Is it normal for contractors to ask for deposit?

Is it normal for contractors to ask for deposit?

Contractors cannot ask for a deposit of more than 10 percent of the total cost of the job or $1,000, whichever is less. In California, the state limits advance payment at the time of contract signing to 10% of the total estimated job cost or $1,000, whichever amount is lower!

How much can I borrow to renovate?

Minor renovations with no builder: You can usually borrow up to 90% of the purchase price plus the cost of renovations. Major renovations: You can usually borrow up to 80% unless you have a contract builder, in which case you can borrow 95% of the purchase price plus the cost of the renovations.

When to put down a deposit for a home remodel?

A job requiring a lot of money at the start for expensive materials or specialty sub-contractors such as electricians and plumbers will require a larger deposit. A job where the bulk of those costs won’t come until later will be factored in to the payment schedule at the appropriate time.

How much can you put down on a Home Improvement contract?

Some states, including California and Maryland, limit the size of the down payment on a home-improvement contract. Maryland allows up to one-third of the contract price, while California limits the down payment to 10% of the job cost or $1,000, whichever is less.

Can you make a down payment on a home improvement job in Massachusetts?

Massachusetts and Pennsylvania limit the down payment to one-third of the contract price but make an exception if materials have to be special ordered. In Maine, the initial payment on home improvement jobs can’t exceed one-third of the contract price.

What can you do when a contractor takes your deposit and does nothing?

If a contractor takes a down payment and does nothing for the job such as having materials delivered or showing up to work on it he is guilty of fraud in most cases. Call the police and district attorney to see what charges can be filed against him.