{"id":4895,"date":"2022-05-16T04:50:44","date_gmt":"2022-05-16T04:50:44","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/california-statutes\/?page_id=4895"},"modified":"2022-05-24T16:35:20","modified_gmt":"2022-05-24T16:35:20","slug":"california-contractor-deposit-law","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/california-statutes\/california-statutes\/california-contractor-deposit-law\/","title":{"rendered":"California Contractor Deposit Law"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-l388toye-60d13eec1d1d0dc9cb5fd53db7e073e7\">\n#top .av-special-heading.av-l388toye-60d13eec1d1d0dc9cb5fd53db7e073e7{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-l388toye-60d13eec1d1d0dc9cb5fd53db7e073e7 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-l388toye-60d13eec1d1d0dc9cb5fd53db7e073e7 .av-subheading{\nfont-size:22px;\n}\n<\/style>\n<div  class='av-special-heading av-l388toye-60d13eec1d1d0dc9cb5fd53db7e073e7 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><div class='av-subheading av-subheading_above'><p>California<\/p>\n<\/div><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >Business and Professions Code &#8211; BPC \u00a7 7159<\/h1><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_hr-3a876428eececa9d35452247ddb053af\">\n#top .hr.hr-invisible.av-av_hr-3a876428eececa9d35452247ddb053af{\nheight:50px;\n}\n<\/style>\n<div  class='hr av-av_hr-3a876428eececa9d35452247ddb053af hr-invisible  avia-builder-el-1  el_after_av_heading  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad\">\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av_searchform_wrapper{\nborder-color:#edae44;\nbackground-color:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad #s.av-input-field{\ncolor:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av-input-field-icon.av-search-icon{\ncolor:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av-input-field-icon.av-search-icon.avia-svg-icon svg:first-child{\nfill:#edae44;\nstroke:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad #searchsubmit{\nbackground-color:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av_searchsubmit_wrapper{\nbackground-color:#edae44;\n}\n<\/style>\n<div  class='avia_search_element av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad  avia-builder-el-3  el_after_av_textblock  el_before_av_hr '><search><form action='https:\/\/crowdsourcelawyers.com\/california-statutes\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CA statutes' aria-label='Search CA statutes' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='10' \/><input type='hidden' name='results_hide_fields' value='' \/><\/div><\/form><\/search><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_hr-3a876428eececa9d35452247ddb053af\">\n#top .hr.hr-invisible.av-av_hr-3a876428eececa9d35452247ddb053af{\nheight:50px;\n}\n<\/style>\n<div  class='hr av-av_hr-3a876428eececa9d35452247ddb053af hr-invisible  avia-builder-el-4  el_after_avia_sc_search  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n<section  class='av_textblock_section av-l38900ky-97e87b0e4c093ef9cb626624d46cdfa4 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><div class=\"row\">\n<div class=\"subsection\"><\/div>\n<div class=\"subsection\">\n<div class=\"subsection\">\n<div class=\"subsection\">\n<p>(a)(1)\u2002This section identifies the projects for which a home improvement contract is required, outlines the contract requirements, and lists the items that shall be included in the contract, or may be provided as an attachment.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(2)\u2002This section does not apply to service and repair contracts that are subject to\u00a0<span class=\"cite\">Section 7159.10\u00a0<\/span>, if the contract for the applicable services complies with\u00a0<span class=\"cite\">Sections 7159.10\u00a0<\/span>to\u00a0<span class=\"cite\">7159.14\u00a0<\/span>, inclusive.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(3)\u2002This section does not apply to the sale, installation, and servicing of a fire alarm sold in conjunction with an alarm system, as defined in\u00a0<span class=\"cite\">Section 7590.1\u00a0<\/span>, if all costs attributable to making the fire alarm system operable, including sale and installation costs, do not exceed five hundred dollars ($500), and the licensee complies with the requirements set forth in\u00a0<span class=\"cite\">Section 7159.9\u00a0<\/span>.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(4)\u2002This section does not apply to any costs associated with monitoring a burglar or fire alarm system.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(5)\u2002Failure by the licensee, his or her agent or salesperson, or by a person subject to be licensed under this chapter, to provide the specified information, notices, and disclosures in the contract, or to otherwise fail to comply with any provision of this section, is cause for discipline.<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(b)\u2002For purposes of this section, \u201c<span class=\"wordphrase\">home improvement contract<\/span>\u201d means an agreement, whether oral or written, or contained in one or more documents, between a contractor and an owner or between a contractor and a tenant, regardless of the number of residence or dwelling units contained in the building in which the tenant resides, if the work is to be performed in, to, or upon the residence or dwelling unit of the tenant, for the performance of a home improvement, as defined in\u00a0<span class=\"cite\">Section 7151\u00a0<\/span>, and includes all labor, services, and materials to be furnished and performed thereunder, if the aggregate contract price specified in one or more improvement contracts, including all labor, services, and materials to be furnished by the contractor, exceeds five hundred dollars ($500). \u2002\u201c<span class=\"wordphrase\">Home improvement contract<\/span>\u201d also means an agreement, whether oral or written, or contained in one or more documents, between a salesperson, whether or not he or she is a home improvement salesperson, and an owner or a tenant, regardless of the number of residence or dwelling units contained in the building in which the tenant resides, which provides for the sale, installation, or furnishing of home improvement goods or services.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(c)\u2002In addition to the specific requirements listed under this section, every home improvement contract and any person subject to licensure under this chapter or his or her agent or salesperson shall comply with all of the following:<\/p>\n<div class=\"subsection\">\n<p>(1)\u2002The writing shall be legible.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(2)\u2002Any printed form shall be readable. \u2002Unless a larger typeface is specified in this article, text in any printed form shall be in at least 10-point typeface and the headings shall be in at least 10-point boldface type.<\/p>\n<\/div>\n<div class=\"subsection\">\n<div class=\"subsection\">\n<p>(3)(A)\u2002Before any work is started, the contractor shall give the buyer a copy of the contract signed and dated by both the contractor and the buyer. \u2002The buyer&#8217;s receipt of the copy of the contract initiates the buyer&#8217;s rights to cancel the contract pursuant to\u00a0<span class=\"cite\">Sections 1689.5\u00a0<\/span>to\u00a0<span class=\"cite\">1689.14, inclusive, of the Civil Code\u00a0<\/span>.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002The contract shall contain on the first page, in a typeface no smaller than that generally used in the body of the document, both of the following:<\/p>\n<div class=\"subsection\">\n<p>(i)\u2002The date the buyer signed the contract.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(ii)\u2002The name and address of the contractor to which the applicable \u201cNotice of Cancellation\u201d is to be mailed, immediately preceded by a statement advising the buyer that the \u201cNotice of Cancellation\u201d may be sent to the contractor at the address noted on the contract.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(4)\u2002The contract shall include a statement that, upon satisfactory payment being made for any portion of the work performed, the contractor, prior to any further payment being made, shall furnish to the person contracting for the home improvement or swimming pool work a full and unconditional release from any potential lien claimant claim or mechanics lien authorized pursuant to\u00a0<span class=\"cite\">Sections 8400\u00a0<\/span>and\u00a0<span class=\"cite\">8404 of the Civil Code\u00a0<\/span>for that portion of the work for which payment has been made.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(5)\u2002A change-order form for changes or extra work shall be incorporated into the contract and shall become part of the contract only if it is in writing and signed by the parties prior to the commencement of any work covered by a change order.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(6)\u2002The contract shall contain, in close proximity to the signatures of the owner and contractor, a notice stating that the owner or tenant has the right to require the contractor to have a performance and payment bond.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(7)\u2002If the contract provides for a contractor to furnish joint control, the contractor shall not have any financial or other interest in the joint control.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(8)\u2002The provisions of this section are not exclusive and do not relieve the contractor from compliance with any other applicable provision of law.<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(d)\u2002A home improvement contract and any changes to the contract shall be in writing and signed by the parties to the contract prior to the commencement of work covered by the contract or an applicable change order and, except as provided in\u00a0<span class=\"cite\">paragraph (8) of subdivision (a) of Section 7159.5\u00a0<\/span>, shall include or comply with all of the following:<\/p>\n<div class=\"subsection\">\n<p>(1)\u2002The name, business address, and license number of the contractor.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(2)\u2002If applicable, the name and registration number of the home improvement salesperson that solicited or negotiated the contract.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(3)\u2002The following heading on the contract form that identifies the type of contract in at least 10-point boldface type: \u2009\u201cHome Improvement.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(4)\u2002The following statement in at least 12-point boldface type: \u2009\u201cYou are entitled to a completely filled in copy of this agreement, signed by both you and the contractor, before any work may be started.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(5)\u2002The heading: \u2009\u201cContract Price,\u201d followed by the amount of the contract in dollars and cents.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(6)\u2002If a finance charge will be charged, the heading: \u2009\u201cFinance Charge,\u201d followed by the amount in dollars and cents. \u2002The finance charge is to be set out separately from the contract amount.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(7)\u2002The heading: \u2009\u201cDescription of the Project and Description of the Significant Materials to be Used and Equipment to be Installed,\u201d followed by a description of the project and a description of the significant materials to be used and equipment to be installed. \u2002For swimming pools, the project description required under this paragraph also shall include a plan and scale drawing showing the shape, size, dimensions, and the construction and equipment specifications.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(8)\u2002If a downpayment will be charged, the details of the downpayment shall be expressed in substantially the following form, and shall include the text of the notice as specified in subparagraph (C):<\/p>\n<div class=\"subsection\">\n<p>(A)\u2002The heading: \u2009\u201cDownpayment.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002A space where the actual downpayment appears.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(C)\u2002The following statement in at least 12-point boldface type:<\/p>\n<p>\u201cTHE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.\u201d<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(9)\u2002If payments, other than the downpayment, are to be made before the project is completed, the details of these payments, known as progress payments, shall be expressed in substantially the following form, and shall include the text of the statement as specified in subparagraph (C):<\/p>\n<div class=\"subsection\">\n<p>(A)\u2002A schedule of progress payments shall be preceded by the heading: \u2009\u201cSchedule of Progress Payments.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002Each progress payment shall be stated in dollars and cents and specifically reference the amount of work or services to be performed and materials and equipment to be supplied.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(C)\u2002The section of the contract reserved for the progress payments shall include the following statement in at least 12-point boldface type:<\/p>\n<p>\u201cThe schedule of progress payments must specifically describe each phase of work, including the type and amount of work or services scheduled to be supplied in each phase, along with the amount of each proposed progress payment. \u2002IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET DELIVERED. \u2002HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT.\u201d<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(10)\u2002The contract shall address the commencement of work to be performed in substantially the following form:<\/p>\n<div class=\"subsection\">\n<p>(A)\u2002A statement that describes what constitutes substantial commencement of work under the contract.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002The heading: \u2009\u201cApproximate Start Date.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(C)\u2002The approximate date on which work will be commenced.<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(11)\u2002The estimated completion date of the work shall be referenced in the contract in substantially the following form:<\/p>\n<div class=\"subsection\">\n<p>(A)\u2002The heading: \u2009\u201cApproximate Completion Date.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002The approximate date of completion.<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(12)\u2002If applicable, the heading: \u2009\u201cList of Documents to be Incorporated into the Contract,\u201d followed by the list of documents incorporated into the contract.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(13)\u2002The heading: \u2009\u201cNote About Extra Work and Change Orders,\u201d followed by the following statement:<\/p>\n<p>\u201cExtra Work and Change Orders become part of the contract once the order is prepared in writing and signed by the parties prior to the commencement of work covered by the new change order. \u2002The order must describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and the effect the order will have on the schedule of progress payments.\u201d<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(e)\u2002Except as provided in\u00a0<span class=\"cite\">paragraph (8) of subdivision (a) of Section 7159.5\u00a0<\/span>, all of the following notices shall be provided to the owner as part of the contract form as specified or, if otherwise authorized under this subdivision, may be provided as an attachment to the contract:<\/p>\n<div class=\"subsection\">\n<p>(1)\u2002A notice concerning commercial general liability insurance. \u2002This notice may be provided as an attachment to the contract if the contract includes the following statement: \u2009\u201cA notice concerning commercial general liability insurance is attached to this contract.\u201d The notice shall include the heading \u201cCommercial General Liability Insurance (CGL),\u201d followed by whichever of the following statements is both relevant and correct:<\/p>\n<div class=\"subsection\">\n<p>(A)\u2002\u201c(The name on the license or \u2018contractor&#8217;) does not carry commercial general liability insurance.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002\u201c(The name on the license or \u2018contractor&#8217;) carries commercial general liability insurance written by (the insurance company). \u2002You may call (the insurance company) at __________ to check the contractor&#8217;s insurance coverage.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(C)\u2002\u201c(The name on the license or \u2018contractor&#8217;) is self-insured.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(D)\u2002\u201c(The name on the license or &#8216;This contractor&#8217;) is a limited liability company that carries liability insurance or maintains other security as required by law. \u2002You may call (the insurance company or trust company or bank) at ____ to check on the contractor&#8217;s insurance coverage or security.\u201d<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(2)\u2002A notice concerning workers&#8217; compensation insurance. \u2002This notice may be provided as an attachment to the contract if the contract includes the statement: \u2009\u201cA notice concerning workers&#8217; compensation insurance is attached to this contract.\u201d The notice shall include the heading \u201cWorkers&#8217; Compensation Insurance\u201d followed by whichever of the following statements is correct:<\/p>\n<div class=\"subsection\">\n<p>(A)\u2002\u201c(The name on the license or \u2018<span class=\"added-material\">this<\/span>\u00a0contractor&#8217;) has no employees and is exempt from workers&#8217; compensation requirements.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002\u201c(The name on the license or \u2018<span class=\"added-material\">this<\/span>\u00a0contractor&#8217;) carries workers&#8217; compensation insurance for all employees.\u201d<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(3)\u2002A notice that provides the buyer with the following information about the performance of extra or change-order work:<\/p>\n<div class=\"subsection\">\n<p>(A)\u2002A statement that the buyer may not require a contractor to perform extra or change-order work without providing written authorization prior to the commencement of work covered by the new change order.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002A statement informing the buyer that extra work or a change order is not enforceable against a buyer unless the change order also identifies all of the following in writing prior to the commencement of work covered by the new change order:<\/p>\n<div class=\"subsection\">\n<p>(i)\u2002The scope of work encompassed by the order.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(ii)\u2002The amount to be added or subtracted from the contract.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(iii)\u2002The effect the order will make in the progress payments or the completion date.<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(C)\u2002A statement informing the buyer that the contractor&#8217;s failure to comply with the requirements of this paragraph does not preclude the recovery of compensation for work performed based upon legal or equitable remedies designed to prevent unjust enrichment.<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(4)\u2002A notice with the heading \u201cMechanics Lien Warning\u201d written as follows:<\/p>\n<p>\u201cMECHANICS LIEN WARNING:<\/p>\n<p>Anyone who helps improve your property, but who is not paid, may record what is called a mechanics lien on your property. \u2002A mechanics lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder.<\/p>\n<p>Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanics liens and sue you in court to foreclose the lien. \u2002If a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien. \u2002Liens can also affect your credit.<\/p>\n<p>To preserve their right to record a lien, each subcontractor and material supplier must provide you with a document called a &#8216;Preliminary Notice.&#8217; This notice is not a lien. \u2002The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if he or she is not paid.<\/p>\n<p>BE CAREFUL. \u2002The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the supplier provides material. \u2002This can be a big problem if you pay your contractor before you have received the Preliminary Notices.<\/p>\n<p>You will not get Preliminary Notices from your prime contractor or from laborers who work on your project. \u2002The law assumes that you already know they are improving your property.<\/p>\n<p>PROTECT YOURSELF FROM LIENS. \u2002You can protect yourself from liens by getting a list from your contractor of all the subcontractors and material suppliers that work on your project. \u2002Find out from your contractor when these subcontractors started work and when these suppliers delivered goods or materials. \u2002Then wait 20 days, paying attention to the Preliminary Notices you receive.<\/p>\n<p>PAY WITH JOINT CHECKS. \u2002One way to protect yourself is to pay with a joint check. \u2002When your contractor tells you it is time to pay for the work of a subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check payable to both the contractor and the subcontractor or material supplier.<\/p>\n<p>For other ways to prevent liens, visit CSLB&#8217;s Internet Web site at www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752).<\/p>\n<p>REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR HOME. \u2002This can mean that you may have to pay twice, or face the forced sale of your home to pay what you owe.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(5)\u2002The following notice shall be provided in at least 12-point typeface:<\/p>\n<p>\u201cInformation about the Contractors&#8217; State License Board (CSLB): \u2009CSLB is the state consumer protection agency that licenses and regulates construction contractors.<\/p>\n<p>Contact CSLB for information about the licensed contractor you are considering, including information about disclosable complaints, disciplinary actions, and civil judgments that are reported to CSLB.<\/p>\n<p>Use only licensed contractors. \u2002If you file a complaint against a licensed contractor within the legal deadline (usually four years), CSLB has authority to investigate the complaint. \u2002If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. \u2002Your only remedy may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed contractor&#8217;s employees.<\/p>\n<p>For more information:<\/p>\n<p>Visit CSLB&#8217;s Internet Web site at www.cslb.ca.gov<\/p>\n<p>Call CSLB at 800-321-CSLB (2752)<\/p>\n<p>Write CSLB at P.O. Box 26000, Sacramento, CA 95826.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<div class=\"subsection\">\n<p>(6)(A)\u2002The notice set forth in subparagraph (B) and entitled \u201cThree-Day Right to Cancel,\u201d shall be provided to the buyer unless the contract is:<\/p>\n<div class=\"subsection\">\n<p>(i)\u2002Negotiated at the contractor&#8217;s place of business.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(ii)\u2002Subject to the \u201cSeven-Day Right to Cancel,\u201d as set forth in paragraph (7).<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(iii)\u2002Subject to licensure under the Alarm Company Act (Chapter 11.6 (commencing with\u00a0<span class=\"cite\">Section 7590\u00a0<\/span>)), provided the alarm company licensee complies with\u00a0<span class=\"cite\">Sections 1689.5\u00a0<\/span>,\u00a0<span class=\"cite\">1689.6\u00a0<\/span>, and\u00a0<span class=\"cite\">1689.7 of the Civil Code\u00a0<\/span>, as applicable.<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002\u201cThree-Day Right to Cancel<\/p>\n<p>You, the buyer, have the right to cancel this contract within three business days. \u2002You may cancel by\u00a0<span class=\"added-material\">emailing<\/span>, mailing, faxing, or delivering a written notice to the contractor at the contractor&#8217;s place of business by midnight of the third business day after you received a signed and dated copy of the contract that includes this notice. \u2002Include your name, your address, and the date you received the signed copy of the contract and this notice.<\/p>\n<p>If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. \u2002For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. \u2002Or, you may, if you wish, comply with the contractor&#8217;s instructions on how to return the goods at the contractor&#8217;s expense and risk. \u2002If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. \u2002If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.\u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(C)\u2002The \u201cThree-Day Right to Cancel\u201d notice required by this paragraph shall comply with all of the following:<\/p>\n<div class=\"subsection\">\n<p>(i)\u2002The text of the notice is at least 12-point boldface type.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(ii)\u2002The notice is in immediate proximity to a space reserved for the owner&#8217;s signature.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(iii)\u2002The owner acknowledges receipt of the notice by signing and dating the notice form in the signature space.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(iv)\u2002The notice is written in the same language, e.g., Spanish, as that principally used in any oral sales presentation.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(v)\u2002The notice may be attached to the contract if the contract includes, in at least 12-point boldface type, a checkbox with the following statement: \u2009\u201cThe law requires that the contractor give you a notice explaining your right to cancel. \u2002Initial the checkbox if the contractor has given you a \u2018Notice of the Three-Day Right to Cancel.&#8217; \u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(vi)\u2002The notice shall be accompanied by a completed form in duplicate, captioned \u201c<span class=\"wordphrase\">Notice of Cancellation<\/span>,\u201d which also shall be attached to the agreement or offer to purchase and be easily detachable, and which shall contain the following statement written in the same language, e.g., Spanish, as used in the contract:<\/p>\n<div class=\"responsive_table\">\n<table>\n<tbody>\n<tr>\n<td width=\"100.0%\">\u201cNotice of Cancellation\u201d<\/td>\n<\/tr>\n<tr>\n<td width=\"50.0%\"><\/td>\n<td width=\"50.0%\">\/enter date of transaction\/<\/td>\n<\/tr>\n<tr>\n<td width=\"50.0%\"><\/td>\n<td width=\"50.0%\">_________________________________________________<\/td>\n<\/tr>\n<tr>\n<td width=\"50.0%\"><\/td>\n<td width=\"50.0%\">(Date)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u201cYou may cancel this transaction, without any penalty or obligation, within three business days from the above date.<\/p>\n<p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.<\/p>\n<p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller&#8217;s expense and risk.<\/p>\n<p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. \u2002If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.\u201d<\/p>\n<div class=\"responsive_table\">\n<table>\n<tbody>\n<tr>\n<td width=\"100.0%\">To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">to _______________________________________________________________________________________________,<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">\/name of seller\/<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">at ________________________________________________________________________________________________<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">\/address of seller&#8217;s place of business\/<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">not later than midnight of _______________________________________________________________________.<\/td>\n<\/tr>\n<tr>\n<td width=\"30.1%\"><\/td>\n<td width=\"69.9%\">(Date)<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">\u2002\u2002\u2002\u2002I hereby cancel this transaction.\u2003________________________________________________________________<\/td>\n<\/tr>\n<tr>\n<td width=\"30.1%\"><\/td>\n<td width=\"6.5%\"><\/td>\n<td width=\"63.4%\">(Date)<\/td>\n<\/tr>\n<tr>\n<td width=\"38.0%\"><\/td>\n<td width=\"62.0%\">_____________________________________________________________<\/td>\n<\/tr>\n<tr>\n<td width=\"38.0%\"><\/td>\n<td width=\"62.0%\">(Buyer&#8217;s signature)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<div class=\"subsection\">\n<p>(7)(A)\u2002The following notice entitled \u201cSeven-Day Right to Cancel\u201d shall be provided to the buyer for any contract that is written for the repair or restoration of residential premises damaged by any sudden or catastrophic event for which a state of emergency has been declared by the President of the United States or the Governor, or for which a local emergency has been declared by the executive officer or governing body of any city, county, or city and county:<\/p>\n<\/div>\n<p>\u201cSeven-Day Right to Cancel<\/p>\n<p>You, the buyer, have the right to cancel this contract within seven business days. \u2002You may cancel by\u00a0<span class=\"added-material\">emailing<\/span>, mailing, faxing, or delivering a written notice to the contractor at the contractor&#8217;s place of business by midnight of the seventh business day after you received a signed and dated copy of the contract that includes this notice. \u2002Include your name, your address, and the date you received the signed copy of the contract and this notice.<\/p>\n<p>If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. \u2002For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. \u2002Or, you may, if you wish, comply with the contractor&#8217;s instructions on how to return the goods at the contractor&#8217;s expense and risk. \u2002If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. \u2002If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.\u201d<\/p>\n<div class=\"subsection\">\n<p>(B)\u2002The \u201cSeven-Day Right to Cancel\u201d notice required by this subdivision shall comply with all of the following:<\/p>\n<div class=\"subsection\">\n<p>(i)\u2002The text of the notice is at least 12-point boldface type.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(ii)\u2002The notice is in immediate proximity to a space reserved for the owner&#8217;s signature.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(iii)\u2002The owner acknowledges receipt of the notice by signing and dating the notice form in the signature space.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(iv)\u2002The notice is written in the same language, e.g., Spanish, as that principally used in any oral sales presentation.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(v)\u2002The notice may be attached to the contract if the contract includes, in at least 12-point boldface type, a checkbox with the following statement: \u2009\u201cThe law requires that the contractor give you a notice explaining your right to cancel. \u2002Initial the checkbox if the contractor has given you a \u2018Notice of the Seven-Day Right to Cancel.&#8217; \u201d<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(vi)\u2002The notice shall be accompanied by a completed form in duplicate, captioned \u201c<span class=\"wordphrase\">Notice of Cancellation<\/span>,\u201d which shall also be attached to the agreement or offer to purchase and be easily detachable, and which shall contain the following statement written in the same language, e.g., Spanish, as used in the contract:<\/p>\n<div class=\"responsive_table\">\n<table>\n<tbody>\n<tr>\n<td width=\"100.0%\">\u201cNotice of Cancellation\u201d<\/td>\n<\/tr>\n<tr>\n<td width=\"50.0%\"><\/td>\n<td width=\"50.0%\">\/enter date of transaction\/<\/td>\n<\/tr>\n<tr>\n<td width=\"50.0%\"><\/td>\n<td width=\"50.0%\">_________________________________________________<\/td>\n<\/tr>\n<tr>\n<td width=\"50.0%\"><\/td>\n<td width=\"50.0%\">(Date)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u201cYou may cancel this transaction, without any penalty or obligation, within seven business days from the above date.<\/p>\n<p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.<\/p>\n<p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller&#8217;s expense and risk.<\/p>\n<p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. \u2002If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.\u201d<\/p>\n<div class=\"responsive_table\">\n<table>\n<tbody>\n<tr>\n<td width=\"100.0%\">To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">to _______________________________________________________________________________________________,<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">\/name of seller\/<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">at ________________________________________________________________________________________________<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">\/address of seller&#8217;s place of business\/<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">not later than midnight of _______________________________________________________________________.<\/td>\n<\/tr>\n<tr>\n<td width=\"30.1%\"><\/td>\n<td width=\"69.9%\">(Date)<\/td>\n<\/tr>\n<tr>\n<td width=\"100.0%\">\u2002\u2002\u2002\u2002I hereby cancel this transaction.\u2003________________________________________________________________<\/td>\n<\/tr>\n<tr>\n<td width=\"30.1%\"><\/td>\n<td width=\"6.5%\"><\/td>\n<td width=\"63.4%\">(Date)<\/td>\n<\/tr>\n<tr>\n<td width=\"30.1%\"><\/td>\n<td width=\"69.9%\">_____________________________________________________________________<\/td>\n<\/tr>\n<tr>\n<td width=\"30.1%\"><\/td>\n<td width=\"69.9%\">(Buyer&#8217;s signature)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<\/div>\n<\/div>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":7,"featured_media":0,"parent":2019,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-4895","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>California Contractor Deposit Law - California Statutes<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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