Roofing Contracts and Down Payments.

California sets firm rules for home improvement contracts, and a roof job is a home improvement. The Contractors State License Board (CSLB) publishes plain-language guides on these rules. This page sums them up for a homeowner getting ready to sign.

LA Roof Guide is an information site. We do not write, review or negotiate contracts. For legal questions about a specific contract, talk to a lawyer.

The down payment cap

This is the rule most people have not heard of. CSLB's guides say a down payment cannot be more than 10% of the total contract price or $1,000, whichever is less.

Some quick examples of how "whichever is less" works:

• On a $6,000 contract, 10% is $600. The cap is $600.
• On a $10,000 contract, 10% is $1,000. The cap is $1,000.
• On a $25,000 contract, 10% is $2,500. The cap is still $1,000.

These numbers only show the math. They are not cost estimates for a roof. For what drives roof prices, see roof replacement cost factors.

CSLB notes an exception for about two dozen contractors who have filed a blanket performance and payment bond with the Registrar. That exception is shown on the contractor's license detail page on the CSLB website. You can check it with our guide to checking a CSLB license.

CSLB lists "illegally large down payments" as a common scam. A person asks for more than the law allows and says the cash is needed for supplies or workers. Then the job is left unfinished.

Pay as the work is done

CSLB's homeowner checklist says that if the contract has a payment schedule, "you should pay only as work is completed and not before." Its senior guide says the same thing another way: do not let payments get ahead of the work.

For a roof, that means a schedule tied to stages you can see. Examples might be tear-off finished, underlayment installed, or final inspection passed. The contract should spell out each stage and the payment that goes with it.

CSLB also says to avoid paying in cash. A check or card leaves a record. After the 2025 Southern California wildfires, CSLB added two more points: avoid making the final payment until you are satisfied with the job, and keep a job file of all project papers and payment copies.

What the contract should say

CSLB's checklist asks homeowners to confirm these items before signing:

• When work will start and when it will end
• A detailed description of the work to be done
• That all changes or additions are in writing
• A schedule of payments, if there is one
• That you got a "Notice to Owner," a warning notice that describes liens and ways to prevent them

CSLB's senior guide adds that the contract should cover project materials and expectations, plus cleanup and debris removal. It says not to sign a contract you do not understand.

For a roof, "detailed description" can include the roofing material, whether the old roof will be torn off, what happens if damaged decking is found, and who gets the permit. Our page on how to read a roofing estimate covers the line items to look for.

Signing on a tablet

CSLB's senior guide has a specific tip. If a contractor asks you to sign on an iPad, tablet or laptop, ask for an immediate paper copy. Otherwise you may not get a copy, or the wording may change between when you sign and when you get it.

Your right to cancel

CSLB says people 65 or older have a five business day right to cancel a home improvement contract. Everyone else has three business days.

CSLB advises:

• Do not let the contractor start work or pull permits during this period.
• Resist any pressure to waive your right to cancel.

Financing offered by the contractor

CSLB's senior guide says to be wary of contractor-endorsed financing. It says the interest rate may be higher than a financial institution's, and the loan may run longer than needed. Compare it with other options before you agree.

Insurance money and contracts

If your roof job is part of an insurance claim, CSLB's 2025 wildfire guidance says not to sign over any payment checks from your insurance company to a contractor. For how claims work, see roof insurance claim steps.

If something goes wrong

Every licensed contractor must post a $25,000 bond or cashier's check with CSLB, according to CSLB's bond guide. If a contractor breaks license law and you are harmed, you may be able to file a claim with the surety company named on the license record. CSLB's guide says to gather your contract, payment records, messages and proof of the problem first. It also says that if you are not satisfied with the surety's answer, small claims court handles amounts up to $10,000, and larger claims go to superior court.

You can also file a complaint with CSLB. The main line is 800-321-CSLB (2752).

Related pages

• Back to hiring a roofer
• How to check a CSLB license
• How to read a roofing estimate
• Roof replacement cost factors

This page is general information, not legal advice. Rules can change. Confirm current details at cslb.ca.gov.