How Much Deposit Can a Contractor Ask For in South Carolina?
South Carolina's licensing law and consumer-sale cancellation rules constrain how and when contractors may take and keep your money, but none of them sets a cap on a residential contractor's deposit.
South Carolina does not put a dollar or percentage limit on the deposit a residential contractor can request. What state law does regulate is who may lawfully do the work, and what happens to payments when a covered contract is canceled. The South Carolina Residential Builders Commission licenses residential builders and specialty contractors, the Code restricts payments on insurance-funded roofing contracts, and the Consumer Protection Code gives buyers of home-solicited goods and services a short right to cancel and get their money back. The rules below are the ones that actually bear on a deposit.
Rules that bear on your deposit
Residential building, residential specialty contracting, and home inspecting through a firm may be practiced only by entities holding a residential business certificate of authorization issued by the commission. 1
For those same insurance-funded contracts, a provision requiring payment of any fee for anything except emergency services is not enforceable against an insured who has canceled the contract. 2
A builder or contractor may not advertise or promise to pay or rebate any portion of an insurance deductible as an inducement to the sale of goods or services. 3
Under the Consumer Protection Code, a buyer may cancel a home solicitation sale until midnight of the third business day after signing a complying agreement or offer to purchase. 4
When a home solicitation sale is canceled, the seller must tender back to the buyer any payments made within ten days of receiving notice of cancellation. 5
A contract provision letting the seller keep all or part of a canceled buyer's payment or trade-in violates the statute and is unenforceable. 6
Sources
South Carolina authorizes the practice of residential building, residential specialty contracting, or home inspecting through a firm only for entities holding a residential business certificate of authorization from the commission.
For those insurance-funded contracts, a provision requiring payment of any fee for anything except emergency services is not enforceable against an insured who has canceled the contract.
A South Carolina builder or contractor may not advertise or promise to pay or rebate any portion of an insurance deductible as an inducement to the sale of goods or services.
Under the South Carolina Consumer Protection Code, a buyer may cancel a home solicitation sale until midnight of the third business day after signing a complying agreement or offer to purchase.
When a home solicitation sale is canceled, the South Carolina seller must tender to the buyer any payments the buyer made within ten days of receiving notice of cancellation.
A South Carolina contract provision permitting the seller to keep all or part of a canceled buyer's payment or trade-in violates the statute and is unenforceable.
Frequently asked questions
- Does South Carolina cap how much deposit a contractor can ask for?
- No. South Carolina statutes do not set a maximum deposit amount or percentage for residential contractors. The law instead regulates licensing, insurance-funded roofing payments, and a consumer's right to cancel certain home solicitation sales and recover payments already made.
- Are there any situations where South Carolina limits taking a deposit up front?
- Yes, in narrow contexts. On roofing contracts to be paid from property and casualty insurance proceeds, a contractor cannot require any payment until the five-business-day cancellation window closes. And for a home solicitation sale, a canceling buyer is entitled to have payments returned within ten days.
Last reviewed August 4, 2026
This page is general information about state law, not legal advice. Laws change, and how they apply depends on the facts of your situation.