Restrictions on Deposits & Down-Payments

If you are going to charge less than $25,000 to complete a new construction or remodeling job, then there are no restrictions on the amount of down-payment or deposit you can collect under the Home Construction Services Act. However, if you are going to charge more than $25,000, the Home Construction Services Act may restrict your deposit to 10% of the purchase price for the project, prior to starting work. However, if the project requires you to special order items which cannot be returned or used for another project before you start work on the project at hand, then you can request a deposit of 75% of the cost of the special-order item(s). Additionally, if you use a cost-plus contract, you are limited in the amount of deposit or down payment you can charge under the Home Construction Services Act.

Facebook
LinkedIn
Email
Print

2050 South High Street
Suite #A.2.4
Columbus, OH 43207

Quick Links

Home
Our Articles

Useful Links

Apply For Your Employer Identification Number/SS-4 Form
The Differences Between Wills Versus Trusts
Why a Limited Liability Company is Usually the Right Choice

Facebook

Linkedin

Privacy Policy
Terms of Use
Statutory Agent ToS