SB 0561 Creastes the Missouri Home Improvement Fraud Act
LR Number:1505S.01I Fiscal Note:1505-01
Committee:Small Business, Insurance & Industrial Relations
Last Action:04/02/03 - Hearing Conducted S Small Business, Insurance and Journal page:
Industrial Relations Committee
Effective Date:August 28, 2003
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Current Bill Summary

SB 561 - This act creates the Missouri Home Improvement Fraud Act. Under the auspices of this act, home improvement contractors are prohibited from engaging in certain fraudulent acts with respect to a home improvement contract. Violations of this act shall constitute an unfair business practice and shall be subject to the provisions of the Missouri Merchandising Practices Act.

FRAUDULENT ACTS - Under this act, a contractor shall not:

(1) Misrepresent a material fact relating to the terms of a home improvement contract;

(2) Use deception, false pretense or false promises to induce a home owner to enter into a home improvement contract;

(3) Require payment for home improvement at an unreasonable price;

(4) Damage the property of a person with the intent of causing the owner to enter into a contract;

(5) Hold himself or herself out as a governmental agent with the intent of causing the person to enter into a home improvement contract;

(6) Abandon or fail to perform a contract;

(7) Engage in fraud in the execution of a any contract, mortgage promissory note related to a home improvement transaction;

(8) Prepare or accept any mortgage, promissory note or other evidence of indebtedness knowing that it recites a greater monetary obligation than the agreed consideration;

(9) Willfully disregard building, health or other safety codes; and

(10) Demand any payments prior to signing a home improvement contract.

RIGHT TO CANCEL - Under this act, an owner has the right to cancel a home improvement contract until midnight of the third business day after the day on which the owner signs such contract. An owner cannot cancel a home improvement contract if the owner requests the contractor to begin work without delay because of an emergency and the contractor substantially begins performance on the contract before the owner gives notice of cancellation.

CONTRACT REQUIREMENTS - This act outlines the criteria of what a home improvement contract must contain. At the time of signing a home improvement contract, the owner must be provided a legible copy of all documents signed. Contracts which fail to comply with the requirements shall not be invalid solely because of noncompliance.