Contractor Deposit Limitation
Adams Stirling PLC


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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