Contracts & ExecutionQuestion 707 of 1632
Under a valid service and repair contract, when may the contractor collect payment from the homeowner?
a.No payment is due or collected until the work is completed
b.As a 50% deposit before starting
c.In weekly installments
d.A $200 down payment plus the balance later
Explanation
B&P §7159.10 requires that under a service and repair contract, no payment is due and none may be collected until the work is complete. Down payments are not permitted on these contracts.
Law Reference: B&P §7159.10This 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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Related questions on this topic
- A change order that increases the price of a home improvement project by $3,000 is agreed to verbally on-site. To be enforceable under §7159, the change order must be:
- Which of these is a condition that must be met before a contractor may use a 'service and repair' contract form instead of a full home improvement contract?
- What is the maximum contract amount for a job to qualify as a 'service and repair' contract under §7159.10?
- A contractor collects a $2,500 down payment on a $15,000 room addition. Why is this unlawful?
- An individual who is employed by a contractor and solicits, sells, or negotiates home improvement contracts is called a:
- Before soliciting home improvement contracts on behalf of a licensed contractor, a home improvement salesperson must:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)