The deposit clause: “all down payments are non refundable”
Clause 1 of 13 from my signed L&G Building & Concrete contract, with what it meant on my project and how I would rewrite it.
What it says
Company statement: contract ODR-001094, signed February 20, 2026
“ALL DOWN PAYMENTS ARE NON REFUNDABLE. … ALL SALES ARE FINAL.”Terms and Agreement, page 1
The terms call the down payment a non-refundable fee for configuration, design, engineered drawings and administrative costs. A separate page, the Balance Breakdown, offers one exception: if the county sends a written rejection letter denying the permit, the deposit can be refunded “minus the commission paid to sales executive.” My deposit was $19,700, which the order form itself calculates as 38.97% of the building price. The terms describe the minimum deposit as 10%.
What happened on my project
My project record
My Sales Order Contract calculates the building deposit as $19,700, which it labels 38.97% of the building price. The Terms and Agreement describe the deposit as a non-refundable fee covering configuration, design, engineered drawings and administrative costs, and describe the minimum deposit as 10%. I wired the larger figure in February 2026.
The one exception in the packet is on the Balance Breakdown: if the county sends a written rejection letter denying the permit, the deposit can be refunded minus the commission paid to the sales executive. My permit was not rejected, so the exception never applied.
During the months when the building kept slipping, I asked more than once for a refund so I could hire someone else. L&G refused, pointing to the terms. The clause worked exactly as written.
How I would rewrite it
- Pay the 10% the company’s own terms describe as the minimum, not a figure the salesperson fills in.
- Make the deposit refundable if stamped engineered plans are not delivered by a written date.
- Make it refundable if the company fails to start by a written date, not only if the county rejects the permit.
- Strike “minus the commission paid to sales executive.” The company’s commission arrangement is not the customer’s cost.
The question to ask before signing: “Under exactly what conditions do I get this deposit back, and can you write those conditions on the order form before I sign?”
My reading as a customer, not legal advice. A North Carolina construction attorney can tell you what the clause means for your contract.
Related
Next clause: How you pay. All clauses.