Buying Pre-Construction Condos in West Palm Beach: Deposits, Timelines and Risks

Pre-construction condos in West Palm Beach let you lock in a new unit years before it exists, often with a choice of floor, view and finishes. In exchange, you hand over large deposits and wait through a long build with real risks. Florida law gives buyers some strong protections, including escrow rules for deposits and a 15-day right to cancel a developer contract. This guide explains how deposits and timelines usually work, what the law covers, and the questions to ask before you sign.

Key takeaways

• Under Florida Statutes section 718.202, a developer must hold deposits up to 10% of the price in escrow. Money above 10% goes into a separate escrow, and the developer may use it for actual construction costs only if the contract says so in bold type.
• Section 718.503 lets you cancel a developer contract by written notice within 15 days after you sign and receive all required documents.
• Florida gives condo buyers implied warranties. For roof, structure, mechanical and plumbing systems, coverage can last up to 5 years.
• Assignment rights, closing timelines and price changes depend on your contract. Read it with a Florida real estate attorney before you sign.
• In August 2026, Palm Beach County's condo median was $300,000, with 6.7 months of supply. Resale units give pre-construction buyers a real point of comparison.

How pre-construction condos work

A developer usually starts selling units before or during construction. Early sales help the project get its building loan. So buyers who commit early may get a lower price or a better pick of units than buyers who wait.

The process tends to follow the same path. First, you reserve a unit. Next, you sign a purchase contract with the developer. Then you pay deposits on a set schedule while the building goes up. Finally, you close once the building receives its certificate of occupancy and the unit is ready.

That path can take years. In that time, loan rates, insurance and the resale market can all change. As a result, the deal you sign today may look different when it is time to close.

Deposits on pre-construction condos and what Florida law protects

Deposit schedules vary by project. Developers often ask for several payments spread across the build, and the total can be large. Your contract will spell out the amounts and due dates, so read that schedule closely.

The 10% escrow rule

Florida Statutes section 718.202 sets the main rules. The developer must place all payments up to 10% of the sale price into escrow before the building is complete. The escrow agent must be a qualified party, such as a bank, a Florida Bar attorney, a licensed real estate broker or a title insurer.

Payments above 10% go into a separate escrow account. Once construction begins, the developer may withdraw that excess for actual construction and development costs, but only if the contract allows it and includes the required bold disclosure. The statute bars the developer from using those funds for sales commissions, advertising, loan costs or attorney fees.

Why the bold clause matters

If your contract includes that clause, part of your money may already be built into the walls. In that case, getting it back depends more on the developer than on the escrow account. So ask whether the contract lets the developer use deposits above 10%, and how much of your total payment falls into that bucket.

Also note how interest works. Under the statute, interest on escrowed money generally goes to the developer at closing. If you properly cancel, you get your deposit back with interest. If you default, the developer may keep it. Willful violations of the escrow rules by a developer can be a third-degree felony.

Your 15-day right to cancel

Section 718.503 gives buyers of new condo units from a developer an important safety valve. You may cancel the contract by delivering written notice within 15 days after the later of two events: the day you sign, and the day you receive all the documents the developer must provide.

Those documents include the declaration of condominium, the association's articles and bylaws, the estimated operating budget, any management contracts and leases, floor plans and plot plans, and other covenants and restrictions. The statute also requires certain inspection and reserve study items where they apply.

Use those 15 days well. Read the budget, the rules on leasing and pets, and any limits on short-term rentals. In addition, if the developer later delivers an amendment that changes the offering in a way that hurts you, the statute gives you another 15 days to cancel after you receive it. Keep every document and note the date you received it.

Timelines and completion risk for pre-construction condos

Builds run late for many reasons. Permits, labor, materials, weather and loans can all slow a job. Your contract will state an expected completion window and what happens if the developer misses it. Read that section twice.

Ask these questions before you sign:

• What is the estimated completion date, and how much can the developer extend it?
• Can the developer change finishes, unit size or amenities, and by how much?
• What happens to your deposit if the project stalls or the developer cancels?
• Has the developer secured construction financing yet?
• What other buildings has this developer finished, and how did those projects go?

Also think about your own situation. You may need to sell a current home, line up a mortgage, or move on a set date. A long or uncertain closing date can make all of that harder.

Financing, appraisal and insurance at closing

Many buyers pay deposits in cash. Then they take out a loan for the rest at closing. However, the lender will look at your income, credit and the market at that time, not when you signed. If rates rise, your payment rises too.

The appraisal adds another risk. If the unit appraises below your contract price at closing, the lender bases the loan on the lower value. You would then need to cover the gap in cash or negotiate. Our guide to buying a condo in Florida covers lender and insurance basics in more detail.

Insurance matters too. The association will carry a policy for the building. You will need your own policy for the unit. Get quotes early, because insurance costs can change a lot over a multi-year build.

Reselling or assigning pre-construction condos

Some buyers plan to sell their contract before closing, often called an assignment or a flip. That strategy depends almost entirely on the contract. Many developer contracts limit assignments, require written consent, charge a fee, or block resale listings until the developer sells out.

So do not assume you can exit early. Ask the developer in writing what the contract allows. Also ask whether the developer restricts listing the unit for resale after closing while it still has units to sell.

Then compare the project to the resale market. In August 2026, Palm Beach County's condo and townhouse median was $300,000, with a median of 69 days to contract and 6.7 months of supply. That much supply means buyers have choices. A new unit has to compete with existing ones on price, fees and location.

Warranties on pre-construction condos in Florida

Florida law gives buyers of new condo units implied warranties under section 718.203. The unit itself carries a warranty for 3 years from completion of the building. For the roof, structural components, and mechanical and plumbing systems, the warranty runs for 3 years from completion or 1 year after owners other than the developer take control of the association, whichever ends later. In no case does it run more than 5 years.

The clock usually starts when the city lets people move in, which is called the certificate of occupancy. Keep records of any defects you notice after you move in, and report them in writing.

Are pre-construction condos right for you?

Buying early can make sense if you are flexible on timing, can tie up a large deposit for years, and want a new unit in a specific location. It can also suit buyers who plan to live in the unit for a long time.

By contrast, if you need a home soon, need to sell first, or want to rent the unit right away, a resale condo may fit better. Either way, start by looking at what similar units sell for in West Palm Beach today. Then decide whether the premium for new construction is worth the wait.

Frequently asked questions

How much are deposits on pre-construction condos?

It depends on the project and the contract. Developers often ask for several payments over the build, and the total can be a large share of the price. Florida law requires escrow for deposits up to 10%, with separate rules for amounts above that.

Can I get my deposit back if I change my mind?

You can cancel within 15 days after you sign and receive all required documents, and get your deposit back. After that, refunds depend on your contract and the reason for cancelling.

What if the developer never finishes the building?

Your contract and the escrow rules control what happens. Deposits held in escrow are better protected than money the developer has already spent on construction. Ask an attorney to review those terms before you sign.

Can I sell my pre-construction contract before closing?

Only if the contract allows it. Many developer contracts limit or charge fees for assignments, so read that section closely.

Do new condos come with a warranty in Florida?

Yes. Section 718.203 provides implied warranties, including up to 5 years for the roof, structure, and mechanical and plumbing systems.

Sources

• Florida Statutes, s. 718.202 sales or reservation deposits
• Florida Statutes, s. 718.503 developer disclosure
• Florida Statutes, s. 718.203 warranties
• Miami Realtors, Palm Beach County August 2026 report

Selling a home before you move into a new condo? Pure Equity can price your current home and time the sale around your closing date. Start with a free home valuation. Buyers comparing new towers with resale units can ask our team for a side-by-side review. Request a confidential luxury market consultation.