Recently, I was reviewing a Board packet of the CCB. In the packet, I see an exhaustive list of individuals and companies fined for various reasons. One of those reasons was failure to provide a written contract and deliver proper notices while working with residential property owners. It occurred to me a contractor who has been a contractor for a period of time may have forgotten this is necessary or may never have felt it applied to his/her business. So I thought I’d review the requirements in this blog post.
When a contractor contracts directly with a residential property owner for an amount of $2,000.01 and higher, the contractor must provide a written contract that includes specific information. You can see a sample of that information here. Additionally, the contractor must provide consumer notices to the homeowner on or before the date the contract is signed. So the easiest way is to provide the notices with your contract.
Make two copies of the contract with the notices attached. The owner and the contractor sign and date the contract and all of the notices. One contract packet goes to the owner and one is kept by the contractor. The contractor must keep proof of proper delivery of the notices for at least two years.
Now to plagiarize from the CCB’s website, here’s some further information:
Retain proof of the property owner’s receipt of the notices by:
- Including the notices fully within the written contract.
- Getting and keeping signed copies of the notices.
- Providing the property owner with the notices, and include in the written contract an unambiguous phrase that acknowledges receipt of the notices with the property owner's initials.
You must keep proof that you delivered any required notices for two years after the contract is entered into.
Homeowners’ right to cancel
One-day right to cancel
A property owner can cancel any initial contract for construction, improvement, or repair of a residential structure by giving the contractor a written notice of cancellation prior to midnight of the next business day. Some exceptions apply such as work already substantially begun.
The contractor does not have any notice requirements. (ORS 701.310.)
Three-day right to cancel
Buyers have a three-day right to cancel a home solicitation contract when the contract is solicited at any place that is not the seller’s permanent place of business.
A construction contract is subject to this law if there is a personal solicitation made by the contractor or the contractor’s agent and the contractor’s offer is accepted anywhere other than the contractor’s permanent place of business. For example, you meet with a contractor in a restaurant. This applies to contracts for remodeling or repairs, not construction of a new house.
Regardless of who initiates the contact, the property owner must be given notice of his or her right to rescind the contract. (ORS 83.720)