Contracts & ExecutionQuestion 757 of 1605
A homeowner insists on paying the full $30,000 up front to 'lock in the price.' The contractor should know that accepting this:
a.Is required to reserve materials
b.Is required if the owner offers
c.Would violate the down payment limit and payment-for-work-performed rules absent a joint control
d.Is fine because the owner volunteered
Explanation
Even if the owner offers, B&P §7159 prohibits accepting a down payment over $1,000 (or 10%) and payments exceeding the value of work performed, unless funds are held by an approved joint control.
Law Reference: B&P §7159(d)Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)