What does Florida law require builders to do with your deposit?
The rule is Florida Statutes section 501.1375. It covers builders and developers of one- or two-family homes who sell or build 10 or more units a year in the state.
The contract must carry a notice in conspicuous type saying the buyer has the right to have all deposit funds, up to 10% of the purchase price, placed in escrow, and that this right may be waived in writing. The escrow agent can be a bank, a Florida Bar attorney, a licensed real estate broker or a title company.
| Topic | What the statute says |
|---|---|
| Protected amount | Up to 10% of the price goes into escrow unless waived in writing |
| Withdrawals | Require signatures of both parties, with limited exceptions |
| Using the deposit for construction | Allowed if the builder buys a surety bond payable to the buyer |
| No bond available | The builder may borrow, and up to 12 months of interest is charged to the buyer at closing |
| Master bond | A blanket bond; the buyer is debited a pro-rata premium at closing |
| Escrow interest | Belongs to the builder, paid at closing |
| Proper termination by the buyer | Deposit is returned with accrued interest |
| Buyer default | Builder may withdraw after 72 hours' notice by certified mail and a sworn statement |
| Penalty | Willful violation is a third-degree felony |
The 10% figure is a ceiling on protection, not on what a builder may collect. Nothing in the statute bars a larger deposit; it only guarantees escrow up to 10%. My reading of the text is that the excess has no escrow requirement for single-family homes, which is worth confirming with a Florida attorney.
Is there a cooling-off period on a new single-family home?
Not a general one. FS 501.1375 contains no cancellation window. The well-known 15 days come from condo law: under FS 718.503, a condo buyer may void the contract within 15 days of receiving all required documents. If you have read about Miami condo pre-sales, do not assume the same rule applies to a house in a Central Florida resort.
There is a narrower right for homes in an HOA. If the association disclosure summary was not delivered before you signed, you may cancel within 3 days of receiving it or before closing, and that right cannot be waived (FS 720.401). If the community has a Community Development District, the contract must disclose that the CDD may levy taxes or assessments (FS 190.048). The difference between these charges is in HOA and resort fees explained.
| Issue | Builder home (FS 501.1375) | Condo (FS 718) |
|---|---|---|
| Escrow up to 10% | Yes, waivable in writing | Required until construction is substantially complete |
| Above 10% | No escrow rule in the text | Special account; usable for construction only if the contract allows and work has begun |
| Right to cancel | No general window | 15 days after receiving all documents |
Sources: Florida Statutes 718.202 (condo escrow) · Florida Statutes 718.503 (condo 15-day right) · Florida Statutes 720.401 (HOA disclosure summary) · Florida Statutes 190.048 (CDD disclosure)
Why does the ILSA two-year exemption show up in builder contracts?
The Interstate Land Sales Full Disclosure Act (ILSA) is a federal law administered by the CFPB. It requires a developer of a subdivision with 100 or more nonexempt lots to register and give buyers a property report.
The statute exempts a lot that already has a building on it, or one sold under a contract obligating the seller to erect a building within two years (15 U.S.C. 1702(a)(2)). That is why it pays to look for a completion commitment in the contract. If yours relies on this exemption, find the construction-deadline clause and what happens if the date slips. I have not reviewed any Pulte contract, so I cannot say how Pulte handles it.
Sources: CFPB, registration and submission programs (ILSA) · 15 U.S.C. 1702 (ILSA exemptions)
What should you check in a builder contract?
There is no official definition of a "builder contract"; it is the standard agreement the builder drafts. This checklist follows what the statutes require or allow:
- Is the FS 501.1375 escrow notice in conspicuous type, and is there a clause waiving escrow?
- What is the total deposit, and how much of it exceeds 10% of the price?
- Will the builder use the deposit for construction, and is it backed by an individual surety bond, a master bond or a loan? What lands on your closing statement?
- How does the contract define buyer default? Under the statute, failing to close after the certificate of occupancy counts.
- Is there a completion deadline tied to the ILSA exemption?
- Did the HOA disclosure summary, and any CDD notice, arrive before you signed?
For warranties and deadlines on construction defects, see new vs. resale vacation homes. If you will sign from overseas, the notarization steps are in buying an Orlando home from abroad. None of this replaces having a Florida attorney review your contract alongside FS 501.1375.
Aquamara
Where Aquamara fits
Aquamara is a Pulte vacation-home resort in Davenport made up of new builder homes, so FS 501.1375 is the baseline for deposits. The contract, deposit amount, escrow policy and construction schedule have not been released yet.
I'm Daniel Dourado, a Florida agent (license no. 3501330) with Premier Sotheby's International Realty and 15 years in real estate. I have written about why buying new construction without an agent is a costly mistake and about avoiding legal surprises in an Orlando purchase.
When Pulte publishes the contract, I will walk through it clause by clause with people on the Aquamara VIP list. Current project details are on my Davenport pre-launch page.
Frequently asked questions
Can a Florida builder ask for more than a 10% deposit?
Yes. The statute does not cap the deposit; it guarantees escrow only for the first 10% of the price. Read literally, anything above that lacks the same protection on a single-family home.
Do I get my deposit back if I walk away during construction?
It depends on why. If you terminate properly under the contract, the law requires the deposit back with interest. If it is a default, the builder can draw on escrow after 72 hours' written notice.
Does the condo 15-day cancellation right apply to resort homes?
No. That right is in FS 718.503 and covers condominium units. For a single-family home in an HOA, the only statutory window is 3 days, and only if the disclosure summary came after the contract.
Who keeps the interest earned on my escrowed deposit?
The builder, paid at closing, under FS 501.1375. The exception is when the buyer terminates properly, in which case the deposit goes back with interest.
Published . Updated . For information only; not legal, accounting or tax advice.