California · Deadlines · Episode 3
California Home Improvement Contracts
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Start freeChapters
- 0:00The job
- 0:26Deposit
- 0:59Progress
- 1:09Cancel
- 1:27License
- 1:42Recap
In short
On a California home improvement contract the down payment may not exceed $1,000 or 10 percent of the contract price, whichever is less, and no progress payment may exceed the value of the work done and materials delivered. The buyer may cancel within three business days, or five for a buyer 65 or older; Saturdays count and Sundays and holidays do not. Since 2025 an unlicensed person may take only jobs of $1,000 or less that need no permit and no employees.
- Down payment: $1,000 or 10 percent, whichever is less.
- Progress payments never run ahead of the work.
- Three business days to cancel, five at 65 and over.
- Minor work limit $1,000; a permit or a hired helper means a license is required.
Transcript
0:00The job
A California home improvement contract comes with rules the homeowner can count on. The exam asks about every one of them: the down payment, the payments, the right to cancel, and the license. A homeowner signs a $30,000 kitchen remodel. How much can the contractor ask for up front?
0:26Deposit
Pause. The contract is $30,000. What is the largest down payment allowed? $1,000. The limit is $1,000 or 10 percent of the price, whichever is less. Ten percent of $30,000 is $3,000. The smaller number wins. On a $6,000 job, 10 percent is $600, so $600 is the limit.
0:59Progress
After the down payment, no payment can run ahead of the work. Each progress payment covers only work done or materials delivered.
1:09Cancel
Then the right to cancel. The homeowner has three business days after signing. At 65 or older, it is five. Saturdays count; Sundays and holidays do not. Signed on a Monday: midnight Thursday, or midnight Saturday for a senior.
1:27License
And who needs a license at all? Since 2025, the minor work limit is $1,000. Above that, or if the job needs a permit, or if anyone is hired to help, a license is required.
1:42Recap
$1,000 or 10 percent, whichever is less. Payments follow the work. Three days to cancel, five for seniors. Next: fall protection, by the numbers. Subscribe so you catch it.
Sources
- Cal. Bus. & Prof. Code 7159.5(a)(3) and (a)(5)
- Cal. Civ. Code 1689.5–1689.7
- Cal. Bus. & Prof. Code 7048 (AB 2622, effective 1 January 2025)
Independent study material. EstatePass is not affiliated with NASCLA, PSI, Pearson VUE, the Florida CILB or the CSLB, and nothing here is legal advice. Any jobs and companies in our episodes are fictional.