Like many states, Florida places limitations on the money received for deposits on construction projects in order to protect homeowners against unethical contractors. These limitations are codified in Section 489.236 of the Florida Statutes.
Importantly, a contractor who receives more than 10% of the contract price on deposit must:
- Apply for permits necessary to do work within 30 days after the date payment is made (except where permitting is not required); and
- Start the work within 90 days after the date all necessary permits for work, if any, are issued.
These requirements may be waived when there is “just cause” for failing to do so, or where the customer agreed to a longer period in writing.
If a contractor fails to comply with the requirements, the customer must make a written demand to the contractor to meet the requirements or to refund the payment. The demand must be made by certified mail. If the contractor fails to comply with the demand, it may be inferred that the contractor does not have “just cause” for failing to comply with the statute.
A contractor’s failure to comply with these deposit restrictions can result in both criminal and civil penalties, up to and including a first degree felony, depending on the circumstances and amount of money involved.
DISCLAIMER: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
READY LEGAL 