Florida has specific statutes that protect homeowners from contractors who take deposits and don't perform. Here's the law, what it says, and how to use it to get your money back or your project completed.
You signed a contract. You paid a deposit — maybe a large one. The contractor showed up once or twice, or maybe not at all. Calls go unanswered. Work isn't happening. Your project is stalled and your money is gone.
This isn't just a bad experience. In Florida, it's potentially a statutory violation — and Florida law gives you specific tools to address it.
Florida Statute 489.129 — The Contractor Accountability Law
Florida Statute 489.129 is the primary statute governing contractor misconduct in Florida. It establishes the grounds on which a contractor's license can be disciplined by the Florida Construction Industry Licensing Board (CILB) — and by extension, the grounds on which a homeowner can file a complaint with the DBPR.
Under 489.129, a contractor's license can be disciplined for:
Abandonment of a construction project. A contractor who abandons a project is in violation. Florida law defines abandonment as failing to perform work on a project for 90 days without just cause and without notification to the owner.
Diversion of construction funds. If a contractor receives money for a specific project and uses it for something other than that project — paying employees on another job, personal expenses, other business costs — that is diversion of construction funds, a serious violation.
Failure to apply for required permits. A contractor who agrees to perform permitted work and then doesn't pull the permits has violated their obligations.
Performing work in a grossly negligent manner. Work that is so far below industry standards that it constitutes negligence is a violation.
Making misleading representations. Misrepresenting the contractor's license, qualifications, or the nature of the work constitutes fraud under Florida contractor law.
The Deposit Protection Rules
Florida law limits how much a contractor can require as a deposit before work begins. Under Florida Statute 489.126:
For projects where the contract price is $2,500 or more, a contractor may not: - Demand or receive a deposit exceeding 10% of the total contract price, or $1,000 — whichever is less — before obtaining the required permits for the project.
This limit applies to the deposit before permits are obtained. Once permits are in hand, different payment schedules may apply as set out in the contract.
A contractor who demanded more than 10% or $1,000 upfront — before permits were obtained — has already violated Florida law. That violation is documentable and reportable to the DBPR.
The Lien Law Angle
Florida's Construction Lien Law (Chapter 713) creates a framework where contractors, subcontractors, and suppliers who contribute to a project have lien rights against the property. But this law also creates obligations for contractors that protect homeowners.
A contractor who receives money under a construction contract is expected to pay their subcontractors and suppliers from those funds. A contractor who keeps money from a homeowner and doesn't pay their subs or suppliers — leaving the property exposed to mechanic's liens from parties the homeowner never hired — has violated their obligations under the lien law.
If you receive a Notice to Owner (NTO) from a subcontractor or supplier on a project where you're paying a general contractor, that's a warning sign. It means the sub or supplier is protecting their lien rights because they're not confident they'll be paid by the general contractor. Investigate immediately.
How to Use the Law to Get Your Money Back
The most effective sequence for recovering money from a Florida contractor who hasn't performed:
Step 1: Send a certified demand letter.
The demand letter is the first formal step. It should: - Reference the specific contract, date, and amount paid - Describe specifically what wasn't done - Cite Florida Statute 489.129 and the specific provisions the contractor has violated - Demand either completion of the work within a specified timeframe or return of all funds paid within 10-14 business days - State that failure to respond will result in a DBPR complaint, small claims or circuit court action, and referral to the Florida Attorney General's office if applicable
Send via certified mail with return receipt. Keep the tracking information and the signed receipt.
Step 2: File a DBPR complaint simultaneously.
As described in detail elsewhere, file the complaint at myfloridalicense.com/DBPR/complaints on the same day you send the demand letter.
Step 3: File in small claims or county court.
For amounts under $8,000, small claims court in Florida is accessible without an attorney. File in the county where the contractor is located or where the work was performed.
For amounts $8,000-$30,000, county court handles the claim. Above $30,000, circuit court.
Bring your contract, proof of payment, all communications, and photographs. The judge doesn't need persuading that a contractor who took $15,000 and did $2,000 of work owes you money — they need documentation.
Step 4: Florida Attorney General referral.
If the contractor's conduct rises to the level of consumer fraud — if they made material misrepresentations to induce payment, if they took money from multiple homeowners and performed for none — a complaint to the Florida Attorney General's office is appropriate. The AG has authority to pursue contractors who engage in systematic consumer fraud.
The Unlicensed Contractor Situation
If the contractor who took your money wasn't licensed in Florida, the DBPR complaint still applies — the DBPR investigates unlicensed contracting as a criminal matter under Florida law.
Additionally, contracting without a license for jobs over $500 is a first-degree misdemeanor in Florida. Filing a police report creates a criminal record and can result in prosecution.
Recovering money from an unlicensed contractor through the courts is the same process as for licensed contractors — small claims or county court — but enforcement of a judgment against someone with no license or bond can be more difficult.
The Bottom Line
Florida law takes contractor fraud and abandonment seriously. The statutes exist, the regulatory framework exists, and the court system is accessible. A contractor who takes your money and disappears hasn't committed a crime against which you're powerless — they've violated specific Florida statutes and you have specific remedies. Use them.
Questions about your specific situation? We're licensed Florida contractors — not a call center. Book a free 15-minute call and get a straight answer.
Questions About Your Situation?
We're licensed Florida contractors — not a call center.
Book a free 15-minute call and get a straight answer about your specific situation.