After the down payment, payments collected under a home improvement contract must:
Explanation
B&P §7159.5(a)(5) forbids front-loading: the contractor may neither request nor accept payment that exceeds the value of the work performed or material delivered. The 10 percent figure belongs to the down payment in §7159.5(a)(3), which is $1,000 or 10 percent of the contract amount, whichever is less, and is not a ceiling on later payments. Billing for materials still sitting at the supplier is exactly what the section prohibits. Nothing in §7159.5 sends home improvement payments to escrow; what the contract must carry is a schedule of payments in dollars and cents under §7159.5(a)(4).
Law Reference: B&P Code §7159.5(a)(3), (a)(4), (a)(5)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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