California: what the law says about your contract
3 California rules, each quoted from the statute with its link and the date we checked it, after the federal rule that applies everywhere.
Contractors State License Board (CSLB)
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FTC Cooling-Off Rule (16 CFR 429)
Three business days to cancel in-home sales of $25 or more
“You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction.”
The rule covers sales of $25 or more made at your home, and $130 or more at a seller’s temporary location such as a hotel, fair or convention center. It applies even when you invited the salesperson in. The seller must give you two copies of a cancellation form, tell you about the right out loud, and refund within 10 business days of a valid cancellation.
16 CFR 429 · checked 2026-10-05The scope, in the rule’s words
“…which has a purchase price of $25 or more if the sale is made at the buyer’s residence or a purchase price of $130 or more if the sale is made at locations other than the buyer’s residence…”
Exceptions include sales negotiated at the seller’s permanent place of business, real estate, insurance and securities, and genuine emergencies you started where you sign a handwritten waiver.
FTC consumer guide to the ruleThe emergency exception
“In which the buyer has initiated the contact and the goods or services are needed to meet a bona fide immediate personal emergency of the buyer, and the buyer furnishes the seller with a separate dated and signed personal statement in the buyer’s handwriting describing the situation requiring immediate remedy and expressly acknowledging and waiving the right to cancel the sale within 3 business days…”
A pre-printed waiver handed to you by the seller is not this. The statement has to be in your own handwriting, for an emergency you asked them to fix.
16 CFR 429 §429.0What the law says, quoted with its source. Not legal advice: for your situation ask your state's contractor board or attorney general.
California rules
Down payment limit on home improvement contracts
“If a downpayment will be charged, the downpayment shall not exceed one thousand dollars ($1,000) or 10 percent of the contract amount, whichever amount is less.”
A licensed California contractor may ask for a down payment of $1,000 or 10% of the contract, whichever is less. Contractors who furnish a qualifying performance and payment bond (or an approved bond equivalent or joint control) are exempt from this limit under §7159.5(a)(8). Ask whether that applies.
Cal. B&P §7159.5(a)(3) · checked 2026-10-05No payments ahead of the work, except the down payment
“Except for a downpayment, the contractor shall neither request nor accept payment that exceeds the value of the work performed or material delivered.”
After the down payment, each payment should match work already done or materials already delivered.
Cal. B&P §7159.5(a)(5) · checked 2026-10-05Lien releases on request
“Upon any payment by the person contracting for home improvement, and prior to any further payment being made, the contractor shall, if requested, obtain and furnish to the person a full and unconditional release from any potential lien claimant claim or mechanics lien… The person contracting for home improvement may withhold all further payments until these releases are furnished.”
You can ask for a lien release after each payment and hold the next payment until you get it.
Cal. B&P §7159.5(a)(6) · checked 2026-10-05What the law says, quoted with its source. Not legal advice: for your situation ask your state's contractor board or attorney general.