The price sheet at a Fort Lauderdale sales gallery is designed to feel like a payment plan. Ten percent at contract, ten at groundbreaking, ten at fifty percent complete, ten at top-off. Twenty percent balance at closing. The number climbs cleanly, the milestones are legible, and the language of "deposit" makes the money sound stored rather than spent.
It is not stored. Under Florida law, only the first ten percent of the sale price is required to sit untouched. Everything above that line is a different instrument entirely, with a different legal status and a different set of consequences if the tower does not get built. A buyer choosing between Andare, St. Regis Bahia Mar, Sage Intracoastal, Selene, and the just-launched Ritz-Carlton Residences Fort Lauderdale Beach is not comparing five payment plans. They are comparing five positions on the same statutory ladder, and the rungs are not equally protected.
The Ladder, Broken Into Its Actual Parts
The Fort Lauderdale pre-construction market runs on a schedule most buyers see summarized in one line. The industry-standard version, as documented across current 2026 marketing, is 10% at contract execution, 10% at groundbreaking, 10% at the halfway construction milestone, and 10% at top-off, totaling 40% before closing, with some developers offering a lighter 20% total deposit structure to attract buyers early and the remaining balance due at closing. Before any of that, buyers typically hold a unit with a reservation deposit, usually $50,000 to $100,000, that converts into the first contract deposit when the purchase agreement is signed.
That schedule looks like four equal steps. It is not. Legally it is two categories of money separated by a bright line at ten percent, plus a reservation phase that operates under its own rules.
Rung one, the reservation. Fully refundable on written request, held by an independent escrow agent, and never released to the developer except as a down payment on an executed contract.
Rung two, the first ten percent. Held in escrow under Florida Statute §718.202(1). This money stays in escrow through closing unless the contract is properly terminated, at which point it is refunded with interest.
Rungs three and four, everything above ten percent. Held in a special escrow account under §718.202(2), but eligible for release to the developer to fund construction once the statutory conditions are met.
The buyer sees one ladder. The statute sees two different instruments stacked on top of each other.
What §718.202 Actually Says About the Money
The relevant Florida law is public and worth reading directly. Section 718.202(1) requires that if a developer contracts to sell a condominium parcel and the construction has not been substantially completed, the developer shall pay into an escrow account all payments up to 10 percent of the sale price received from the buyer toward the sale price.
Subsection (2) governs the money above that line. All payments in excess of the 10 percent of the sale price described in subsection (1) and received prior to completion of construction shall be held in a special escrow account and may not be used by the developer prior to closing the transaction, except as provided in subsection (3) or except for refund to the buyer. The "except as provided in subsection (3)" clause is the mechanism. It permits developers, once specific project conditions are satisfied, to draw on the excess deposits to fund the actual construction of the building the buyer is waiting for.
The Florida Supreme Court has already litigated the account structure. In North Carillon, LLC v. CRC 603, LLC, the court held in 2014 that a developer may hold all deposits in a single escrow account so long as separate accounting records are maintained for the amounts governed by subsections (1) and (2). One bank account, two legal buckets, one escrow agent responsible for keeping them straight.
Two practical implications follow. First, the money past the ten-percent line is doing work in the building before the building exists. Second, if the project fails before closing, the recovery mechanics for the two buckets are governed by the same statute but are only as reliable as the escrow agent and, where applicable, the surety bond or letter of credit standing behind the released funds.
The Natiivo Sequence, in Order
The clearest live case study is one mile from Las Olas Boulevard. Newgard Development's Natiivo Fort Lauderdale was designed as a high-rise with 384 short-term rental condos, 50,000 square feet of offices, nearly 16,000 square feet of retail, and 390 parking spaces, with units priced from the $500,000s to $1.5 million. Newgard bought the 200 West Broward Boulevard site for $31.2 million in December 2023 from Kushner and Aimco, with $21.2 million in seller financing.
The timeline that followed:
- Sales launched in 2025. Buyers signed contracts and paid initial deposits on a 40-story tower planned within walking distance of the Brightline station.
- Construction never started. Despite launching sales last year, Newgard hasn't started construction.
- Loan matured; suit filed. In July, Kushner sued the Newgard affiliate that owns the site, alleging default on the loan when it matured the previous month, with a balance of $22.8 million.
- Judgment and auction. A court auction was scheduled for March 11 to sell the 1-acre property at 200 West Broward Boulevard to satisfy a $25.7 million foreclosure judgment issued Jan. 30 in favor of New York-based Kushner Companies.
- Deposits returned. The loan came due during a "very tough environment for capital," Hernandez said. The developer is returning buyer deposits as it tries to work out the alleged default.
The Natiivo buyers are getting their money back because the project stopped before the developer was in a position to draw on the excess deposits under §718.202(3). Had the tower broken ground and reached the milestones that release the second bucket, the recovery conversation would look different. The lesson embedded in that sequence is not that pre-construction is unsafe. The lesson is that the ladder's fragility is highest at exactly the point where a buyer typically feels most committed, which is between contract signing and vertical construction.
How the Ladder Behaves at Different Points in the Pipeline
The active 2026 pipeline sits at different rungs. A buyer's exposure is not the same at each one.
| Project | Stage in 2026 | Where the Deposit Money Sits |
|---|---|---|
| Ritz-Carlton Residences Fort Lauderdale Beach | Sales launched February 2026 | Reservation and first-tranche deposits; construction not yet underway |
| Andare Residences, 521 E Las Olas Blvd | Under construction | Second-tranche deposits eligible for release under §718.202(3) as milestones hit |
| St. Regis Resort & Residences Bahia Mar | Pre-construction; 39-acre redevelopment | Reservation and first-tranche deposits |
| Sage Intracoastal Residences | Under construction, delivery 2027 | Both tranches; second bucket active |
| Selene Oceanfront Residences | Twin 300-foot towers, some units move-in ready | Late-stage; closing mechanics rather than deposit protection dominate |
| Ombelle, Flagler Village | Pre-construction | Reservation and first-tranche |
| Viceroy Residences | Pre-construction | Reservation and first-tranche |
| Riva Residenze | Pre-construction, delivery 2027 | Reservation and first-tranche |
| Pier Sixty-Six Residences | Under construction, closings underway | Late-stage |
Two projects at nominally similar prices can sit on opposite sides of the ladder's most consequential rung. That is the number the price sheet does not print.
Five Questions That Belong in the Contract Review
A buyer's leverage is highest before signing and drops sharply after. The five questions below are the ones a Florida condominium attorney will ask on the buyer's behalf during contract review. Asking them at the sales center first is not a substitute for that review, but it changes the tenor of the conversation.
- Which portion of my deposit is held under §718.202(1), and which portion is held under §718.202(2)?
- Does the developer intend to invoke §718.202(3) to use my excess deposits for construction, and at what milestone?
- Is the escrow protected by a surety bond or irrevocable letter of credit, and for what amount?
- Who is the escrow agent, and are they independent of the developer as required by the statute?
- What are the specific events that would trigger a refund with interest, and what is the notice mechanism?
None of those questions carry an accusation. They convert a payment plan back into the two legal instruments it always was.
Short FAQ
Is a reservation deposit the same as a contract deposit? No. A reservation deposit is fully refundable on written request. It only becomes a contract deposit, and only becomes subject to §718.202(1) or (2), when the purchase agreement is executed.
If my project stalls before groundbreaking, what happens to my second-tranche money? It should still be in the special escrow account, because the release conditions in §718.202(3) are typically tied to construction progress. The Natiivo timeline is the current Fort Lauderdale illustration of that outcome.
Does buying at a project already under construction reduce this risk? The risk of the project not being built shrinks meaningfully once vertical construction is underway and lender funding has cleared. The deposit money is still working in the building, but the probability of a non-delivery scenario is lower.
Are branded projects like Ritz-Carlton or St. Regis governed by different rules? The brand shapes the finishes, the service program, and the marketing. It does not change the statute. §718.202 applies to the developer, not the flag.
Pre-construction in Fort Lauderdale is one of the strongest current opportunities in South Florida luxury, and the ladder is not a reason to avoid it. It is a reason to buy with someone who reads the contract the way a lender reads a covenant. If you are comparing two towers, or weighing a reservation you have already placed, Priscilla Gonsalves will walk the deposit structure, the escrow language, and the delivery calendar with you before you sign. Schedule a consultation.
