Buying new construction in Polk and Osceola: do you need an agent to buy from the builder?

Who works for whom

The model-home salesperson works for the builder and doesn't represent you. That's why Florida law doesn't require them to give you a brokerage relationship notice when the sales office, signs or name badges make it clear they work for the builder.

You don't have to have an agent, but if you want someone reviewing the contract, the numbers and the dates from your side, it has to be your own agent. In Florida, the law presumes your agent is a transaction broker, a limited form of representation, unless it's set up in writing that they'll be your single agent, who also owes you loyalty and confidentiality. Get the relationship in writing.

Register your agent from the first visit

Many builders require your agent to come with you on the first visit or to register you beforehand. If you go alone and fill out the visitor card, some won't accept an agent afterward or won't pay them. The rules vary by builder and community: ask before you go.

Your agent agreement and who pays

Since August 17, 2024, agents who take part in an MLS and work with a buyer sign a written agreement with that buyer before showing them a home. The agreement says how much the agent will be paid or how it's figured, that commissions are negotiable and not set by law, and that the agent can't be paid more than agreed, no matter who pays.

Some builders pay the buyer's agent, but it isn't guaranteed: each one decides whether to pay, how much and on what conditions, and that offer is no longer posted on the MLS. If the builder doesn't pay or pays less than agreed, your agreement says what you would owe. Ask in writing what the builder will pay and have it put in the contract.

The builder writes the contract

You sign the builder's contract, not the standard form used for most resale homes. Read it carefully, and with an attorney if you have questions:

• Deposits. If the builder sells 10 or more homes a year, Florida law says your deposit, up to 10% of the price, must go into an escrow account at a bank, with an attorney, a licensed broker or a title company, unless you waive that in writing, and the contract must say so in a conspicuous notice. Check whether you're asked to waive it: the protection only goes up to 10%, and the law lets the builder, under conditions, use that money for construction. Ask whether upgrade payments are ever refunded.
• Completion date. Many dates are estimates. Read what happens to the contract and to your interest rate if the home is late.
• Changes, cancellation and disputes. See whether the builder can change materials, plans or the lot, when you can cancel and get your deposit back (for example, if your loan isn't approved) and whether claims go to arbitration instead of court.

Incentives for using the builder's lender

Builders commonly offer help with closing costs or a lower rate if you use their preferred lender or title company. Federal rules (RESPA) set limits:

• If the builder refers you to an affiliated lender or title company, they must give you a written notice of that relationship no later than the referral, and that notice says you aren't required to use it to buy the home.
• A package or discount must be optional, must be a true discount and can't be made up through higher costs elsewhere at closing.
• The seller can't require you, as a condition of the sale, to buy title insurance from a particular title company.

Get a Loan Estimate from the builder's lender and from at least one other lender, for the same type of loan. They must give it to you within 3 business days of your application, on the same form, so you can compare the rate, points and closing costs with and without the incentive.

Inspect even though the home is new

County or city inspectors check that the work meets the building code; they don't work for you or check that everything turned out the way you ordered it. Hire a Florida-licensed home inspector (you can verify the license on the DBPR site):

• Pre-drywall, while the framing, plumbing, electrical and ductwork are still exposed.
• Before the final walk-through and closing, and bring the punch list to the walk-through.
• Before the first stage of the warranty runs out.

Before you sign, ask in writing whether the builder allows your inspector at each stage and how much notice they need.

The warranty and defects

The builder's warranty is part of the contract: it says what's covered, for how long, what's excluded and how to file a claim. Read it before you sign; some warranties limit other rights you might have.

If a defect shows up, Florida law (chapter 558) requires you to send the builder a written notice, listing each defect and where it is, at least 60 days before suing (120 if the claim is from an association of more than 20 parcels). The builder has 30 days to inspect and 45 to respond in writing: it can offer to repair, to pay, both, or dispute the claim. Many builder contracts include a notice about this process. Report everything in writing, on time and with copies: claims have legal deadlines.

HOA, CDD and the second-year taxes

Many newer communities have an HOA, a CDD or both, and the builder must give you the written notices the law requires. See HOA and CDD fees in Davenport, Kissimmee and Poinciana to know which numbers to ask for.

In Florida, a home is assessed based on how it stood on January 1. If it wasn't finished on January 1 of the year you close, that year's bill is figured on the land. The next year the full home is taxed and the bill can jump a lot; if your mortgage escrow was set from the land-only bill, your monthly payment may go up later. Apply for homestead by March 1 of the following year (you must own and live in the home on January 1). See property taxes after you buy and the homestead guide.

Compare communities

See the new communities in Polk and Osceola, with their builder, ZIP and whether an HOA or CDD is confirmed. If you're thinking about a new home, book a free consultation before your first visit to the builder: we'll go over registration, the contract and the incentives together.

This guide is general information, not legal advice. Read the builder's contract and talk to an attorney if you have questions.