Contractor Deposit Limitation
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CONTRACTOR DEPOSIT LIMITATION

Consumers. The Contractor’s State License Board (“CSLB”) serves as California’s consumer protection agency protecting homeowners from being harmed by contractors. For consumer home improvements, contractors cannot charge a down payment of more than $1,000 or 10% of the contract amount, whichever is less. For more information, see "Contractor State License Board."

Associations. The 10% down payment limitation does not apply to commercial contracts, i.e., contracts with associations. Associations are commercial entities and can have their own legal counsel review and revise vendor contracts.

ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.

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