A home improvement contractor requests 25 percent down to buy special-order material. Is that allowed under the standard rule?

California C-20 exam practice question · Contract Requirements & Execution

A home improvement contractor requests 25 percent down to buy special-order material. Is that allowed under the standard rule?

AYes, special-order material is an exception
BYes, any amount is allowed if called a deposit
CNo, all down payments are prohibited
No; the down-payment cap applies

Why D is correct

CSLB states that the statutory cap applies without a special-order-material exception. Later payments must also be structured consistently with work and materials provided.

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A home improvement contractor requests 25 percent down to buy special-order material. Is that allowed under the standard rule?

A home improvement contractor requests 25 percent down to buy special-order material. Is that allowed under the standard rule?

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