Remodeling Payments Regulated in State

In California, home improvement payments--including down payments paid to the contractor by the owner--are regulated by law, according to the National Assn. of the Remodeling Industry.

Section 7159 of the California contractors’ license law provides when the payment schedule calls for a down payment that the down payment be no more than $1,000 or 10% of the contract price, whichever is less. Exceptions are made for deposits for one-of-a-kind or special-ordered products.

The Southern California chapter of the national remodeling trade association cautions against consumers being “lured into giving large deposits in exchange for big discounts” on their remodeling projects.