until the state approved the application. The state offices didn't reopen until the 27th and I didn't hear from them until the 28th. (More than 3 days pass the cancellation notice). Meanwhile I called another plumber that came in and offered the same job without going thru the NJ state program (offered a better finance deal ) and could do it immediately. So I gave the second company the job and emailed the other plumber I no longer needed him. I couldn't wait for the states program application to be approved. (It’s still freezing cold during this time) <br />I tried to explain to the 1st company that I cannot wait longer for the approval from the state to come thru. The original plumber now wants to charge me processing fees/administrative fees,restocking fee and the original techs labor and repair cost from Christmas Eve (even though he didn't fix the boiler) for breaching the contact even though the contract states it would of been paid by the state program and the rest by a bank loan. (I never applied for the original plumbers bank loan) <br />I explained to the original plumber that the since the state didn't approve my application within the 3 day window, I shouldn't pay anything else. He disagrees. <br />And for the record the 3 day cancellation clause is in the original contact and I had no clue it was there. Now I do, but didn't think canceling a contract without exchanging any money would of been a big deal. Now I know better.<br />Any suggestions? Advise?<br />Thanks,<br />Jr<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-24196260003315003612022-11-14T07:09:47.718-08:002022-11-14T07:09:47.718-08:00Your contractor may not understand Illinois law: T...Your contractor may not understand Illinois law: The Illinois Home Repair and Remodeling Act (815 Illinois Compiled Statutes § 513/1 to 513/999) applies to nearly all work done on existing residential buildings with 6 units or less. One section of that Act, 815 Illinois Compiled Statutes § 513/18, sets standards for repair of casualty losses after a natural catastrophe affecting more than one home. If you were notified by an insurer that any part of your loss was not covered by insurance, § 513/18(e) gives you the right to cancel the contract. This notice of right to cancel in § 513/18(f) must appear in the contract in bold type. Two copies of the cancellation form in § 513/18(g) had to be attached to the contract. From your summary, I doubt that you have any liability to the contractor. The Act explains how to cancel: “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.” <br /><br />Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-57930967705453738002022-11-13T18:57:54.414-08:002022-11-13T18:57:54.414-08:00Hi Gary,
I so hope you can help me. I live in Illi...Hi Gary,<br />I so hope you can help me. I live in Illinois. Earlier this year we sustained storm dage to our roof and siding. Another neighbor recommended a roofer so we called them and they do siding too so we talked to them about doing all of the repairs. They worked with our insurance adjuster and were able to get 2 full sides of the house and the roof covered for replacement. We were working on getting the other two sides approved because our existing siding was discontinued, and we got a random message one day that the price on roof shingles was going up on Monday so we needed to pick a shingle and sign a form so they could order and do the work. The form includes the roof replacement and the scope shows the two sides as well. The roof has been replaced and paid for. Since then it's clear that this contractor is only looking for the insurance payout. We would like to go with another contractor to complete the work. There is no termination clause in the agreement signed, and we were not advised of any termination procedures. I advised the contractor that we wanted to cancel the agreement and not move forward with the siding. They responded that the siding had been ordered already so they're doing the two sides but we don't have to move forward with the other two. No money has exchanged hands and we've paid no deposit. Are we clear to insist that the agreement is void and they will not be completing any further work on our home? Are we liable for the cost of materials if they really were ordered? Thank you so much!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-20812790554999521262022-10-13T14:30:24.116-07:002022-10-13T14:30:24.116-07:001. If by "our house" you mean your prima...1. If by "our house" you mean your primary residence, your 3-day right to cancel is guaranteed by federal law.<br />2. Calling the plumber the next day and leaving a message may not have been enough to cancel the agreement. 12 Code of Federal Regulations § 226.15 requires a "written" notice of cancellation. But if you did not receive a blank notice of the right to rescission from the contractor, you have three years to cancel the agreement. <br />3. You don't mention the state where you live. Many states also provide a 3-day right to cancel home improvement agreements.<br />4. You're entitled to a full refund of the $1,311 paid whether under state or federal law.<br />5. I agree with your legal counsel. It's impractical to sue for $1,311. But there are other good remedies.<br />My recommendation: Send your contractor a letter (1) Cancelling the contract; (2) Demanding a refund of the $1,311 paid; (3) Setting a deadline of 10 days for a response. If the deadline is not met, explain that you will (1) File suit in small claims court to collect the full $1,311 plus fees plus cost; (2) File a complaint with the state board that regulates home improvement and home improvement contractors. Many states license home improvement contractors and subcontractors. Nearly all states license plumbers. Other states have construction dispute resolution services designed to settle issues like this. Search for the contractors license board or department of consumer affairs in your state. If suit is necessary, search on the Web for small claims court procedures in your state. My guess: You'll be paid very promptly when the contractor understands that you're serious about collecting.Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-91584690644284995132022-10-12T18:05:28.537-07:002022-10-12T18:05:28.537-07:00My wife and I signed a contract for re-piping our ...My wife and I signed a contract for re-piping our house without reading what we had signed. We had called a plumber to fix a few simple problems (slow draining kitchen sink, a dripping bathroom sink faucet, and replacing a couple of bathroom shutoff valves), but they talked us into re-piping the house. We've been taking care of our ailing dog and thus, we have been getting very little sleep for several days. I'm not one who normally signs a contract without reading it (my wife who is originally from Thailand was just following my lead). And, I'm not one who normally gets something replaced or fixed if it's not broken. We signed an iPad which was just a blank screen. Later that night, I thought about what we had done and got up the next morning to see what they sent me in email. I saw most of what we signed for and I replied that I was cancelling the contract. I also called them, but since this was a Saturday and I didn't think a plumber's office would be open, I left them a message saying that I was cancelling the contract. We had to make a 20% ($1,311) down payment via my wife’s credit card which the credit card company and the plumbing company said we wouldn't get back since my wife’s signature was on a form stating that the deposit is non-refundable. <br />One lawyer I talked with said it's a Federal law that I could cancel within 3 days and that sleep deprivation can cause you to do things you normally wouldn't do. However, about a month later, another lawyer with that group said the law didn't apply to our situation. <br />I contacted lawyer with another law firm who at first said that the law didn’t apply to me, but after I sent him your article, he said it probably would apply. However, he said for the total price of the contract ($6,500) it would not be worth going to trial since taking them to court for a trial would cost about $5,000. And, for now I’m just out $1,311. I sure would like to get them because they are using some deceptive practices. They found us, an old couple, and had us sign an iPad of which I later found they had cut and pasted my signature to another part of the so-called contract which I hadn’t seen in their emails. In fact, what they sent via email didn’t include what my wife’s signature was on. These documents were obtained from the credit card company who was in communication with the plumbing company about our dispute of the charge. <br />So, we had no printed document that you mentioned stating we could cancel or how to cancel the contract within three days. Are we in the right to cancel and should we get our deposit back? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-71068345297084846272021-06-16T14:46:59.272-07:002021-06-16T14:46:59.272-07:001. If only one owner signs the contract, only that...1. If only one owner signs the contract, only that owner would be liable under the agreement. If only one owner receives the notice of right to cancel, the second owner has three years to rescind the contract.<br />2. Florida Statutes 713.001 to 713.37 relates to liens. Florida law does not provide a 3-day right to rescind. The federal 3-day right to rescind applies if the project is your principal residence. From your question, I doubt the roofer's notice complies with federal law. But see my blog post of November 19, 2017 on bad faith rescission.Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-51454506699712494062021-06-16T10:57:10.140-07:002021-06-16T10:57:10.140-07:00Gary, a couple of follow up questions (this is for...Gary, a couple of follow up questions (this is for a roofing company that is collecting through insurance funds):<br />1. Do both owners have to sign the contract, or is one owner enough to be binding? I signed the contract and did not date it. My wife was not asked to sign at all, but we both had to sign the check(along with our mortgage company) to turn over to the roofing company.<br />2. In the contract, there were no "forms," only statements; "You may cancel this contract, without cause or expense, within 3 business days when signed in your home." "RIGHT OF CANCELLATION PERSUANT TO FEDERAL REGULATION AND THE SECTIONS 713.001-713.37, FLORIDA STATUTES, YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANYTIME PRIOR TO MIDNIGHT OF THE THIRD BUSI-NESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT." <br /><br />Does this satisfy the 12 Code of Federal Regulations § 226.15 and 12 Code of Federal Regulations § 226.159(b)?<br />There was no attached "Notice of cancellation form" as indicated in the statement that was printed on the contract.<br /><br />Thank you for your help!Timhttps://www.blogger.com/profile/12100425106961224848noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-80764505332068832572021-06-16T06:00:12.314-07:002021-06-16T06:00:12.314-07:00Yes. 12 Code of Federal Regulations § 226.15 requi...Yes. 12 Code of Federal Regulations § 226.15 requires that every contract which results in a lien on the principal residence of an owner include a right of rescission - the right to back out of the deal. Since every private construction project in Florida can result in a construction lien on the property, this federal right of rescission is required on nearly every home improvement and custom home. 12 Code of Federal Regulation § 226.15(b) requires that each owner receive two copies of the notice of right to cancel under Regulation Z. If there are two adults living in a home, it's safe to assume that each is an owner. <br />Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-47634696153985696212021-06-15T20:03:22.350-07:002021-06-15T20:03:22.350-07:00Hey Gary, in Florida, does the 3-day right to canc...Hey Gary, in Florida, does the 3-day right to cancel have to include two copies of the cancellation form that can be returned to the contractor? Thanks!Timhttps://www.blogger.com/profile/12100425106961224848noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-76365788005713658532021-04-09T05:18:59.270-07:002021-04-09T05:18:59.270-07:00The federal 3-day right to cancel doesn’t apply on...The federal 3-day right to cancel doesn’t apply on this project if it’s not your primary residence. But Louisiana has plenty of law that might help. The right to collect for home improvement work in Louisiana is governed by Louisiana Revised Statutes § 37:2175.1 to § 37:2175.6. You can look those statutes up on the web. Roofing contracts that may be covered at least in part by insurance have to comply with Louisiana Revised Statutes § 37:2175.1(A)(6). Based on facts in your question, I doubt the contract you signed complies with Louisiana law. For most home improvement work, Louisiana contractors need a certificate of registration. A contractor who is not registered has no right to “file a statement of claim or a statement of lien or privilege”. See § 37:2175.6. You can check license status at the Louisiana State License Board web site. If the contract doesn’t comply with Louisiana law and if the contractor is not registered, you have no obligation to pay the 30% claimed.Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-32026688192172354322021-04-08T18:53:59.742-07:002021-04-08T18:53:59.742-07:00Hey Gary, I found you while looking for a solution...Hey Gary, I found you while looking for a solution to our problem. I have a rental mobile home in Louisiana that needed a new roof. When I was in town October 2020 I met with a roofer who at the time got me to sign a contract ( I thought it was a form to allow them to communicate with my insurance). There is no price on it and no 3 day cancellation clause. After dealing with them for a few weeks it was clear to me they were only in this for the insurance money and would not give me a total price for the job. Due to how their contract was worded it left a lot of room for me to have to pay if insurance didn't cover the total cost or if more damage was found. I found another roofer in January and had them complete the roof. The original roofer has now sent a letter demanding 30% of the replacement value of the roof or the insurance checks. Would I still be covered under the 3 day cool of period since nothing was attached or mentioned at the time of signing? It is not my primary residence but I am hoping I can get out of this contract without having to pay. Any help would be appreciated!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-72349670162709309162021-02-12T13:01:51.314-08:002021-02-12T13:01:51.314-08:00Hi Danny
I’m going to assume your contract is a N...Hi Danny<br /><br />I’m going to assume your contract is a NJ home improvement contract under New Jersey Administrative Code § 13:45A-16.1 to 16.2 and that work was done on your primary residence. Before offering to compromise this dispute, I recommend checking the contractor’s standing to make a claim. <br />1. New Jersey Administrative Code § 13:45A-17.3 requires that everyone doing home improvement work in New Jersey be registered with the State unless specifically exempted. If you haven’t checked that registration already, I would advise doing that now: https://newjersey.mylicense.com/verification/ <br />2. All home improvement contracts for more than $500 have to include all the disclosures in New Jersey Statutes Annotated § 56:8-151. Failure to make any of these disclosures is a violation of New Jersey's Consumer Fraud Act. Penalties for violation can include a refund of all money collected (New Jersey Statutes Annotated § 56:8-2.11) or treble damages plus legal fees (New Jersey Statutes Annotated § 56:8-19).<br />3. If you did not receive the federal Reg Z notice, you have three years to cancel the agreement and claim a refund. See my February 8, 2010 blog post.<br /><br />If your contractor and contract fall short of these standards, I recommend notifying the contractor that you plan to file a complaint with the NJ Dept of Consumer Affairs: https://njconsumeraffairs.state.nj.us/file-a-complaint/. That should help resolve the issue. No contractor wants to be assessed penalties under the NJ Consumer Fraud Act. <br /><br />Assuming your contract and contractor have met NJ and federal standards, the issue is breach of contract or termination of the agreement or both. Your rights and obligations depend on facts of the case and language in your contract. Your legal counsel can advise on these issues. I wouldn’t be too concerned about the contractor’s threat to file a lien claim. Heavy penalties apply to lien holders who make exaggerated lien claims. Typically, lien claims are resolved quite promptly with both sides given an opportunity to present evidence and state their case. <br />Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-86970319507995868172021-02-12T04:35:08.656-08:002021-02-12T04:35:08.656-08:00Hello Gary,
I am based out of NJ. I had a contrac...Hello Gary,<br /><br />I am based out of NJ. I had a contractor out to remodel 3 bathrooms and a kitchen, and paid about half of the total amount. Only 1 bathroom was poorly done, and we never got to the punch list portion for this portion of work. While the contract had a suggested timeframe, he was a month over the timeframe by the time the first bathroom was "done".<br /><br />As the work was taking too long, we had our lawyer assist in terminating the contract with a letter, stating that he was in breach due to surpassing the timeframe. The contractor is using COVID as a cover to justify the delays. However, he did draft up the termination agreement, adding $2000 to the proposal amount of the first bathroom as a last minute cash grab. He stated if we do not pay that he will file a Notice of Unpaid Balance, then file a construction lien. We did make a good faith offer to compromise to knock down the amount owed to half, and he said he would knock the amount owed to $1500 as a compromise. While this is less than the original termination amount, it is still more than we would want to pay for no work to show for it. <br /><br />As he was already ahead in money (we paid for half of the total work to be done, while only 1/5 of the work was done), is he justified in threatening us with a lien for money I do not believe he is owed? <br /><br />Our contract never had a 3 day right to cancel clause, and my wife who initially handled the paperwork did not sign the contract. Is settlement our only option to avoid a lien, and at the contractors whim as to the amount of settlement cash to agree to? Or could we leverage an unsigned contract and Gen Z to fight off a lien should there be one filed against us?Danny Leehttps://www.blogger.com/profile/10549407290603284441noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-88330416371205742982020-10-02T16:18:38.560-07:002020-10-02T16:18:38.560-07:00Responses to your questions:
1) Ohio law says &quo...Responses to your questions:<br />1) Ohio law says "after work has started." I interpret that to include anything done after work has started. Others could disagree.<br />2. Your "loss" is an issue of proof: What it would cost to put you in the condition promised under the contract. Expert testimony is normally required to prove the "loss".<br />3. Ohio law expects a lien release to be exchanged for payment. This lien release has to be signed by the sub for the sub's work but is normally provided by the prime contractor. I would not pay either until lien releases are offered in exchange for payment.<br />4. You've got a dispute between the sub and the prime contractors. Let then thrash it out. When you've worked out the amount of the settlement, write a check payable to both the prime AND the sub. Neither can negotiate the check without agreement of the other. Write on the back of the check, "This check is full and final payment for [identify the job].Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-87961925566134957532020-10-02T09:00:34.713-07:002020-10-02T09:00:34.713-07:00Gary, may I ask for a few clarifications on a few ...Gary, may I ask for a few clarifications on a few things?<br />My first question is in reference to your statement <br />1) Gives the owner the right to cancel at any time, even after work has started. <br />What if the work is finished? <br />2) Is considered a deceptive act or practice under Ohio's Consumer Sales Protection Act (Ohio Revised Code § 1345.02, § 1345.03 and § 1345.09). <br />The remedies for violation of Ohio's CSPA include the right to collect three times any damages suffered plus attorney's fees. <br />Are the “damages” the entire $3388.00 contract price?<br />3) You have no obligation to pay the contractor until you receive lien releases signed by both the sub and the concrete supplier.<br />Does this mean we wait until the subcontractor actually files a Mechanics Lien Or are you referring to some other type of lien release?<br />4) The subcontractor wants to settle and so do we, but the general contract will not respond to the any of the sub’s texts or phone calls nor will he respond to us. Again, the general contractor has his money, the subcontractor has said he had only a work order, never saw the dollar amount for the actual concrete work. We know that isn’t true because of a comment made by the sub’s operations manager to the foreman. This comment was overheard by my husband and evidence that the sub changed the specs of the job to cover his expenses. Sadly, the comment is considered hearsay. Your comments and guidance are appreciated!Kimmeehttps://www.blogger.com/profile/17972602225276196039noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-63124387568319724232020-10-01T07:16:12.988-07:002020-10-01T07:16:12.988-07:00Your right to cancel under Ohio law extends to the...Your right to cancel under Ohio law extends to the entire contract, including subs and suppliers. But you may still be liable under lien law to subs and suppliers. That will require legal action. In any law suit, Ohio's CSPA gives you the right to collect three times any damages (wrong concrete PSI, wrong concrete thickness) plus your attorney fees. The effect of that will be to immunize you against suit by the contractor. Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-82313046135603779132020-10-01T06:18:32.415-07:002020-10-01T06:18:32.415-07:00The sub and the concrete supplier each have lien r...The sub and the concrete supplier each have lien rights that can be enforced by court action -- takes months. But you have no other direct obligation to either. Ohio law give you plenty of leverage. Drive a hard bargain but try to settle this without legal action. The legal fees would likely exceed the amount in question.Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-38231195665130754222020-09-30T18:29:38.721-07:002020-09-30T18:29:38.721-07:00Ohio's Home Solicitation Act (HSA), Ohio Revis...Ohio's Home Solicitation Act (HSA), Ohio Revised Code Annotated, § 1345.21 to 1345.28, gives owners the right to cancel residential construction and home improvement contracts negotiated at any place other than the contractor's retail store. This right to cancel expires on midnight of the third day after the contract was signed. The notice of the right to cancel and the cancellation form must be included in the contract. Failure to provide both oral and written notice of the right to cancel: <br />(1) Gives the owner the right to cancel at any time, even after work has started, and <br />(2) Is considered a deceptive act or practice under Ohio's Consumer Sales Protection Act (Ohio Revised Code § 1345.02, § 1345.03 and § 1345.09). <br />The remedies for violation of Ohio's CSPA include the right to collect three times any damages suffered plus attorney's fees. <br />You have no obligation to pay the contractor until you receive lien releases signed by both the sub and the concrete supplier.<br />My recommendation: Advise the contractor he's committed a deceptive act under Ohio consumer protection law and that you have no further obligation until he complies fully with Ohio law. If you can't negotiate a reasonable settlement, consider filing a complaint with the Ohio Attorney General: (800)282-0515Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-564534065077405812020-09-30T17:21:07.749-07:002020-09-30T17:21:07.749-07:00We are Ohio residents. We received and accepted a ...We are Ohio residents. We received and accepted a bid from a contractor to install a concrete patio. We paid a 20% deposit and once we did that he was pretty much done with us. The bid is for a “new pour of 5 inches, 18 by 18 feet pad and 36 inch by 15 feet walkway. All proper prep and structural components included. Use 6000 psi mix, install expansion joint.” We were told the work would be done by his sub contractor. What we got from the concrete sub-contractor: 4 inches of 4000 psi mix poured directly over excavated, unprepared, bare ground into the area framed by 2 by 4 wood forms. I found out about the concrete mix by calling the supplier. The concrete subcontractor advised it was not necessary to attach the new patio to an existing cement slab. They also decided no stone or gravel was going to be used. We were not advised of any changes to the original contract. The contractor did not inspect the excavated area or check the job once it was poured. I contacted our local Better Business Bureau and made a complaint. The contractor responded by offering a price adjustment. We accepted but asked him to provide documentation stating he paid the subcontractor. He refuses. The concrete sub-contractor wants us to pay them but we have no contract with them. We also were never advised of our 3 day right to cancel. We are concerned about the threat of a mechanics lien and don’t know how to proceed.Kimmeehttps://www.blogger.com/profile/17972602225276196039noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-34456328447613877612020-09-17T20:33:49.756-07:002020-09-17T20:33:49.756-07:00Yes. Both Texas and federal law have you covered. ...Yes. Both Texas and federal law have you covered. Assuming the roof repairs are to your primary residence:<br />1. 12 Code of Federal Regulations § 226.15 requires that every contract which results in a lien on the principal residence of an owner include a right of rescission - the right to back out of the deal. Since every private (as opposed to public works) construction contract can result in mechanics' lien on the property, this federal right of rescission is required on nearly every home improvement and home repair job - even if there is no loan on the project. This federal right of rescission expires at midnight on the third business day after signing the contract. Saturday is considered a business day. You have three days to cancel any agreement for home repairs or improvements. If you don’t receive two copies of the cancellation form required by law, you have three years to cancel the agreement.<br />2. Texas Property Code § 53.255 requires that the general contractor deliver a disclosure statement before a contract is signed for building or re[airing the home of an owner. Texas law attaches no penalty for failure to make these disclosures. For example, liens and any deed of trust on the property will be valid even if these disclosures are omitted.<br />3. The Texas Residential Construction Liability Act (RCLA), Texas Property Code § 27.001 to § 27.007 requires certain disclosures in contracts for construction, repair or alteration of a residential property with four units or less. Failure to include the required statement can entitle the owner to recover a $500 penalty from the contractor. <br />4. If this is an insured loss valued at over $1,000, Texas law requires that you receive the notice in Texas Business and Commerce Code § 2702.<br />My suggestion: Send an email or call the contractor. Explain that you’re backing out of the deal under Texas and federal law and want a full and prompt refund of any money advanced.<br />Gary W. Mosellehttps://www.blogger.com/profile/17009609522933917075noreply@blogger.comtag:blogger.com,1999:blog-251166974651227742.post-73802985461754606052020-09-17T09:30:22.193-07:002020-09-17T09:30:22.193-07:00I am in Texas. We recently had huge storms and my...I am in Texas. We recently had huge storms and my roof is leaking. I called a roofer and he came out to inspect. I signed something with him because I was panicking about the leak and wanted it fixed right away. He never gave me a copy of what I signed. Now I realize that I should have got more than one roofing estimate and want to be able to cancel whatever I signed with the guy who came out in case someone else is cheaper. Can I?Anonymousnoreply@blogger.com