California heavily regulates the restoration industry, especially when it comes to residential services. No one in the state can present, solicit, negotiate, or execute a contract for residential work unless that person is either the actual holder of a contractor license or has a “home improvement salesperson” (HIS) license and is employed by a licensed contractor.
A HIS is defined in Business and Professions Code (BPC) section 7152 as a person who is employed by a licensed contractor to solicit, sell, negotiate or execute contracts for which home improvements may be performed, a swimming pool, hot tub or spa constructed, or home improvement goods or services installed or furnished.
Before begining work, the HIS must be registered with the Contractors State License Board (CSLB) and the contractor has to provide the written notice that the HIS is employed by the contractor. Below is the Contractor Notification of Home Improvement Salesperson Employment.
Transparency is central to California’s “Home Improvement Contract” law, which requires at least seven (7) pages of documents for any residential job over $750. Unbeknownst to many, three (3) full pages must be dedicated to the right of rescission, also known as the “right to cancel.” Unfortunately, the technical requirements are vast and complex, particularaly in regard to the dizzying array of mandates seth forth in Business & Professions Code section 7159 and 7159.5. If a contractor fails to provide proper notice of the right to cancel, the customer may retain the right to cancel the contract forever, which could create serious collection problems.
To help contractors navigate California’s Home Improvement Contract laws, we have assembled the California Cleaning and Restoration Contract Package. All forms provided in the package include instructions and scripts. In addition to the Contract, the California package also has video instructions on the right of rescission. Ed Cross breaks down when to use the 3,5, & 7 day notice, how to fill out the forms, and when to execute a waiver of the right.