New York Contractor Deposit Rules (2026): No Roofing Deposit, Escrow for the Rest
New York bars roofing contractors from requiring any deposit and makes other home improvement advance payments go into escrow. Quoted from GBL 771-b and Lien Law 71-a.
Not legal advice. General information from each state's statutes, checked Oct 20, 2026. Local rules and the facts of your contract can change the answer; for a specific contract, ask a lawyer licensed in your state.
Set the deposit
Every payment tied to a stage
The deposit and payment schedule in the Clamp app: a $1,000 deposit due when the customer signs, then every other payment tied to a stage of the job. $1,000 on this $17,699 bathroom is under every state's cap. Sample data.
What the law says
“A roofing contractor shall not require an owner to provide a deposit for the work and materials.”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $8,000 | Roofing: no deposit can be required | $0 |
| $25,000 | Roofing: no deposit can be required | $0 |
| $60,000 | Roofing: no deposit can be required | $0 |
Who it covers and how the money is held
Who counts as a roofer
Anyone engaged in the business of roofing, gutter, downspout or siding services for a fee, including subcontractors (GBL 770).
How a roofer gets paid
Materials may be invoiced on delivery, with their cost disclosed to the owner in writing before payment, and the rest after all contracted work is complete.
Escrow for other work
Payments received before substantial completion go into an escrow account within five business days, or are covered by a bond, an indemnity contract or an irrevocable letter of credit (Lien Law 71-a).
New York deposit questions
Can a roofer in New York ask for a deposit?
A roofer can't require one. Materials can be invoiced when they are delivered, and the rest when the work is done.
Does New York cap other home improvement deposits?
No numeric cap, but advance payments must be held in escrow or covered by a bond or letter of credit.
Compare other states
How we checked
We read each state's statute or licensing rule on the official legislature or agency site and quote it as written. Where the official site would not load, the row says so and names the copy we read. A state stays "still being checked" until we have read the full rule; we never mark it "no cap" before then. Last checked .
This guide explains what the statutes say. It is not legal advice; for a specific contract, ask a lawyer licensed in your state.