Contracts & ExecutionQuestion 784 of 1605
The home improvement contract must disclose the total amount of any down payment. This ensures that:
a.The lender sets the price
b.The contractor can collect more than allowed
c.The CSLB waives its fees
d.The buyer can confirm the down payment does not exceed the legal cap
Explanation
By requiring the down payment amount to be clearly stated, §7159 lets the buyer verify the down payment complies with the $1,000-or-10%-whichever-is-less limit.
Law Reference: B&P §7159(c)Practice all 1605 questions free — no signup required.
Related questions on this topic
- If a contractor fails to give the buyer the required notice of the right to cancel, the buyer's cancellation period:
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)