California Contractors License Law Practice Exam 2025 – All-in-One Guide to Master Your Contractor Licensing!

Question: 1 / 400

How long does a contractor have to return a down payment after a successful cancellation?

Two weeks

One month

The correct answer is that a contractor has one month to return a down payment after a successful cancellation. This timeline is established under California law, which provides specific guidelines regarding the handling of down payments and cancellations in construction contracts. After a cancellation notice is provided, the contractor is required to process the return of the down payment in a timely manner, which is defined as up to one month. This ensures that consumers are protected and receive their funds back in a reasonable timeframe, fostering trust in the contracting process. Understanding this requirement is crucial for both contractors and clients, as it sets clear expectations regarding financial transactions after a cancellation occurs.

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Three days

It varies per contract

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