Legal Question in Construction Law in California
is there a law state how much home owner need to pay for a deposit?
my work has been estimated as 5000 total and the project manager charge 2500 deposit, however, on the contract, they state the deposit should be 10% of job estimate or 500, whichever is less.
based on the contract, I should be charge 500 as depoist instead.
Can I dispute my deposit payment?
Asked on 3/30/11, 11:14 am
1 Answer from Attorneys
The law is 10% or $1,000, whichever is less. Any higher deposit demand is illegal and if they refuse to honor the contract unless you pay more than that, you should fire them, make a claim against their contractors license bond, and report them to the Contractors State License Board.
Answered on 3/30/11, 10:29 pm
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