Which statement about home improvement laws is not correct?

Which statement about home improvement laws is not correct?

• A. The contractor must be licensed to perform home improvements.
• B. A written contract is often required.
• C. The homeowner must pay all invoices within 30 days.
• D. The homeowner may give the salesperson a bonus.

Answer: (D)

When home improvement protections are in place, licensing, written contracts, and proper compensation practices are key. The statement about paying a bonus to the salesperson runs counter to these protections because it amounts to an improper kickback or inducement. Laws aim to prevent unsavory referral incentives that could steer a homeowner toward a contractor for reasons other than the project’s merit, and such payments to a salesperson (especially if they aren’t licensed or aren’t part of the contractor’s licensed team) are not allowed. The other points reflect standard requirements: a contractor must be licensed to perform home improvements, and a written contract is commonly required to clearly define scope, price, and terms.

When home improvement protections are in place, licensing, written contracts, and proper compensation practices are key. The statement about paying a bonus to the salesperson runs counter to these protections because it amounts to an improper kickback or inducement. Laws aim to prevent unsavory referral incentives that could steer a homeowner toward a contractor for reasons other than the project’s merit, and such payments to a salesperson (especially if they aren’t licensed or aren’t part of the contractor’s licensed team) are not allowed.

The other points reflect standard requirements: a contractor must be licensed to perform home improvements, and a written contract is commonly required to clearly define scope, price, and terms.