Pre-Construction Buying Basics in Fort Lauderdale

Thinking about reserving a new condo or townhome before it’s built in Fort Lauderdale? You’re not alone. Pre-construction can offer preferred pricing, first pick of layouts, and a smoother move when the building opens. The process is different from buying resale, so a clear roadmap helps you protect your deposit, set smart expectations, and close with confidence. In this guide, you’ll learn how the timeline works, what to look for in contracts, how deposits and escrow are handled, and what to check locally in Broward County. Let’s dive in.

Pre-construction timeline at a glance

Reservation or expression of interest

A reservation holds a specific unit while the developer finalizes the contract. It usually involves a small fee that is sometimes refundable and may apply to your purchase price. The form should state the hold period, whether the fee is credited at contract, and the next step to convert to a binding agreement.

Purchase agreement

The purchase and sale agreement is the binding contract. It sets the price, deposit schedule, unit specifications, included finishes, construction timeline, contingencies, and remedies. Condo contracts also include developer disclosures required under the Florida Condominium Act, Chapter 718.

Deposits and escrow

After signing, you pay deposits based on the schedule in the contract. Funds are typically held in escrow by a title company, attorney, escrow agent, or broker as specified. Know who holds your money, the account type, and the release conditions before you sign.

Construction milestones

Common milestones include groundbreaking, topping off, rough-ins, exterior closure, finishes, punch list, and certificate of occupancy. In many Florida condo projects, you cannot move in or close until the certificate of occupancy is issued for the building or your phase.

Early occupancy vs closing

Some developers allow temporary occupancy before final closing. This can affect financing, interest accrual, and insurance responsibility. Read the possession and occupancy clauses closely so you understand your rights and costs.

Final closing and title

Closings usually occur after the certificate of occupancy. Documents are handled by the developer’s closing counsel or title company. For condos, the declaration and association documents are recorded, and units may close in phases.

Contracts and deposits in Broward

Reservation vs contract

A reservation is a hold, not a sale. The purchase agreement is the binding step and contains your protections. Do not rely on sales brochures or verbal promises. Get every detail in writing.

Typical deposit ranges

Deposit amounts depend on the product and market conditions. Many high-rise condos require total deposits in the 10 to 30 percent range, paid in stages. Townhomes or single-family in planned communities often ask for lower percentages, sometimes 5 to 10 percent. There is no single Florida statute that fixes deposit amounts. Your contract controls the exact schedule and refundability.

Escrow and release terms

Your agreement should name the escrow holder and spell out when funds can be released. Florida law and professional rules govern how brokers and attorneys handle client funds, but your contract is the primary guide. Ask for the escrow instructions in writing and save every receipt.

Cancellation and remedies

Your termination rights, financing contingencies, and refund provisions are contractual. Developers often limit cancellation rights as construction progresses. If a project is canceled, the contract governs refunds and priorities, and recovery can be complex if there are lender or creditor claims.

Legal review

New-construction contracts usually favor the developer. Have a Florida real estate attorney experienced in new construction and Chapter 718 review your deal before you sign. Ask about deposit protections, performance dates, delay remedies, and any liquidated damages language.

Fort Lauderdale permits and approvals

Broward County and the City of Fort Lauderdale issue permits and conduct inspections. Large waterfront or high-rise projects often require multiple approvals for zoning, site plans, coastal construction, and environmental reviews. Timelines vary by complexity, weather, and supply chain factors.

Certificates of occupancy are issued by the local jurisdiction after final inspections. Developers typically cannot allow permanent occupancy or close units until the required certificate is issued. Ask how impact fees and any local assessments are handled. Developers often pay them, but costs can be reflected in pricing and association budgets.

Financing and condo approvals

Most buyers use standard end loans at closing, while builders use separate construction financing. Your contract may include a mortgage contingency with a deadline to secure a loan commitment. If there is no contingency or it expires, you could risk deposits if your financing falls through.

If you are using FHA or VA, the condo must meet those programs’ approval requirements. Newly proposed condo projects are often not FHA or VA approved during pre-sales. Conventional lenders also review association budgets, reserves, insurance, and developer control. Delays in forming the association or weak budgets can impact your loan approval.

Warranties, inspections, and punch lists

Builders typically provide limited express warranties. Market practice often includes 1 year for workmanship and materials, 2 years for mechanical systems, and 5 to 10 years for major structural issues. Your warranty terms, claim procedures, and timelines are contractual, so read them carefully.

Florida’s construction defect process usually requires pre-suit notice and an opportunity to inspect and cure under Chapter 558. This affects how defect claims are handled by owners and associations.

Plan for an independent inspection near completion and during your final walkthrough. For larger or luxury units, consider specialist inspections for structural or mechanical systems. Make sure the contract addresses punch-list procedures and timelines to complete items.

Costs to plan for

• Initial reservation fee
• Earnest money and staged deposits per contract
• Attorney review and inspection fees
• Closing costs: title insurance, recording fees, lender charges if financing, and prorated taxes
• Association start-up costs and initial dues if applicable
• Potential special assessments if reserves start low

Exact documentary stamp taxes, recording fees, and other closing costs depend on your price and current Florida and Broward County rates. Ask the title company for an itemized estimate early.

Risks to watch in Fort Lauderdale

• Project delays or cancellation: Delivery windows can shift. Negotiate realistic timelines and remedies.
• Developer insolvency: Recovery of deposits can be complicated if the developer fails or the project is foreclosed. Know where funds are held and your rights.
• Financing hurdles: Lack of FHA or VA approval or lender concerns about association budgets can derail loans.
• Budget and reserves: Newly formed associations may set conservative budgets at first. Low reserves can increase the risk of future assessments.
• Scope and finishes: Developers may reserve the right to substitute materials. Document every included finish and upgrade.
• Insurance in coastal zones: Factor in wind and flood coverage availability and cost for your building and unit.

Fort Lauderdale buyer checklist

Before you sign

• Get the purchase agreement, all addenda, and disclosures reviewed by a Florida real estate attorney experienced in new construction and Chapter 718.
• Confirm who holds deposits, the account type, and written refund conditions.
• For condos, request the proposed declaration, bylaws, initial budget, and public offering statement. Check reserves and developer control provisions.
• Ask if the project is eligible for your financing type and whether lender constraints are expected.
• Request a written construction schedule, targeted certificate of occupancy timeframe, and stated remedies for delays.
• Clarify included finishes and upgrades vs options, and capture them in writing.
• Confirm responsibility for impact fees, pass-through charges, and any expected local assessments.
• Get the builder’s warranty documents and claim process in writing.

During construction

• Track milestone notices per the contract and confirm your rights to site visits or progress reports.
• Schedule an independent inspection before closing and plan the final walkthrough and punch-list meeting.
• Clarify terms for any temporary occupancy, including insurance and tax implications.
• Confirm timing for recording the condominium declaration and association documents.
• Verify builder’s risk insurance during construction and required owner or association coverage at closing.

At or before closing

• Obtain a title commitment and review exceptions and easements.
• Confirm your cash-to-close, including taxes, title fees, and any association transfer charges.
• Verify that the certificate of occupancy and required approvals are issued if your contract requires them for closing.
• Review any available association financials, minutes, and the final budget.

What to do next

If you are considering a Fort Lauderdale pre-construction purchase, start early, line up a knowledgeable attorney, and speak with a lender who understands new developments. Then tour floor plans, compare deposit schedules, and pressure-test the budget and timeline. With the right guidance, you can secure the right unit, protect your investment, and enjoy a seamless handoff at closing.

For concierge support from reservation to closing, bilingual service, and access to premier Fort Lauderdale developments, reach out to Unknown Company to Schedule a Consultation.

FAQs

How do deposits work for Fort Lauderdale pre-construction?

• Deposits are set by contract. Many condo towers require total deposits of 10 to 30 percent, often paid in stages. Funds are typically held in escrow per the agreement.

When can I move into a new Fort Lauderdale condo?

• You usually move in at or after the certificate of occupancy is issued for your building or phase. Some projects allow temporary occupancy earlier if the contract permits it.

What happens if the developer delays my unit?

• Contracts include delay provisions and define remedies, which may include extensions, refunds, or liquidated damages. Your attorney should negotiate clear deadlines before you sign.

Can I use FHA or VA financing on a new condo here?

• Only if the project meets FHA or VA approval requirements. Many pre-construction projects are not approved during early sales, which can limit these loan types.

Are builder warranties standard in Broward County?

• Builders often provide limited express warranties, commonly 1 year for workmanship, 2 years for systems, and 5 to 10 years for major structural issues. Exact terms are defined in your contract.