A contractor signs a $700 repair contract with a homeowner. Which statement is correct?
Explanation
B&P §7159 requires a written home improvement contract whenever the aggregate price of labor, services and materials exceeds $500, so a $700 repair must be in writing. The $1,000 figure belongs to the §7159.5(a)(3) downpayment cap ($1,000 or 10 percent, whichever is less), not to the writing threshold. Above $500 the parties cannot agree their way into a verbal deal, and the requirement turns on the price — not on the owner's age and not on whether a home improvement salesperson was involved.
Law Reference: B&P §7159 (aggregate price exceeding $500); §7159.5(a)(3)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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