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How much deposit can a Florida contractor take? The 10% is not a cap
Florida statute 489.126(2)(a) says that if a contractor receives, as an initial payment, more than 10 percent of the contract price for residential real property work, they must apply for permits within 30 days (unless the work needs none) and start the work within 90 days after permits are issued, unless there is just cause or the person who paid agreed in writing to a longer period. If you're a contractor, your customer will ask: explaining it on your site builds trust. We are not lawyers.
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What statute 489.126 says (official text)
“A contractor who receives, as initial payment, money totaling more than 10 percent of the contract price for repair, restoration, improvement, or construction to residential real property must:”
In plain English: if you receive more than 10% of the price as an initial payment on residential work, you must complete two steps.
“Apply for permits necessary to do work within 30 days after the date payment is made” · “Start the work within 90 days after the date all necessary permits for work, if any, are issued”
In plain English: apply for permits within 30 days (unless the work needs none) and start within 90 days after they're issued. Exceptions: just cause, or the person who paid agrees in writing to a longer period.
“sent via certified mail, return receipt requested”
In plain English: if the contractor doesn't comply, the customer must make a written demand by certified mail, return receipt requested, to the address in the contract.
“is not a defense”
In plain English: per the statute, intending to return the money is not a defense.
The myth and what the text says
“The max is 10%”
That's not what statute 489.126(2)(a) says.
Over 10%
Starts deadlines: permits within 30 days and start within 90 days after permits.
Residential only
The rule covers residential real property and an initial payment.
In writing
If the customer agrees to a longer period, it has to be in writing.
If it isn't followed: it can be a crime
Under $1,000
First-degree misdemeanor.
$1,000 to under $20,000
Third-degree felony.
$20,000 to under $200,000
Second-degree felony.
$200,000 or more
First-degree felony.
Turn it into trust on your site (advice, not law)
A “How payments work” section
In plain words: the deposit, payments during the job and the final payment, all in the written contract.
Your permit timeline, only if you keep it
For example: we apply for permits within 30 days and start the work 90 days after they're issued, or whatever we agree in writing. Don't write anything you won't do.
Your license number with a link
Show your number and a link to myfloridalicense.com so customers can look up your license.
Written contract and receipts
Say everything is in writing and you give a receipt for every payment, if you really do.
Summary
- Payments section in plain words
- Permit timeline, if you keep it
- License with a link
- Contract and receipts
Does your site explain how you get paid? We'll check it for free
We look at whether your payments section is clear and what's missing. Free.
- We tell you if how you get paid is clear
- We tell you what your payments section is missing
- Free, no strings attached
Frequently asked questions
How much deposit can a Florida contractor take?
Statute 489.126, as we read it, sets no maximum deposit. The 10% is where deadlines start: apply for permits within 30 days and start within 90 days after permits.
Is 10% the maximum deposit?
No. That's a common myth. The 10% starts deadlines; it doesn't limit how much a contractor can ask.
What if the job needs no permit?
The first step (apply for permits within 30 days) doesn't apply when the work requires no permit.
Can the customer agree to a longer period?
Yes, if they agree in writing. There is also a just cause exception.
What does the statute say if the contractor doesn't comply?
The customer must make a written demand by certified mail, return receipt requested. There can be criminal consequences depending on the money received. For your case, talk to a lawyer.
Does the law require me to put this on my website?
The text we read doesn't require notifying customers or posting anything on your site. This is trust advice, not a requirement.
Do you guarantee more leads?
No, no one honestly can. A clear site helps customers trust you.
Official sources
We are not lawyers. This guide is general information, not legal advice. We read the statute text on November 13, 2026; it may change. For your case, talk to a lawyer. The website tips are ours, not law.
