Section 7159.10 Of Article 10. Home Improvement Business From California Business And Professions Code >> Division 3. >> Chapter 9. >> Article 10.
. (a) (1) "Service and repair contract" means an agreement
between a contractor or salesperson for a contractor, whether a
general contractor or a specialty contractor, who is licensed or
subject to be licensed pursuant to this chapter with regard to the
transaction, and a homeowner or a tenant, for the performance of a
home improvement as defined in Section 7151, that conforms to the
(A) The contract amount is seven hundred fifty dollars ($750) or
(B) The prospective buyer initiated contact with the contractor to
request the work.
(C) The contractor does not sell the buyer goods or services
beyond those reasonably necessary to take care of the particular
problem that caused the buyer to contact the contractor.
(D) No payment is due, or accepted by the contractor, until the
work is completed.
(2) As used in this subdivision, "the work is completed" means
that all of the conditions that caused the buyer to contact the
contractor for service and repairs have been fully corrected and, if
applicable, the building department has accepted and approved the
(b) For any contract written pursuant to subdivision (a) or
otherwise presented to the buyer as a service and repair contract,
unless all of the conforming requirements for service and repair
contracts specified in subdivision (a) are met, the contract
requirements for home improvements set forth in subdivisions (c),
(d), and (e) of Section 7159 shall be applicable, including any
rights to rescind the contract as set forth in Section 1689.6 or
1689.7 of the Civil Code, regardless of the aggregate contract price.
(c) If all of the requirements of subdivision (a) are met, only
those notices and other requirements set forth in this section are
applicable to the contract.
(d) Every service and repair contract described in subdivision (a)
shall include, or otherwise comply with, all of the following:
(1) The contract, any changes to the contract, and any attachments
shall be in writing and signed or acknowledged by the parties as set
forth in this section, and shall be written in the same language
(for example Spanish) as principally used in the oral sales
(2) The writing shall be legible.
(3) Any printed form shall be readable. Unless a larger typeface
is specified in this article, the text shall be in at least 10-point
typeface and the headings shall be in at least 10-point boldface
(4) Before any work is started, the contractor shall give the
buyer a copy of the contract signed and dated by the buyer and by the
contractor or the contractor's representative.
(5) The name, business address, and license number of the
(6) The date the contract was signed.
(7) A notice concerning commercial general liability insurance.
This notice may be provided as an attachment to the contract if the
contract includes the statement, "A notice concerning commercial
general liability insurance is attached to this contract." The notice
shall include the heading "Commercial General Liability Insurance
(CGL)" followed by whichever of the following statements is both
relevant and correct:
(A) "(The name on the license or 'This contractor') does not carry
commercial general liability insurance."
(B) "(The name on the license or 'This contractor') carries
commercial general liability insurance written by (the insurance
company). You may call the (insurance company) at ____ to check the
contractor's insurance coverage."
(C) "(The name on the license or 'This contractor') is
(D) "(The name on the license or 'This contractor') is a limited
liability company that carries liability insurance or maintains other
security as required by law. You may call (the insurance company or
trust company or bank) at ____ to check on the contractor's insurance
coverage or security."
(8) A notice concerning workers' compensation insurance. This
notice may be provided as an attachment to the contract if the
contract includes the statement "A notice concerning workers'
compensation insurance is attached to this contract." The notice
shall include the heading "Workers' Compensation Insurance" followed
by whichever of the following statements is both relevant and
(A) "(The name on the license or 'This contractor') has no
employees and is exempt from workers' compensation requirements."
(B) "(The name on the license or 'This contractor') carries
workers' compensation insurance for all employees."
(e) Every service and repair contract described in subdivision (a)
shall provide the following information, notices, and disclosures in
(1) Notice of the type of contract in at least 10-point boldface
type: "Service and Repair."
(2) A notice in at least 12-point boldface type, signed and dated
by the buyer: "Notice to the Buyer: The law requires that service and
repair contracts must meet all of the following requirements:
(A) The price must be no more than seven hundred and fifty dollars
(B) You, the buyer, must have initiated contact with the
contractor to request the work.
(C) The contractor must not sell you goods or services beyond
those reasonably necessary to take care of the particular problem
that caused you to contact the contractor.
(D) No payment is due and the contractor may not accept any
payment until the work is completed."
(3) The notice in at least 12-point boldface type: "Notice to the
Buyer: You are entitled to a completely filled in and signed copy of
this agreement before any work may be started."
(4) If applicable, the heading "List of Documents to be
Incorporated into the Contract," followed by the list of documents to
be incorporated into the contract.
(5) Where the contract is a fixed contract amount, the heading:
"Contract Price" followed by the amount of the contract in dollars
(6) If a finance charge will be charged, the heading: "Finance
Charge" followed by the amount in dollars and cents. The finance
charge is to be set out separately from the contract amount.
(7) Where the contract is estimated by a time and materials
formula, the heading "Estimated Contract Price" followed by the
estimated contract amount in dollars and cents. The contract must
disclose the set rate and the estimated cost of materials. The
contract must also disclose how time will be computed, for example,
in increments of quarter hours, half hours, or hours, and the
statement: "The actual contract amount of a time and materials
contract may not exceed the estimated contract amount without written
authorization from the buyer."
(8) The heading: "Description of the Project and Materials to be
Used and Equipment to be Installed" followed by a description of the
project and materials to be used and equipment to be installed.
(9) The statement: "The law requires that the contractor offer you
any parts that were replaced during the service call. If you do not
want the parts, initial the checkbox labeled 'OK for contractor to
take replaced parts.' "
(10) A checkbox labeled "OK for contractor to take replaced parts."