Law Offices of R.S. Kohn, Ltd.

Illinois Law

The Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505)
You can contact the Office of the Illinois Attorney General to file a consumer complaint for cooperative mediation at any time you feel you need help.

If you can’t get satisfaction through personal negotiation or cooperative mediation, consider consulting with one of our attornies to explore what options you have for resolving your dispute in court. Keep in mind that there are time deadlines to cancel sales contracts and pursue legal claims. The Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505) allows you to sue if you have been damaged by unfair or deceptive acts or practices. The Law Offices of R.S. Kohn can file a lawsuit on your behalf for monetary damages.

Consumer Fraud Hotlines
Chicago
800-386-5438
TTY: 800-964-3013

Springfield
800-243-0618
TTY: 877-844-5461

Carbondale
800-243-0607
TTY: 877-675-9339

Contracts for Home Repair in Illinois
Before signing any home repair or remodeling contract over $1,000, a person engaging in the business of home repair and remodeling is required in Illinois to provide the customer with a copy of the “Home Repair: Know Your Consumer Rights” pamphlet.

A contract spells out the who, what, where, when, and cost of your project. The agreement should be clear, concise, and complete. In Illinois, a written contract with all costs enumerated is required for home repair or remodeling work over $1,000. This written contract or work order is required by law to state total cost, including parts and materials and any charge for the estimate. In addition, the contract is required to give the name and address of the person engaged in the business of home repair or remodeling. If the contractor uses a post office box, mail service, or agent to receive business correspondence, the agreement must state the contractor’s home address.

Home Repair Contract
Do not sign your home repair contract until you read it carefully. If the salesperson pressures you to sign before you’ve had a chance to read and understand all of the contract, DO NOT SIGN IT. Never rely on the salesperson to read or explain the contract to you. If you do not understand the contract, call us for legal advice. Never sign a contract that has blank spaces. Finally, be sure to get a copy of everything you sign when you sign it. Remember, you have three business days to cancel any contract, if the sale is made and signed at your home. The contractor CANNOT take this right away from you by initiating work, selling your contract to a lender, or any other tactic.

Mechanic’s Liens and Lien Waivers
A mechanic’s lien protects a subcontractor in the event that the general contractor fails to pay for the subcontractor’s services or supplies. In that event, the subcontractor can ask a court to put a lien, or hold, on your property until the debt is paid. As the property owner, you are responsible for the debt, and you will not be able to sell or finance your property until all liens are paid or lifted.

Duties of the General Contractor and Subcontractors
Under Illinois law, the homeowner must request—and the contractor must provide—a written list of the names and addresses of “all parties furnishing materials and labor and of the amounts due or to become due to each.” This list, or affidavit, must appear either as part of the contract or in a separate printed statement, and it must contain the following language:

“THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A SWORN STATEMENT OF PERSONS FURNISHING MATERIALS AND LABOR BEFORE ANY PAYMENTS ARE REQUIRED TO BE MADE TO THE CONTRACTOR.”

The law also requires every subcontractor listed in the affidavit to notify the homeowner, either personally or by certified letter, when he or she has furnished materials or performed labor on the homeowner’s remodeling project. This notice preserves the subcontractor’s right to put a lien on your property, and it must contain the name and address of the subcontractor or material provider, the starting date of the work performed, the type of work performed or materials provided, and the name of the general contractor who requested the work to be done. This notice is required by law to contain the following statement:

“NOTICE TO OWNER
“The subcontractor providing this notice has performed work for or delivered material to your home improvement contractor. These services or materials are being used in the improvements to your residence and entitle the subcontractor to file a lien against your residence if the services or materials are not paid for by your home improvement contractor. A lien waiver will be provided to your contractor when the subcontractor is paid, and you are urged to request this waiver from your contractor when paying for your home improvements.”

Lien Waivers
By giving you a signed lien waiver, a supplier of materials or services for your home repair project acknowledges that he or she has no right to file a mechanic’s lien against your property. In other words, the supplier acknowledges having been paid in full for those materials or services. It is important that you get these written and signed waivers from every subcontractor who has worked on your home in the course of the project. Do not make the final payment to the contractor until you are satisfied with the work and have obtained signed waivers showing that every subcontractor has been paid. You can find blank “waivers of lien” forms at home stores, print shops, and on the Internet.
- Source: Illinois Attorney General