§ 2-221 Content and Cancellation of Contract.

   (a)   Every agreement to perform a home improvement shall be evidenced by a written contract signed by all the parties to the contract and each home improvement contractor shall furnish to the buyer a fully completed legible copy of the entire home improvement contract at the time of its execution and before any work is done. The home improvement contract shall be legible, in plain English and any other language, that was principally used in the oral sales presentation. The contract shall contain all of the following:

      (1)   the date of the transaction, the contractor's name, office address, telephone number and license number.

      (2)   the approximate dates, or estimated dates, when the work will begin and be substantially completed, including a statement of any contingencies that would materially change the approximate or estimated completion date. In addition to the estimated or approximate dates, the contract shall also specify whether or not the contractor and the owner have determined a definite completion date to be of the essence.

      (3)   a description of the work to be performed, the materials to be provided to the owner, including make, model number or any other identifying information, and the agreed upon consideration for the work and materials.

      (4)   a notice to the owner purchasing the home improvement that the contractor or subcontractor who performs on the contract and is not paid may have a claim against the owner which may be enforced against the property in accordance with the applicable lien laws.

      (5)   a notice to the owner purchasing the home improvement that the home improvement contractor is legally required to deposit all payments received prior to completion in accordance with subdivision four of § 71-a of the New York State Lien and that, in lieu of such deposit, the home improvement contractor may post a bond or contract of indemnity with the owner guaranteeing the return or proper application of such payments to the purposes of the contract.

      (6)   if the contract provides for one or more progress payments to be paid to the home improvement contractor by the owner before substantial completion of the work, a schedule of such progress payments showing the amount of each payment, as a sum in dollars and cents, and specifically identifying the state of completion of the work or services to be performed, including any materials to be supplied before each such progress payment is due. The amount of any such progress payments shall bear a reasonable relationship to the amount of work to be performed, materials to be purchased, or expenses for which the contractor would be obligated at the time of payment.

      (7)   any advertised representation including, but not limited to, any charge, guaranty, or warranty, shall be clearly stated and made a part of the home improvement contract.

      (8)   a clause wherein the contractor agrees to furnish the buyer with a certificate of Workers' Compensation Insurance prior to commencement of work pursuant to the contract.

      (9)   a clause wherein the contractor agrees to procure all permits required by local law.

      (10)   in immediate proximity to the space reserved in the contract for the signature of the buyer, in bold face type a minimum size of 10 points, a statement in the following form:

      YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.

   (b)   The contractor shall furnish to the buyer at the time s/he signs the home improvement contract a separate completed form in duplicate captioned "NOTICE OF CANCELLATION" which shall be attached to the contract and easily detachable, and which shall contain in ten point bold face type, in English and in any other language used in the contract; the name and address of the contractor, the date of the transaction, the date until which buyer may give notice of cancellation, and the following statement:

NOTICE OF CANCELLATION

(enter date of transaction)

______________________
(Date)

   YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.

   IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELLED.

   IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT YOUR RESIDENCE, IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR SALE; OR YOU MAY IF YOU WISH, COMPLY WITH THE INSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF THE GOODS AT THE SELLER'S EXPENSE AND RISK.

   IF YOU DO MAKE THE GOODS AVAILABLE TO THE SELLER AND THE SELLER DOES NOT PICK THEM UP WITHIN 20 DAYS OF THE DATE OF YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE THE GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.

   TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELEGRAM, TO (Name of seller), AT (address of seller's place of business) NOT LATER THAN MIDNIGHT OF

______________________.
(Date)

I HEREBY CANCEL THIS TRANSACTION.

______________________
(Date)

______________________
(Buyer's Signature)

   (c)   Cancellation occurs when written notice of cancellation is given to the home improvement contractor. Notice of cancellation, if given by mail, shall be deemed given when deposited in a mailbox properly addressed and postage prepaid. Notice of cancellation shall be sufficient if it indicates the intention of the owner not to be bound.

   (d)   The contractor shall inform the buyer orally, at the time s/he signs the contract, of his or her right to cancel.

   (e)   The contractor shall not misrepresent in any manner the buyer's right to cancel.

   (f)   Until the contractor has complied with 6 RCNY §§ 2-221(a)(10) and 2-221(b) the buyer or any other person obligated for any part of the contract price may cancel the home improvement contract by notifying the contractor at any time, in any manner and by any means of his or her intention to cancel. The period prescribed by 6 RCNY § 2-221(a)(10) shall begin to run from the time the contractor complies with 6 RCNY §§ 2-221(a)(10) and 2-221(b).

   (g)   The buyer's notice of cancellation to the contractor need not take the form prescribed and shall be sufficient if it indicates the buyer's intention not to be bound.

   (h)   The contractor shall not fail or refuse to honor any valid notice of cancellation by the buyer and within ten business days after the receipt of such notice, the contractor shall

      (1)   refund all payments made under the contract;

      (2)   cancel and return any negotiable instrument executed by the buyer in connection with the contract;

      (3)   take any action necessary or appropriate to terminate promptly any security interest created in the transaction; and

      (4)   within ten business days of receipt of the buyer's notice of cancellation the contractor shall notify the buyer whether the contractor intends to repossess or to abandon any shipped or delivered materials.

   (i)   The contractor shall not negotiate, sell, transfer or assign any note or other evidence of indebtedness to a finance company or other third party prior to midnight of the fifth business day following the day the contract was signed.

   (j)   A home improvement contract may not be cancelled if the buyer initiated the contract and requested commencement of work without delay because of an emergency, provided that the buyer furnishes the contractor with a separate dated and signed personal statement in the buyer's handwriting describing the situation requiring immediate remedy and expressly acknowledging and waiving the right to cancel the contract within three business days.

   (k)   For purposes of this section a business day is any calendar day except Sunday, or the following business holidays: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran's Day, Thanksgiving Day, and Christmas Day.

(Amended City Record 12/1/2020, eff. 12/31/2020)