Florida Statute 718.202 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XL
REAL AND PERSONAL PROPERTY

Chapter 718
CONDOMINIUMS

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F.S. 718.202

718.202 Sales or reservation deposits prior to closing.—

(1) If a developer contracts to sell a condominium parcel and the construction, furnishing, and landscaping of the property submitted or proposed to be submitted to condominium ownership has not been substantially completed in accordance with the plans and specifications and representations made by the developer in the disclosures required by this chapter, the developer shall pay into an escrow account all payments up to 10 percent of the sale price received by the developer from the buyer towards the sale price. The escrow agent shall give to the purchaser a receipt for the deposit, upon request. In lieu of the foregoing concerning residential condominiums, the division director has the discretion to accept other assurances, including, but not limited to, a surety bond or an irrevocable letter of credit in an amount equal to the escrow requirements of this section. With respect to nonresidential condominiums, the developer may deliver to the escrow agent a surety bond or an irrevocable letter of credit in an amount equivalent to the aggregate of some or all of all payments, up to 10 percent of the sale price, received by the developer from all buyers toward the sale price. In all cases, the aggregate of the initial 10 percent deposits being released must be secured by a surety bond or irrevocable letter of credit in an equivalent amount. Default determinations and refund of deposits shall be governed by the escrow release provision of this subsection. Funds shall be released from escrow as follows:

(a) If a buyer properly terminates the contract pursuant to its terms or pursuant to this chapter, the funds shall be paid to the buyer together with any interest earned.

(b) If the buyer defaults in the performance of his or her obligations under the contract of purchase and sale, the funds shall be paid to the developer together with any interest earned.

(c) If the contract does not provide for the payment of any interest earned on the escrowed funds, interest shall be paid to the developer at the closing of the transaction.

(d) If the funds of a buyer have not been previously disbursed in accordance with the provisions of this subsection, they may be disbursed to the developer by the escrow agent at the closing of the transaction, unless prior to the disbursement the escrow agent receives from the buyer written notice of a dispute between the buyer and developer.

(2) All payments which are in excess of the 10 percent of the sale price described in subsection (1) and which have been received prior to completion of construction by the developer from the buyer on a contract for purchase of a condominium parcel shall be held in a special escrow account established as provided in subsection (1) and controlled by an escrow agent 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. If the money remains in this special account for more than 3 months and earns interest, the interest shall be paid as provided in subsection (1).

¹(3) If the contract for sale of the condominium unit so provides, the developer may withdraw escrow funds in excess of 10 percent of the purchase price from the special account required by subsection (2) when the construction of improvements has begun. He or she may use the funds for the actual costs incurred by the developer in the construction and development of the condominium property, or the easements and rights appurtenant thereto, in which the unit to be sold is located. For purposes of this subsection, the term “actual costs” includes, but is not limited to, expenditures for demolition, site clearing, permit fees, impact fees, and utility reservation fees, as well as architectural, engineering, and surveying fees that directly relate to construction and development of the condominium property or the easements and rights appurtenant thereto. However, no part of these funds may be used for salaries, commissions, or expenses of salespersons; for advertising, marketing, or promotional purposes; or for loan fees and costs, principal and interest on loans, attorney fees, accounting fees, or insurance costs. A contract that permits use of the advance payments for these purposes must include the following legend conspicuously printed or stamped in boldfaced type on the first page of the contract and immediately above the place for the signature of the buyer: “ANY PAYMENT IN EXCESS OF 10 PERCENT OF THE PURCHASE PRICE MADE TO DEVELOPER PRIOR TO CLOSING PURSUANT TO THIS CONTRACT MAY BE USED FOR CONSTRUCTION PURPOSES BY THE DEVELOPER.”

(4) The term “completion of construction” means issuance of a certificate of occupancy for the entire building or improvement, or the equivalent authorization issued by the governmental body having jurisdiction, and, in a jurisdiction where no certificate of occupancy or equivalent authorization is issued, it means substantial completion of construction, finishing, and equipping of the building or improvements according to the plans and specifications.

(5) The failure to comply with the provisions of this section renders the contract voidable by the buyer, and, if voided, all sums deposited or advanced under the contract shall be refunded with interest at the highest rate then being paid on savings accounts, excluding certificates of deposit, by savings and loan associations in the area in which the condominium property is located.

(6) If a developer enters into a reservation agreement, the developer shall pay into an escrow account all reservation deposit payments. Reservation deposits shall be payable to the escrow agent, who shall give to the prospective purchaser a receipt for the deposit, acknowledging that the deposit is being held pursuant to the requirements of this subsection. The funds may be placed in either interest-bearing or non-interest-bearing accounts, provided that the funds shall at all reasonable times be available for withdrawal in full by the escrow agent. The developer shall maintain separate records for each condominium or proposed condominium for which deposits are being accepted. Upon written request to the escrow agent by the prospective purchaser or developer, the funds shall be immediately and without qualification refunded in full to the prospective purchaser. Upon such refund, any interest shall be paid to the prospective purchaser, unless otherwise provided in the reservation agreement. A reservation deposit shall not be released directly to the developer except as a down payment on the purchase price simultaneously with or subsequent to the execution of a contract. Upon the execution of a purchase agreement for a unit, any funds paid by the purchaser as a deposit to reserve the unit pursuant to a reservation agreement, and any interest thereon, shall cease to be subject to the provisions of this subsection and shall instead be subject to the provisions of subsections (1)-(5).

(7) Any developer who willfully fails to comply with the provisions of this section concerning establishment of an escrow account, deposits of funds into escrow, and withdrawal of funds from escrow is guilty of a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, or the successor thereof. The failure to establish an escrow account or to place funds in an escrow account is prima facie evidence of an intentional and purposeful violation of this section.

(8) Every escrow account required by this section shall be established with a bank; a savings and loan association; an attorney who is a member of The Florida Bar; a real estate broker registered under chapter 475; a title insurer authorized to do business in this state, acting through either its employees or a title insurance agent licensed under chapter 626; or any financial lending institution having a net worth in excess of $5 million. The escrow agent shall not be located outside the state unless, pursuant to the escrow agreement, the escrow agent submits to the jurisdiction of the division and the courts of this state for any cause of action arising from the escrow. Every escrow agent shall be independent of the developer, and no developer or any officer, director, affiliate, subsidiary, or employee of a developer may serve as escrow agent. Escrow funds may be invested only in securities of the United States or an agency thereof or in accounts in institutions the deposits of which are insured by an agency of the United States.

(9) Any developer who is subject to the provisions of this section is not subject to the provisions of s. 501.1375.

(10) Nothing in this section shall be construed to require any filing with the division in the case of condominiums other than residential condominiums.

(11) All funds deposited into escrow pursuant to subsection (1) or subsection (2) may be held in one or more escrow accounts by the escrow agent. If only one escrow account is used, the escrow agent must maintain separate accounting records for each purchaser and for amounts separately covered under subsections (1) and (2) and, if applicable, released to the developer pursuant to subsection (3). Separate accounting by the escrow agent of the escrow funds constitutes compliance with this section even if the funds are held by the escrow agent in a single escrow account. It is the intent of this subsection to clarify existing law.

History.—s. 1, ch. 76-222; s. 7, ch. 79-314; s. 3, ch. 80-323; s. 3, ch. 81-185; s. 9, ch. 84-368; s. 5, ch. 87-117; s. 14, ch. 90-151; s. 860, ch. 97-102; s. 14, ch. 2010-174; s. 10, ch. 2021-99; s. 16, ch. 2024-244.

¹Note.—Section 31, ch. 2024-244, as amended by s. 19, ch. 2025-175, provides that “[t]he amendments made to ss. 718.103(14) and 718.202(3) and s. 718.407(1), (2), and (6), Florida Statutes, as created by this act, may not apply retroactively and shall only apply to condominiums for which declarations were initially recorded on or after October 1, 2024.”

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Amendments to 718.202

Annotations, Discussions, Cases:

Arrestable Offenses / Crimes under Fla. Stat. 718.202

Level: Degree
Misdemeanor/Felony: First/Second/Third

S718.202 - EMBEZZLE - CONDOMINIUM DEVELOPER FTC ESCROW ACCOUNT REQ - F: T

Cases Citing Statute 718.202

Total Results: 37

Henry C. Lollar v. Alabama By-Products Corp., and Director, Office of Workers' Compensation Programs, United States Department of Labor, Arthur Hicks v. Alabama By-Products Corp., and Director, Office of Workers' Compensation Programs, United States Department of Labor

893 F.2d 1258, 1990 U.S. App. LEXIS 1323

Court of Appeals for the Eleventh Circuit | Filed: Feb 6, 1990 | Docket: 823432

Cited 32 times | Published

"pneumoconiosis" is clinically diagnosed under section 718.202 and when either the causation standard or presumption

Hardwick Properties, Inc. v. Newbern

711 So. 2d 35, 1998 WL 78697

District Court of Appeal of Florida | Filed: Feb 26, 1998 | Docket: 94412

Cited 24 times | Published

in accordance with the Escrow Agreement and Section 718.202, Florida Statutes, and this Agreement shall

U.S. Steel Mining Company v. Director, OWCP

386 F.3d 977, 2004 U.S. App. LEXIS 20384, 2004 WL 2163387

Court of Appeals for the Eleventh Circuit | Filed: Sep 28, 2004 | Docket: 398129

Cited 23 times | Published

Claimant to prove the existence of pneu-moconiosis. § 718.202(a).” ALJ Order at 3. The ALJ then went

John W. Stomps v. Director, Office of Workers' Compensation Programs, United States Department of Labor

816 F.2d 1533, 1987 U.S. App. LEXIS 6306

Court of Appeals for the Eleventh Circuit | Filed: May 18, 1987 | Docket: 808832

Cited 21 times | Published

autopsy, or examination by a physician. 20 C.F.R. § 718.202. With respect to the last method, the regulation

Sun Bank of Miami v. Lester

404 So. 2d 141

District Court of Appeal of Florida | Filed: Sep 8, 1981 | Docket: 1782641

Cited 9 times | Published

deposit was available for use by the developer as § 718.202, Florida Statutes (1979) requires that the entire

Bruno v. Mona Lisa at Celebration, LLC (In Re Mona Lisa at Celebration, LLC)

410 B.R. 710, 2009 Bankr. LEXIS 2287, 2009 WL 2581712

United States Bankruptcy Court, M.D. Florida | Filed: Aug 12, 2009 | Docket: 64700

Cited 4 times | Published

Florida Statutes § 718.202. Thereafter, in apparent reliance on Florida Statutes § 718.202, the debtor purchased

N & C PROPERTIES v. Vanguard Bank & Trust Co.

519 So. 2d 1048, 13 Fla. L. Weekly 258, 1988 Fla. App. LEXIS 205, 1988 WL 3769

District Court of Appeal of Florida | Filed: Jan 22, 1988 | Docket: 1698635

Cited 4 times | Published

contracts pursuant to section 718.503 and section 718.202, Florida Statutes, which allow a contract to

FLORIDA COMMUNITIES HUTCHINSON ISL. v. Arabia

452 So. 2d 1131

District Court of Appeal of Florida | Filed: Jul 18, 1984 | Docket: 2509706

Cited 4 times | Published

that the trial court had authority under section 718.202, Florida Statutes (1983) to require the petitioners

U.S. Steel Mining Company, LLC v. Cassandra M. Terry

920 F.3d 1283

Court of Appeals for the Eleventh Circuit | Filed: Apr 11, 2019 | Docket: 14920311

Cited 3 times | Published

interpreting such X-rays ." 20 C.F.R. § 718.202 (a)(1) (emphasis added). Another likewise

Daneri v. Bcre Brickell, LLC

79 So. 3d 91, 2012 Fla. App. LEXIS 32, 2012 WL 10850

District Court of Appeal of Florida | Filed: Jan 4, 2012 | Docket: 2356364

Cited 3 times | Published

of fact that affect whether BCRE adhered to section 718.202, Florida Statutes (2008). The record suggests

Double AA International Investment Group, Inc. v. Swire Pacific Holdings, Inc.

674 F. Supp. 2d 1344, 2009 U.S. Dist. LEXIS 116720, 2009 WL 4825097

District Court, S.D. Florida | Filed: Dec 15, 2009 | Docket: 2351580

Cited 3 times | Published

grounds that Defendants violated Florida Statute Section 718.202; (3) Count III alleges violations of the Florida

Bruno v. Mona Lisa at Celebration, LLC (In re Mona Lisa at Celebration, LLC)

472 B.R. 582

United States Bankruptcy Court, M.D. Florida | Filed: May 16, 2012 | Docket: 65783932

Cited 2 times | Published

permitted under Fla. Stat. § 718.202.5 Mona Lisa relied on Fla. Stat. § 718.202(3) to withdraw the balance

Degirmenci v. Sapphire-Fort Lauderdale, Lllp

693 F. Supp. 2d 1325, 2010 U.S. Dist. LEXIS 48541, 2010 WL 342256

District Court, S.D. Florida | Filed: Apr 20, 2010 | Docket: 2246047

Cited 2 times | Published

IV alleges two violations of Florida Statutes § 718.202. Plaintiff seeks rescission, the Court declaring

Edgewater by the Bay LLLP v. Gaunchez (In Re Edgewater by the Bay, LLLP)

419 B.R. 511, 22 Fla. L. Weekly Fed. B 171, 2009 Bankr. LEXIS 3470, 52 Bankr. Ct. Dec. (CRR) 96

United States Bankruptcy Court, S.D. Florida. | Filed: Oct 30, 2009 | Docket: 1858200

Cited 2 times | Published

Debtor's alleged violations of § 489.1425 and § 718.202(8), Florida Statutes and § 8-18 of the Code of

Clone, Inc. v. Orr

476 So. 2d 1300, 10 Fla. L. Weekly 2071

District Court of Appeal of Florida | Filed: Sep 5, 1985 | Docket: 1681538

Cited 2 times | Published

sale, or agreements for purchase and sale. Section 718.202 refers to "contracts" for sale prior to construction

First Sarasota Service Corp. v. Miller

450 So. 2d 875

District Court of Appeal of Florida | Filed: May 4, 1984 | Docket: 1728992

Cited 2 times | Published

for closing, the escrow agent, pursuant to section 718.202(1)(b), Florida Statutes (1981), determined

CRC 603, LLC v. North Carillon, LLC

77 So. 3d 655, 2011 Fla. App. LEXIS 14137, 2011 WL 3916151

District Court of Appeal of Florida | Filed: Sep 7, 2011 | Docket: 60304748

Cited 1 times | Published

escrow agent violated the requirements of section 718.202, Florida Statutes (2006). These appeals only

Bruno v. Mona Lisa at Celebration, LLC (In Re Mona Lisa at Celebration, LLC)

436 B.R. 179, 2010 WL 3359527

United States Bankruptcy Court, M.D. Florida | Filed: Aug 5, 2010 | Docket: 2065157

Cited 1 times | Published

escrow account, as permitted under Fla.Stat. § 718.202.[6] The now completed development consists of

Winkler v. Lawyers Title Insurance Corp.

41 So. 3d 414, 2010 Fla. App. LEXIS 11266, 2010 WL 3023370

District Court of Appeal of Florida | Filed: Aug 4, 2010 | Docket: 2397712

Cited 1 times | Published

serving as escrow agent in accordance with section 718.202, Florida Statutes. None of the relevant documents

In Re Laketown Wharf Marketing Corp.

433 B.R. 401

United States Bankruptcy Court, N.D. Florida | Filed: Jun 7, 2010 | Docket: 1783256

Cited 1 times | Published

a return of the Special Deposits. Fla. Stat. § 718.202 The Original Purchasers are correct that the return

Pittsburg & Midway Coal Mining Co. v. Director, Office of Workers' Compensation Programs, United States Department of Labor

508 F.3d 975, 2007 U.S. App. LEXIS 27398, 2007 WL 4178488

Court of Appeals for the Eleventh Circuit | Filed: Nov 28, 2007 | Docket: 399038

Cited 1 times | Published

(a)When diagnosed by chest X-ray (see § 718.202 concerning the standards for X-rays and the effect

Woodrow Dagnan v. Black Diamond Coal Mining Company and Director, Office of Workers' Compensation Programs, United States Department of Labor

994 F.2d 1536, 1993 U.S. App. LEXIS 17042, 1993 WL 218421

Court of Appeals for the Eleventh Circuit | Filed: Jul 9, 1993 | Docket: 460766

Cited 1 times | Published

insufficient to establish pneumoconiosis under 20 C.F.R. § 718.202(a)(2) and (4). Dagnan and the Director argue

Lollar v. Alabama By-Products Corp.

893 F.2d 1258

Court of Appeals for the Eleventh Circuit | Filed: Feb 6, 1990 | Docket: 66250797

Cited 1 times | Published

claimant has pneumoconiosis are set forth in § 718.202. Furthermore, § 718.203(a) provides that in order

North Carillon, LLC v. CRC 603, LLC

135 So. 3d 274, 39 Fla. L. Weekly Supp. 39, 2014 WL 241918, 2014 Fla. LEXIS 200

Supreme Court of Florida | Filed: Jan 23, 2014 | Docket: 401456

Published

offense — a felony of the third degree. Section 718.202, Florida Statutes (2006), sets forth the pertinent

Westchester Fire Insurance Co. v. Bruno (In re Mona Lisa at Celebration, LLC)

495 B.R. 535

United States Bankruptcy Court, M.D. Florida | Filed: Jun 21, 2013 | Docket: 65785328

Published

place such deposits in escrow. See Fla. Stat. § 718.202(1). Florida law requires the first 10% of the

Jackson v. Palms of Perdido, LLC

107 So. 3d 446, 2013 WL 45866, 2013 Fla. App. LEXIS 200

District Court of Appeal of Florida | Filed: Jan 4, 2013 | Docket: 60228660

Published

claims for breach of contract and violations of section 718.202, Florida Statutes. We affirm the trial court’s

Kaufman v. Swire Pacific Holdings, Inc.

836 F. Supp. 2d 1320, 2011 WL 6780924, 2011 U.S. Dist. LEXIS 148489

District Court, S.D. Florida | Filed: Dec 27, 2011 | Docket: 65978111

Published

to void the Agreements under Florida Statute § 718.202 and seeks the return of the escrow deposits. Plaintiff

Double AA International Investment Group, Inc. v. Swire Pacific Holdings, Inc.

637 F.3d 1169, 2011 WL 1226879

Court of Appeals for the Eleventh Circuit | Filed: Apr 4, 2011 | Docket: 1886655

Published

required by the Florida Condominium Act, Fla. Stat. § 718.202. Swire and Lawyers Title argue that the district

Double AA International Investment Group etc. v. Swire Pacific Holdings, Inc.

Court of Appeals for the Eleventh Circuit | Filed: Apr 4, 2011 | Docket: 2906473

Published

required by the Florida Condominium Act, Fla. Stat. § 718.202. Swire and Lawyers Title argue that the

Corus Construction Venture, LLC v. Laketown Wharf Marketing Corp. (In re Laketown Wharf Marketing Corp.)

433 B.R. 401

United States Bankruptcy Court, N.D. Florida | Filed: Jun 7, 2010 | Docket: 65783515

Published

a return of the Special Deposits. Fla. Stat. § 718.202 The Original Purchasers are correct that the return

Ahern v. Fidelity National Title Insurance

664 F. Supp. 2d 1224, 2009 U.S. Dist. LEXIS 93549

District Court, M.D. Florida | Filed: Oct 7, 2009 | Docket: 2345783

Published

together with interest thereon as provided in Section 718.202 .... FLA. STAT. § 718.503(1)(b). Defendants

Buccaneer's Roost Ltd. v. Weaver

608 So. 2d 893, 1992 Fla. App. LEXIS 11368, 1992 WL 317850

District Court of Appeal of Florida | Filed: Nov 6, 1992 | Docket: 64692167

Published

rescission based upon an alleged violation of section 718.202, Florida Statutes (1989), which regulates the

Jessell v. Albecker (In re Viking I, Inc.)

95 B.R. 225, 1989 Bankr. LEXIS 65

United States Bankruptcy Court, M.D. Florida | Filed: Jan 9, 1989 | Docket: 65779717

Published

law to comply with the provisions of Fla.Stat. § 718.202, which governs the treatment of down payments

McClendon v. Drummond Coal Co.

861 F.2d 1512, 1988 WL 127637

Court of Appeals for the Eleventh Circuit | Filed: Dec 20, 1988 | Docket: 66240126

Published

miner suffered from pneumoconiosis. 20 C.F.R. § 718.202(a)(4). Dr. Brasfield, McClendon’s physician, relied

Barrack v. State

462 So. 2d 1196, 10 Fla. L. Weekly 192, 1985 Fla. App. LEXIS 11964

District Court of Appeal of Florida | Filed: Jan 16, 1985 | Docket: 64609613

Published

appellant’s conviction and sentence for violating section 718.202(7), Florida Statutes (1979). We uphold the

Schwartz v. Lincoln Construction & Development Corp.

455 So. 2d 612, 9 Fla. L. Weekly 1959, 1984 Fla. App. LEXIS 14829

District Court of Appeal of Florida | Filed: Sep 11, 1984 | Docket: 64606720

Published

paid into an escrow account as required by Section 718.202(1), Florida Statutes (1983), (3) the proposed

Ago

Florida Attorney General Reports | Filed: Apr 26, 1979 | Docket: 3256420

Published

would evidently include conveyancing purposes. Section 718.202, F. S., impliedly authorizes the developer