Deposits | Conshy Contractor

A Pennsylvania contractor must refund a deposit within 10 days of a certified-mail request once a job is more than 45 days past its start date

Wed, 21 Oct 2026 08:37:29 -0400

Pennsylvania’s Home Improvement Consumer Protection Act sets a refund deadline for a job that never starts. Once more than 45 days have passed since the starting date in the written contract, and no substantial portion of the work has been done, you can ask for your money back in a letter sent by certified mail. The contractor then has ten days to refund the amount paid, counted from the day it signs the return receipt or refuses the letter. The rule is section 9(2) of the act, 73 P.S. § 517.9, and the Attorney General’s Bureau of Consumer Protection enforces it. The text described here is the act as the General Assembly posted it on October 21, 2026.

What the act says

The refund rule depends on a date the contract has to contain. Section 7(a)(6) says no home improvement contract is valid or enforceable against an owner unless it gives the approximate starting date and completion date. The 45 days in section 9(2) run from that starting date, so a contract with a vague start (“spring”) leaves you with no clear day to count from.

The provisions of the Home Improvement Consumer Protection Act that govern a refund when a job does not start, as posted by the General Assembly on October 21, 2026. Paraphrased from the statute.
Provision	What it says
Section 7(a)(6)	The contract must give the approximate starting date and completion date
Section 9(2)(ii)	More than 45 days must have passed since the starting date in the written contract
Section 9(2)(i)	No substantial portion of the contracted work has been performed when the homeowner asks
Section 9(2)	The request is in writing and sent by certified mail with a return receipt
Section 9(2)	The contractor must refund the amount paid within ten days of signing the return receipt or of refusing the letter at its last known address
Section 9(5)	A contractor may not abandon or fail to perform a contract without justification. Nonpayment or another breach by the owner counts as justification
Section 10	A violation of the act is a violation of the Unfair Trade Practices and Consumer Protection Law

Source: palegis.us

Both conditions have to hold when you send the letter. The act does not define “substantial portion,” so a contractor who has dropped off a dumpster or pulled a permit may argue the work has begun. The refund covers “the amount paid for a home improvement,” in the act’s words, which takes in the deposit and any money advanced for special-order materials, the custom items made for your job that a contractor cannot return.

The act also covers a contractor who will not accept the letter. If the contractor refuses the letter sent to its last known address, the ten days start from the refusal. Section 4(c) of the act requires a registered contractor to report a change of address to the Attorney General within 30 days, so the address on its registration is a sensible place to send the letter, along with the address on the contract.

A worked example on a $36,000 job

This example uses round numbers and dates in 2027 and is not drawn from any real job. A homeowner signs a $36,000 contract on March 1, 2027, to remodel a bathroom and a laundry room. The contract lists a starting date of Monday, April 5, 2027, and the homeowner pays a $12,000 deposit, which is one-third of the price and the most the act allows on a job over $5,000 with no special-order materials. Our article on the one-third deposit cap explains that limit.

April 5 passes with no crew. By Thursday, May 20, 45 days have elapsed. On Friday, May 21, the 46th day, the homeowner mails a dated letter by certified mail with a return receipt, asking for the $12,000 back. The contractor signs for it on Tuesday, May 25. Ten days later, Friday, June 4, is the last day to refund the deposit under section 9(2).

In the example, the refund falls due 60 days after the contract's start date

Worked example: days after a contract starting date of April 5, 2027, when the job never begins

Example with round numbers and assumed dates. The act counts days without saying whether weekends or holidays are excluded. Source: palegis.us

Worked example. A $36,000 contract with a $12,000 deposit and a starting date of April 5, 2027, where no work is done.
Step	Date	Days after start date
Start date in the contract	2027-04-05	0
45 days have passed	2027-05-20	45
Homeowner mails the certified-mail request	2027-05-21	46
Contractor signs the return receipt	2027-05-25	50
Last day to refund the $12000 deposit	2027-06-04	60

Source: palegis.us

If the contractor misses June 4, it has committed a prohibited act under section 9. Section 10 makes any violation of the act a violation of the Unfair Trade Practices and Consumer Protection Law. Section 9.2 of that law lets a person who loses money to an unlawful practice sue for actual damages or $100, whichever is greater. A court may, at its discretion, award up to three times the actual damages, which on the $12,000 deposit would be as much as $36,000, plus costs and reasonable attorney fees.

When it becomes a crime

Section 8 of the act defines home improvement fraud. One form, in section 8(a)(2), covers a person who takes an advance payment, fails to do the work when the contract specifies, and fails to return the payment, when the person acts with intent to defraud. The section allows for force majeure, meaning events outside anyone’s control, an unforeseen labor strike, or an extension you agreed to. The grade of the offense depends on the amount kept and on the homeowner’s age, and the maximum sentences come from Title 18 of the Pennsylvania Consolidated Statutes.

Grading of home improvement fraud for failing to return an advance payment, from section 8(c) of the act, with the maximum prison terms and fines in 18 Pa.C.S. §§ 1101, 1103 and 1104.
Payment kept	Grade of the offense	Maximum prison term (years)	Maximum fine ($)
$2000 or less or cannot be determined	Misdemeanor of the first degree	5	$10,000
More than $2000	Felony of the third degree	7	$15,000
More than $2000 and the homeowner is 60 or older	Felony of the second degree	10	$25,000
Second or later offense at any amount	Felony of the second degree	10	$25,000

Source: palegis.us

Section 1101 also allows a fine equal to double the offender’s gain when that is higher. A court may revoke or suspend the contractor’s registration as part of the sentence. District attorneys can bring the charge, and the Attorney General can bring it when the conduct crosses county or state lines. A homeowner recovers the money through the refund request and, if needed, a civil claim.

What to do when a job stalls

Before you sign, read the starting date line. Ask for a calendar date, and keep a copy of the signed contract, which the act says the contractor must give you at signing at no charge. Check the registration number on the Attorney General’s contractor search or at 1-888-520-6680, and note the address it lists.

Once 45 days have passed with no substantial work, write a short letter. Give the contract date, the starting date it lists, the amount you paid and the date you paid it, a statement that no substantial work has been done, and a request for a refund under 73 P.S. § 517.9(2). Send it by certified mail with a return receipt, keep the receipt and a copy of the letter, and photograph the site that day.

If the ten days pass, you can file a complaint with the Attorney General’s office. Under 42 Pa.C.S. § 1515, a magisterial district judge, the local judge who hears small claims in Montgomery County, can hear a civil claim of up to $12,000, not counting interest and costs. A lawyer can tell you whether to file there or in a higher court. The guides on what Pennsylvania law requires when you hire a contractor and on change orders and payment schedules cover the rest of the contract. If the stalled job is a roof, Conshy Roofers covers hiring a roofer.

Caveats

This is general information about the act, not legal advice for a particular contract. Whether work counts as substantial, whether a delay was justified and how a court counts the days are questions for a lawyer or the Bureau of Consumer Protection.

Section 9(2) and section 8(a)(2) both depend on the contract. A change order or a written agreement that moves the starting date resets the count, and section 9(5) treats nonpayment or another breach by the owner as justification for a contractor’s failure to perform.

The act covers a private residence, which it defines as a single-family house, a building of no more than two units, or a single condominium or co-op unit. A person who owns three or more homes in Pennsylvania counts as an owner only for a primary residence and homes used for personal recreation. New home construction and emergency work fall outside the act.

Five bills that would amend the act were listed on the General Assembly’s page for it on October 21, 2026. Four were in committee, and SB 1324, which would change the sections on contracts and fraud among others, had last been laid on the table in the Senate on June 25, 2026. None had been enacted.

Pennsylvania lets you cancel a home improvement contract within three business days of signing and requires a refund within ten

Sat, 17 Oct 2026 08:31:56 -0400

Pennsylvania’s Home Improvement Consumer Protection Act, at 73 P.S. § 517.7, lets the person who signs a home improvement contract cancel it without penalty within three business days of signing, wherever it was signed. Section 7 of the state’s Unfair Trade Practices and Consumer Protection Law supplies the cancellation form contractors use and requires a refund of every payment within ten business days of a valid cancellation. On a contract signed Tuesday, November 24, 2026, two days before Thanksgiving, the last day to cancel under the federal definition of a business day is Saturday, November 28.

What the two laws say

The act calls the right rescission, which means undoing the contract as though it had never been signed. Section 7(b) grants it to anyone who signs a home improvement contract, except for emergency work, and section 7(a)(13) makes a contract unenforceable against the owner unless it includes a notice of the right.

The wording of that notice comes from section 7 of the consumer protection law. Next to the buyer’s signature line, in bold type of at least 10 points, the contract must carry a statement in substantially this form: “You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction.” Attached go two detachable copies of a form captioned “Notice of Cancellation,” each filled in with the seller’s name and business address, the date of the transaction and a deadline no earlier than the third business day after it.

The provisions that govern the right to cancel a home improvement contract in Pennsylvania, as posted by the General Assembly on October 17, 2026. Paraphrased from the statutes.
Provision	Law	What it requires
Section 7(b)	Home Improvement Consumer Protection Act	The person who signs may cancel without penalty within three business days of signing wherever the contract was signed
Section 7(a)(13)	Home Improvement Consumer Protection Act	The contract must include a notice of the right to cancel or it cannot be enforced against the owner
Section 7(c)	Home Improvement Consumer Protection Act	The contractor hands over a completed copy with all notices at signing at no charge
Section 7(b)(1)	Unfair Trade Practices and Consumer Protection Law	A statement of the right in bold type of at least 10 points next to the buyer's signature line
Section 7(b)(2) and (c)	Unfair Trade Practices and Consumer Protection Law	Two detachable copies of a form captioned Notice of Cancellation, filled in with the seller's name and address, the date of the transaction and the deadline
Section 7(e)	Unfair Trade Practices and Consumer Protection Law	The three days do not start until the buyer has been told of the right and given the forms
Section 7(g)	Unfair Trade Practices and Consumer Protection Law	Refund of all payments within ten business days of receiving a valid cancellation
Section 7(h)	Unfair Trade Practices and Consumer Protection Law	No sale of the buyer's note to a finance company before midnight of the fifth business day after signing
Section 7(m)	Unfair Trade Practices and Consumer Protection Law	A form that meets the Federal Trade Commission's rule counts as compliant

Source: palegis.us

Two provisions protect a homeowner who never got the form. Section 7(e) of the consumer protection law says the three days do not start until the buyer has been told of the right and given copies of the notice. The Attorney General’s office says in its answers on the act that a business has to provide the notice exactly as the law words it, and that a homeowner who was never told of the right may be able to void the whole contract even after the three days have passed.

Counting the three days

Neither the act nor section 7 of the consumer protection law defines a business day. The Federal Trade Commission’s cooling-off rule for sales made at home, 16 CFR Part 429, defines it as any calendar day except Sunday and federal holidays, so Saturday counts. Which definition a Pennsylvania court would apply to a home improvement contract could not be verified from these sources, so the example below uses the commission’s count and shows a weekday count beside it.

This example uses round numbers and is not drawn from any real job. A homeowner signs a $30,000 bathroom contract on Tuesday, November 24, 2026, and pays a $10,000 deposit, one-third of the price and the most the act allows on a job over $5,000, as our article on the deposit cap explains. Wednesday is the first business day. Thanksgiving, on Thursday, November 26, is a federal holiday and does not count. Friday is the second business day and Saturday the third, so the homeowner has until midnight on Saturday, November 28, to mail or deliver the notice. A count that skipped Saturdays would push the deadline to Monday, November 30.

Thanksgiving week leaves a homeowner until Saturday, November 28, to cancel

Worked example: business days counted after a contract signed Tuesday, November 24, 2026, under the FTC definition

Example. The FTC rule counts every day except Sundays and federal holidays. Pennsylvania's statutes do not define a business day. Source: ecfr.gov

Worked example. The FTC count includes Saturdays and leaves out Sundays and Thanksgiving. The weekday count leaves out Saturdays too.
Date	What the day is	Business days counted	Weekdays counted
Tue Nov 24	Contract signed	0	0
Wed Nov 25	Business day	1	1
Thu Nov 26	Thanksgiving (federal holiday)	1	1
Fri Nov 27	Business day	2	2
Sat Nov 28	Last day to cancel under the FTC count	3	2
Sun Nov 29	Sunday	3	2
Mon Nov 30	Last day under a weekday count	4	3

Source: ecfr.gov

The refund

Suppose the homeowner mails the signed form on Friday, November 27. Under section 7(a) of the consumer protection law, the cancellation takes effect when the notice goes into the mail, so it is on time even though the contractor receives it on Tuesday, December 1.

Section 7(g) then gives the contractor ten business days from receipt to refund all payments, return any negotiable instrument, meaning a check or promissory note the homeowner signed for the job, and end any security interest, a seller’s or lender’s legal claim on the homeowner’s property. Under the FTC count the $10,000 is due by Saturday, December 12. Under a weekday count it is due by Tuesday, December 15.

Worked example. The refund deadline on a contract signed Tuesday, November 24, 2026, and cancelled by mail on Friday, November 27.
Step	Date	What the law says
Contract signed and $10000 deposit paid	Tue Nov 24	The three days start once the homeowner has been told of the right and given both copies of the form
Homeowner mails the signed form	Fri Nov 27	The cancellation takes effect when the notice goes into the mail
Contractor receives the notice	Tue Dec 1	The ten business days for the refund count from receipt
Refund due under the FTC count	Sat Dec 12	Tenth business day after receipt, counting Saturdays
Refund due under a weekday count	Tue Dec 15	Tenth weekday after receipt

Source: palegis.us

If materials were delivered before the cancellation, the homeowner has to make them available at the house in substantially as good condition. Within the same ten business days the seller must say whether it will collect them, and a seller that does not collect them within 20 days of the notice forfeits them.

Emergency work

The one way to give up the right is an emergency work authorization, used when the homeowner calls the contractor about a bona fide emergency. Section 7(n) of the consumer protection law defines that as a condition that makes the house uninhabitable or could, such as a failed heating, electrical or plumbing system or damage to the roof or outer walls. The contractor gives a written estimate first, and the authorization is a preprinted card at least 4 by 6 inches. Signing it gives up the three-day right for that work, and the act treats such emergency work as outside its scope.

What to check before you sign

Look for the bold cancellation statement beside the signature line and for two copies of the Notice of Cancellation. Both copies should show the contractor’s name, a street address for its place of business, the date of the transaction and a deadline date. Check the deadline against a calendar, and make sure the transaction date on the contract is the day you sign.

If you decide to cancel, sign and date one copy of the form, or write your own notice, and mail or deliver it to the address on the form before midnight on the deadline. Because the cancellation counts from the day it goes into the mail, mail it at a post office counter and ask for a receipt that shows the date, such as certified mail. Keep the second copy and a photo of the one you sent.

Check the contractor’s registration number with the Attorney General’s office at 1-888-520-6680, the toll-free number every contract has to list. Our guide to what Pennsylvania law requires when you hire a contractor lists every term a contract must contain. For a roof, see Conshy Roofers.

Caveats

This is general information about the two laws, not legal advice for a particular contract. If a contractor refuses to honor a cancellation or to refund a deposit, ask a lawyer or the Attorney General’s Bureau of Consumer Protection.

The examples use the FTC definition of a business day. If your deadline falls on a Saturday or near a holiday, treat the earlier date as the deadline.

The act covers jobs over $500 at a single-family house, a building of no more than two units, or a single condominium or co-op unit. An owner of three or more Pennsylvania homes is covered only for a primary residence and homes used for personal recreation, so a landlord may fall outside the act on rentals.

The consumer protection law addresses goods delivered before a cancellation. For labor already done inside the three days, ask the bureau or a lawyer.

The statutes described here are the texts posted by the General Assembly on October 17, 2026, and the FTC rule is the eCFR text current as of October 15, 2026. Five bills that would amend the home improvement act were listed on the General Assembly’s page for the act on October 17, 2026.

On a $45,000 remodel, Pennsylvania law caps the deposit at $15,000 plus any special-order materials the contract names

Tue, 13 Oct 2026 08:43:01 -0400

Pennsylvania’s Home Improvement Consumer Protection Act limits how much a contractor can take up front. On a contract with a total price over $5,000, the deposit may not be more than one-third of the price. When the written contract designates special-order materials, the cap rises by the cost of those materials. On a $45,000 kitchen remodel with no special orders, the most a contractor can collect as a deposit is $15,000. The rule is in section 9 of the act, codified at 73 P.S. § 517.9, and the Attorney General’s Bureau of Consumer Protection enforces it.

What the act says

The cap sits in the act’s list of prohibited acts. Section 9(10) bars a contractor from receiving a deposit above one-third of the contract price on a job over $5,000, or above one-third of the price plus the cost of special-order materials that will be ordered, as designated in the written contract. Three other provisions work alongside it.

The provisions of the Home Improvement Consumer Protection Act that govern a deposit, as posted by the General Assembly on October 13, 2026. Paraphrased from the statute.
Section of the act	What it provides
7(a)(9)	The contract lists the down payment and any amount advanced for special-order materials as separate figures
9(9)	No payment of any kind before the contract is signed
9(10)(i)	On a contract over $5,000 the deposit may not exceed one-third of the price, or one-third plus the cost of special-order materials designated in the contract
9(10)(ii)	The cap does not apply to a home improvement retailer that posts an irrevocable letter of credit with the bureau and uses registered, insured contractors
8(a)(6)	Misrepresenting an item as special-order material or misstating its cost is home improvement fraud

Source: palegis.us

The act defines special-order material narrowly. It has to be something that is not a stock item, is ordered from the factory or distributor and made or processed for your contract, and cannot be returned by the contractor for a refund or credit. Custom cabinets built to your kitchen’s measurements fit that definition. A faucet the supplier keeps on the shelf does not, even if the contractor buys it for your job.

The Attorney General’s office describes the same limit in its answers on the act. “Generally speaking a down payment of one-third of the total contract price or one-third plus the cost of special ordering materials is appropriate,” the office’s FAQ says.

A worked example on a $45,000 job

This example uses round numbers and is not drawn from any real job. A homeowner signs a $45,000 fixed-price contract to remodel a kitchen. One-third of the price is $15,000, and that is the deposit cap if the contract designates no special-order materials.

Now suppose the contract designates custom cabinets at $9,000 as special-order materials. The cap becomes $15,000 plus $9,000, or $24,000. If the contract also designates quartz countertops cut to the kitchen’s layout at $4,500, the cap is $28,500. The cost of the special orders is added to one-third of the full $45,000 price.

Designated special orders raise the cap on a $45,000 job from $15,000 to $28,500

Worked example: largest deposit Pennsylvania's home improvement act allows on a $45,000 contract, dollars

Example with round numbers. Cabinets at an assumed $9,000 and countertops at an assumed $4,500, each designated as special-order material in the contract. Source: palegis.us

Worked example. The maximum deposit is one-third of the $45,000 price plus the special-order materials the contract designates.
Scenario	One-third of price ($)	Special-order materials ($)	Maximum deposit ($)
No special orders	$15,000	$0	$15,000
Cabinets	$15,000	$9,000	$24,000
Cabinets and counters	$15,000	$13,500	$28,500

Source: palegis.us

Section 7(a)(9) also shapes how the contract reads. It has to state the down payment and any amount advanced for special-order materials, and list them separately. In the $24,000 case, a compliant contract would show something like a $15,000 down payment on one line and $9,000 for the cabinets on another, with the cabinets named.

The one-third limit scales with the price. Below $5,000 the act sets no deposit cap, though section 9(9) still bars any payment before the contract is signed, and any job over $500 needs a written contract.

Worked example. The cap is one-third of the contract price when the contract designates no special-order materials. It applies only to contracts over $5,000.
Contract price ($)	Deposit cap with no special orders ($)
$6,000	$2,000
$15,000	$5,000
$30,000	$10,000
$45,000	$15,000
$90,000	$30,000

Source: palegis.us

Retailers and fraud

Section 9(10)(ii) exempts a home improvement retailer from the cap if it posts an irrevocable letter of credit payable to the bureau, which is a bank’s promise to pay set amounts on the bureau’s demand. The amount is $100,000 per store, up to $2,000,000 for a retailer with several stores. The retailer must also make sure its installers are registered and carry the insurance the act requires. If you buy an installed job through a store and the store asks for more than one-third, ask whether it has posted that letter of credit. Under the act, a homeowner in a dispute with such a retailer can file a complaint with the bureau and ask for a draw on it.

The act treats a false special-order claim as a crime. Section 8(a)(6) makes it home improvement fraud to misrepresent an item as special-order material or to misrepresent its cost. When the amount involved is more than $2,000, the offense is a felony of the third degree. At $2,000 or less, it is a misdemeanor of the first degree. The grade goes one step higher when the victim is 60 or older.

What to check before you sign

Work out the cap yourself. Divide the contract price by three, then add only the items the contract names as special-order materials, each with its cost. If the deposit requested is higher, ask the contractor to bring it down or to show which items are special orders.

Test each special-order item against the definition. Ask whether it is made or cut for your house, and whether the contractor could return it for credit. A stock appliance, a standard toilet or a box of tile from the supplier’s warehouse would not qualify. Ask for a copy of the order once it is placed, so you can see the item and its price on the supplier’s paperwork.

Pay nothing before you sign. Check the contractor’s registration number on the Attorney General’s search or at 1-888-520-6680, the toll-free number every contract has to list. If the job never starts, section 9(2) requires a refund within ten days of a certified-mail request when more than 45 days have passed since the contract’s start date and no substantial part of the work has been done.

The act does not say how the rest of the price should be paid. The Attorney General’s office suggests negotiating payments as the work progresses, with a final payment at completion. Our guide to change orders and payment schedules lays out a schedule tied to inspections, and the guide to what Pennsylvania law requires when you hire a contractor lists every term a contract must contain. If the job is a roof, Conshy Roofers covers hiring a roofer.

Caveats

This is general information about the act, not legal advice for a particular contract. If a contractor has taken more than the cap or will not refund a deposit, ask a lawyer or the Attorney General’s Bureau of Consumer Protection.

The act covers home improvements at a private residence, which it defines as a single-family house, a building of no more than two units, or a single condominium or co-op unit. A person who owns three or more homes in Pennsylvania counts as an owner only for a primary residence and homes used for personal recreation, so a landlord with several properties may fall outside the act on the rentals. New home construction and emergency work are outside it too.

The act does not say how the cap applies when a change order raises the price after the deposit is paid, or which figure counts as the price on a time-and-materials contract. Our article on time-and-materials contracts covers the second question. Ask the bureau or a lawyer before you agree to a deposit in either case.

The text described here is the act as posted by the General Assembly on October 13, 2026. Five bills that would amend it were listed on the General Assembly’s page for the act that day, among them SB 1324, which would change the sections on home improvement contracts and fraud, among others. None had passed either chamber.