Deposit
A deposit (or down payment) is money paid upfront to secure a job, an order or a rental, before the work is done or the goods are delivered.
Updated October 13, 2026 · 1 min read
On this page
Put it in writing
- The amount, and what it's for: materials, scheduling, or simply holding the date.
- Whether it's applied to the final bill.
- Whether, and when, it's refundable if the job is canceled.
- When the next payments are due.
Some states cap it
Deposits on consumer jobs are often regulated. In California, the down payment on a home improvement contract can't exceed $1,000 or 10 percent of the contract price, whichever is less. Other states have their own rules, especially for home improvement, so check before you set your deposit terms. Buyers may also have a three-day right to cancel some sales.
Put the deposit terms in the contract the customer signs. With SignMaster, they can sign on your phone right then with Sign in person, or from a link.
Questions? Answers.
Should a deposit be refundable?
That's a business decision, within any limits your state sets. Whatever you choose, spell it out in the contract: when the deposit is refundable, when it isn't, and how cancellations are handled.
Sources
- California Business and Professions Code § 7159.5, home improvement down payments · leginfo.legislature.ca.gov