Penalties for using an illegal construction contract in Georgia:
- Georgia Code Section 43-41-7 (the Written Warranty Act) requires that residential contractors deliver a written warranty against construction defects before starting work on any job valued at over $2,500. The Georgia State Licensing Board for Residential and General Contractors adopted Rule 553-7-.01 (effective August 4, 2008) which identifies what the written warranty must cover.
- Georgia's Right to Repair Act requires that construction contracts include a notice which explains to owners their obligations under the law.
- Georgia law voids any clause in a construction contract which would indemnify someone for their sole negligence.
- Diverting funds for a purpose other than as required by contract is a felony punishable by imprisonment for from one to five years.
- Omission of the notice required by Official Code of Georgia Annotated § 10-1-3 (Home Solicitation) is punishable by a fine of $500 under § 10-1-15.
- Failure to make federal truth-in-lending disclosures requires restitution of the overcharge.
- Failure to include the disclosures required by 12 Code of Federal Regulations Section 226.15 extends the right of rescission to three years (rather than three days).
- Omitting insulation disclosures required by 16 Code of Federal Regulations Section 460 can result in an $11,000 fine.
The contracts linked below will help Georgia contractors avoid these penalties by complying with state and federal law
The contracts linked below also comply with current Georgia and federal court decisions