Would You WAIVE Your Right to Have Deposit Placed in Escrow???

[Randy Chang]

Hi Everyone, 

Relatively new investor here. I currently own 5 SFR as rentals and was just exploring a deal to acquire my first 4-plex. I found a decent deal from a provider in Jacksonville for a new construction 4-plex in a nice part of town. The builder has not broken ground yet and they are planning to build 26 4-plexes in a brand new sub-division to be completed 12 months from now.

Anyway, my question relates to the purchase contract. More specifically, the contract contains a provision relating to deposit and escrow that I find very odd especially given the context of SFR that I've purchased. The contract language is reproduced verbatim below:

• Deposit. THE PURCHASER OF A ONE-FAMILY OR TWO-FAMILY RESIDENTIAL DWELLING UNIT HAS THE RIGHT TO HAVE ALL DEPOSIT
  FUNDS (UP TO 10 PERCENT OF THE PURCHASE PRICE) DEPOSITED IN AN ESCROW ACCOUNT. THIS RIGHT MAY BE WAIVED, IN WRITING, BY THE PURCHASER. Purchaser hereby expressly waives the rights set forth above and acknowledges that the deposit and future deposits have been or may be in the future paid directly to Seller for deposit in Seller's general accounts. Purchaser further agrees that in the event Seller does not apply for permits necessary to construct the Property within 30 days or does not start to construct the Property within 90 days,  after the date the deposits are made, Purchaser agrees to such longer period of time required by Seller to take such actions.

Is this type of language normal for multi-unit construction? 

Am I just being paranoid?

Thanks in advance for everyone for your $0.02 to help out this new investor trying not to lose his shirt over his first multi-family deal.