The auction will be all cash, either due immediately, or maybe 24 hours, with a deposit.

The amount of the Ernest Money deposit should be between you and the seller.

Nobody moves into my place unless they fork over the FULL security deposit and ONE FULL months rent.

I am also wondering is 1% enough for an earnest money deposit

I believe the way you stated it as a secured deposition with some profit is exactly what is intended.

Then he have his worker handed me a banch of receipts and an invoice for $25k( was asking for $12k).he basically ignore all the payment I made to him in the pass on this invoice(one check for deposit which not on the contract but he asked for it and one check was made for advanced payment for him to pay material which not on the payment schedule too), plus he claimed completion of some items which not completed into the invoice.

If it came down to it I could show my monthly deposits in my bank account but what do you guys think?

The higher end the neighborhood, the larger the deposit you take.

He did tell me what the rents were and I got pro-rated rents and security deposits when I closed.

I don't think you can even require pet deposits of service animals-- I might be wrong though.