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Consumer Protection, Fraud & Lemon Law · Purchases and warranties

Licensed businesses, cancellation rights and complaints

California2 min readLast reviewed September 30, 2026Find free help

In this guide

  • Many California businesses and professionals must be licensed, and licenses can be checked online.
  • Home improvement contractors generally can’t take a down payment over $1,000 or 10% of the price, whichever is less.
  • Contracts signed at home after a seller’s visit generally can be cancelled within 3 business days, or 5 for people 65 and older.

Checking licenses

The Department of Consumer Affairs oversees many licensed trades and professions. The Contractors State License Board (CSLB) licenses contractors, and work over $1,000 in labor and materials generally requires a licensed contractor. License lookups show status, bonds, and complaints.

Home improvement contracts

  • Contracts must be in writing and include specific disclosures.
  • The down payment generally cannot exceed $1,000 or 10% of the contract price, whichever is less.
  • Payments during the job generally cannot get ahead of the work completed.

Cancellation rights

California gives buyers the right to cancel many home solicitation contracts (signed at home after a seller’s visit) within 3 business days, or 5 business days for buyers 65 and older. Other cancellation rules apply to certain services, such as dating services, health studios and seminars. Since October 1, 2026, people who buy a used vehicle from a dealer generally have a three-day right to cancel the purchase, subject to price and mileage limits and a restocking fee.

Where complaints go

  • Licensed professionals and trades: the licensing board, through the DCA
  • Contractors: CSLB
  • Car dealers: DMV Investigations
  • Lenders and debt collectors: DFPI
  • Businesses generally: the California Attorney General or local district attorney
  • Money disputes: small claims court

Official sources for this guide

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