Preconstruction vs Resale Condos in Miami

Miami has two very different condo markets: brand-new towers sold off plans, and existing units for resale. They buy differently. Here's how to choose.

How preconstruction works

You buy from the developer before (or during) construction, on a staged deposit schedule — not a single down payment. A typical Miami structure:

• Reservation deposit (small, ~$20k or a set %)
• 10% at contract
• 10% at groundbreaking
• 10% at a mid-construction milestone
• often another ~10–20% at top-off
• balance (~50%) at closing

So total pre-closing deposits commonly reach ~30–50% (ultra-luxury trends toward 50%+), with the rest due when the building delivers. It varies by developer — get the exact schedule in writing.

Your deposit protection and cancellation right

Florida law requires deposits up to 10% of price to be held in escrow (bank, title, or law firm) and not released to the developer before completion; amounts above 10% are also escrowed unless statutory conditions let the developer use them.

You also get a 15-day cancellation right on a developer purchase — you may cancel within 15 days after the later of signing or receiving all the developer documents, and a material, adverse change to the offering restarts a new 15-day window. (Resale buyers get a shorter 3-day right — see condo-doc review rights.)

Preconstruction: pros and cons

Pros: newest design and amenities; brand-new SIRS/reserves; staged payments over years; potential appreciation before delivery; developer warranties.

Cons: you're buying on renderings; delivery can slip by years; you can't finance a deposit and rates at delivery are unknown; you tie up cash for a long time; the finished market may differ from launch pricing.

Resale: pros and cons

Pros: you see the actual unit, views, and building operation; you can inspect and review real financials and assessment history; you close in weeks, not years.

Cons: older finishes; you inherit the building's condition — including any milestone/SIRS findings and assessments (diligence per the safety-law guide).

The bottom line

Choose preconstruction if you want the newest product and can wait and tie up staged deposits; choose resale if you want to see exactly what you're buying and close soon. Either way, read the deposit schedule (preconstruction) or the association financials (resale) before you commit.

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This guide is general education, not legal, tax, or financial advice. Rules and figures change and vary by building and situation — confirm the specifics with a licensed Florida real-estate agent, attorney, lender, and CPA before you act. Listing data is deemed reliable but not guaranteed.