Legal Question in Construction Law in California

Re: New construction deposit

For contracts of home improvement, a contractor may not receive as a down payment any sum in excess of either (i) 10% of the contract price, or (ii) $1,000, whichever is less.

However, new home construction is not subject to this limitation. Therefore, there is no limit to the down payment you may require.

Although I haven't seen case law on this, I would argue that only contracts calling for services to begin after the Certificate of Completion are subject to the requirements of the home improvement contract law (Business & Professions Code sections 7150, et seeq.).