Thinking about reserving a Miami condo before it is even built? You are not alone. Pre-construction can give you first pick of views, layouts, and finishes, but it also comes with timelines, deposits, and documents to understand. In this guide, you will learn how the process works in Miami-Dade, what to expect from developers, what to watch in the fine print, and practical steps to reduce risk. Let’s dive in.
What pre-construction means in Miami
Pre-construction means you sign a contract to buy a condo that is not yet finished. You buy directly from the developer, often from a sales gallery with floor plans, model kitchens, and a prospectus that outlines the plan. The experience has a clear sequence, and knowing it helps you plan your money and your timeline.
The path from reservation to closing
- Reservation with a small deposit, sometimes refundable.
- Contract signing with a defined deposit schedule and unit details.
- Design center selections with allowances and optional upgrades.
- Construction milestones that may include groundbreaking, vertical construction, and topping off.
- Certificate of Occupancy or Temporary CO when the building is ready to occupy.
- Final walkthrough, punch list, and closing.
How long projects take
Smaller or repurposed buildings often take 12 to 30 months from contract to completion. High-rise towers commonly run 24 to 48 months, and some luxury projects can take longer. Permitting, weather, labor and materials, and financing can affect delivery, so build some flexibility into your plans. Delays in large builds are not unusual.
Your money plan: deposits and financing
Understanding how deposits work, when money is due, and how financing lines up with closing will help you avoid surprises.
How deposits usually work
Most projects start with a reservation deposit, which can range from a few thousand dollars to more, depending on the building and price point. After you sign the purchase agreement, deposits are typically paid in stages. Cumulative deposits often total 10 to 30 percent of the purchase price before closing, with the balance due at closing. Exact schedules vary by developer and are spelled out in the contract.
Refund rules and escrow safety
Refundability depends on your contract. Some agreements allow refunds if the developer misses a longstop date for completion or if other defined events occur. Many do not allow broad refunds. Your deposits should be held in escrow as the contract specifies. Confirm who the escrow agent is, how interest is handled, and when funds can be released. Always verify wire instructions directly with the escrow or title company by phone.
Financing at closing
Most buyers fund the remainder with a standard mortgage at final closing. Your lender will order an appraisal and confirm that the project meets eligibility rules. Construction-to-permanent loans exist, but terms vary and many higher-end Miami buyers use cash. If you plan to finance, plan for interest rate changes between contract and closing and make sure your income and credit will still qualify at delivery. International buyers should expect larger down payments, additional documentation, or to consider cash to simplify closing.
Incentives and total costs to budget
Beyond price and deposits, you should plan for developer incentives, closing costs, and ongoing expenses.
Common developer incentives
Developers may offer price reductions, closing cost credits, finish upgrade allowances, furniture packages, extended deposit schedules, or rental guarantees for a limited period. Incentives are more common in softer markets or later phases of sales. The mix and value will vary by project and timing.
Closing costs and carrying costs
Budget for title and recording fees, documentary stamps, and any lender fees if you finance. Expect monthly condo association fees, property taxes, and insurance. The master condo policy covers the building, and owners often carry an HO-6 policy for interior items and liability. Flood insurance may be required depending on FEMA flood zones and building elevation. New associations sometimes start with lower fees while the developer controls the budget, so review the budget to understand future fee expectations and reserve funding.
Legal documents you must review
New development comes with detailed disclosures. You will want an experienced Florida real estate attorney to review the package before you sign.
Core documents to request
- Public offering statement or prospectus with pricing, deposit schedule, amenities, and sales terms.
- Draft or recorded condominium declaration, bylaws, articles, rules, and any resale or leasing restrictions.
- Purchase agreement and addenda covering warranties, dispute resolution, design center rules, and cancellation rights.
- Project budget, pro forma operating statement, and any reserve study.
- Developer track record and prior completed projects, plus the identity of the construction lender.
- Permits and approvals from the city and county.
- Insurance and warranty documents with term lengths and claim steps.
Contract terms to confirm
- Deposit refund conditions and exact escrow instructions.
- Construction timeline, any longstop or outside date, and remedies for delay.
- Assignment rights if you want flexibility to assign the contract before closing.
- Price protection or escalation language.
- Defect warranty process and timelines after closing.
- HOA control period by the developer and budget assumptions.
- Rental policy, including whether short-term rentals are allowed or banned by the condo or city rules.
Miami-specific rules and risks
Local rules and conditions matter in Miami-Dade. Your rights to rent, your insurance costs, and even your building’s design are influenced by city and county requirements.
Short-term rental rules vary by city
Short-term rental rules differ across Miami, Miami Beach, and other municipalities like Surfside and Coral Gables. Some areas are highly restrictive. Even if a city allows short-term rentals, a condo’s declaration can limit or ban them. If you want rental income, verify both the municipal rules and the condo’s rental policy before you sign a contract.
Hurricanes, wind, and flood
Miami-Dade and Florida building codes require wind-resistant design and impact-rated features. New construction must meet current code, but you should still ask about the designed wind rating and facade systems. Check the property’s flood zone, elevation certificate, and likely insurance requirements. Units in flood-prone zones can have higher insurance costs and stricter lender rules.
Insurance and reserves after Surfside
After the Champlain Towers South collapse in Surfside in 2021, insurers, lenders, and associations increased scrutiny on building condition and reserves across South Florida. Insurance costs rose for many buildings, and reserve funding became a bigger focus. For new condos, review the master policy coverage and how the association plans to fund reserves once the developer turns over control.
How to reduce risk as a first-timer
You can buy with confidence by assembling the right team, asking for key protections, and following a simple process.
Build your advisory team
- An experienced buyer’s broker who knows Miami pre-construction and has developer relationships.
- A Florida real estate attorney familiar with condo documents and warranties.
- A reputable title company to hold escrow and manage closing.
A seasoned local team helps you shortlist projects, benchmark incentives, and protect your deposit through each step.
Smart contract asks
Consider requesting or confirming these items where possible:
- Financing contingency or clearly defined refund events.
- A longstop completion date and a remedy if the developer misses it.
- Assignment flexibility if you might need to transfer your contract before closing.
- A clear design center process with upgrade allowances and a cap on change order costs.
- Audit rights at turnover and a defined reserve funding plan in the budget.
Inspection and delivery
Plan to attend the final walkthrough near completion, when the developer invites you to confirm the condition. If allowed, bring an inspector or contractor to help create a punch list. Understand the process and timeline for the developer to correct any items, and keep all documentation organized for warranty claims.
Wire and identity safety
Wire fraud is a real risk. Confirm wiring details by calling the title or escrow company using a known phone number. Use two-factor verification for any requests to change wiring. Keep a clear paper trail for source of funds and any large transfers.
International buyer checklist
If you are buying from outside the United States, plan ahead. Align currency transfers with your deposit schedule, and set up the banking you need to wire funds into escrow. Ask your advisors about whether you need a U.S. tax ID for closing and future tax filings. If you cannot travel for closing, a power of attorney can help, but confirm the title company’s requirements early.
Pre-construction vs resale: is it right for you?
Pre-construction can offer first choice of floor plans and views, new finishes, and the potential for price appreciation by delivery. You also get a longer runway to plan your move. The tradeoffs include a longer wait, potential construction delays, market changes between contract and closing, and rules that may limit short-term rentals. If you need to live in the unit soon or want full clarity on costs today, a high-quality resale may fit better.
Next steps in Miami-Dade
If you are just starting, create a short list by neighborhood and lifestyle. Visit sales galleries, compare deposit schedules, and study rental and association rules side by side. Ask for the full offering package and budget for each building on your list. Then map your deposit and financing plan to the construction timeline so there are no surprises at delivery.
You do not have to navigate this alone. For discreet, white-glove buyer representation and new development expertise across Miami-Dade and the Beach, connect with The Simpkin Team. We will help you source the right projects, stress test the documents, and move from reservation to closing with confidence.
FAQs
How much do deposits total on Miami pre-construction?
- Most projects require cumulative deposits of about 10 to 30 percent before closing, paid in stages defined in your contract.
Are deposits refundable if plans change?
- Refundability depends on the contract. Some allow refunds for specific events like missing an outside completion date, but broad refunds are uncommon.
Can you get a mortgage for a new Miami condo?
- Yes. Most buyers finance at closing if the project meets lender eligibility. Plan for interest rate changes and appraisal timing. Some buyers pay cash.
When do you pick finishes in Miami developments?
- Design selections usually happen in early to mid construction. You will receive allowances and can pay for upgrades during the design center window.
What happens if the developer is late delivering?
- Large projects can face delays. Some contracts include a longstop date or defined remedies. Review the delay language with your attorney before signing.
Can you rent your new condo short term in Miami Beach?
- Often no. Short-term rental rules vary by city and building, and Miami Beach is known for strict limits. Verify both municipal rules and condo policy.
What protections exist for construction defects in Florida?
- New condos include developer warranties for workmanship and materials. The length and claim process are defined in your contract and state law.
How long do Miami towers take to complete?
- Smaller projects often take 12 to 30 months from contract to completion. High-rise towers commonly take 24 to 48 months or longer depending on conditions.
