DE HB427

Requires all home improvement contracts over $500 to include a 3-day cancellation period (5 days for persons 62+ or with disabilities), with specific notice requirements in 12-point bold type.

Limits initial deposits to 10% of contract price, or up to 33% of material/professional service costs if needed to commence work; requires detailed payment schedules for all subsequent payments.

Requires contractors to apply for necessary permits within 30 days of 50% deposit payment and begin work by the contract date, with buyer entitled to full refund if contractor cannot start work.

Prohibits contractors from including confession of judgment clauses in contracts and from transferring debt to finance companies within 5 business days of contract signing.

Creates debarment provisions barring individuals with 2+ home improvement fraud convictions (with at least one after January 1, 2025) from operating or soliciting for home improvement businesses; establishes enhanced felony penalties for violations and for debarred individuals who continue operating in the industry.