The contract is the one document a homeowner, a licensing board and a judge will all read. In 25 states and DC, a home improvement contract that’s missing a required clause isn’t just sloppy: it’s a licensing violation, a consumer-fraud violation with treble damages, or (in Connecticut, Pennsylvania and New York) a contract the contractor can’t enforce at all. Nine states cap how much you can take as a deposit. Fifteen have special rules for insurance-funded roofing and storm work. And the federal Cooling-Off Rule gives every homeowner three business days to cancel a deal signed at their kitchen table, in all 50 states.
This guide gives the rules in every state and DC for a contractor working directly with a homeowner: when the contract must be in writing, what has to be in it, how big a deposit you can take, and how long the customer has to back out. It’s written for the trades, where most jobs are a few thousand dollars and the contract is often a proposal with a signature line, which in Indiana ($150), Connecticut ($200), DC ($300), California, New Jersey, New York and Pennsylvania ($500) is already over the threshold.
Statutes current as of October 2026. The thresholds and caps below are the statutory ones; licensing boards often add required notices by regulation, and the state block links to each agency’s contract page.
Quick answer: 25 states and DC require a written home improvement contract with specific terms, from $150 (Indiana) and $200 (Connecticut) through $500 (California, New Jersey, New York, Pennsylvania) to $25,000 (Ohio). Nine cap the deposit: $1,000 or 10% in California and Nevada; one-third in Maryland, Massachusetts, Pennsylvania, Maine and Tennessee; 10% in Ohio (over $25,000); half of labor or materials in Vermont; New York requires deposits to be escrowed. Every state gives at least 3 business days to cancel a sale made at the home (Maryland 5, California 5 for seniors). 12 states have only roofing or insurance-claim contract rules; 14 rely on the federal rule and general consumer law.
On this page
The Federal Floor: The 3-Day Cooling-Off Rule
The FTC’s Cooling-Off Rule (16 CFR Part 429) applies to any sale of $25 or more made somewhere other than the seller’s permanent place of business, which includes a homeowner’s kitchen. The buyer may cancel until midnight of the third business day after signing, and the seller must tell them so orally, put the cancellation right in the contract, and hand over two copies of a Notice of Cancellation form with the seller’s address and the cancellation deadline filled in. Miss the form and the cancellation window stays open indefinitely.
Two exceptions matter for the trades. First, the rule doesn’t apply when the buyer initiated the contact and the goods or services are needed to meet a bona fide emergency, and the buyer signs a separate written waiver describing the emergency: a burst pipe on a Sunday qualifies; a furnace tune-up doesn’t. Second, it doesn’t apply to a contract signed at your shop or entirely by phone and email, though many state laws do. Starting work during the three days is allowed, but if the customer cancels you must restore the property and can’t charge for what you did, so most shops wait.
The 25 States With Contract Statutes
| State | Written contract from | Deposit limit | Right to cancel | Law |
|---|---|---|---|---|
| California | $500 | $1,000 or 10%, whichever is less | 3 business days (5 if 65+) | B&P 7159 |
| Nevada | All residential improvement | $1,000 or 10% (unless $100K bond) | 3 business days | NRS 624.600; AB 39 |
| Maryland | All home improvement | One-third; nothing before signing | 5 business days | Bus. Reg. 8-617 |
| Massachusetts | $1,000 | One-third (or special-order cost) | 3 business days | c. 142A |
| Pennsylvania | $500 | One-third + special-order materials (over $5,000) | 3 business days | HICPA |
| Maine | $3,000 | One-third unless waived in writing | 3 business days | 10 MRS 1487 |
| Tennessee | $3,000–$24,999 (HIC counties) | One-third unless bonded or agreed | 3 business days | 62-6-510 |
| Ohio | $25,000 | 10% (+75% of special orders) | 3 business days | ORC 4722 |
| Vermont | $10,000 | Half of labor or half of materials | 3 business days | 26 VSA 5509 |
| New York | $500 | No cap; deposits escrowed within 5 days | 3 business days | GBL 771; Lien Law 71-a |
| District of Columbia | $300 | No payment before signed contract | 3 business days | 16 DCMR 800 |
| New Jersey | $500 | No cap; no final payment before completion | 3 business days | 56:8-136 |
| Connecticut | $200 | No cap (about 1/3 by guidance) | 3 business days | 20-429 |
| Illinois | $1,000 | No cap | 3 business days | 815 ILCS 513 |
| Indiana | $150 | No cap | 3 business days | IC 24-5-11 |
| Oregon | $2,000 | No cap | 3 business days | ORS 701.305 |
| Arizona | $1,000 | No cap (50% on catastrophic storm work) | 3 business days | 32-1158 |
| Idaho | $2,000 (disclosure) | No cap | 3 business days | 45-525 |
| Washington | $1,000 (disclosure) | No cap | 3 business days | RCW 18.27.114 |
| Rhode Island | $1,000 | No cap | 3 business days | ch. 5-65 |
| Florida | $2,500 (lien disclosure) | No cap; >10% triggers permit/start deadlines | 3 business days | 489.126; 713.015 |
| Virginia | All residential (regulation) | No cap (10–30% guidance) | 3 business days | 18 VAC 50-22-260 |
| Minnesota | All residential (licensee) | No cap | 3 business days | 326B.809 |
| Wisconsin | Any payment before completion | No cap | 3 business days | ATCP 110 |
| Hawaii | All residential | No cap | 3 business days | 444-25.5 |
The Twelve Clauses, and Where Each Is Required
The state statutes overlap heavily. A contract template with these twelve elements satisfies every state’s list, and the state block tells you which notices to bolt on.
| Clause | Where it’s required |
|---|---|
| Both parties’ names, addresses, phone; your license or registration number | Nearly every state statute; license number is required on the contract in AZ, CA, CT, MD, MA, NJ, NY, NV, OR, PA, RI, VA, WV, MI, OK |
| Property address | CA, NV, IN, MD, VA and most others |
| Description of the work and materials (brand, model, grade where it matters) | Universal; vague scope is the most litigated clause |
| Total price, and whether tax is included | Universal; NV and CA require taxes stated |
| Deposit amount and payment schedule tied to completed work | CA (progress payments can’t exceed work done), NY, MD, PA, MA, ME, TN caps |
| Approximate start and completion dates | CA, CT (contract void without them), IN, ME, MD, MA, NJ, NY, NV, OH, PA, VT, VA |
| Change-order procedure, in writing | ME, NJ, OH, VT, VA; good practice everywhere |
| Notice of Cancellation form (two copies) and the cancellation clause | FTC Rule everywhere for in-home sales; state forms in CA, CT, MD, MA, NJ, NY, PA, IN, IL |
| State consumer notices (lien warning, recovery fund, agency phone number) | CA Mechanics Lien Warning; OR Information Notice; WA Notice to Customer; MA/MD Guaranty Fund; NJ/PA/ME toll-free numbers; MN/TN/WI/RI pre-lien notices |
| Insurance and bond disclosure | OR, NJ, VA, WA, ID |
| Warranty terms | ME, WI, DC; implied warranties apply regardless |
| Signatures of both parties, dated, with a copy delivered before work | Universal |
Deposit Caps and Payment Schedules
Nine jurisdictions limit the deposit directly: California and Nevada at the lesser of $1,000 or 10%; Maryland, Massachusetts, Pennsylvania (contracts over $5,000), Maine (over $3,000) and Tennessee (HIC counties) at one-third; Ohio at 10% for contracts over $25,000; Vermont at half of labor or half of materials. New York has no percentage but requires every pre-completion payment to sit in escrow (or be bonded), which stops the deposit from funding the previous job. DC bars any payment before the contract is signed; Florida lets you take any deposit but starts a permit-and-start clock if it exceeds 10%.
Everywhere else the limit is indirect: payments must track work performed (California’s progress-payment rule, New Jersey’s no-final-payment-before-completion rule, Wisconsin’s ATCP 110), owner payments are trust funds for labor and materials (Colorado, Michigan, Texas, New York), and a deposit far out of proportion to the work is an unfair practice under the consumer-protection act in any state. Special-order materials are the common exception: Massachusetts, Pennsylvania and Ohio let you collect their cost up front. For a trades shop, the practical schedule is a deposit that covers the state cap or special-order equipment (the furnace, the water heater, the panel), a progress payment on rough-in or delivery, and the balance on completion, collected in the driveway. See how to quote the job over the phone for how to set that up before the visit.
Insurance-Claim and Roofing Contract Rules
After the 2008–2012 hail seasons, fifteen states passed laws aimed at storm chasers. They apply whenever the job will be paid in whole or part by a property insurance claim, and they share three features: the contract must say the owner can cancel if the insurer denies the claim (72 hours to 5 business days after notice of denial), the contractor must refund any deposit on cancellation, and the contractor may not pay, waive, rebate or advertise absorbing the deductible (a crime in Texas and a license violation most places). Roofing, siding, gutter, fence and tree-removal contractors hit these rules constantly; HVAC and plumbing shops hit them on hail-damaged condensers and freeze claims.
| State | Insurance-claim contract rule |
|---|---|
| Arizona | 50% down payment cap; cancel within 72 hours of denial (catastrophic storm designations) |
| Colorado | Written roofing contract; cancel within 72 hours of denial; no deductible payment |
| Illinois | Cancellation notice; no deductible rebate (roofing and siding) |
| Indiana | Cancel within 72 hours of denial; no deductible payment |
| Iowa | Cancel within 3 business days of denial; registration required |
| Kansas | Cancellation right after claim denial; AG roofing registration |
| Minnesota | Cancel within 72 hours of denial; no deductible promise |
| Mississippi | No payment until the 3-day post-denial period ends |
| Missouri | Cancel within 72 hours of denial; deposit refund |
| Nebraska | Cancel within 5 business days of denial; full refund |
| Oklahoma | Cancellation right on denial; roofing registration number on contracts |
| South Dakota | Cancellation disclosure; deductible rebate is deceptive |
| Texas | Paying or rebating the deductible is a crime (Ins. Code 27.02) |
| West Virginia | Cancellation right on denial; no deductible rebate |
| Florida | § 489.147 notice on insurance roofing contracts; no deductible rebate |
What Changed Recently
New since 2023: Nevada’s AB 39 (October 1, 2023) imposed a full contract-elements list and the $1,000/10% deposit cap on every residential improvement contract. Vermont’s residential contractor registration (2023) brought a written-contract and deposit rule to a state that had none. New Jersey’s Home Improvement and Home Elevation Contractor Licensing Act is adding a license and bond layer on top of the long-standing $500 contract rule. Maryland’s proposal to lift the deposit cap from one-third to one-half (HB 1499) stalled in 2026, so one-third stands. California’s SB 784, which would have extended cancellation rights on contractor-arranged financing, died in 2026.
State-by-State Breakdown
Red chips mark states (and DC) with a home-improvement contract statute or board regulation: a written-contract threshold, required clauses, a deposit cap, or all three. Amber marks states whose only rules are for roofing and insurance-claim work, trust-fund statutes, or registration-tier contract rules. Grey means the federal Cooling-Off Rule and the state’s general consumer-protection act are the limits. Every block links the statute or agency page.
Jump to your state
Alabama Federal Rules Only
State requirement: No home-improvement-specific contract statute. Alabama’s Home Builders Licensure Board licenses residential work over $10,000 but imposes no contract form, deposit cap or cancellation right beyond the Deceptive Trade Practices Act.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Alaska Federal Rules Only
State requirement: No home-improvement-specific contract statute. Alaska requires contractor registration and a residential contractor endorsement, and its home solicitation law mirrors the federal 3-day rule, but there is no written-contract threshold or deposit cap.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Arizona Written Contract Over $1,000
Statute / Agency: A.R.S. § 32-1158; AAC R4-9-108; Registrar of Contractors
Written contract: Required for residential work over $1,000, with the ROC’s mandated elements: contractor name, address, license number, the ROC’s contact information and the statutory notice of the owner’s right to file a complaint, total price, and a description of the work. The contract must be signed before work begins.
Deposit: No general cap. For storm-damage repairs the insurer has designated as catastrophic, § 32-1158.02 caps the down payment at 50% and gives the owner 3 business days to cancel (72 hours after the insurer denies the claim). Failure to meet the contract requirements is grounds for ROC discipline and a Residential Contractors’ Recovery Fund claim.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Arkansas Federal Rules Only
State requirement: No home-improvement-specific contract statute. Arkansas’s Residential Building Contractors Committee licenses work over $2,000 but sets no contract form or deposit cap; the state Home Solicitation Sales Act (Ark. Code § 4-89-101) tracks the federal 3-day rule.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
California Written Contract $500+; 10%/$1,000 Deposit
Statute / Agency: Bus. & Prof. Code § 7159, 7159.5; Civ. Code § 1689.6; CSLB
Written contract: Every home improvement contract of $500 or more (labor and materials) must be in writing, signed by both parties before work starts, with 14-point “Home Improvement” heading, the CSLB license number, a description of the project and materials, the total price, an approximate start and completion date, a payment schedule that tracks work actually completed, the Mechanics Lien Warning, the three-day (five-day for owners 65 and older) Notice of Cancellation, and the CSLB’s information notice. Service and repair contracts under $750 that the owner initiated get a shorter form.
Deposit: The down payment may not exceed $1,000 or 10% of the contract price, whichever is less, and no payment may exceed the value of work completed. Violations are misdemeanors (§ 7159.5) and grounds for license discipline; taking more than $1,000 down is the single most-cited CSLB violation. Full licensing context in home improvement contractor licensing by state.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Colorado Roofing Contracts Only
Statute / Agency: C.R.S. § 6-22-101 et seq. (Residential Roofing Services); § 38-22-127
State requirement: Colorado has no general home improvement contract law, but its 2012 roofing statute requires a written residential roofing contract with the price, scope and the contractor’s contact details, bars the contractor from paying or waiving the insurance deductible, and gives the owner 72 hours to cancel if the insurer denies the claim. Any payment taken before work must be refunded on cancellation.
Trust fund: Under § 38-22-127, money a homeowner pays a contractor is held in trust for subs and suppliers; spending a deposit on anything else is civil theft. No deposit cap otherwise.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Connecticut Written Contract; 3-Day Cancel
Statute / Agency: Conn. Gen. Stat. § 20-429 (Home Improvement Act); § 42-135a; DCP
Written contract: Under the Home Improvement Act every home improvement contract over $200 must be in writing, signed by both parties, dated, with the contractor’s HIC registration number, start and completion dates, the entire agreement, and the statutory notice of the owner’s cancellation rights (3 business days). A contract that misses any element is unenforceable by the contractor; Connecticut courts have voided six-figure claims over a missing start date.
Deposit: No statutory cap. DCP guidance treats about one-third as the norm and treats a demand for most of the price up front as an unfair practice. Unregistered contractors have no right to payment or lien at all.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Delaware Federal Rules Only
State requirement: No home-improvement-specific contract statute. Delaware’s home improvement contractor licensing (Division of Revenue) and consumer fraud act apply, and 6 Del. C. ch. 44 gives 3 business days to cancel door-to-door sales, but there is no contract form or deposit cap.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
District of Columbia Written Contract $300+; No Payment Before Signing
Statute / Agency: 16 DCMR §§ 800–808; D.C. Code § 28-3811; DLCP
Written contract: Home improvement work of $300 or more needs a written contract with the DC-mandated clauses (license number, description, price, payment schedule, start and completion dates, warranty terms and the 3-day cancellation notice). A licensed contractor may not take any payment until the written contract is signed, and may not take payment for work not yet performed unless bonded.
Deposit: No numeric cap, but the no-payment-before-contract rule and the ban on pre-performance payments do the same work. Violations are grounds for license suspension and a Consumer Protection Procedures Act claim with treble damages.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Florida Lien Disclosure $2,500+; 10% Rule
Statute / Agency: Fla. Stat. § 489.126, 489.147, 713.015; § 501.025; DBPR
Written contract: Florida doesn’t mandate a contract form, but a direct contract over $2,500 for residential work must include the § 713.015 construction lien law disclosure in 12-point type, and roofing contracts tied to insurance claims must carry the § 489.147 notice. Door-to-door sales over $25 get the 3-business-day cancellation right under § 501.025.
Deposit: No cap, but § 489.126 sets a clock: if the contractor takes more than 10% of the price, it must apply for permits within 30 days of the payment and start work within 90 days of permit issuance, or refund the money within 30 days of a written demand. Missing those deadlines is a misdemeanor to felony depending on the amount, and the most common criminal charge against Florida contractors.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Georgia Federal Rules Only
State requirement: No home-improvement-specific contract statute. Georgia licenses residential contractors over $2,500 but has no contract statute or deposit cap; O.C.G.A. § 10-1-393 (Fair Business Practices Act) provides the 3-day door-to-door cancellation right.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Hawaii Written Contract; Lien Rights Disclosure
Statute / Agency: HRS § 444-25.5; Contractors License Board
Written contract: Before signing with a homeowner, a licensed contractor must explain lien rights and the owner’s options to protect against them, disclose the approximate percentage of the price going to subs and materials, and give a written contract stating the total price, license number and those disclosures. Failure is grounds for license discipline and can bar the contractor from enforcing the contract.
Deposit: No statutory cap. Hawaii’s door-to-door sales law (HRS ch. 481C) provides the 3-day cancellation right.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Idaho Residential Disclosure Over $2,000
Statute / Agency: Idaho Code § 45-525; Contractors Board
Written disclosure: For residential work over $2,000, the general contractor must give the homeowner the statutory Residential Disclosure Statement before signing, covering lien rights, the owner’s right to require lien waivers and a surety bond, and a list of subs and suppliers over $500 before final payment. The disclosure must state the amount of any down payment. No contract form beyond that.
Deposit: No cap. Unregistered contractors can’t enforce a contract or lien.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Illinois Written Contract Over $1,000; Rights Brochure
Statute / Agency: 815 ILCS 513 (Home Repair and Remodeling Act); Attorney General
Written contract: Any home repair or remodeling job over $1,000 requires a written contract with the total cost (including parts and materials) and the contractor’s business name and address, signed before work begins, plus delivery of the Attorney General’s “Home Repair: Know Your Consumer Rights” pamphlet with a signed acknowledgment. Insurance-funded roofing and siding contracts must include the statutory cancellation notice, and the contractor can’t pay or rebate the deductible.
Deposit: No cap. Violations are unlawful practices under the Consumer Fraud Act (attorney fees, punitive damages) and contractors must carry at least $100,000 general liability insurance to work under the Act.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Indiana Written Contract Over $150
Statute / Agency: Ind. Code § 24-5-11 (Home Improvement Contracts Act); Attorney General
Written contract: Indiana’s threshold is the lowest in the country: any home improvement over $150 needs a written contract with the contractor’s name, address and phone, the owner’s name and property address, a reasonably detailed description, start and completion dates, the price, and signature lines, delivered before work begins. Insurance-related roofing contracts add a cancellation right within 72 hours of claim denial and a ban on paying the deductible.
Deposit: No cap. A noncompliant contract is a deceptive act under the Deceptive Consumer Sales Act, with civil penalties up to $5,000 per violation.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Iowa Insurance Roofing Rules
Statute / Agency: Iowa Code ch. 714E; § 555A (door-to-door)
State requirement: No general contract statute. Iowa’s roofing law (ch. 714E) requires written insurance-funded roofing contracts to carry the statutory cancellation notice, lets the owner cancel within 3 business days of learning the claim was denied, and bars the contractor from paying or rebating the deductible. Contractors must be registered with the Division of Labor.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Kansas Insurance Roofing Rules
Statute / Agency: K.S.A. 50-6,122 et seq. (Roofing Registration Act); Consumer Protection Act
State requirement: No general contract statute. Roofing contractors must register with the Attorney General, and insurance-funded roofing contracts must be in writing with the cancellation notice; the owner may cancel after the insurer denies the claim. Kansas has no statewide contractor license for other trades, so the Consumer Protection Act and the 3-day door-to-door rule are the limits.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Kentucky Federal Rules Only
State requirement: No home-improvement-specific contract statute. Kentucky has no statewide contractor license for most trades and no contract statute; KRS 367.170 (unfair practices) and the home solicitation law (KRS 367.410) apply.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Louisiana HIC Registration $7,500–$75,000
Statute / Agency: La. R.S. 37:2175.1 et seq.; State Licensing Board for Contractors
State requirement: Home improvement work between $7,500 and $75,000 requires Home Improvement Contractor registration with the LSLBC, and the Residential Truth in Construction Act (R.S. 9:4851) requires delivering a notice of lien rights to an owner-occupant before work. No contract form or deposit cap; misapplying a homeowner’s payments is a crime under R.S. 14:202.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Maine Written Contract Over $3,000; 1/3 Deposit
Statute / Agency: 10 M.R.S. § 1486–1490; Attorney General
Written contract: Home construction contracts over $3,000 must be in writing with the statutory elements: names, addresses, the Attorney General’s consumer notice, a description of the work and materials, start and completion dates, the total price, a payment schedule, change-order procedure, warranty terms, and a statement that the owner may call the AG’s Consumer Protection Division. Maine has no contractor license, so the contract law is the main consumer protection.
Deposit: Capped at one-third of the contract price unless the owner waives the cap in writing. Violations are unfair trade practices under 5 M.R.S. § 207, with a $100 to $1,000 civil penalty per violation.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Maryland Written Contract; 1/3 Deposit
Statute / Agency: Md. Bus. Reg. § 8-501, 8-617; Com. Law § 14-302; MHIC
Written contract: Every home improvement contract must be in writing before any work or payment, with the contractor’s MHIC license number and the salesperson’s, a description, start and completion dates, the price and payment schedule, the MHIC Guaranty Fund notice, and the cancellation notice. Maryland’s Door-to-Door Sales Act gives 5 business days to cancel a sale made at the home.
Deposit: Capped at one-third of the contract price, and no payment may be taken before the contract is signed (§ 8-617). Violations are misdemeanors and the most common basis for MHIC Guaranty Fund awards against contractors.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Massachusetts Written Contract Over $1,000; 1/3 Deposit
Statute / Agency: M.G.L. c. 142A § 2; Office of Consumer Affairs
Written contract: Residential contracts over $1,000 must be in writing with the HIC registration number, a detailed description, start and completion dates, the total price and payment schedule, the Guaranty Fund notice, a permit notice (and a statement that an owner who pulls the permit loses Guaranty Fund rights), the 3-day cancellation notice, and the arbitration clause option. The contractor must keep a signed copy.
Deposit: Capped at one-third of the price, or the actual cost of special-order materials if greater, and no final payment may be demanded before completion. Violations are c. 93A unfair practices with double or treble damages.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Michigan Builder Contract Rules; Trust Fund
Statute / Agency: MCL § 339.2411; 570.151 (Building Contract Fund Act); LARA
State requirement: Licensed residential builders and maintenance-and-alteration contractors must put their license number on every contract and may be disciplined for abandoning a job or failing to deliver a contract the owner can read, but Michigan has no dollar threshold or deposit cap. Money paid by the owner is a trust fund for labor and materials; spending it elsewhere is a felony. The Home Solicitation Sales Act provides the 3-day cancellation right.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Minnesota Written Contract; Insurance Roofing Rules
Statute / Agency: Minn. Stat. § 326B.809, 326B.811, 325G.06–.11; DLI
Written contract: Licensed residential contractors must use a written contract for every residential project with the license number, a description, and the statutory pre-lien notice (see mechanics lien deadlines by state). Insurance-funded roofing and siding contracts must carry the § 326B.811 cancellation notice (owner may cancel within 72 hours of claim denial) and the contractor can’t promise to pay the deductible.
Deposit: No cap. Minnesota’s home solicitation law (§ 325G.06) gives 3 business days to cancel in-home sales; Minnesota also runs a Contractor Recovery Fund for owners who lose deposits.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Mississippi Insurance Roofing Rules
Statute / Agency: Miss. Code § 75-24-301 et seq.; State Board of Contractors
State requirement: No general contract statute. Mississippi’s roofing law requires insurance-funded roof repair contracts to be in writing with the cancellation notice, bars accepting payment until the 3-business-day cancellation period after claim denial has passed, and prohibits rebating the deductible. Residential builders need a license over $10,000 and remodelers over $10,000.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Missouri Insurance Roofing Rules
Statute / Agency: RSMo § 407.725; Merchandising Practices Act
State requirement: No general contract statute and no statewide contractor license. Insurance-funded roofing and siding contracts must disclose the owner’s right to cancel within 72 hours of claim denial and refund any deposit; paying the deductible is prohibited. Kansas City and St. Louis have local contractor rules; the 3-day door-to-door rule applies statewide.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Montana Federal Rules Only
State requirement: No home-improvement-specific contract statute. Montana requires contractor registration (Department of Labor & Industry) but has no contract statute or deposit cap; the Montana Consumer Protection Act and the 3-day door-to-door rule apply.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Nebraska Insurance Roofing Rules
Statute / Agency: Neb. Rev. Stat. § 44-8601 et seq. (Insured Homeowners Protection Act)
State requirement: No general contract statute. Insurance-funded roofing and exterior repair contracts must include the statutory cancellation notice, the owner may cancel within 5 business days of claim denial with a full refund, and deductible rebates are prohibited. Contractors register with the Department of Labor; no deposit cap otherwise.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Nevada Written Contract; 10%/$1,000 Deposit
Statute / Agency: NRS 624.600, 624.520; AB 39 (2023); State Contractors Board
Written contract: Since October 1, 2023 (AB 39), every contract with a single-family homeowner for residential improvement work must contain the mandated elements: contractor name, address, license number and monetary limit; owner and property details; execution and estimated completion dates; description of the work; total price including taxes; any down payment; a statement that the owner received the NSCB’s informational form; initial lines; and the notice of the owner’s right to contact the Board, request a payment and performance bond, consult an attorney, and get the contract in the language it was explained in. The contractor must give a receipt for every payment.
Deposit: Capped at $1,000 or 10% of the contract price, whichever is less, unless the contractor has a $100,000 consumer protection bond on file with the Board. Violations are grounds for discipline and Residential Recovery Fund claims.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
New Hampshire Federal Rules Only
State requirement: No home-improvement-specific contract statute. New Hampshire has no statewide contractor license (other than electrical and plumbing) and no contract statute; RSA 358-A (Consumer Protection Act) and the 3-day door-to-door rule apply.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
New Jersey Written Contract Over $500
Statute / Agency: N.J.S.A. 56:8-136 et seq.; N.J.A.C. 13:45A-16.2; Division of Consumer Affairs
Written contract: Every home improvement contract over $500 must be in writing, signed by both parties, with the contractor’s HIC registration number and insurance carrier, the legal name and address, a description of the work and materials, the total price, start and completion dates, the toll-free Consumer Affairs number, and the statutory 3-business-day cancellation notice. Change orders must also be in writing.
Deposit: No numeric cap, but the regulations bar demanding final payment before completion and treat deposits disproportionate to the work as unconscionable practices under the Consumer Fraud Act (treble damages and attorney fees). The new Home Improvement and Home Elevation Contractor Licensing Act adds a license and bond layer; see the HIC licensing guide.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
New Mexico Federal Rules Only
State requirement: No home-improvement-specific contract statute. New Mexico’s CID licenses contractors but sets no contract form or deposit cap; the Unfair Practices Act and the 3-day home solicitation rule (NMSA § 57-12-21) apply.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
New York Written Contract Over $500; Escrow Deposits
Statute / Agency: N.Y. Gen. Bus. Law § 771; Lien Law § 71-a; local HIC licensing
Written contract: Home improvement contracts over $500 must be in writing, signed, with the contractor’s name, address, phone and license number, a description of the work and materials, the approximate start and completion dates, the price and a progress-payment schedule tied to work actually done, the required notices about the escrow of deposits and the owner’s 3-business-day cancellation right, and a copy delivered to the owner before work starts.
Deposit: No percentage cap, but every payment received before substantial completion must be deposited in an escrow account within 5 business days (or the contractor must post a bond or contract of indemnity) under Lien Law § 71-a. Spending a deposit on another job is larceny. NYC, Nassau, Suffolk, Westchester, Rockland and Putnam also require a home improvement license, and an unlicensed contractor can’t enforce the contract.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
North Carolina Federal Rules Only
State requirement: No home-improvement-specific contract statute. North Carolina licenses general contractors over $40,000 and has no contract statute or deposit cap; the Unfair and Deceptive Trade Practices Act (treble damages) and the 3-day door-to-door rule (G.S. 25A-39) apply.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
North Dakota Federal Rules Only
State requirement: No home-improvement-specific contract statute. North Dakota licenses contractors over $4,000 but sets no contract form or deposit cap; N.D.C.C. ch. 51-18 provides the 3-day home solicitation cancellation right.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Ohio Written Contract Over $25,000; 10% Deposit
Statute / Agency: ORC ch. 4722 (Home Construction Service Suppliers Act); ORC 1345.21–.28; Attorney General
Written contract: Home construction service contracts over $25,000 (new construction and major improvements) must be in writing with the statutory elements: names, addresses and phone numbers, a description of the goods and services, the price, an estimated start and completion date, permit responsibilities, and a change-order procedure. Smaller jobs fall under the Consumer Sales Practices Act and the Home Solicitation Sales Act (3-day cancellation).
Deposit: For covered contracts, the deposit may not exceed 10% of the price, except that the supplier may collect up to 75% of the cost of non-returnable special-order items. Excess deposits and failing to deliver the contract are deceptive acts with rescission and treble damages.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Oklahoma Roofing Registration Rules
Statute / Agency: 59 O.S. § 1151.1 et seq. (Roofing Contractor Registration Act); Construction Industries Board
State requirement: No general contract statute. Registered roofing contractors must put their registration number on contracts and advertising; insurance-funded roofing contracts carry a cancellation right if the claim is denied and deductible rebates are barred. Plumbing, electrical and HVAC licensing is through the CIB; no deposit cap.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Oregon Written Contract Over $2,000; Consumer Notices
Statute / Agency: ORS 701.305, 701.330; OAR 812-012-0110; CCB
Written contract: Residential work over $2,000 requires a written contract with the CCB license number, a description, the price, and the CCB’s required consumer notices: the Information Notice to Owner About Construction Liens (which preserves the contractor’s own lien rights), the Consumer Protection Notice, and for new homes the Notice of Procedure. Contracts must also disclose the contractor’s CCB-required insurance and bond and the owner’s right to file a complaint.
Deposit: No cap. Failing to give the notices is grounds for CCB discipline and forfeits lien rights; the Residential Recovery Fund (via CCB complaint) pays owners up to the contractor’s bond. Oregon’s home solicitation law (ORS 83.710) gives 3 business days to cancel.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Pennsylvania Written Contract Over $5,000; 1/3 Deposit
Statute / Agency: 73 P.S. § 517.1–517.18 (HICPA); Attorney General
Written contract: Home improvement contracts of $500 or more must be in writing, signed by both parties, and include HICPA’s full list (a noncompliant contract is unenforceable by the contractor): the contractor’s registration number, address and phone, the entire agreement, start and approximate completion dates, a description of the work and materials, the total price, a payment schedule, the toll-free Bureau of Consumer Protection number, the 3-business-day cancellation notice, and a statement of any subcontractor and insurance information. Arbitration, lien waiver and certain other clauses are void.
Deposit: Capped at one-third of the contract price, plus the cost of special-order materials, for contracts over $5,000. Violations are Unfair Trade Practices Act offenses (treble damages); home improvement fraud is a separate crime.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Rhode Island Written Contract Over $1,000
Statute / Agency: R.I. Gen. Laws ch. 5-65; Contractors’ Registration and Licensing Board
Written contract: The Contractors’ Registration Board requires a written contract for any residential job over $1,000, including the registration number, a description, the price and payment terms, and the Board’s required notice of the owner’s right to a hearing; and the direct contractor must give the Notice of Possible Mechanics’ Lien before work. Rhode Island’s home solicitation law (§ 6-28-1) gives 3 business days to cancel in-home sales.
Deposit: No cap in statute; the Board treats deposits over one-third as a red flag in complaints. Unregistered contractors face fines up to $5,000 per offense and can’t lien.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
South Carolina Federal Rules Only
State requirement: No home-improvement-specific contract statute. South Carolina licenses residential builders and specialty contractors but sets no contract form or deposit cap; the Unfair Trade Practices Act and the 3-day home solicitation rule (S.C. Code § 37-2-501) apply.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
South Dakota Insurance Roofing Rules
Statute / Agency: SDCL ch. 37-24 (Deceptive Trade Practices); § 37-24-5.1 (door-to-door sales)
State requirement: No general contract statute and no statewide contractor license. Insurance-funded roofing contracts must disclose the owner’s right to cancel if the insurer denies the claim, and rebating the deductible is a deceptive act. Cities (Sioux Falls, Rapid City) license contractors locally.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Tennessee Home Improvement Act Counties; 1/3 Deposit
Statute / Agency: Tenn. Code § 62-6-501 et seq.; Board for Licensing Contractors
Written contract: In the counties that have adopted the Home Improvement Contractors Act (including Davidson, Shelby, Knox, Hamilton, Rutherford and others), home improvement projects of $3,000 to $24,999 require a Home Improvement license, and the Act bars demanding any payment before the contract is signed. The owner-occupied residence contract must also carry the statutory lien notice (see mechanics lien deadlines). Work of $25,000 or more needs a full contractor license.
Deposit: Capped at one-third of the contract price at or before signing (§ 62-6-510(12)), unless the contractor furnishes a performance and payment bond or the owner, after written notice of the right to withhold payment, agrees to a different schedule. Violations are Class A misdemeanors and grounds for discipline.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Texas Homestead Contract; Roofing Rules
Statute / Agency: Tex. Prop. Code § 53.254, ch. 162; Bus. & Com. Code ch. 601; Ins. Code § 27.02
State requirement: No general contract statute and no state license for general or remodeling contractors (plumbing, electrical and HVAC are TDLR/TSBPE licensed). But a contractor who wants lien rights on a homestead needs a written contract signed by both spouses before work and recorded with the county clerk (Prop. Code § 53.254), and Texas’s roofing-insurance law (Ins. Code § 27.02) makes paying or rebating a deductible a crime. Chapter 162 makes construction payments trust funds.
Cancellation: Bus. & Com. Code ch. 601 gives 3 business days to cancel any sale over $25 made at the home. No deposit cap.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Utah Federal Rules Only
State requirement: No home-improvement-specific contract statute. Utah’s DOPL licenses contractors but sets no contract form or deposit cap for residential work (retainage on construction contracts is capped at 5% by Utah Code § 13-8-5); the Consumer Sales Practices Act and the 3-day home solicitation rule apply. Utah’s Residence Lien Restriction Act protects owners who pay a licensed contractor in full.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Vermont Written Contract Over $10,000; 1/2 Deposit
Statute / Agency: 26 V.S.A. § 5501–5509; Office of Professional Regulation
Written contract: Since 2023, residential contractors doing work valued over $10,000 (labor and materials) must register with OPR and have a written contract before taking a deposit or starting, stating the price (fixed, time-and-materials with a cap, or uncapped), estimated start and completion dates, a description of services and materials, and the change-order procedure; amendments must be in signed writing.
Deposit: For fixed-price or capped contracts, the down payment may not exceed one-half of the labor cost or one-half of the materials price, whichever is greater; uncapped time-and-materials contracts are negotiable. Vermont’s Consumer Protection Act and the 3-day door-to-door rule apply to all jobs.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Virginia Written Contract (Board Regulation)
Statute / Agency: 18 VAC 50-22-260; Va. Code § 59.1-21.1 et seq.; Board for Contractors
Written contract: Board regulation 18 VAC 50-22-260 requires a written contract for all residential work, signed before work begins, with the contractor’s name, address, license number and class, the owner’s name and property address, a description of the work and materials, the total price and payment schedule, start and estimated completion dates, a change-order procedure, a cancellation clause, and the Board’s required notices (including the Contractor Transaction Recovery Fund). Missing elements are grounds for discipline and bar Recovery Fund claims by the contractor’s customers.
Deposit: No statutory cap. DPOR’s consumer guidance suggests no more than 10% to 30% down. The Home Solicitation Sales Act (Va. Code § 59.1-21.3) gives 3 business days to cancel.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Washington Notice to Customer $1,000+
Statute / Agency: RCW 18.27.114; RCW 19.27 (home solicitation); L&I
Written disclosure: Before starting residential work of $1,000 or more (or commercial work from $1,000 to $60,000), the contractor must give the owner L&I’s Notice to Customer disclosure statement explaining the contractor’s bond and insurance, lien rights and how to protect against them, and must keep a signed copy for three years; without it the contractor can’t lien or sue on the contract. Washington doesn’t mandate a contract form, but the disclosure is effectively a written-contract requirement.
Deposit: No cap. Unregistered contractors face civil infractions of $1,000 to $5,000 per violation and can’t enforce contracts; the 3-day cancellation right applies to in-home sales under RCW 63.14.154.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
West Virginia Insurance Roofing Rules
Statute / Agency: W. Va. Code § 21-11 (Contractor Licensing Act); Division of Labor
State requirement: No general contract statute. West Virginia licenses contractors over $5,000 and requires the license number on contracts and advertising; insurance-funded roofing contracts must disclose the cancellation right after claim denial and can’t include deductible rebates. The Consumer Credit and Protection Act supplies the 3-day home solicitation right.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Wisconsin ATCP 110 Contract Rules
Statute / Agency: Wis. Admin. Code ch. ATCP 110; Wis. Stat. § 423.203; DATCP
Written contract: Under ATCP 110, a home improvement contract must be in writing if the contractor requires any payment before completion, if the buyer requests one, or if the contract was solicited at the home; it must state the price, a description of the work and materials, start and completion dates, warranties, and the right to cancel. Insurance-funded roofing contracts carry additional notices under Wis. Stat. § 100.65. Residential work also requires the Dwelling Contractor certification.
Deposit: No numeric cap, but ATCP 110.05 bars demanding payments that don’t track the work, and the Dwelling Contractor rules require the pre-lien notice in the contract (see mechanics lien deadlines by state). Violations carry $100 to $10,000 fines and double damages.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Wyoming Federal Rules Only
State requirement: No home-improvement-specific contract statute. Wyoming has no statewide contractor license (except electricians) and no contract statute; the Consumer Protection Act and the federal 3-day rule apply.
Federal rules still apply: the FTC Cooling-Off Rule gives the homeowner 3 business days to cancel any sale of $25 or more made at their home (a written Notice of Cancellation must be handed over at signing), unless they initiated the visit for an emergency repair and waived the right in writing; and the Truth in Lending Act adds a 3-day rescission right on any financing secured by the home.
Thresholds, caps and required clauses compiled from state statutes, licensing-board regulations and attorney general consumer guides as of October 2026. Many boards publish model contracts or required notice forms; use the agency’s current form, since several (California, Nevada, Maryland, Oregon) specify type size and placement. Local ordinances (New York City, Chicago, Kansas City, Sioux Falls) add requirements this guide doesn’t cover.
Running the Business
- Licensing first: most of these contract rules only bind licensed or registered contractors, and the unlicensed shop has bigger problems. Home improvement contractor licensing by state, handyman license requirements and what a handyman can do without a license cover the thresholds.
- Getting paid: how to bill a customer who won’t pay and mechanics lien deadlines by state pick up where the contract leaves off; in a dozen states the lien notice has to be in the contract.
- Card disputes: a compliant contract with a signed scope is the evidence that wins a chargeback; see the chargeback playbook.
- Bonds: several deposit-cap exceptions (Nevada’s $100,000 bond, Tennessee’s performance bond) run through contractor license bond requirements by state.
Quote, Sign and Collect From the Driveway
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FAQ
How much deposit can a contractor legally ask for?
It depends on the state. California and Nevada cap it at $1,000 or 10% of the contract price, whichever is less. Maryland, Massachusetts, Pennsylvania (contracts over $5,000), Maine (over $3,000) and Tennessee (in Home Improvement Act counties) cap it at one-third. Ohio caps it at 10% for contracts over $25,000, with up to 75% of special-order costs allowed. Vermont allows half of labor or half of materials. New York has no cap but requires deposits to be held in escrow. The other 40 states have no numeric cap, though consumer-protection law bars deposits out of proportion to the work.
When does a home improvement contract have to be in writing?
Twenty-five states and DC set a threshold: Indiana $150, Connecticut $200, DC $300, California, New Jersey, New York and Pennsylvania $500, Illinois, Massachusetts, Rhode Island and Arizona $1,000, Oregon and Idaho $2,000, Florida $2,500 (lien disclosure), Maine $3,000, Tennessee $3,000 in HIC counties, Vermont $10,000 and Ohio $25,000; Maryland, Nevada, Virginia, Minnesota, Hawaii and Wisconsin require writing for essentially all residential work. In every other state a written contract isn’t required by statute but is the only way to prove the scope and price.
What is the 3-day right to cancel and does it apply to repairs?
The FTC Cooling-Off Rule lets a homeowner cancel any sale of $25 or more made at their home within 3 business days, and most states copy it (Maryland gives 5 business days, California 5 for buyers 65 and older). It applies to repairs and improvements sold in the home. The exception is a bona fide emergency repair the homeowner requested, if they sign a separate written waiver describing the emergency. You must give the homeowner two copies of a Notice of Cancellation form; if you don’t, the right to cancel never expires.
What has to be in a home improvement contract?
Across the state statutes, twelve elements: both parties’ names, addresses and phone numbers; your license or registration number; the property address; a description of the work and materials; the total price and whether it includes tax; the deposit and a payment schedule tied to completed work; approximate start and completion dates; a written change-order procedure; the cancellation notice; any state-required consumer notices (lien warning, recovery fund, agency phone number); insurance and bond disclosures where required; and dated signatures with a copy delivered before work begins. Connecticut courts have voided contracts over a missing start date, so include all of them everywhere.
Can I start work during the 3-day cancellation period?
Legally yes, but if the homeowner cancels you must return any payment within 10 business days and restore the property, and you can’t charge for the work you did. Most shops either wait the three days or get a signed emergency waiver where one legitimately applies. Ordering special-order materials inside the window is the common way contractors lose money.
What are the rules for roofing jobs paid by insurance?
Fifteen states (Arizona, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Minnesota, Mississippi, Missouri, Nebraska, Oklahoma, South Dakota, Texas, West Virginia) have storm-chaser laws. The contract must disclose that the homeowner can cancel if the insurer denies the claim (72 hours to 5 business days after notice of denial), deposits must be refunded on cancellation, and the contractor may not pay, waive, rebate or advertise absorbing the deductible, which is a crime in Texas. Several require roofing-specific registration (Kansas, Oklahoma, Iowa).
What happens if my contract is missing a required clause?
In Connecticut, Pennsylvania and New York, the contractor generally can’t enforce the contract at all, though some courts allow recovery for the value of the work. In California, Maryland, Nevada, Massachusetts, Oregon and most licensing states, it’s grounds for discipline and a recovery-fund claim. In Illinois, Indiana, Maine, New Jersey, Ohio and Wisconsin, it’s a consumer-fraud violation with treble or double damages and attorney fees. Everywhere it undermines a mechanics lien, since many states require the lien notice to be in the contract.
Do these rules apply to small service calls?
Often. The thresholds are low: a $200 faucet repair in Connecticut, a $500 water heater in California or New Jersey, a $1,000 furnace repair in Illinois or Massachusetts are all over the line. Service-and-repair contracts under $750 that the customer initiated get a simplified form in California, and Wisconsin’s rule triggers only if you take payment before completion or sold the job in the home. Use the written form for everything over a few hundred dollars and the question goes away.
Are there deposit rules for special-order equipment?
Massachusetts lets you collect the actual cost of special-order items if that exceeds one-third; Pennsylvania adds special-order materials on top of the one-third; Ohio allows up to 75% of non-returnable special-order costs above its 10% cap. California and Nevada have no special-order exception, so the furnace or panel is ordered on the contractor’s credit after the $1,000 deposit. Everywhere else, a deposit sized to the equipment order is defensible if the contract itemizes it.
Which states changed their contract rules recently?
Nevada (AB 39, October 1, 2023) added a full list of mandatory contract elements and a $1,000/10% deposit cap. Vermont (2023) created residential contractor registration with a written-contract rule over $10,000 and a deposit limit. New Jersey is phasing in home improvement contractor licensing on top of its $500 contract rule. Maryland’s 2026 bill to raise the deposit cap to one-half stalled, and California’s SB 784 on contractor-arranged financing died in 2026, so those rules are unchanged.
Bottom Line
Build one contract template with the twelve clauses, add your state’s required notices from the agency page linked in the state block, and set your deposit at or under your state’s cap (10% or $1,000 in California and Nevada, one-third in the Northeast and Tennessee, special-order cost where allowed). Hand over the Notice of Cancellation with every in-home sale and wait three business days before ordering materials unless the customer signs an emergency waiver. That template is legal in all 51 jurisdictions, and it’s the document that makes the lien, the chargeback and the licensing complaint go your way.
If you take insurance-claim work, add the second template with the cancellation-on-denial clause and never touch the deductible. The storm-chaser laws were written for out-of-state crews, but they’re enforced against the local shop that didn’t update its paperwork.
