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The Home Improvement law prohibits contractors from asking for a down-payment of more than 1/3 of the total contract.

There is absolutely no need to have a contractor's license to flip houses. No state, or municipality for that matter, will require anyone to have a contractor's license to flip houses.

See new felony statute. Note: For projects $25,000 or more, a contractor's license is required (licensed residential and commercial contractors are exempt from home improvement law requirements). A home improvement license is not required for new residences or commercial projects, less than $25,000.

A Tennessee contractor's license is required BEFORE bidding or offering a price, for projects $25,000 and up (includes materials and labor), as a prime (general) contractor; and also subcontractors performing electrical, mechanical, plumbing, HVAC, roofing and masonry are also required to be licensed as a contractor, ...

A: It's not uncommon for contractors to ask for a down payment up front to secure your spot on their schedule or purchase some of the job materials in advance. Asking for more than half of the project cost up front, though, is a big red flag.

Application Fee - $250.00 and issued for two (2) years. License Approval - It takes approximately 4 to 6 weeks to be granted a license (do NOT contract, bid or offer prior to obtaining a license). Board review and approval is required. A license may be issued prior to the next Board meeting if approved by the Board.

A standard business license is needed from your county and/or municipal clerk if your gross receipts are $10,000 or more.

Anyone hired by the property owner is required to be licensed if they perform $25,000 or more of the work, as these contractors would be considered prime contractors since they are contracting directly with the owner.