Staged deposits
Developers commonly require a series of deposits: an initial amount at signing and further payments at set milestones before completion. The final balance is paid at closing.
The schedule is in your contract; check amounts and dates and compare with your cash flow.
Escrow protections
Florida law regulates how deposits for condominium purchases are held, requiring escrow with an agent until closing or specified conditions, with rules on when funds may be used for construction. Details depend on the contract and the statute, so confirm with an attorney.
Ask who the escrow agent is and what protections apply.
Review period
Condominium buyers typically receive a statutory period to cancel after receiving the offering documents. Use that time to read the documents, the plans and the budget.
Request a copy of all exhibits and the proposed budget.
Delays and changes
Completion dates are estimates. The contract explains remedies for long delays and material changes to plans. Ask what happens to your deposit if the building is cancelled or materially changed.
Keep written records of any change notices.
Assignment and resale
Some contracts allow assigning your purchase to another buyer before closing, others prohibit or limit it. Assignment fees and approval rules vary.
Do not plan on flipping a contract without checking the terms.
At closing
At completion, you pay the balance, often with lender approval, and inspect the unit with a punch list. Final measurements, fees and the budget may differ from early marketing.
Plan funds and loan timing; rates and appraisal can change over a long build.
Common mistakes
Treating deposits as small, skipping the lawyer, ignoring the escrow terms, relying on renderings, and assuming financing approved early will remain valid at completion.
Another mistake is not reading the developer's disclaimers.
Checklist
Read the offering documents. Confirm escrow agent and rules. Calendar the cancellation and deposit dates. Understand delays and assignment. Ask about fees and the budget. Have an attorney review before you sign.
Budgeting for a long build
Because deposits are paid over one to several years, model your cash flow, the possibility of changing rates and the cost of carrying another home meanwhile. Keep a cushion for closing costs and fees that appear at completion.
Next step
We will help you compare projects and request documents from developers. Legal review should be done by your attorney. Lidiya Tretyak is a licensed Florida real estate agent with Douglas Elliman and speaks English, Russian and Ukrainian; the first consultation is free.
This guide is general information, not legal or tax advice. Laws and programs change — confirm details with a Florida attorney and a US tax professional.
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