Beginning January 1, 2026, there are major updates to California’s home improvement contract laws which reshape what contractors must disclose and how agreements must be structured.
Mandatory Subcontractor Transparency
Contractors must notify homeowners if subcontractors will be used on a project. Upon request, the contractor must also provide detailed information (including subcontractor’s name, contact information, license number and license classification).
This disclosure rule applies not only to the original contract but also to any change orders. Therefore, every home improvement contract must now include a notice informing homeowners of their right to request subcontractor information at any time.
Additional Contact Details in Every Contract
Contracts must include the contractor’s phone number, the contractor’s email address, and the phone number of the contractor’s general liability insurance carrier. California’s mandatory “Right to Cancel” form (required to accompany every home improvement contract) must also be updated to include the contractor’s email address.
Updated Right to Cancel
Although California’s cancellation rules remain the same, with homeowners generally receiving a 3-day cancellation period or a 5-day period if the homeowner is 65 or older. The laws governing these notices have been updated to include email information. The revised cancellation requirements apply to several types of sales: standard home improvement contracts, phone-based sales, home solicitation sales and seminar-based sales. The update includes language that states if the applicable Notice of Cancellation is not included in or attached to the contract the buyer may file a complaint with the CSLB.
Failure to update forms may result in CSLB disciplinary action which may include citations, penalties or other enforcement. Contractors should also consider adding protective language to prevent homeowners from contacting subcontractors directly or from attempting to hire them separately. Clear contract language is essential.
Please note that this article is only intended to provide some general educational information. For your particular legal questions, be sure and consult with an attorney.
