How many days must a contractor return a deposit after a homeowner cancels a contract?

The correct option specifies that a contractor must return a deposit within 10 business days after a homeowner cancels a contract. This requirement is often mandated by consumer protection laws to ensure fairness in commercial transactions. The specified timeframe provides a balance between allowing the contractor some time to process the cancellation and ensuring that the homeowner receives their funds back in a reasonable period.

It emphasizes the importance of clear communication and professionalism in contractor-homeowner relationships. Many jurisdictions establish this rule to prevent potential financial losses for homeowners who may have made a decision to cancel due to various circumstances. Understanding these regulations helps both parties to operate within the law and maintain mutual trust.