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Effective 2026, contractor deposits are limited to 10% or $1,000 to prevent financial losses from incomplete projects. These laws enforce milestone payments for transparency and trust in renovations nationwide.
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Starting in 2026, homeowner protection laws cap contractor deposits at 10% of project costs, mandate milestone-based payments, and require lien waivers for greater transparency. These measures reduce risks, align funds with work completed, and make renovations more secure for all parties.
Updated 2025 contractor deposit laws introduce tighter limits on upfront payments, varying by state and project type from 10% to 30%. These changes enhance homeowner protections against fraud, enforce refund timelines, and influence budgeting strategies for renovations.
