Answer Luxury pre-construction condos in South Florida typically require 20–50% in total deposits, paid in installments. A common schedule: 10% at contract, 10% at groundbreaking, 10% at top-off, and the balance at closing. Deposits are held in escrow under Florida condominium law.
Typical Deposit Structures
The most common deposit schedule for South Florida luxury pre-construction is a total of 30–50% of the purchase price, spread across 3–5 milestone payments during the construction period. Ultra-luxury projects (above $10M) may require higher total deposits — sometimes 50% — because the developer is targeting committed buyers, not speculators.
Escrow Protections
Under Florida Statute §718, developer deposits must be held in an escrow account. Buyers should verify whether the escrow is interest-bearing and who holds the funds (typically a licensed Florida attorney or title company). In the event of developer default, deposits are protected — though the process of recovery can be lengthy.
Financing at Closing
Most South Florida luxury condos close with a combination of the accumulated deposits and a mortgage for the remaining balance. Jumbo loans for luxury condos are available from private banks and specialty lenders, typically requiring 20–30% down (which may be covered by your deposits) and strong personal financials. Some developers offer preferred lender programs with competitive rates.
International Buyer Considerations
Non-U.S. buyers face additional hurdles: fewer financing options, potential FIRPTA withholding at resale, and currency exchange considerations. Many international buyers purchase all-cash or through domestic LLCs with U.S. banking relationships. Working with an attorney experienced in cross-border transactions is essential.