What should I know before buying a new construction home in Florida?

When you buy a one- or two-family home from a Florida builder that sells or builds 10 or more units a year, state law gives you the right to have deposits of up to 10% of the price held in escrow unless you waive it in writing, and the contract must say so in conspicuous type. Construction-defect claims generally must go through Florida's Chapter 558 notice-and-repair process before a lawsuit unless both sides opt out in writing, so read the builder's contract closely and consider attorney review. Florida buyers of one- and two-family homes can require escrow of deposits up to 10% of the price, as of 2026. A builder may spend escrowed deposits only after notifying you and posting a bond or equivalent. Defect claims require Chapter 558 notice at least 60 days before suing, as of 2026. Confirm the Certificate of Occupancy and check for open permits before closing. Construction contracts are drafted primarily to protect the builder, so consider review by a Florida real estate attorney.

Buying New Construction in Florida: What to Know

How are new construction deposits protected?

As of 2026, section 501.1375 of the Florida Statutes covers deposits on one- and two-family homes from builders and developers who sell or build at least 10 units a year. Unless you waive the right in writing, deposits up to 10% of the purchase price go into escrow with a bank, savings and loan or trust company, a Florida Bar attorney, a licensed real estate broker or an authorized title insurer.

The builder may use escrowed funds for construction only after notifying you and posting a surety bond payable to you, or, if a bond is unavailable, borrowing an equal amount. If you properly terminate under the contract, escrowed funds and accrued interest go back to you. The statute does not cover deposits held in FHA or VA escrows or deposits made to licensed brokers, which follow Chapter 475.

Look for the required legend stating your right to escrow deposits up to 10%
Do not sign a deposit waiver without understanding it
Note how much of your deposit exceeds 10%, since the statute does not address that portion[1]

What if the home has construction defects?

As of 2026, Florida's Chapter 558 requires written notice of a construction-defect claim at least 60 days before filing suit, or 120 days for an association representing more than 20 parcels. The builder may inspect within 30 days and must respond in writing within 45 days with an offer to repair, a payment offer, a combination, or a statement disputing the claim.

Written contracts for improvements between an owner and a contractor must include a notice that construction-defect claims are subject to Chapter 558. Talk to a Florida construction or real estate attorney before serving a notice.[2][3]

What should you check before closing?

The Florida Bar advises special care to confirm that all building costs were paid, given Florida's Construction Lien Law, along with a walk-through before closing, a municipal lien search for open or expired permits, and confirmation that a Certificate of Occupancy or Certificate of Completion was issued.

The Bar also cautions that construction contracts are drafted primarily to protect the contractor, so get the scope, price, schedule and change-order rules in writing and have unclear terms reviewed by an attorney.[4][5]

Key takeaways

Florida buyers of one- and two-family homes can require escrow of deposits up to 10% of the price, as of 2026.
A builder may spend escrowed deposits only after notifying you and posting a bond or equivalent.
Defect claims require Chapter 558 notice at least 60 days before suing, as of 2026.
Confirm the Certificate of Occupancy and check for open permits before closing.
Construction contracts are drafted primarily to protect the builder, so consider review by a Florida real estate attorney.

Sources

Reviewed October 11, 2026. General real-estate information for Florida, not legal, tax, lending or insurance advice. Laws, rates and deadlines change — confirm property-specific facts with the agency cited, a Florida real-estate attorney, CPA or licensed insurance agent.