What to Know Before Signing a New Construction Contract in Florida

You've found the community and the home you want. Then the contract arrives: dozens of pages written by the builder's lawyers, with a deposit due soon. This guide helps you read it as a buyer. It explains what each major clause does, what to ask about it, and when it's worth asking for help.

This is general information, not legal advice. For the full buying process, start with our complete guide to buying new construction.

Ask for these before you pay a deposit

You can review a contract calmly only if you have everything in front of you. Ask the builder for:

1. 1The full sample contract and every addendum that comes with it
2. 2The written list of standard features and specifications
3. 3The price sheet for your lot, your floor plan and any options
4. 4The HOA declaration, rules and budget, and any CDD information
5. 5The terms of every incentive, in writing
6. 6The warranty document
7. 7The site plan, and the promised timing for amenities and neighboring phases

Many builders will send a sample contract on request. If one won't share it until after you've paid, treat that as a warning sign.

The clauses that matter most

Every builder's contract is different, so use these as questions to ask, not as a promise of what yours contains.

1. Price: what you are really agreeing to

2. Money: deposit and financing

• Deposit. How much is due, and when? Is it paid in stages? Where is it held, and when can the builder use it? When is it refundable, and what do you lose if you cancel after that point?
• Financing. Does the contract let you cancel and recover your deposit if your loan isn't approved? What is the deadline, and what documents must you provide?
• Incentive conditions. Many incentives require a particular lender or closing date. What happens to the incentive if your closing moves, especially if the builder moves it? Our guide to builder incentives vs. outside lenders shows how to compare.
• Appraisal. What happens if the appraisal comes in below the price? Some contracts make the buyer cover the gap.
• Rate lock. How long does yours last compared with the likely completion date, and what does an extension cost?

3. Time: construction and closing date

• Estimate or promise? Is the completion date an estimate, a window, or a firm date? Is there an outside date after which you can cancel?
• Delays. Contracts often extend dates for weather, hurricanes, supply problems and other events outside the builder's control. Is there a limit on how long those extensions can run?
• Notice. How much notice must the builder give before closing, and how many days do you have to close once notified?
• Fairness test. If the builder is late, what do you get? If you are late, what do you owe? The two answers should look reasonably similar.
• Selection deadlines. When must you choose finishes, and what does a change after that cost?

4. Control: what the builder can change

• Substitutions. Can the builder swap materials or appliances for "equal or better" ones? Who decides what is equal?
• Plans and lot. Can the builder change the plans, the lot dimensions or the home's position? Is the square footage exact or approximate?
• The community. Models, renderings and brochures are usually illustrative. Which amenities, roads and phases are promised in the contract itself, and by when?
• Site access. Can you visit the home during construction, and can your inspector? On what notice?

5. Protection: exits, warranty and disputes

• Your exits. When can you cancel, and what do you get back at each stage?
• If the builder doesn't finish. What remedies do you have?
• Warranty. What is promised in writing, for how long, and does it transfer to a later owner? Florida gives buyers of new homes a basic warranty, so read for any language that tries to limit it. Our pillar guide explains the first-year basics.
• Disputes. Does the contract require arbitration or waive a jury trial? Where would a dispute be heard, and who pays the fees? Are there time limits or notice steps before you can bring a claim? These clauses limit your options, so understand them before you sign.
• Selling before closing. Can you assign or resell your contract? Many builders prohibit it, which matters most to investors.
• What you can say. Some contracts limit public comments about the builder. Ask whether yours does.

Red flags that should make you pause

• Pressure to sign or pay the deposit the same day
• Verbal promises that aren't in the contract or an addendum
• A refusal to share the contract or the HOA and CDD documents before you pay
• A deposit the builder can use immediately, with no clear way to get it back
• Language that waives or shrinks the warranty
• Delay and default rules that favor only the builder
• Vague amenity promises with no dates
• Incentives that disappear if a closing date moves, when the builder controls the date

Questions to ask the sales team

1. 1Can I take the contract home and review it before I pay a deposit? How long do I have?
2. 2Where is my deposit held, and when can the builder use it?
3. 3Is the price fixed? What could cause it to change?
4. 4Is the closing date an estimate or a promise, and what is the outside date?
5. 5What happens to my incentive and my rate lock if closing moves?
6. 6Who decides what counts as an equal substitution?
7. 7Which amenities and phases are promised in the contract, and by when?
8. 8How are disputes handled, and where?
9. 9Can I visit the site and bring an inspector during construction?
10. 10Will you put every promise we discussed in writing?

Want these on one printable page? Download Questions to Ask at the Sales Office (PDF).

When to ask for help

A builder's contract is long, written to protect the builder, and tied to one of the largest purchases you will make. If a clause is unclear, don't guess and don't sign under pressure. Ask for a review period in writing, and ask for help.

Casera Haus is happy to walk you through the sections that matter and the questions to raise. We are licensed real estate professionals, not attorneys, so we can't give legal advice, and we'll tell you honestly when a question needs more than we can answer.

Common mistakes and how to avoid them

Your pre-signing checklist

1. 1Collect the contract, addenda, specifications, price sheet, HOA documents and incentive terms
2. 2Check that every price, option and incentive in the contract matches what you were told
3. 3Confirm where the deposit is held and when it is refundable
4. 4Read the financing, appraisal and rate-lock sections together
5. 5Find the closing date language and the outside date
6. 6Look for substitution, plan-change and price-change clauses
7. 7Read the warranty section and the dispute section twice
8. 8Write down anything promised verbally and ask for it in writing
9. 9Ask for help with anything unclear before you sign
10. 10Sign only when every question has a written answer

Frequently asked questions

Can I negotiate a builder's contract?

Sometimes, within limits. Builders more often adjust incentives, credits or timing than rewrite their contract, but it's worth asking for specific changes or an addendum. What's possible depends on the builder and the market.

Can a builder raise the price after I sign?

It depends on the contract. Some fix the price, and others allow increases for stated reasons. Look for language about price changes or escalation, and ask for the answer in writing.

What happens if my closing date is delayed?

It depends on whether the date is an estimate or a promise, what delays the contract allows, and what notice you get. Also check what a delay does to your incentive and your rate lock.

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

Usually only within the limits set in the contract. Ask exactly when the deposit becomes non-refundable and what you could lose.

Is my deposit protected?

Ask where it is held and when the builder may use it. The answer should be in the contract.

Can Casera Haus help me understand the contract?

Yes. We can walk you through the sections that matter and the questions to ask. We are licensed real estate professionals, not attorneys, so we can't give legal advice, and we'll tell you if a question needs more than we can answer.

Can I sign from out of state?

Often, yes. Confirm how signing and the deposit work, and make sure you still get time to review the documents. Our guide to buying from out of state covers the practical steps.

Your next steps

1. 1Ask the builder for the contract and documents listed above.
2. 2Compare your total costs with what the contract says.
3. 3Use the checklist above for your own questions, and ask us to walk through anything unclear.
4. 4Before you visit a sales office, book a free 20-minute consultation with us.