(1) Every home improvement contract shall be evidenced by a written agreement and shall be signed by the parties. The home improvement contract shall be in the form approved by the office and shall contain:
(a) The name, address, and license number of the home improvement finance seller;
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Terms Used In Florida Statutes 520.73
- Contract: A legal written agreement that becomes binding when signed.
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Truth in Lending Act: The Truth in Lending Act is a federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. In general, lenders must provide information on Source: OCC
(b) The names of the home improvement finance seller’s employees who solicited or negotiated the home improvement contract;
(c) The approximate dates when the work will begin and will be completed; and
(d) A description of the work to be done and the materials to be used.
(2) The home improvement contract shall also contain:
(a) The “amount financed,” using that term, and a brief description such as “the amount of credit provided to you or on your behalf.” The amount financed is calculated by:
1. Determining the cash price, and subtracting any down payment;
2. Adding any other amounts that are financed by the creditor and that are not part of the finance charge; and
3. Subtracting any prepaid finance charge;
(b) The “finance charge,” using that term, and a brief description such as “the dollar amount the credit will cost you”;
(c) The “total of payments,” using that term, and a descriptive explanation such as “the amount you will have paid when you have made all scheduled payments”;
(d) In a credit sale, the “total sale price,” using that term, and a descriptive explanation, including the amount of any down payment, such as “the total price of your purchase on credit, including your down payment of $ .” The total sale price is the sum of the cash price, the items described in subparagraph (a)2., and the finance charge disclosed under paragraph (b);
(e) The amount of any money provided for debt consolidation;
(f) The interest charge for the amount advanced for debt consolidation;
(g) The total amount due under the home improvement contract, which shall be stated as a sum in dollars, less any down payment;
(h) The number of monthly payments and the amount of each payment; and
(i) The description of any collateral security taken or to be taken for the owner’s obligation under the home improvement contract.
Except for the requirements of subsection (1) and the provisions of subsection (3) which provide for a separate written itemization of the amount financed, a contract which complies with the federal Truth in Lending Act, 15 U.S.C. ss. 1601 et seq., or any accompanying regulations shall be deemed to comply with the provisions of this subsection and subsection (3). However, in any proceeding to enforce the provisions of this section, the burden of alleging and proving compliance with the federal Truth in Lending Act shall be on the party claiming compliance.
(3) The home improvement finance seller shall provide a separate written itemization of the amount financed, which itemization shall disclose the following:
(a) The cash price;
(b) The amount of down payment;
(c) The difference between the amounts disclosed under paragraphs (a) and (b);
(d) The amounts, if any, included for insurance and other benefits, specifying the types of coverages and benefits; and
(e) The official fees, survey charges, or permit charges actually incurred.
The itemization required by this subsection may appear on a disclosure statement separate from all other material, or it may be placed on the same document with the contract or other information so long as it is clearly and conspicuously segregated from everything else on the document.
(4) The home improvement contract shall be completed in full without any blank spaces to be filled in after the home improvement contract is signed by the owner.
(5) The home improvement contract shall contain the following notice, in substantially this form, and such other notices required by the public interest and specified by the commission by rule, in 10-point boldfaced type directly above the space provided for the signature of the owner:
Notice To Owner
a. Do not sign this home improvement contract in blank.
b. You are entitled to a copy of the contract at the time you sign. Keep it to protect your legal rights.
c. This home improvement contract may contain a mortgage or otherwise create a lien on your property that could be foreclosed on if you do not pay. Be sure you understand all provisions of the contract before you sign.
(6) The home improvement contract shall state whether workers’ compensation and public liability insurance are carried by the home improvement finance seller and if they are applicable to the work to be performed under the contract or if the home improvement finance seller is qualified as a self-insurer.
