Thinking about reserving a brand-new Miami condo or home before it is built? You are not alone. Many buyers choose pre-construction for the views, selection, and potential upside, but the process feels different from a typical resale purchase. In this guide, you will learn how Miami pre-construction works from reservation to closing, what deposits and documents to expect, and how to protect yourself at each step. Let’s dive in.
What pre-construction means in Miami
Pre-construction means you buy a unit or home before construction is complete, often from floor plans and renderings. In Miami-Dade, this often includes luxury high-rise condos, mid-rise buildings, waterfront townhomes, and new single-family developments.
Buyers like pre-construction for early selection, custom finish options, and possible price advantages. The tradeoffs are real. You should plan for potential delays, market shifts before closing, developer restrictions on assignments or rentals, and financing that hinges on project eligibility.
Step-by-step buying timeline
Phase 0: Reservation and due diligence
You start by reserving a specific unit with a short reservation agreement and a reservation deposit. In Miami, many projects use deposits that range from about $5,000 to $50,000, with higher amounts at the luxury end. The reservation holds the unit while you review documents and negotiate the contract.
Ask whether the reservation deposit is refundable and where it is held. Get every refund term in writing. Move to a full contract promptly or you risk losing your allocation.
Phase 1: Purchase and Sale Agreement
After reservation, you sign the developer’s Purchase and Sale Agreement. This contract sets price, deposit schedule, completion standards, closing terms, assignment rights, and cancellation rules. Deposit structures vary, but many projects collect staged deposits that total about 10 to 30 percent of the purchase price before closing. Some luxury towers require more.
Confirm when deposits become nonrefundable. Clarify whether funds sit in escrow and whether the account is interest bearing. Florida brokerage rules require escrow handling for client funds, but once you sign the developer’s contract, the agreement controls the details.
Phase 2: Design selections and mortgage prep
You will have windows to pick finishes and upgrades, often during early or mid construction. If you plan to finance the final purchase, start lender conversations early. Some lenders will not finance a condo project until certain approvals are complete. Ask your lender whether the project meets their condo eligibility standards.
Phase 3: Construction updates
Developers provide progress updates at milestones such as foundation, topping out, and interiors. Site access is limited for safety. Timelines vary by project scale and permitting. Mid-rise buildings often take about 18 to 36 months from launch to occupancy. High-rise towers often run 24 to 48 months from groundbreaking to occupancy.
Phase 4: Pre-closing and possible interim occupancy
As completion nears, the building or unit receives a Certificate of Occupancy. Some Miami projects allow interim occupancy before title transfer. During interim occupancy, you may pay fees that cover items like taxes, insurance, and interest on construction financing. You can live in the unit, but you do not yet hold title.
You will also complete a walkthrough and punch list. The developer then addresses items per the contract and warranty.
Phase 5: Closing and association turnover
At closing, title transfers, deposits apply to the purchase price, and you fund your mortgage if you are financing. Title insurance issues, and the condo association documents become fully effective. Developers control the association at first. Over time, governance turns over to owners under Florida law and the condo documents.
Contracts and buyer protections
Deposits and escrow basics
Your reservation deposit is usually credited toward the purchase price. The Purchase and Sale Agreement outlines all staged deposits, when they are due, and when they become nonrefundable. Ask where deposits are held and confirm the escrow holder in writing. The exact refund triggers and escrow details live in the contract.
Contingencies and review periods
Developers in Miami often limit traditional contingencies. You may have short windows for attorney review, condo document review, title review, or financing review. Budget for a real estate attorney. Do not waive financing or document review unless your counsel advises it.
Assignment rights
Assignment means you can transfer your contract to another buyer before closing. In Miami, assignment has been common for some investor-focused projects. Your contract will say whether assignment is allowed, what fees apply, and whether the developer must consent. Confirm tax and legal implications with your advisor.
Condominium documents and disclosures
Florida’s Condominium Act requires disclosure of key documents such as the declaration, bylaws, rules, budget, and in many cases a public offering statement. Read them. This is where you learn about rental policies, pet rules, amenity operations, reserves, and association governance.
Warranties and defect procedures
Developers typically provide limited express warranties. A common pattern is one year for workmanship and finishes, and longer for certain major systems or structural elements. Timing and scope vary by project. Your warranty document explains how to submit claims, repair windows, and what is covered.
Developer solvency and risk
If a developer becomes insolvent, your remedies depend on the contract terms and where your deposits were held. Strong escrow language and clear refund rights help protect you. Confirm these details before you sign.
Financing and project eligibility
Lender approvals for new condos
Not all new condo projects qualify for FHA, VA, Fannie Mae, or Freddie Mac financing. Lenders also review project budgets, reserves, owner-occupancy mix, and any active litigation. If you intend to finance, confirm early that your lender will fund loans in the building at closing. Obtain pre-approval and keep it updated while the project is built.
Closing costs and transfer taxes
Budget for title insurance, recording fees, and lender costs. Florida collects documentary stamp tax on deeds and an intangibles tax on mortgages. Your contract may assign some fees to the buyer and some to the developer. Ask for a written estimate so you can plan cash to close.
Timelines, delays, and risk
Typical build times in Miami
Mid-rise projects often complete in about 18 to 36 months. High-rise towers can take 24 to 48 months from groundbreaking to occupancy. Schedules vary with scale, permitting, and financing.
Common causes of delays
Permitting, coastal approvals, weather, supply chain and labor conditions, design changes, and financing can all affect timelines. Contracts usually include force majeure and allow developers to adjust completion dates. If on-time delivery is critical, ask about remedies in writing, though penalties for late delivery are uncommon.
Interim occupancy versus closing
Interim occupancy lets you move in before title transfer. During this period, you usually pay occupancy fees. You will not have full owner rights until you close. Read the section on occupancy in your contract so you understand costs and responsibilities.
Miami-specific considerations
Building codes and resilience
New Miami developments must meet Florida Building Code and Miami-Dade requirements. Ask how the building addresses wind resistance, hurricane protections, and flood mitigation. Confirm where mechanical systems are located and how the design handles storm surge.
Flood zones and insurance
Many properties are in FEMA flood zones. Even new construction can carry notable flood insurance premiums. Request the expected elevation certificate, insurance estimates, and any resilience features that could affect costs.
HOA dues, amenities, and rental rules
High-amenity buildings often have higher association dues that affect cash flow and rental yield. Review the budget, reserves, and rules. Ask about rental policies, minimum lease terms, and any restrictions on short-term rentals.
Buyer checklist for appointments
- Full Purchase and Sale Agreement and deposit schedule
- Reservation agreement and written escrow details
- Declaration of Condominium, bylaws, rules, and any amendments
- Public offering statement or prospectus if provided
- Project construction schedule and target Certificate of Occupancy date
- Finish specifications, standard features, and upgrade pricing
- Association budget, staffing, and reserve studies
- Parking, storage, HOA fee schedules, and amenity operations
- Assignment clause, developer consent, and any fees
- Warranty statement and defect claim process
- Lender eligibility statement and any preferred lender contacts
- Estimated closing costs, documentary stamp tax, and intangibles tax
Smart strategies to reduce risk
- Use an experienced real estate attorney to review the contract and condo documents.
- Confirm escrow arrangements and refund triggers in writing before you sign.
- Get lender pre-approval and verify project eligibility if you plan to finance.
- Evaluate the budget and reserves to reduce the chance of special assessments.
- Clarify rental, pet, and assignment rules to match your goals.
- Ask for construction milestone updates and stay in regular contact with the sales team.
Next steps
If you want first choice of lines, views, and finish options in neighborhoods like Brickell, Edgewater, Coconut Grove, Coral Gables, and Miami Beach, start early and get clarity on the contract. A focused plan on deposits, timelines, and financing will help you move with confidence when allocations open.
When you are ready, connect with a local advisor who lives and breathes Miami pre-construction. For curated opportunities and priority access to select developments, reach out to Ana Chacon to Request Exclusive Listings & Development Access.
FAQs
What is pre-construction buying in Miami?
- It is purchasing a condo or home before it is built, based on plans and documents, with staged deposits and a final closing when the project receives occupancy approvals.
How much are typical deposits for Miami condos?
- Many projects collect staged deposits totaling about 10 to 30 percent before closing, starting with a reservation deposit that often ranges from roughly $5,000 to $50,000 depending on the building.
Are pre-construction deposits refundable?
- Refundability depends on the contract; some deposits remain refundable for a short window while many become nonrefundable after you approve condo documents or hit specific milestones.
What is interim occupancy and why does it matter?
- Interim occupancy lets you move in before title transfer; you usually pay occupancy fees covering items like taxes and insurance until closing, and owner rights are limited during this period.
Can I finance a pre-construction condo in Miami?
- Yes, but your lender must approve the project; confirm early whether the building meets FHA, VA, Fannie Mae, or Freddie Mac standards and maintain your pre-approval through construction.
What happens if the developer delays completion?
- Contracts often allow schedule extensions for reasons like permitting or weather; ask about any buyer remedies, but penalty clauses for late delivery are not common.
Can I assign my contract before closing?
- Sometimes; assignment rights vary by project and may require developer consent and fees, so review the assignment clause and tax implications with your advisor.
What closing costs should I expect in Miami-Dade?
- Budget for title insurance, lender and recording fees, plus state documentary stamp tax on the deed and an intangibles tax on the mortgage if you finance.
How do flood zones affect new construction purchases?
- Even new buildings in flood zones may have notable insurance costs; request elevation and insurance estimates and review how the design handles flood risk.
