Home Improvements

Every year, thousands of homeowners take on home improvement projects, either on their own or with the help of a contractor. Home improvement fulfills many needs, from increasing a home's value to improving a homeowner's quality of life. A home improvement project can be a good experience, but there are many challenges and legal issues. An attorney who understands home improvement law can help you have a positive experience so you can enjoy the fruits of your labor sooner rather than later.

Deciding to Remodel

Remodeling may promise a homeowner their dream house, but if large changes are planned, it may make more sense to just purchase a different property. Significant changes to a home may also make it harder to sell. Homeowners should consider property value trends, resale value, and his or her own plans for staying in the area. It can be difficult to sell the largest, most expensive home in the area, and potential buyers may not be interested in the specific improvements the owner wants to make.

Paying for Home Improvements

Many homeowners pay for home improvements using a loan secured by a second mortgage on their home. HUD has a number of programs that may help finance home improvements if the homeowner and the project are included in HUD's guidelines. Many HUD special programs exist for repairs that meet the HUD criteria, including funds for fixer-uppers, loans for Native Americans, and rural home improvement and repair loans and grants.

Avoiding Deceptive Home Improvement Contractors

Many laws attempt to protect homeowners from deceptive home improvement contractors, but a homeowner must still be careful. Federal Trade Commission rules address the problem of false advertising, and vendors cannot legally engage in "bait-and-switch" techniques or advertise a product or service for less than it really costs. The federal Truth in Lending law protects homeowners who finance their projects. The Truth in Lending Act (TILA) also provides a "right to rescission," which gives a borrower three business days to cancel any contract that was signed at any location other than the seller's place of business and that includes any kind of financial claim to a home. State laws also protect homeowners. If a homeowners believes he or she is the victim of a dishonest contractor, he or she should contact an experienced attorney to determine the best approach to pursuing any claims.

Dealing With a Contractor

Homeowners should ask around for recommendations from their friends and colleagues to find a good contractor. They can also speak with building inspectors, bankers, and trade groups about contractors who do the kind of work they want done . For a large job, a homeowner should interview and solicit bids from two or three contractors for the same work. The lowest bid is not necessarily the best, and a contractor with a good reputation might be worth a premium. Check references and the contractor's credentials, verifying that he or she has a current license and is bonded, before signing any agreements. In order to avoid liability, confirm that the contractor carries workers' compensation insurance. Also, ask about warranties on the work, check for civil judgments or lawsuits pending against the contractor, and put the contract in writing. The contract should include identifying information, the starting and completion dates, a specifically identified scope of work, a description of materials to be used, a statement that the contractor is responsible for all licenses and permits, and provisions regarding cleanup, storage, theft, damage, change orders, warranties, and progress payments. It is wise to make the final payment as large as possible, and not payable until all work is completed and approved, the subcontractors are paid, and any liens are canceled. A subcontractor who is not paid may be able to file a construction or mechanic's lien on the property. If you discover that a subcontractor has filed a lien, call your lawyer immediately.

Conclusion

Improving a home can be an exciting project, but a homeowner should proceed carefully in choosing a contractor and negotiating a contract. An attorney who is knowledgeable in the laws related to home improvements can help you protect your rights.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.