How the pre-construction process works in Florida — from reservation and contract through deposits, construction, and the keys to your new residence.
Few markets offer the pipeline of new development that Miami does. From oceanfront branded residences to bayfront towers and boutique condominiums, buyers are drawn to new construction for its modern design, developer warranties, and the chance to secure a residence at pre-construction pricing before a project is complete. Purchasing new construction, however, is a very different process from buying a resale home, and it rewards buyers who understand how it works before they sign.
This guide walks through the typical pre-construction process in Florida and Miami: how reservations and contracts work, how deposits are structured and protected, the legal rights buyers have under Florida law, what happens during the construction period, and what to expect at closing. It is intended as a general overview to help you prepare — every project and contract is different, so the specific terms always govern.
A brand-new residence offers advantages resale rarely can — balanced against a longer timeline and a deposit commitment throughout the build.
Contemporary layouts, current building systems, and the latest amenities — often in towers by marquee architects or under a luxury hospitality brand.
Many developers let buyers select finishes and upgrade packages during the design phase, personalizing a home before it is even built.
Pricing is set at launch, so buyers who purchase early may benefit from any appreciation that occurs while the building is under construction.
From your first conversation to the day you receive the keys, here is the path a Miami new-construction purchase typically follows.
Before you reserve a residence, prepare your finances. Cash buyers should be ready to show proof of funds; financed buyers should speak with a lender experienced in pre-construction. An important distinction from resale: with new construction you generally do not finalize a mortgage at contract. Financing is secured near completion, when the lender can appraise the finished unit, so your deposits are paid from your own funds during the build.
The team in the on-site sales gallery represents the developer, not you. Working with your own broker costs you nothing — the developer pays the commission — and it gives you independent guidance and, often, priority access during a project’s earliest and most favorable release phases. The best time to involve an advisor is before you ever walk into the sales center.
Most Miami projects begin with a reservation agreement. You select a residence and place a reservation deposit, held in escrow and typically fully refundable until you sign a binding purchase contract. A reservation holds your price and unit while the developer finalizes the condominium documents and prepares contracts.
When contracts are issued, your reservation converts into a binding purchase agreement and your first contract deposit — commonly ten percent of the purchase price — becomes due. This is the point at which your purchase becomes a firm commitment, subject to the cancellation rights described below.
Florida law protects condominium buyers here. The developer must deliver disclosure documents, including the prospectus or offering circular, the budget, the declaration, and the association rules. You may then cancel the contract within 15 days after signing and receiving all required documents, and again within 15 days of any amendment that materially and adversely changes the offering. Use this window to review the budget, fees, parking, and rental rules — ideally with a Florida real estate attorney.
Pre-construction purchases are funded through staggered deposits rather than one down payment. A typical Miami schedule might call for ten percent at contract, another ten percent at groundbreaking, and further installments at milestones, often totaling roughly forty to fifty percent before closing; international buyers are sometimes asked for more. Florida law requires deposits to be held by a third-party escrow agent, with the first ten percent kept in a protected escrow account.
Once under contract, construction can run one to four years depending on the project’s size. Where the developer offers design selections, this is when you choose finishes, cabinetry, or upgrade packages. Otherwise it is largely a waiting period: you pay deposits as milestones are reached and stay in contact with your advisor for progress updates. Delays from permitting, weather, or supply chains are common, which is why the contract’s outside date matters.
As the building nears completion and receives its certificate of occupancy, you will inspect your residence and create a punch list of items for the developer to correct. Many buyers hire an independent, licensed inspector, since the developer’s representatives are not working on your behalf.
At closing you pay the balance of the price, your final deposit, and closing costs. In Miami pre-construction, buyers commonly cover a meaningful share of the developer’s closing costs, which can include a developer fee, documentary stamp taxes, recording fees, and a contribution to working capital or reserves. Financed buyers complete their mortgage and appraisal around this time, so budget several percentage points beyond your deposits.
After closing, the developer addresses your punch list, and your residence is covered by the builder’s and developer’s warranties. Eventually the developer turns control of the association over to the owners. Florida now requires developers to provide a turnover inspection report and a structural integrity reserve study at turnover, giving the new board a clear picture of the building’s condition and reserve needs.
“In pre-construction, the buyers who do best are the ones who understand the timeline, the deposits, and their rights before they ever sign.
Several features of Florida and Miami law and practice set new construction apart — and protect both your money and your peace of mind.
Florida requires developers to safeguard deposits with a third-party escrow agent. Confirm the escrow agent and request the acknowledgment letter you are entitled to. If a project is properly canceled or misses its outside date, buyers are typically refunded through escrow.
The right to cancel within 15 days of receiving the contract and condominium documents — and again after a materially adverse amendment — is a powerful protection. It ends at closing, so this is your dedicated due-diligence window.
Unlike most resales, Miami pre-construction buyers commonly pay a share of the developer’s closing costs, including a developer fee and documentary stamp taxes. Budget extra beyond your deposits for these expenses.
After the 2021 Surfside collapse, Florida enacted sweeping condo safety laws, refined through 2025. Buildings three stories and up require milestone inspections and structural integrity reserve studies, which shape budgets, fees, and potential assessments.
Florida has no state income tax, and a primary residence may qualify for a homestead exemption. Because much inventory is coastal, windstorm and flood insurance deserve early attention as a carrying cost.
Foreign buyers should plan for larger deposit requirements, different financing options, ownership structures, and U.S. tax rules that apply on a future sale — areas where experienced legal and tax advisors are essential.
This overview is provided for general educational purposes and is not legal, tax, or financial advice. Florida condominium law is detailed and changes over time, and every developer’s contract is unique. Before signing any reservation or purchase agreement, consult a licensed Florida real estate attorney and your lender, and rely on the specific terms of your contract and the condominium documents.
Research the developer’s track record and history of delivering on time and on budget.
Read the contract’s completion and outside dates, and know exactly when and why your deposits become non-refundable.
Study the projected association budget — monthly fees and reserve contributions can rise as a building stabilizes.
Check whether the contract restricts assigning or reselling your unit before closing.
If you intend to finance, confirm early that your lender is comfortable with the building and timeline, since financing is arranged near completion.
With more than twenty-five years in Miami luxury real estate and a background that includes leading sales for landmark developments, Lisa Cohn represents buyers through the entire pre-construction process — at no cost to you, since the developer pays the commission. From early access and contract review to deposits and closing, Lisa helps you buy new construction with confidence.
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