Home Repair Agent · California
Is your contractor's deposit legal?
In California, the down payment on a home improvement contract may not be more than $1,000 or 10% of the contract price, whichever is less (Business and Professions Code 7159.5). Contract and payment violations, including deposits above this limit, are among the most common reasons CSLB cites licensed contractors.
The rules in plain words
- Down payment: at most $1,000 or 10% of the price, whichever is less. A $14,000 roof allows $1,000 down, not $7,000. The limit does not apply to a contractor with a blanket performance and payment bond on file with CSLB.
- Small repairs of $750 or less that you asked for: no payment may be taken until the work is finished (BPC 7159.10).
- After the down payment, a contractor may not ask for or take payment for work not yet done or materials not yet delivered. Pay each progress payment when its work is finished, as written in your contract's payment schedule.
- Avoid paying in cash (CSLB's advice). Pay by check or card to the licensed business named on the contract, not to a person. Cash, Zelle, Venmo and Cash App payments are very hard to get back.
- Signed at your home? You can cancel within 3 business days, or 5 if you are 65 or older.
Check the whole quote and the contractor, free
Paste the quote, or upload it, and we check it against California's contract rules: the deposit, payment schedule, required notices, and whether the license number belongs to the business named on the quote (a common scam). We also read the contractor's live record at the Contractors State License Board: license status, class, bond and workers' compensation. No account is needed for a quick check.
This page explains California rules in general terms; it is not legal advice. Sources: CSLB home improvement contracts guide, CSLB: how to prevent a mechanics lien.