Does Nevada cap how much deposit a contractor can ask for?

Nevada does not set a percentage cap. It backs homeowners with a Residential Recovery Fund that can repay actual damages up to $40,000, and it treats abandonment as a ground for discipline.

How much can I recover from the Nevada Residential Recovery Fund?

An eligible claimant can recover the amount of actual damages suffered, but not more than $40,000. Recovery against any single contractor is capped at $750,000 or 20 percent of the account balance.

How Much Deposit Can a Contractor Ask For in Nevada?

Nevada does not cap the deposit by percentage, but a Residential Recovery Fund can repay a homeowner up to $40,000, and abandonment is a ground for discipline.

Nevada backs a homeowner's deposit with a Residential Recovery Fund rather than a percentage cap. An eligible claimant can recover the actual damages suffered, up to $40,000,¹ the Fund is capped per contractor,² and abandoning a job is a ground for discipline.³ This page explains what stands behind a deposit in Nevada.

The Residential Recovery Fund and its limits

Nevada's Recovery Fund is the main protection. When the Board finds a homeowner eligible, recovery is the amount of actual damages suffered, but not to exceed $40,000.¹ A deposit lost to a licensed contractor who failed to perform is the kind of loss the Fund is built for.

The Fund is also capped per contractor. The amount of recovery from the account based upon claims made against any single contractor must not exceed $750,000 or 20 percent of the account balance.² Where several homeowners were harmed by the same contractor, that ceiling is shared among them.

Abandonment as a ground for discipline

If a contractor takes the money and walks, Nevada treats it as a disciplinary matter. Abandonment without legal excuse of any construction project or operation is a cause for disciplinary action against the contractor.³ A complaint to the State Contractors' Board is how that process starts.

The practical takeaway in Nevada is to confirm the contractor is licensed, since both the Recovery Fund and the disciplinary process reach licensed contractors, keep the deposit proportionate, and document what you paid.

Sources

In Nevada, when the Board finds a homeowner eligible for recovery from the Residential Recovery Fund, recovery is the amount of actual damages suffered, but not to exceed $40,000.
Nev. Rev. Stat. § 624.510Nevada Revised Statutes § 624.510, Recovery from the accountVerified August 3, 2026a b
In Nevada, the amount of recovery from the account based upon claims made against any single contractor must not exceed $750,000 or 20 percent of the account balance.
Nev. Rev. Stat. § 624.510Nevada Revised Statutes § 624.510, Recovery from the accountVerified August 3, 2026a b
In Nevada, abandonment without legal excuse of any construction project or operation is a cause for disciplinary action against a contractor.
Nev. Rev. Stat. § 624.301Nevada Revised Statutes § 624.301, Grounds for disciplinary actionVerified August 3, 2026a b

Frequently asked questions

Does Nevada cap how much deposit a contractor can ask for?: Nevada does not set a percentage cap. It backs homeowners with a Residential Recovery Fund that can repay actual damages up to $40,000, and it treats abandonment as a ground for discipline.
How much can I recover from the Nevada Residential Recovery Fund?: An eligible claimant can recover the amount of actual damages suffered, but not more than $40,000. Recovery against any single contractor is capped at $750,000 or 20 percent of the account balance.
What if a Nevada contractor abandons my job after taking a deposit?: Abandonment without legal excuse of any construction project or operation is a cause for disciplinary action, and you can complain to the State Contractors’ Board.

This page is general information about state law, not legal advice. Laws change, and how they apply depends on the facts of your situation.