Thinking about locking in a Fort Lauderdale condo before the tower rises? Pre‑construction can secure a prime line, today’s pricing, and a tailored finish package. It can also tie up capital for months or years, so how you fund the purchase matters. In this guide, you’ll learn how deposits typically work, what escrow protections to look for, how assignment rights affect investors, and a practical checklist to compare projects across Broward. Let’s dive in.

How the market shapes your deposits

Fort Lauderdale’s luxury and mid‑rise condo scene attracts both lifestyle buyers and global investors. When demand is strong, developers often ask for larger and faster deposits to show sales velocity and reduce the need for construction loans. In softer periods, you may see smaller deposits or more flexible timing. Expect terms to shift with market conditions and by project.

Your buyer profile also matters. If you plan to occupy the residence, you may negotiate gentler deposit escalation or clearer contingencies. Investors and buyers who want to flip contracts usually face stricter assignment rules or higher deposits unless they secure assignability up front.

Typical pre‑construction deposit schedules

Every development writes its own playbook, but Fort Lauderdale projects often follow a staged approach that starts small and ramps up with construction milestones.

From reservation to contract

• Reservation deposit: A small, refundable amount, often 5,000 to 25,000 dollars, holds a specific unit while your contract is prepared. This is a soft hold, not the main deposit.
• Contract deposit: Once you go to contract, the schedule in your purchase agreement controls. Entry‑level condos might total 10 to 20 percent of the purchase price within 60 to 180 days. Mid‑market and luxury high‑rises commonly require 20 to as high as 30 to 50 percent, collected over several milestones.

Milestones and closing

• Interim payments: Many towers tie tranches to milestones like contract signing, 30 to 90 days after signing, foundation or slab pour, and notice of vertical construction.
• Final payment: You pay the remaining balance at closing, either in cash or with financing.

What varies by project

• Interest on deposits: Some escrow accounts pay interest, others do not, and some contracts allocate interest to the developer or escrow agent. Check the language.
• Non‑refundable components: Luxury projects may mark portions as non‑refundable after a short review period or in exchange for incentive pricing.
• Caps and soft caps: You can sometimes negotiate deposit caps or longer timelines for each tranche.
• Escrow releases: On rare occasions, a developer may ask to draw from deposits during construction. That is a negotiable term with risk implications. Know exactly when, if ever, funds can leave escrow.

Escrow protections that matter in Florida

Escrow is your safety net. You want clear instructions that keep your funds protected until agreed events occur.

Who should hold your funds

Deposits are commonly held by a title company or closing agent, or by a developer’s attorney trust account. Having the developer hold deposits directly is less common and adds risk. Best practice is to insist on an independent title company or law firm escrow with precise release conditions.

Clauses to confirm in your contract

• Escrow holder: Name the escrow agent and include full contact details.
• Release rules: Specify exactly when funds can be released, such as mutual written authorization, a court order, at closing, or on forfeiture if a buyer defaults.
• Protection during contingencies: Prohibit release to the developer until your contingency periods end, unless you explicitly agree otherwise.
• Interest handling: State whether the account is interest‑bearing and who receives the interest.
• Segregation of funds: Clarify that deposits are held separate from the developer’s operating funds.
• Bankruptcy and default: Spell out what happens if the developer defaults or goes bankrupt, including return of deposits with any applicable interest.
• Return timing: Set a clear timeframe for wiring back deposits if you cancel within permitted periods.

Florida’s Condominium Act and related statutes govern key pieces of presale practice. You should ask counsel to review your contract language and the developer’s disclosures to align with current state law and local escrow norms.

Assignment rights for investors

Assignment rules determine whether you can sell your contract before closing. These vary by project and can make or break an investment strategy.

Common assignment regimes

• Free assignment: You can assign without developer consent or a fee. This is attractive to investors but less common in strong markets.
• Assignment with restrictions: Allowed after a waiting period, often 12 to 24 months after contract execution, or subject to developer consent and an assignment fee.
• Assignment ban: No assignment, either for a set period or entirely. Developers use this to discourage flipping and promote end‑user stability.

Fees and conditions you may see

Fees may be a fixed amount or a percentage of the assignment price. Developers can require the new buyer to meet their qualification standards and sign an assignment agreement. Some reserve a right of first refusal on assignments.

If you want assignability, the best time to negotiate is at reservation or during contract drafting. You may be able to secure an addendum that preserves the right to assign, even if it comes with a premium or fee.

A practical buyer checklist for Fort Lauderdale

Use this checklist to compare projects, from Pier Sixty‑Six‑style waterfront offerings to beach high‑rises and mid‑rise condos across Broward.

• Deposit schedule
  • Total deposit required as a percent and dollar amount
  • Staging and triggers for each tranche
  • Timing and amounts that become non‑refundable
• Escrow and holder
  • Name of title company or law firm holding escrow
  • Whether the account is interest‑bearing and who gets the interest
  • Release conditions and whether deposits are segregated from operating funds
• Contingencies and cancellation rights
  • Attorney review or due diligence period and length
  • Financing and inspection or structural contingencies
  • How quickly deposits are returned after a permitted cancellation
• Assignment and resale
  • Whether assignment is allowed, waiting periods, fees, and consent requirements
  • Any resale or leasing restrictions in the condo declaration or offering documents
• Developer protections and buyer remedies
  • Developer remedies for buyer default
  • Buyer remedies if the developer delays or fails to deliver
  • Presence of any performance bond, completion guarantee, or surety
• Closing and timing
  • Target timing for certificate of occupancy and closing
  • Remedies for significant delay and whether time is of the essence
• Title and insurance
  • Title insurance to be provided at closing
  • Any encumbrances, mechanics’ liens, or lender liens on the parcel
• HOA or condo governance and assessments
  • Draft declaration, bylaws, budget, and planned reserves
  • Initial or special assessments being contemplated
• Developer track record and financing
  • Past deliveries in Broward or South Florida and any litigation history
  • Source of construction financing and lender claims that could affect deposits
• Taxes and closing costs
  • Transfer taxes, documentary stamps, filing fees, and typical Broward closing costs
• Additional protections
  • Deposit return if permits or financing are not obtained by a stated date
  • Escrow dispute resolution process and venue
  • Priority and treatment of deposits if the developer files bankruptcy

Smart protections to negotiate

Target a short list of protections that deliver the most safety for your capital.

• Independent escrow with a title company and no release without your written consent during contingencies.
• Clear refundable versus non‑refundable language, with exact triggers and dates.
• A defined deadline for certificate of occupancy and either liquidated damages or a termination right for unreasonable delays.
• A financing contingency if you plan to finance, or assignment rights if you want flexibility.
• Regular construction updates and the right to review final condominium documents before closing.

What to collect before you sign

Ask for the full document set so you and your counsel can evaluate risk, timing, and total cost.

• Contract of Sale and all addenda, including escrow instructions
• Public offering statement or prospectus, and draft condominium declaration
• Construction timeline, permits, and site plan
• Escrow account paperwork and sample release instructions
• Developer corporate authority documents and disclosure of project lenders or mortgages
• Draft budget and any reserve study or reserve plan
• Evidence of construction financing terms, if available
• Title commitment showing liens and exceptions
• Builder warranties, performance bonds, or completion guarantees, if any

Sample funding timeline you can expect

Here is a simple example of how a mid‑market or luxury schedule might be structured. Exact figures will vary by developer and unit type.

1. Reservation: 5,000 to 25,000 dollars refundable until contract.

2. At contract signing: First tranche toward a targeted 20 to 30 percent total, sometimes higher for luxury product.

3. 30 to 90 days after signing: Second tranche to reach a higher cumulative deposit.

4. Construction milestone: Additional tranche at slab pour or vertical construction notice. Some projects require further installments tied to progress.

5. At certificate of occupancy and closing: Pay the remaining balance with cash or financing.

Keep an eye on any non‑refundable dates, whether interest is credited, and if release of escrow is ever contemplated before closing.

Next steps in Fort Lauderdale

Pre‑construction can be a powerful way to secure the right line, view, and amenity mix, but the contract terms are where your risk and return live. Compare deposit schedules across several buildings, confirm escrow protections in writing, and align assignment rights with your goals. If you are an end‑user, prioritize contingencies and timing. If you are an investor, secure assignability early or prepare for stricter rules and higher deposits in stronger markets.

If you want curated guidance on Broward pre‑construction and access to off‑market or early‑release opportunities, reach out. Request Exclusive Off‑Market Access with Unknown Company.

FAQs

How much do I need to deposit for a Fort Lauderdale pre‑construction condo?

• Entry‑level condos often total 10 to 20 percent within the first 60 to 180 days, while mid‑market and luxury high‑rises commonly range from 20 percent up to 30 to 50 percent, staged across milestones.

Where is my pre‑construction deposit held in Florida?

• Best practice is an independent title company or law firm escrow account with detailed release instructions; having the developer hold funds directly adds risk and is less common.

Do pre‑construction deposits earn interest in Fort Lauderdale?

• Some escrow accounts are interest‑bearing, but contracts often specify whether interest is paid to you, to the developer, or retained by the escrow agent; the purchase agreement controls.

Can I assign my pre‑construction contract before closing?

• It depends on the project: some allow free assignment, others require consent or a waiting period with fees, and some ban assignments entirely to discourage flipping.

What should I review before signing a pre‑construction contract?

• Collect the contract and addenda, public offering statement, draft condo documents, escrow instructions, construction timeline, title commitment, budget, and any disclosures on developer financing or guarantees.

What protections can I negotiate as a buyer?

• Clear refundable versus non‑refundable terms, independent escrow, defined timelines for certificate of occupancy, financing contingencies if needed, and assignment rights if that aligns with your strategy.