What a §7159 contract looks like

SAMPLE

# HOME IMPROVEMENT CONTRACT

**SAMPLE — NOT A REAL CONTRACT. Fictional parties and license number.**

**You are entitled to a completely filled in copy of this agreement, signed by both you and the contractor, before any work may be started.**

## SECTION 1: PARTIES AND PROPERTY
This Home Improvement Contract ("Contract") is between **Sample Roofing Co.** ("Contractor"), CSLB License #0000000, and **Homeowner Example** ("Owner") for work at 742 Example Street, Fresno, CA 93721 (the "Property").

## SECTION 2: DATE OF THIS CONTRACT
Date the Owner signed: ____________ (the "Date of Transaction").

## SECTION 3: SCOPE OF WORK
See "Description of the work" in the required notices below. Work not described there is not included.

## SECTION 4: PRICE AND PAYMENT
Contract price: **$14,800.00**. Down payment: **$1,000.00**, due at signing. Progress payments are due only after the work described for each payment is complete, per the schedule in the required notices below. Final payment is due after final cleanup and the city final inspection.

## SECTION 5: SCHEDULE
Approximate start: November 2, 2026. Approximate substantial completion: November 13, 2026. Dates may shift for weather, permit timing or Owner-requested changes; Contractor will notify Owner in writing.

## SECTION 6: PERMITS AND INSPECTIONS
Contractor will obtain the City of Fresno re-roof permit and schedule required inspections. Permit fees are included in the contract price.

## SECTION 7: EXTRA WORK AND CHANGE ORDERS
**Extra work or a change order is not enforceable against a buyer unless the change order also identifies all of the following in writing prior to the commencement of any work covered by the new change order: (i) the scope of work encompassed by the change order; (ii) the amount to be added or subtracted from the contract; and (iii) the effect the change order will make in the progress payments or the completion date.** Contractor's failure to comply with these requirements does not preclude recovery of compensation for work performed based on legal or equitable remedies designed to prevent unjust enrichment.

## SECTION 8: WARRANTY
Contractor warrants workmanship for 5 years from substantial completion. Manufacturer material warranties are passed through to Owner.

## SECTION 9: LIST OF DOCUMENTS INCORPORATED
This Contract, the required notices below, the Notice of Cancellation form, and any signed change orders.

## SECTION 10: DISPUTES
Any dispute will first go to good-faith negotiation, then mediation in Fresno County before litigation. Nothing here limits either party's rights under California law.

## SECTION 11: SIGNATURES
Owner: ______________________  Date: __________

Contractor: ______________________  Date: __________

## REQUIRED CALIFORNIA NOTICES AND TERMS

### CONTRACT PARTIES, DATES AND DESCRIPTION OF WORK

**Contractor:** Sample Roofing Co.
**Contractor address:** 100 Example Way, Fresno, CA 93721
**CSLB license #:** 0000000 (C-39 Roofing)
**Salesperson:** None — this contract was not solicited by a registered home improvement salesperson.
**Buyer:** Homeowner Example
**Approximate start date:** 2026-11-02
**Approximate substantial completion date:** 2026-11-13

**Description of the work:**
Tear-off and re-roof of a single-story residence, approximately 2,100 sq ft of roof area.

Remove existing composition shingles to the deck and dispose. Replace up to 3 sheets of damaged decking (additional sheets by written change order). Install synthetic underlayment, ice-and-water shield at eaves and valleys, new drip edge, pipe flashings and ridge vent. Install 30-year architectural composition shingles per manufacturer specifications. Haul away all debris and magnet-sweep the property.

**Description of materials and equipment:**
Owens Corning Duration (or equal) architectural shingles, color selected by owner; synthetic underlayment; galvanized drip edge; new pipe jacks and ridge vent.

### DOWN PAYMENT AND SCHEDULE OF PROGRESS PAYMENTS

**Contract price:** $14,800.00
**Down payment:** $1,000.00

**THE DOWN PAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.**

| # | Work or services to be completed before payment is due | Amount |
|---|---|---|
| 1 | Tear-off complete and decking inspected | $5,900.00 |
| 2 | Underlayment, flashings and shingles installed | $6,400.00 |
| 3 | Final cleanup complete and city final inspection passed | $1,500.00 |

**THE SCHEDULE OF PROGRESS PAYMENTS MUST SPECIFICALLY DESCRIBE EACH PHASE OF WORK, INCLUDING THE TYPE AND AMOUNT OF WORK OR SERVICES SCHEDULED TO BE SUPPLIED IN EACH PHASE, ALONG WITH THE AMOUNT OF EACH PROPOSED PROGRESS PAYMENT. IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT.**

### MECHANICS LIEN WARNING

Anyone who helps improve your property, but who is not paid, may record what is called a mechanics lien on your property. A mechanics lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder. Even if you pay your contractor in full, unpaid subcontractors, laborers, and material suppliers may record mechanics liens and sue you in court to foreclose on the mechanics lien. This means that after a court hearing, your home could be sold to pay for their work. To preserve their right to file a mechanics lien, each subcontractor and material supplier must provide you with a document called a 'Preliminary Notice.' This notice is not a lien. The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if he or she is not paid. BE CAREFUL. The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the supplier provides material. This means that you may receive a Preliminary Notice from a subcontractor or material supplier long after they started their work. WHAT YOU SHOULD DO: To protect yourself, you should use joint checks to pay your contractor and subcontractors or material suppliers together. That way, each person will be required to sign the check before it is cashed, and you will have proof that the subcontractor or material supplier has been paid.

### CONTRACTORS STATE LICENSE BOARD NOTICE

Contractors are required by law to be licensed and regulated by the Contractors State License Board, which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within 10 years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors State License Board, P.O. Box 26000, Sacramento, CA 95826. Phone: 1-800-321-CSLB (1-800-321-2752). Website: www.cslb.ca.gov.

### COMMERCIAL GENERAL LIABILITY AND WORKERS’ COMPENSATION INSURANCE

This contractor carries commercial general liability insurance written by Example Mutual Insurance, with limits of $1,000,000 per occurrence / $2,000,000 aggregate. You may call the insurer to check the contractor's insurance coverage.

This contractor carries workers' compensation insurance for all employees, written by State Compensation Insurance Fund.

### NOTICE OF THE BUYER’S RIGHT TO CANCEL

**You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right.**

**NOTICE OF CANCELLATION**

Date of Transaction: _______________

You may cancel this transaction, without any penalty or obligation, within three (3) business days from the above date.

If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within ten (10) business days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.

If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale; or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, to:

Sample Roofing Co., 100 Example Way, Fresno, CA 93721

NOT LATER THAN MIDNIGHT OF _______________

I hereby cancel this transaction.

Buyer’s Signature: _______________   Date: _______________