§ 8848 Construction Contract Retention Rules

• •This law only applies to contracts made on or after January 1, 1999.
• •If a bank holds back some money for a construction loan, this law doesn’t apply to that.

You sign a contract to build a house in 2023.

This law applies to your contract because it was signed after 1999. But if the bank keeps some money until the work is done, this law doesn’t cover that part.