Legal Question in Construction Law in California
I work for a company that does in home sales of cabinets. What is the max legal amount of deposit can we ask for?
Asked on 1/26/11, 5:31 pm
2 Answers from Attorneys
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
I think the issue will be whether the company is selling goods or doing home improvement contracts. If it is selling goods, it can ask for 100% or whatever. If it is doing home improvements, I believe it can only ask for 10%.
Answered on 1/28/11, 10:51 am
Mr. Whipple is correct. If you are just selling and delivering the cabinets you can require payment up front in full, or any deposit you choose. If you are installing them, you need a contractors license and can only charge 10%. You can, however, charge the cost of the cabinets once they get to the jobsite. You don't have to wait until they are installed.
Answered on 1/28/11, 1:16 pm