Contractor wants a large deposit in Florida: what to check first

Start with the amount and what it pays for

Ask the contractor to state in writing exactly what the deposit covers. If it is for special-order materials, the contract should name those materials and explain when they will be ordered. If it is only described as a scheduling fee or a percentage with no purpose, ask for a clearer version before paying.

The Florida Attorney General advises homeowners never to pay the full repair amount up front and to hesitate before providing large deposits. A large deposit is not proof of wrongdoing, but it is a reason to compare the request with other written bids and slow the decision down.

Know Florida's more-than-10-percent timing rule

The Florida Attorney General says that when a contractor collects more than 10 percent of the contract price up front, Florida law requires the contractor to apply for a permit within 30 days and begin work within 90 days. Project details and exceptions can matter, so use the Attorney General's current guidance or qualified legal advice for a specific dispute.

Before paying, put the expected permit-application date and start date in the contract. If a permit is not required for that type of work, ask the contractor to state that clearly and verify it with the local building department rather than relying only on a verbal answer.

Use milestones instead of calendar dates alone

A safer payment schedule connects each payment to something you can verify: permit issued, named materials delivered, demolition completed, inspection passed, or final punch-list finished. A date by itself does not prove that the matching work happened.

Keep the final payment until the contracted work is complete, required inspections are resolved, and you are satisfied with the documented result. The Federal Trade Commission also advises homeowners not to pay the full project amount up front or make final payment before the work is complete.

Verify the contractor before money moves

Check the license using the Florida Department of Business and Professional Regulation's own search, not a link or screenshot supplied by the salesperson. Match both the individual license holder and the business name on your contract. Some trades may use local licensing, so check with the local building department when the state search does not cover the work.

Also confirm current insurance, a physical business address, and complaint history. Florida consumer officials recommend getting at least three itemized estimates so you can compare scope and payment terms instead of judging one request in isolation.

Pause on pressure or hard-to-recover payment methods

Do not let a same-day discount replace careful review. Pressure for an immediate decision, a demand for the entire amount up front, cash-only terms, or a request for wire transfer are warning signs identified by consumer-protection agencies.

If financing is offered through a lender selected by the contractor, compare it separately. Read the total cost, interest rate, fees, monthly payment, and any security interest in your home before signing. Never sign blank spaces or documents you do not understand.

What to say when the deposit feels too high

Try: 'Please show me what this deposit purchases, when the permit will be filed, and which completed milestone triggers each later payment.' This asks for clarity without accusing the contractor of anything.

If the answer stays vague, pause and compare another estimate. Save the contract, estimate, payment request, messages, and license information. For suspected fraud or an existing payment dispute, contact Florida consumer-protection officials or a qualified attorney rather than relying on a general online guide.

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