The Contractors State License Board (CSLB) is alerting California consumers who are considering hiring a painter, landscaper – or any other type of construction contractor – that it is illegal to ask for or accept a down payment of more than 10 percent of the total home improvement contract price of $1,000, whichever is less.
Many consumer victims who file complaints with CSLB tell investigators they were unaware that there is a legal limit for down payments. Many unlicensed operators also are not familiar with this aspect of California contracting law, which should serve as a red flag for homeowners. If someone asks for a large amount of money up front, the person might not have a license or the necessary project skills. Many times, unlicensed operators take a homeowner’s down payment and never start the project.
