What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500?

In Maryland, the law regulates the maximum deposit a contractor can request from a homeowner when entering into a home improvement contract. For projects that have a total contract price of $1,500 or less, the maximum deposit allowed is 1/3 of the total contract price.

Therefore, in this scenario with a total contract price of $1,500, the maximum deposit permitted would be calculated as follows:

1/3 of $1,500 equals $500.

This means that the correct response aligns perfectly with the legal parameters governing home improvement contracts in Maryland, ensuring consumer protection while also allowing contractors to secure some level of financial commitment from the homeowner. The regulation is in place to prevent excessive upfront charges that might exploit consumers. Thus, the total deposit a contractor can ask for in this situation cannot exceed $500, making that the correct answer.