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December 21, 2024 Clear | 20°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 1: Definitions

Section 1. As used in this chapter, the following words shall, unless the context requires otherwise, have the following meanings:—

''Actual loss'', amounts payable for the cost of repair, replacement, completion or performance under the terms of a residential contracting agreement with respect to which a claim is made.

''Claimant'', an owner and resident of a residential building, containing at least one but not more than four dwelling units, who has entered into a construction contract with a contractor to carry out construction work on said building, and who is making a claim against said contractor for failure of performance under said contract.

''Contract'', a written agreement contained in one or more documents for the performance of certain residential contracting work, including all labor, goods and services set forth under said agreement.

''Contractor'', any person who owns or operates a contracting business who, through himself or others, undertakes, offers to undertake, purports to have the capacity to undertake, or submits a bid for, residential contracting work.

''Director'', the director of consumer affairs and business regulation.

''Employee'', any person employed by and under the direction and control of a contractor or subcontractor and who performs services for wages or salary.

''Fund administrator'', the administrator of the Residential Contractor's Guaranty Fund, appointed by the director of consumer affairs and business regulation.

''Fund'', the Residential Contractor's Guaranty Fund.

''Mortgage broker'', any person who, for compensation or gain, or in the expectation of compensation or gain, directly or indirectly negotiates, places, assists in placement, finds or offers to negotiate, place, assist in placement of mortgage loans on residential property for others, or as otherwise defined in chapter two hundred and fifty-five E.

''Mortgage lender'', any person engaged in the business of making mortgage loans, or issuing commitments to fund mortgage loans, or accepting applications or fees associated with the making of mortgage loans which are secured by a mortgage on residential property or, as otherwise defined by said chapter two hundred and fifty-five E.

''Mortgage loan'', a loan to any person made primarily for personal, family, or household purposes, secured wholly or partially by a mortgage on a residential property or, as otherwise defined by said chapter two hundred and fifty-five E.

''Owner'', any homeowner of a pre-existing owner-occupied building containing at least one but not more than four dwelling units, or tenant thereof, who orders, contracts for, or purchases the services of a contractor or subcontractor.

''Person'', any individual, partnership, corporation, society, trust, association, or any other legal entity.

''Registrant'', any contractor or subcontractor duly registered under the provisions of this chapter.

''Residential contracting'', the reconstruction, alteration, renovation, repair, modernization, conversion, improvement, removal, or demolition, or the construction of an addition to any pre-existing owner occupied building containing at least one but not more than four dwelling units, which building or portion thereof is used or designed to be used as a residence or dwelling unit, or to structures which are adjacent to such residence or building.

''Salesperson'', any person, other than a supplier of material or a laborer, who solicits, offers, negotiates, executes, or otherwise endeavors, to procure by any means whatsoever, directly or indirectly, a contract for residential contracting services from an owner on behalf of a contractor or subcontractor.

''Subcontractor'', any person other than a supplier of material or labor, who enters into a contract, written or verbal, with a contractor for the performance of any part of the contractor's contract, or who enters into a contract with any other subcontractor for the performance of any part of the subcontractor's contract, and who does not perform work other than a subcontractor.