Updated November 4, 2026
Builder contracts are not FR/BAR
Resale purchases often use the Florida Realtors/Florida Bar (FR/BAR) contract. Builders usually use their own forms. Read the sections on deposits, completion dates, price adjustments, substitutions, arbitration or dispute resolution, and cancellation. Ask what can be changed. A real estate attorney can review the contract before you sign.
Your right to have deposits escrowed
Section 501.1375 of the Florida Statutes applies to builders and developers that sell new one- or two-family homes. It does not apply to those that build or sell fewer than 10 units a year in Florida, and it has carve-outs, including deposits held by licensed real estate brokers and certain FHA or VA deposits.
- Unless you waive it in writing, the builder must place your deposit in escrow, up to 10 percent of the price.
- Escrow holders can be a bank, a Florida Bar attorney, a licensed Florida real estate broker or an authorized title insurer.
- The contract must carry a conspicuous legend about your right to escrow, which you can waive in writing.
- Withdrawals generally need both signatures. There are exceptions, including a buyer default with written notice, and rules that let builders use escrowed funds for construction only after notice and a surety bond, or a loan, in specific cases.
Do not waive the right without understanding it. Ask who holds your deposit.
Delays
Completion dates are usually estimates. Weather, supply issues and permitting can all cause delays. Check how your contract defines delay, whether it lets you cancel after a certain time, whether your mortgage rate lock or approval may expire, and whether you can recover the deposit. Ask about this before signing.
If something goes wrong: Chapter 558
For many construction defect claims, Florida law requires a written notice before suing. Under section 558.004:
- You serve a notice of claim at least 60 days before filing an action (120 days for certain associations).
- The builder can inspect within 30 days and must respond in writing within 45 days. The response can offer to repair, offer money, offer both, dispute the claim, or say its insurer will decide.
- If you receive an offer, you must accept or reject it in writing within 45 days.
- Serving the notice pauses the statute of limitations for a limited period.
The process has exceptions and details. If you think you have a claim, speak to a Florida attorney promptly because deadlines apply.
Keep records
Save contracts, addenda, emails, photos, receipts for deposits and written promises about incentives. Put requests in writing.
Questions to ask about your deposit
- Who is the escrow holder, and can I get written confirmation?
- Is my deposit refundable, and in what circumstances?
- Will the builder use any deposit funds for construction, and if so, what protections apply?
- What is the schedule for additional deposits?
Section 501.1375 sets the baseline rules for covered builders. Your contract may add terms, so read it closely.
When to call an attorney
Consider legal advice before signing a builder contract, before waiving the escrow right, and before sending a Chapter 558 notice. A Florida real estate or construction attorney can tell you what the contract means and what deadlines apply. This site is general information only.
Reading the dispute clause
Many builder contracts say how disagreements are handled, for example through mediation or arbitration. That clause can affect where and how you bring a claim, and whether Chapter 558 steps still come first. Find it before you sign and ask an attorney to explain it in plain terms.
Also look for language on changes to plans and specifications, substitutions of materials, and who pays for city or county fee increases. These are common places where surprises show up.
Keep your own timeline
Write down every date in the contract, including deposit due dates, selection deadlines, financing contingencies and estimated completion. Set reminders a week ahead. If a deadline is missed on either side, send a polite written note right away, so there is a record of what happened and when.
Frequently asked questions
Can I waive the escrow right?
Yes, the statute allows a written waiver, but think carefully before giving up the protection.
Is the 60-day notice always required?
Chapter 558 applies to many construction defect claims, with exceptions. An attorney can tell you whether it applies to yours.
Can I get my deposit back if the home is late?
It depends on your contract. Read the delay and cancellation terms and ask an attorney.