Excluding contracts for home improvement projects, does California law prohibit contractors from requiring down payments larger than 10%? Thank you.
2 replies
Apr 2, 2020
No other types of construction contracts are subject to the 10% limitation.
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Helpful
Apr 2, 2020
I agree. Only home remodel contracts limit the amount of the down payment, and that's only between the homeowner and the contractor. Subcontractors, even on home remodel projects, can charge whatever they want in their subcontracts with the general contractor. Contractors on non-home remodel projects and commercial construction can charge whatever they want as a down payment.