You Need Pennsylvania Contracts
• Pennsylvania's Home Improvement Consumer Protection Act (Title 73 of Pennsylvania
Statutes Sections 517.1 to 517.19) requires that a long list of disclosures appear
in residential contracts – such as start and finish dates, names and addresses of
subs, insurance coverage and a phone number for the Pennsylvania Bureau of Consumer
Protection. Any contract which omits these disclosures is void and unenforceable.
• The Act also makes unenforceable any contract that includes any of eleven clauses
commonly found in home improvement contracts.
• Failure to comply with the Act is an unfair trade practice and gives an owner
the right to recover three times actual damages plus attorney fees.
• Failure to comply with the Act is also a misdemeanor if the contract is for $2,000
or less. If for more than $2,000, violation is a third degree felony. Penalties
are higher for repeat violations and if the owner is 60 years old or more.
• An arbitration clause in any contract is not enforceable if it omits certain issues
or is in text face (rather than bold type).
• The Home Improvement Finance Act requires specific disclosures, including disclosure
of the right of rescission and a statement in 10-point bold type directly above
the signature of the owner. A fine of up to $500 can be imposed for a first violation.
Second and later violations earn the same fine plus a year in jail.
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