Lathcheck checklist › Rule explainers

Downpayment limit: $1,000 or 10 percent, whichever is less

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What the statute says

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Bus. & Prof. Code §7159.5(a)(3)

If a downpayment will be charged, the downpayment shall not exceed one thousand dollars ($1,000) or 10 percent of the contract amount, whichever amount is less.

Bus. & Prof. Code §7159(d)(8)

If a downpayment will be charged, the heading “Downpayment” … followed by … “THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.”

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Last checked against the statute text on leginfo.legislature.ca.gov on 2026-10-28. Laws change; check the current text. Lathcheck is a working name and prototype.