Developer deposits in luxury pre-construction follow a structured schedule tied to construction milestones — typically 10–20% at contract, an additional 10% at groundbreaking, and 5–10% at subsequent milestones, totaling 20–50% before closing. Florida Statute 718.202 requires deposits to be held in regulated escrow accounts, protecting buyers in the event of project failure.
Developer deposits in luxury new construction follow a structured payment schedule that varies by market and project but typically follows a pattern of incremental payments tied to construction milestones.
Florida deposit structure: Florida has specific escrow requirements for pre-construction condominium deposits. Developers must hold buyer deposits in escrow accounts that are subject to regulatory oversight. This provides buyers significant protection against project failure — in the event a project does not complete, buyers are entitled to a refund of their escrowed deposits plus interest.
Typical deposit schedule in South Florida luxury pre-construction
At contract execution: 10% to 20% of the purchase price, held in escrow. At groundbreaking or construction commencement: an additional 10%, often held in escrow. At specified construction milestones (varies by project): additional increments of 5% to 10%. At closing: the balance of the purchase price.
Total deposit requirements before closing typically range from 20% to 50% of the purchase price, depending on the project and the phase of sales at the time of purchase. Buyers who purchase earlier in the sales process often have lower total pre-closing deposit requirements.
Deposit protection: Florida Statute 718.202 governs the escrow requirements for condominium pre-construction deposits. Buyers should confirm that their deposits are held in a federally insured escrow account and that the developer is in compliance with all escrow requirements before executing a purchase contract.