Business FinancesQuestion 1226 of 1632
A homeowner's $30,000 remodel contract allows a 10% down payment maximum under home improvement rules. But 10% is $3,000, which exceeds the $1,000 cap. The lawful maximum down payment is:
a.$2,000
b.$300
c.$3,000
d.$1,000
Explanation
Home improvement law caps the down payment at 10% of the contract OR $1,000, whichever is LESS. Here 10% is $3,000, so the $1,000 cap governs. The lawful maximum down payment is $1,000.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)