What to Ask Before Buying a Pre-Construction Condo in South Florida

The most common mistake pre-construction buyers make is not asking specific questions before signing. Marketing materials answer the questions developers want you to ask — high-ceiling renderings, celebrity chef partnerships, spa floor counts. The questions that protect you are different, and developers are not always eager to surface them unprompted.

Below are 15 specific questions, organized by category, that every buyer should get answered — in writing, from the development team — before committing to a South Florida pre-construction purchase.

Category 1: Developer Track Record

Question 1: What projects has this developer delivered, and at what comparable scale? Ask for a list of completed projects with delivery dates, original projected delivery dates, and the gap between them. A developer who consistently delivers 12 to 18 months behind projections is telling you something important about what to expect.

Question 2: Has this developer worked with this brand before, and what was the outcome? A St. Regis partnership with a developer who has never managed a hotel-affiliated project is a different risk profile than a partnership with a developer who has delivered three St. Regis buildings. Ask.

Question 3: Who are the co-developers or joint venture partners on this project, and what is their role? In South Florida, most major luxury projects are joint ventures. Understanding who holds what responsibility — and whether any partner has a weaker track record than the lead developer — matters.

Category 2: Financing and Capitalization

Question 4: Has the construction loan been secured, and for how much? A project in pre-sales without a secured construction loan has not been financed yet. Developers are not always required to disclose this proactively. A secured construction loan is a significantly better risk profile than a project still relying entirely on deposit proceeds to fund construction.

Question 5: What percentage of units are under contract, and what is the sales velocity? Developers who share this data — genuinely — are making a statement about their position. Be cautious about projects where sales data is vague or where the project has been in sales for an unusually long time without clear construction commencement.

Category 3: Timeline

Question 6: What is the current projected delivery date, and has it changed since the project launched? If the projected delivery date has already been extended once, ask why and whether the current date is realistic given current construction progress.

Question 7: What are the force majeure provisions in the purchase contract, and how long can the developer extend delivery before a buyer can rescind? This is a legal question your attorney should review, but understanding the contractual framework before signing is essential.

Category 4: Fees and Total Cost of Ownership

Question 8: What is the projected monthly HOA fee for this unit? Request the projected HOA budget, not just a per-square-foot estimate. Understand what is included (common area maintenance, amenity operations, service staff, reserves, insurance) and what is charged separately.

Question 9: What is the reserve contribution included in the HOA fee, and is it funded from day one? Under Florida’s updated condo law, reserves for structural components cannot be waived. Confirm that the building is establishing adequate reserves from the date the HOA is formed, not phasing them in over time.

Question 10: Are there any special assessments anticipated in the first five years of the building’s operation? For a new building, the honest answer is often no — but asking forces the development team to consider the question seriously rather than leaving you to discover it post-closing.

Category 5: Rental Policy

Question 11: What is the building’s short-term rental policy? Some branded buildings permit participation in hotel rental programs when the owner is not in residence. Others restrict short-term rentals entirely. If rental income is part of your rationale for purchasing, this question is essential — and the answer should be in the purchase contract, not just verbal assurance from a sales agent.

Question 12: If a rental management program is available, what are the terms — split, restrictions on owner use periods, minimum stay requirements? Hotel brand rental programs typically specify an owner use calendar, a revenue split (commonly 50 to 70 percent to the owner), and minimum stay requirements for hotel-program rentals.

Category 6: Resale and Flexibility

Question 13: Are there any restrictions on resale before the building delivers? Some purchase contracts include assignment restrictions or right-of-first-refusal clauses that limit your ability to sell your contract before closing. Know this before signing.

Question 14: What are the pet policies? For buyers with animals, this is a quality-of-life issue. Branded buildings, particularly hotel-managed ones, often have size or number restrictions. Verify specifically before committing.

Question 15: What is included in the unit at delivery, and what is the specific specification — appliances, finishes, closets, technology infrastructure? The difference between what a rendering shows and what the contract specifies is a source of buyer disappointment in new construction globally. Request the finish schedule and fixture specifications in writing.

HL Real Estate Group can facilitate requests for project documentation, proforma HOA budgets, and direct answers to these questions from the development teams of all active South Florida new developments. Contact realestate@hauteleaders.com or call 786.957.7868.

This article is editorial in nature and does not constitute legal advice.