"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."
Florida Statute 718.202 requires that sentence in boldface type on the first page of any developer condo contract that lets the developer spend a buyer's deposit above 10 percent before closing. It also has to appear directly above the buyer's signature. Downtown Sarasota now has several towers selling before completion, so many buyers here will see that legend. A buyer looking at a resale unit a few blocks away signs a different kind of contract. That buyer receives a stack of reports on the building's past.
The choice between new and resale downtown is usually framed as a question of price and finishes. In practice it is a choice about which information you get and when. A resale buyer receives a documented account of the building's condition and reserves. A tower buyer receives a promise, a longer window to back out, and an escrow rule. The price gap between the two reflects how much buyers are willing to pay for a building that has no history yet.
What the deposit rule actually protects
Under Florida Statute 718.202, a developer selling a condo before the building is substantially complete must put all buyer payments up to 10 percent of the price into escrow. For residential condos, the state division director may accept other assurances in place of that escrow, such as a surety bond or an irrevocable letter of credit. Payments above 10 percent go into a special escrow account. Once construction has begun, the developer may withdraw that money for actual construction and development costs, but only if the contract allows it. The statute rules out certain uses. Those funds cannot pay sales commissions, marketing, loan interest, attorney fees or insurance.
The definition of completion matters most for downtown buyers right now. The law defines "completion of construction" as a certificate of occupancy for the entire building, or an equivalent authorization from the governing body. It does not mean a single floor or a model unit. Substantial completion applies only where neither kind of authorization is issued. A tower can look finished from the Boulevard of the Arts and still be months away from that milestone.
Here is where the main downtown projects stood in recent reporting. The status and pricing are only as current as the date shown.
| Project | Developer | Reported starting price | Last-reported status | As of |
|---|---|---|---|---|
| Ritz-Carlton Residences, Sarasota Bay | Kolter Urban | $4.1 million | 65% sold, delivery later in 2026 | Sept. 15, 2026 |
| The Edge | Ore Development and Jebco Ventures | About $3 million | Under construction, opening expected late 2026 | Aug. 14, 2026 |
| One Park Sarasota | PMG and MoneyShow | $2.7 million | More than 76% sold, early-2027 occupancy targeted | Feb. 26, 2026 |
| 1000 Boulevard of the Arts | Kolter Urban | $1.4 million | Groundbreaking expected this fall, 2028 target | Sept. 13, 2026 |
The Ritz-Carlton tower at 555 Quay Commons is the closest to the finish line. Kolter's September 15 update says terrace glass now reaches the top of the building and punch-out work is underway on the lower floors. Interior construction is still going on in the upper-floor residences. The Sarasota Herald-Tribune reported on September 5 that the tower is expected to be completed in the fourth quarter. Neither source reports a certificate of occupancy or closings. Starting prices also vary by source. A Herald-Tribune roundup on September 13 listed $3.7 million, while the developer's own update two days later listed $4.1 million for the remaining residences.
Kolter reported in late June that 1000 Boulevard of the Arts had reached 20 percent sold, with vertical construction planned for the first half of 2027. A contract signed there this fall is a commitment to a building scheduled for 2028.
What the resale buyer receives that a tower cannot provide
Once a buyer signs a contract on an existing downtown condo, Florida Statute 718.503 entitles them to a set of documents at the seller's expense.
- The declaration of condominium, articles of incorporation, bylaws and rules
- The association's annual financial statement and annual budget
- The inspector-prepared summary of the milestone inspection report, if one applies
- The most recent structural integrity reserve study, or a statement that the association has not completed one
- The turnover inspection report, for turnover inspections done on or after July 1, 2023
- The "Frequently Asked Questions and Answers" document
Four of those items describe what the building has already been through. The milestone summary covers the structure. The reserve study shows whether the association has saved enough for roofs, elevators, concrete and waterproofing. The budget shows what owners pay now. The final item that matters here is the reserve study itself. If the association has not completed one, the seller has to say so.
A tower under construction has no milestone inspection to summarize and no years of association budgets to review. Its reserves have not been tested by an actual roof replacement or elevator overhaul. A pre-construction buyer gets the developer's offering documents and a projected budget. The resale buyer gets a record. For the past several years, many buyers have treated older Florida condos with caution because of what those records might show. The new towers offer a clean slate, and buyers pay for it.
Two cancellation windows that serve different purposes
The cancellation periods follow the same pattern. Under Florida Statute 718.503, a buyer purchasing directly from a developer may cancel within 15 days after signing the contract and receiving all required documents. Any amendment that materially changes the offering in a way that hurts the buyer starts a new 15-day window. A resale buyer gets 7 days to review the association documents and cancel, not counting Saturdays, Sundays or legal holidays.
The developer window is longer because the buyer is evaluating plans and disclosures for a building that may not exist yet. The resale window is shorter, but the documents are about a real building with real numbers. Those seven business days are when an inspection summary or reserve shortfall becomes something you can negotiate over. For that reason, the review period deserves a firm plan. Have the documents in hand on the first day and have someone ready to read the reserve study who understands how it works.
Where the bargaining power sits this fall
Pre-sale figures show strong demand for the towers. The Ritz-Carlton residences were 65 percent sold as of mid-September, and One Park was more than 76 percent sold as of its February update. A buyer at those buildings is choosing from what remains, at the developer's posted price.
The resale side looks quite different. The REALTOR® Association of Sarasota and Manatee reports by county, not by downtown, so these figures cover condos and townhomes across all of Sarasota County. In August 2026, sellers in that segment received a median of 91.6 percent of their original list price. Units took a median of 83 days to go under contract and about 124 days from listing to closing. Months of supply was 5.2, and cash buyers made up 59.8 percent of the 281 closed sales. The trend has been moving toward sellers. Months of supply fell from 6.3 in June to 5.6 in July and 5.2 in August, and the share of original list price received was up from 88.5 percent a year earlier. At the high end, the county recorded 21 condo and townhome sales of $1 million or more in August, up 10.5 percent from a year earlier.
Those figures describe a market that is tightening but still close to balanced. The association itself described condo supply as "closer to balanced conditions." The median resale seller is still accepting less than the original asking price, and listings still take months to go under contract. Together with the document package, this gives a resale buyer more room to negotiate than a tower buyer has. A resale buyer can read the reserve study and use what it shows when making an offer. A tower buyer is paying for the absence of that history.
More supply is coming
The towers on the table are not the end of the pipeline. Late last year, David Lough, a board member of the Downtown Sarasota Condominium Association, told the Downtown Improvement District board that downtown had 971 units under construction and about 1,500 more in the city's review process. He also said new development is moving north and east of the Downtown Bayfront and Downtown Core zone districts. Saravela, with 282 planned condos, reached a planning board milestone in July. Construction on Waldorf Astoria Residences Sarasota is expected to begin in summer 2027. Mira Mar Residences by Seaward Development plans 70 units in two 18-story towers behind the preserved historic Mira Mar building.
This affects tower buyers as well as resale buyers. The clean slate is temporary. A unit bought new at the Ritz-Carlton or One Park will eventually be a resale, and its seller will hand a buyer the same document package. By then, newer buildings will be offering clean slates of their own. A building's first few years of budgets and reserve contributions become its record, and they will shape its resale price.
Frequently Asked Questions
Does a 10 percent deposit on a downtown tower stay in escrow until closing? Under Florida Statute 718.202, payments up to 10 percent of the price must go into escrow, unless the state accepts another assurance such as a surety bond or letter of credit. Payments above 10 percent go into a special escrow account, and the developer may use them for construction only if the contract allows it and carries the required boldface legend. The deposit schedule for each project depends on that project's contract, so read the first page before signing.
What if a resale building has never completed a structural integrity reserve study? The seller must give the buyer a statement saying so. The study is required as part of the resale document package, so the absence of one becomes known during the review period.
Is the RASM data specific to downtown Sarasota? No. The monthly figures cover all of Sarasota County, so they show the direction of the condo market rather than conditions in a particular downtown building. Recent sales in the building you are considering are the closer comparison.
The choice between a tower contract and a resale file comes down to which documents you are prepared to rely on. Debra Lichter reads both kinds personally, from the developer legend to the reserve study's funding schedule, before a client signs. To go through a specific downtown building with Sarasota Beach To Bay, Schedule a Private Consultation.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
