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Check a contractor before you sign

The license, the deposit, the days to cancel and the lien releases, straight from the state license board, plus a calculator for your own contract.

The Torrey Pines cliffs above Black's Beach
The Torrey Pines cliffs above Black's Beach · photo: Wikimedia Commons, public domain

Two minutes before you sign: look up the license, check the deposit, and know how many days you have to change your mind. Every rule below is from the Contractors State License Board (CSLB).

Check a license (CSLB) Text PJ the license number

In the news this week: The Coast News on lawsuits and mechanics' liens from unpaid contractors on San Diego ADU projects. The steps below are how homeowners keep that off their own property.

Your contract, by the numbers

Home improvement contracts in California. A calculator, not legal advice; the CSLB links below have the full rules.

The rules, from CSLB

  • License: required for any job of $1,000 or more (labor and materials together), any job that needs a building permit, and any job where the contractor uses employees. The line moved from $500 to $1,000 on January 1, 2025.
  • Deposit: no more than 10% of the contract price or $1,000, whichever is less.
  • Payments: pay only as work is completed, not before.
  • In writing: a detailed description of the work and materials, and every change or addition.
  • Permits: the contract should require the contractor to get any needed permits before work starts.
  • Notice to Owner: your contractor must give you this warning about property liens.
  • References: CSLB's checklist asks for at least three local references.
  • Cancel: 3 days, unless you negotiated the contract at the contractor's place of business or it's under $25. Homeowners 65 and older get 5 days. Service-and-repair jobs under $750 have their own rules.

Sources: CSLB homeowner checklist · warnings and exceptions · the $1,000 rule (AB 2622).

Keep liens off your house

If your contractor doesn't pay a subcontractor or supplier, they can file a mechanics lien on your property, even if you paid in full. CSLB's steps:

  1. Watch for Preliminary Notices. Subs and suppliers who might file a lien send one, up to 20 days after they start. Keep them: that's your list of who must be paid.
  2. Before each payment, get a signed conditional lien release from each of them.
  3. After each payment, get the unconditional releases. You can hold the next payment until you have them.
  4. Or pay with joint checks, made out to the contractor and the sub together.
  5. When the job is done, file a Notice of Completion: it cuts the time to file a lien from 90 to 60 days for the contractor and from 90 to 30 days for subs and suppliers.

Source: CSLB, how to prevent a mechanics lien.

Check the permit

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Questions people ask

How much can a contractor ask for a down payment in California?

No more than 10% of the contract price or $1,000, whichever is less, for home improvement work (CSLB homeowner checklist).

Does a handyman need a license in California?

Yes for any job of $1,000 or more in labor and materials, any job that needs a permit, or any job with employees. The minor-work limit rose from $500 to $1,000 on January 1, 2025 (AB 2622).

How many days do I have to cancel a home improvement contract?

Three days in most cases, unless it was negotiated at the contractor's place of business or is under $25. Homeowners 65 and older get five days.

How do I keep a mechanics lien off my house?

Get a conditional lien release from each sub and supplier before each payment and an unconditional release after, or pay with joint checks; file a Notice of Completion when the job is done.

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