Buying Pre-Construction in West Palm Beach: What the Deposit Schedule Actually Looks Like

Related Ross alone has roughly $10 billion committed to West Palm Beach right now — 8 million square feet of office and residential space, including Edgeworth, a new ultra-luxury waterfront condo on South Flagler Drive with two 28-story towers, and Shorecrest, a 28-story, 98-unit tower that closed on a $157 million construction loan earlier this year. A meaningful share of buyers relocating to West Palm Beach right now aren’t buying resale — they’re buying a unit that doesn’t exist yet. This is what that process actually involves.

The Deposit Schedule, Step by Step

Pre-construction condo purchases don’t work like a resale closing. A typical West Palm Beach pre-construction deal runs:

1. Reservation deposit — usually $50,000 to $100,000, secures the unit before a formal contract exists.
2. Contract execution — typically reached 1-3 months after the reservation, once the developer’s offering documents are finalized.
3. Staged construction deposits — a common structure is 10% at contract signing, 10% at groundbreaking, 10% at the construction midpoint, and 10% at top-off, totaling 20%-50% of the purchase price paid in before the building is finished.
4. Final closing — the balance is due at delivery, often 3-5 years after the initial reservation.

That multi-year gap between deposit and delivery is the single biggest structural difference from buying resale, and it cuts both ways: buyers who reserved early in a project sometimes close with real, unrealized equity if the market appreciates during construction — but the reverse is equally possible if it doesn’t.

Where the Deposit Actually Goes

Deposit funds are required to sit in an escrow account, not the developer’s operating account, unless the purchase contract specifically designates a portion for construction use — which some Florida developer contracts do allow, so it’s worth confirming exactly what a specific contract says rather than assuming escrow is absolute. Florida law also gives buyers a 15-day rescission period starting from the date they receive the developer’s Public Offering Statement — a window to walk away and get a full deposit refund, no justification required. That protection only runs from the date the documents are actually received, so buyers should track that date carefully rather than assume a general “cooling off” period applies indefinitely.

What the Numbers Look Like on a $1.5M Unit

To make the deposit structure concrete: on a $1.5 million pre-construction unit using a typical 30% total deposit schedule, a buyer might put down a $75,000 reservation deposit, then $150,000 at contract signing, another $150,000 at groundbreaking, $150,000 at the construction midpoint, and $150,000 at top-off — roughly $675,000 paid in stages before the remaining $825,000 balance is due at closing, likely 3-5 years later. That’s illustrative math based on the deposit percentages described above, not a specific building’s actual schedule — every project sets its own exact structure in the purchase contract, and buyers should get the real numbers in writing before reserving, not estimate from a general pattern.

Use a Buyer’s Agent — Arranged Before Your First Visit

The same rule that applies to single-family new construction applies here: a buyer’s agent on a pre-construction condo purchase typically costs the buyer nothing extra, since the developer’s marketing budget covers the commission — but only if that agent relationship is established before the buyer’s first contact with the sales office, not after. Walking into a sales gallery or registering online without an agent already attached to the file can forfeit that representation for the rest of the transaction, the same risk that applies when touring single-family model homes elsewhere in the county.

Why This Is Happening in West Palm Beach Specifically Right Now

The office side of Related Ross’s build-out — 360 Rosemary and One Flagler — has already pulled Goldman Sachs, JPMorgan Chase, and Wells Fargo into the city, part of the “Wall Street South” story covered in the complete relocation guide. The residential pipeline is following the same capital and the same buyers: Edgeworth and Shorecrest are both betting on continued demand from exactly the finance-sector relocators those office towers are attracting. That’s a real, current, dated signal — not a general “West Palm Beach is growing” claim — and it’s specifically why pre-construction inventory is a bigger share of the West Palm Beach buyer conversation right now than in most Florida coastal cities.

The Honest Risks

Pre-construction isn’t simply “resale with a wait.” A few real, specific risks worth weighing before signing a reservation agreement:

• Construction delays are common, and contracts typically give developers meaningful latitude on delivery dates before a buyer can exit without penalty. Ask specifically what delay triggers a refund right, not just what the target delivery date is.
• Market risk runs both directions over a 3-5 year hold — the same appreciation that can hand an early buyer real equity at closing can just as easily reverse if the broader market cools before delivery.
• Financing pre-construction is different than financing resale. Many buyers pay the staged deposits in cash and only finance the final balance at closing, since most lenders won’t underwrite a mortgage against a unit that doesn’t exist yet. Confirm financing strategy before the first deposit, not right before closing.
• HOA and amenity costs are often estimated, not final, until the building is fully operational — a projected HOA fee at reservation can move once the building’s actual reserve requirements and staffing costs are known.

Taxes and Insurance During the Construction Period

Property tax assessment in Florida is based on a property’s status as of January 1 each year — a unit still under construction on that date is generally assessed at a fraction of its eventual completed value, with the full assessment applying starting the tax year after the certificate of occupancy is issued. That means the early deposit years typically carry no meaningful property tax burden, but buyers should budget for the full assessment landing all at once once the building delivers, not assume the pre-completion rate continues. Homeowner’s insurance similarly isn’t needed until closing and occupancy — but it’s worth getting a preliminary quote for the specific building type and flood zone well before delivery, since insurance costs on new coastal construction have moved meaningfully in recent years and a stale estimate from the reservation date can be well off by closing.

How This Differs From Buying an Older High-Rise

Much of West Palm Beach’s existing condo stock is decades old, which means Florida’s post-Surfside structural inspection and reserve-funding requirements — covered in full in the HOA due diligence guide — are a real factor for resale buyers that simply doesn’t apply the same way to new construction. That’s a genuine trade-off, not an automatic point in new construction’s favor: a new building carries construction-timeline and developer risk that an established, financially healthy older association doesn’t have.

Who This Actually Fits

Pre-construction buying fits a specific buyer profile better than others: someone with a flexible timeline who doesn’t need to move in within the next year, enough liquidity to fund staged deposits in cash, and genuine conviction in West Palm Beach’s continued growth story rather than a need for immediate occupancy. Buyers on a tighter timeline, or those who want to see and walk the exact unit before committing, are usually better served by the resale and newly-delivered inventory covered in the new construction guide.

Frequently Asked Questions

How much deposit do I need to buy pre-construction in West Palm Beach? Typically a $50,000-$100,000 reservation deposit, followed by staged construction deposits totaling 20%-50% of the purchase price paid in before the unit is complete, with the balance due at closing.

Can I get my deposit back if I change my mind? Yes, within the 15-day rescission period that starts when you receive the developer’s Public Offering Statement — a full refund, no justification required. After that window closes, refund rights depend on the specific contract terms, particularly around construction delays.

How long does it take for a pre-construction unit to be built? Commonly 3-5 years from reservation to delivery, depending on the project’s scale and financing timeline.

Is my deposit protected during construction? Funds generally sit in escrow rather than the developer’s operating accounts, though some contracts allow a portion to be used for construction costs — confirm the specific terms in the purchase contract rather than assuming full escrow protection applies.

What’s currently being built in West Palm Beach? Related Ross alone has roughly $10 billion committed, including Edgeworth (a new ultra-luxury waterfront condo on South Flagler Drive) and Shorecrest (a 28-story, 98-unit tower), alongside the completed 360 Rosemary and One Flagler office towers that have already brought Goldman Sachs, JPMorgan Chase, and Wells Fargo into the city.

Do I pay property tax while my pre-construction unit is being built? Generally minimal to none. Florida assesses property based on its status as of January 1 each year, so a unit still under construction is typically assessed at a fraction of its eventual value — the full tax bill starts the year after the certificate of occupancy is issued, not the year of purchase.

Does using a buyer’s agent cost extra on a pre-construction purchase? Typically not — the developer’s marketing budget generally covers the buyer’s agent commission, the same as with single-family new construction. The agent relationship needs to be established before your first contact with the sales office to be recognized, though, not added afterward.