Deposits and closing costs on new construction in Central Florida

Buying new construction involves cash before closing and at closing: the earnest money deposit that holds the home, and the closing costs that settle the loan, the title, and the builder's transaction. This guide explains how deposits work on new builds, what closing costs a buyer typically pays, and the questions to ask so the total cash you need at closing is clear before you sign. This is educational context, not financial or legal advice: review your contract and ask your lender and attorney about your specific transaction.

How earnest money works on new construction

The earnest money deposit (often shortened to deposit or EMD) is the amount you put down when you sign the purchase contract, and it shows the builder you are committing to the home and covers the cost of taking it off the market. Florida does not set a required amount: it is whatever you and the builder agree to in the contract. On new construction, builders commonly require a larger deposit than on resale, often a few percent of the purchase price or a fixed dollar amount, and some builders structure the deposit in installments held through the build.

When the deposit is due is contract-driven: most builders want it within a few business days of the effective date of the signed contract, and Florida's escrow rules require a real estate broker who receives a deposit to place it in escrow by the end of the third business day after receiving it. The deposit is typically held in escrow with a title company, a real estate broker, or an attorney, and it is applied to the purchase price at closing. Whether it is refundable depends on the contract terms and the contingencies you negotiate, and builder contracts can make deposits non-refundable after certain milestones, so read those sections carefully before signing.

What typical deposit amounts look like

Source-qualified context: market summaries of Florida new construction commonly describe deposits in the range of a few percent of the purchase price, with fixed-dollar deposits from about $5,000 to $10,000 common in parts of the state and higher amounts in higher-priced markets. Some builders quote a specific deposit amount per community and phase rather than a percentage. The exact figure for your contract depends on the builder, the community, and the phase, so ask for it in writing before you sign rather than planning around a range.

What closing costs a new-home buyer can expect

Closing costs on new construction typically run about two to five percent of the purchase price, and the total depends on your loan, the title work, and the builder's transaction terms. The common cost groups are:

• Lender fees: loan origination, underwriting, appraisal, and credit report charges
• Title fees: title search, lender's and owner's title insurance, and the settlement or closing fee
• Prepaids: homeowners insurance, property taxes, and prepaid interest collected into escrow
• Government and recording charges: county recording fees, transfer taxes, and similar items
• Builder fees: any transaction, administrative, or financing-related fees the builder's contract assigns to the buyer

How builder transactions differ from resale

A few structural differences are common on new construction, and they are worth understanding before you compare numbers. Some builders charge a builder fee, described in some markets as about one percent of the purchase price, to cover their own closing expenses. New construction contracts may also assign the documentary stamp tax on the deed to the buyer, where in many resale counties the seller traditionally pays it; on a home in the mid-$600,000 range that tax alone can be in the several-thousand-dollar range. Lender and title fees work the same way they do on any purchase, but the amounts come from the specific lender and title company you use, so compare written quotes rather than relying on estimates.

Questions to ask to understand the total cash needed at closing

• What is the exact earnest money amount, when is it due, and what are the refund conditions?
• What does the builder's estimate of buyer closing costs include, and what expenses does the contract assign to the buyer?
• How much is the documentary stamp tax, and who pays it in this transaction?
• What are the lender's origination, underwriting, appraisal, and credit report fees?
• What title fees and title insurance premiums apply, and can I shop the title company?
• How are the first year's property tax and homeowners insurance prepaids calculated?
• Are there builder fees, administrative fees, or financing fees in addition to the purchase price?
• What is the total cash I need at closing, and when will I see the final written number?

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