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New construction/cash/escrow

Hi there, purchasing a new construction home from a small local builder in MD. We put down $10k upon signing the contract in June, and since then have not had to put any other funds out. Since when you may say…well, surveying and then permitting here takes forever and our permit has not even been submitted to the county yet for review (6 months later). When they start constructing- they want all of the purchase price (over $1m cash) to be in escrow for the duration until closing/move in. The permitting takes forever but the construction will probably be around 5 months start to finish. My husband thinks it’s weird they want all of the money up front (in a non interest bearing account) and was hoping for a way around that. This is our first new construction so we have no frame of reference for how escrow works with that. You’d think they’d want like 1/3 3 times or something- which is what they do they will take 1/3 out of the escrow at each threshold which is spelled out in the contract.

submitted by /u/Spicey477
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source https://www.reddit.com/r/RealEstate/comments/ztrxf2/new_constructioncashescrow/
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