How to read a Florida new-construction contract: the eight clauses that decide your deal

Quick answer

A SeaFlower builder contract is the builder's own document, not the Florida Realtors standard form. Eight clauses decide how the deal actually goes: deposits and what happens to them on default, the completion window, cost-escalation language, appraisal-gap terms, the change-order process, warranty exclusions, the dispute clause, and the incentive conditions tied to the affiliated lender. Florida law requires deposits up to 10% of price to be escrowed unless you waive it in writing, and requires the CDD and HOA disclosures before you sign.

1. Deposits and default

How much, when (contract, design selections, structural options), where it is held, and the exact conditions under which you lose it. Florida Statute 501.1375 requires builder deposits up to 10% to be escrowed with two-signature withdrawals unless the buyer waives it, and builders routinely present the waiver. Read what you are waiving.

2. Completion window

Most contracts give the builder a long window, often 12 to 24 months, and define what counts as a delay outside their control. Know what your remedies are if the window passes, and whether a rate lock or a lease elsewhere depends on a date the contract does not promise.

3. Cost escalation

Some contracts let the builder pass through material cost increases before the slab. If that clause exists, it should have a cap or a walk-away right.

4. Appraisal gap

If the appraisal comes in under the price, whose problem is it? Many builder contracts make it yours. Negotiate a gap clause or a price-adjustment right before you sign, not after the appraisal.

5. Change orders

When selections lock, what a change costs, and whether a structural change is allowed at all after signing (usually not; Cardel says so explicitly).

6. Warranty and exclusions

The warranty document is separate from the marketing. Read the exclusions, the claim process, and whether the structural coverage transfers to a later owner.

7. Disputes

Most builder contracts require arbitration and waive jury trial. Know that going in.

8. Incentive conditions

Rate buydowns and closing-cost credits are usually conditioned on the affiliated lender and title company, and sometimes on a closing date. If you switch lenders, the credit disappears; make sure the outside quote beats it net of the credit.

The disclosures you must receive

The bold-type CDD notice (Florida Statute 190.048) and the HOA disclosure summary (Statute 720.401), which carries a three-day right to cancel if it was not delivered before you signed.

Sources: Florida Statutes 501.1375, 190.048 and 720.401; Cardel Homes FAQ; builder contract patterns from seven years on the builder side.