# Buying Pre-Construction in Miami: Payments, Rights and Risks

Published: 2026-09-02 · Updated: 2026-10-22 · Author: Jeremías Kastensmidt

_Nearly one in four Miami-Dade condo sales in the past year was a developer's first sale. Here is how those contracts work under Florida law, and what they cost against resales._

Buying pre-construction in Miami means signing for a condo before the building exists, paying deposits in stages while it rises, and closing on the balance when it is delivered. It is a large part of the market: in the 12 months to August 2026, 3,603 of the condo sales recorded by deed in Miami-Dade County were a developer's first sale of a new unit, against 11,826 resales. That is nearly one sale in four. Below is how the contracts work under Florida law, and what to weigh before signing.

## How the payments are structured

Instead of paying everything at closing, you pay deposits at set points during construction. A common pattern is a deposit at contract, another at groundbreaking, a third at topping off, and the balance at closing. Totals of 20 to 50 percent of the price are common in South Florida, according to [Haute Living](https://hauteliving.com/realestate/editorial-features/what-buyers-should-know-about-pre-construction-deposits-south-florida) and other local guides. The exact schedule is whatever your contract says, and in a slower market it can be negotiated.

The balance is due at delivery, often two to four years later. If you plan to finance it, the loan is approved at closing, not when you sign, so your income, interest rates and the building's own eligibility for a loan will all be checked then.

## What Florida law protects

Three sections of the Florida Condominium Act matter most:

- **Escrow, section 718.202.** The developer must hold the first 10 percent of the price in escrow. Payments above 10 percent can be spent on actual construction costs once construction has begun, but only if your contract says so in a bold legend, and never on marketing or sales costs. Interest on escrowed money follows the contract; if the contract is silent, it goes to the developer at closing. [Read the statute](http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0718/Sections/0718.202.html).
- **15 days to cancel, section 718.503.** You can cancel by written notice within 15 days after signing and receiving all required documents, and again within 15 days of any amendment that materially changes the offering against you. The documents include the declaration, bylaws, the estimated operating budget and your unit's floor plan. Use those days to read the budget: it is your first look at HOA dues.
- **Warranties, section 718.203.** Each unit carries an implied warranty of 3 years from completion of the building. The roof, structure and building-wide mechanical, electrical and plumbing systems are covered for 3 years from completion or 1 year after owners take control of the association, whichever comes later, but never more than 5 years.

## What you pay for being new

New units sell at a premium to the towers around them. Two Edgewater examples from our data:

- Listings at {{building:cove-miami}}, which broke ground in March 2026, asked a median of $1,067 per square foot in September 2026. Next door, {{building:icon-bay}}, built in 2015, sold at a median of $639 per square foot over the past year.
- Listings at {{building:villa}}, still under construction, asked $2,034 per square foot, against a median sale of $605 across {{neighborhood:edgewater}}.

Part of that premium buys real things: a building to current hurricane code, new systems, the warranties above, and decades before its first major structural inspection. Part of it is simply a price no resale has yet proven. When you compare, use the closed prices of nearby buildings, not their asking prices.

## Questions to ask before signing

- What is the full deposit schedule, and does the contract allow the developer to spend deposits above 10 percent?
- What is the outside delivery date, and what happens if it is missed?
- What does the estimated budget put your monthly dues at?
- Can you assign the contract before closing, and at what fee?

Our [pre-construction tracker](/pre-construction) follows new projects across Miami, with status, developer and completion targets. In October 2026 it listed 22 projects, 20 of them selling.

*This guide is general information, not legal, tax or lending advice. Have a Florida real estate attorney review any developer contract.*


## Frequently asked questions

**How are pre-construction deposits paid in Miami?**

In stages tied to construction: commonly at contract, at groundbreaking and at topping off, with the balance at closing. Totals of 20 to 50 percent of the price are common, but each contract sets its own schedule.

**Are pre-construction deposits protected in Florida?**

Under section 718.202, the first 10 percent of the price must be held in escrow. Payments above 10 percent can be used for actual construction costs once construction has begun, but only if the contract carries a bold legend saying so.

**Can I cancel a Miami pre-construction contract?**

Under section 718.503, a buyer may cancel by written notice within 15 days after signing and receiving all required documents, and again within 15 days of receiving an amendment that materially and adversely changes the offering.

**What warranty does a new Miami condo come with?**

Section 718.203 implies a 3-year warranty on each unit from completion of the building. Roof, structure and building-wide mechanical, electrical and plumbing are covered for 3 years from completion or 1 year after owners take control of the association, whichever is later, but never more than 5 years.

---

Source: Own.Miami — https://own.miami · data as of 2026-10-22
Canonical page: https://own.miami/guides/why-buy-pre-construction-miami
License: CC BY 4.0 — https://creativecommons.org/licenses/by/4.0/
Methodology: https://own.miami/methodology · For AI assistants: https://own.miami/for-ai