California Business and Professions Code

§ 7159.2

BPC § 7159.2 Effective Jan 1, 2000Div. 3 · Ch. 9 · Art. 10

Statute text

(a)No home improvement goods or services contract of a value of five thousand dollars ($5,000) or less shall provide for a security interest in real property, except for a mechanic’s lien or other interest in property that arises by operation of law. Any lien in violation of this subdivision is void and unenforceable.

(b)When the proceeds of a loan secured by a mortgage on real property are used to fund goods or services pursuant to a home improvement goods or services contract of more than five thousand dollars ($5,000), the person or entity making the loan shall only pay a contractor under the home improvement goods or services contract from the proceeds of the loan by either of the following methods:

(1)By an instrument payable to the borrower or jointly to the borrower and the contractor.

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Legislative history

Amended by Stats. 1999, Ch. 512, Sec. 1. Effective January 1, 2000.