How Much Deposit Can a Contractor Ask For in Colorado?
Colorado's roofing, home-solicitation, and consumer-protection statutes give homeowners rescission and refund rights that constrain how deposits are held and returned, but none of them sets a dollar cap on a contractor's deposit.
The Colorado statutes cited here do not cap the deposit or down payment a contractor may request for ordinary home-improvement work. What the state does regulate are the surrounding conditions: residential roofing contracts carry a written rescission-and-refund right and a duty to hold payments in trust, door-to-door home-solicitation sales carry a three-day right to cancel and restore down payments, and the Colorado Consumer Protection Act reaches deceptive dealing generally. The rules below describe those protections rather than any fixed deposit limit.
Rules that bear on your deposit
Colorado's residential roofing statute states its purpose includes requiring roofing contractors to let property owners rescind a contract and obtain a refund of any deposit paid. 1
Under the required contract terms, a roofing contract must contain a rescission clause allowing the owner to cancel and obtain a full refund of any deposit within seventy-two hours after signing. 2
The roofing statute applies to residential roofing work, and by its own terms does not cover jobs for which the compensation is one thousand dollars or less per contract. 3
For sales personally solicited at a residence, Colorado's Consumer Credit Code gives the buyer a right to cancel a home solicitation sale until midnight of the third business day after signing. 4
When a home solicitation sale is canceled, the seller must, within ten days of receiving notice, tender back to the buyer any payments the buyer made. 5
Sources
Colorado's residential roofing statute declares that its purpose includes requiring roofing contractors to permit property owners to rescind a contract and obtain a refund of any deposit paid.
Colorado law requires a residential roofing contract to include a rescission clause allowing the property owner to cancel and obtain a full refund of any deposit within seventy-two hours after entering the contract.
Colorado's roofing statute states that roofing work or services do not include jobs for which the compensation is one thousand dollars or less per contract.
Under Colorado's Consumer Credit Code, the buyer has the right to cancel a home solicitation sale until midnight of the third business day after the day the buyer signs the agreement.
Colorado law provides that within ten days after receiving a cancellation notice, the seller of a home solicitation sale must tender back to the buyer any payments the buyer made.
Frequently asked questions
- Does Colorado cap how much deposit a contractor can ask for?
- No. None of the Colorado statutes cited here sets a dollar limit or percentage cap on a deposit for ordinary home-improvement work. Instead, Colorado law regulates related conduct: residential roofing contracts must allow a homeowner to rescind and get a full deposit refund within seventy-two hours and require the contractor to hold payments in trust until materials are delivered or most of the work is done; door-to-door home solicitation sales carry a three-day right to cancel with down payments restored within ten days; and the Colorado Consumer Protection Act prohibits deceptive trade practices. Local jurisdictions may impose their own licensing or contract requirements.
Last reviewed August 4, 2026
This page is general information about state law, not legal advice. Laws change, and how they apply depends on the facts of your situation.