How to Buy a Pre-Construction Condo in South Florida: A Step-by-Step Guide

Buying a pre-construction condo in South Florida is fundamentally different from buying a resale property. You are purchasing something that does not exist yet — a set of contractual rights to a residence that will be built, delivered, and then transferred to you on a timeline controlled by the developer. Done well, it is one of the most effective ways to secure pricing in a market before delivery values are established. Done without preparation, it carries risks that a resale purchase does not.

This guide covers the process from initial project selection through closing — including where buyers most commonly encounter problems and what to verify at each stage.

Step 1: Project Selection and Due Diligence on the Developer

Before you engage with a specific project, evaluate the developer separately from the brand. The brand is a licensing partner — it imposes design standards and provides a service infrastructure. The developer builds, finances, and delivers the building. These are two distinct evaluations.

Key questions for the developer: What projects have they delivered, and at what scale? Were prior projects on time? Who is the construction lender and what is the financing structure? Have they worked with this brand before, and what was the outcome? Is this a joint venture, and if so, who are the co-developers and what is the governance structure?

HL Real Estate Group can provide context on developer track records across all active South Florida new development projects.

Step 2: Reservation

Most pre-construction projects offer a reservation process before the formal purchase contract is available. A reservation typically requires a refundable deposit — commonly $25,000 to $50,000 for luxury projects — and secures your place in the queue for a specific unit or floor plan.

A reservation is not a contract. It gives you priority access to the purchase contract when it is released and in most cases allows you to choose your specific unit before the general public. It does not lock in pricing or guarantee availability.

Step 3: Purchase Contract Review

The purchase contract is the critical document. It governs everything: the purchase price, the deposit schedule, the conditions under which the developer can modify the building, your rights if the developer fails to deliver, the escrow protections for your deposits, and the conditions for closing.

Florida law under Chapter 718 (the Florida Condominium Act) provides important protections: developer deposits must be held in an escrow account, you have the right to receive a prospectus (the offering documents) and a 15-day rescission period after receiving it, and there are limitations on what developers can change about the building after contract without buyer consent.

You should have a Florida real estate attorney review the purchase contract before signing. This is not optional for a transaction of this scale. The attorney should specifically review the deposit schedule and escrow terms, the developer’s right to make material changes, the force majeure provisions, the closing conditions, and the remedies available to you if the developer defaults.

Step 4: Deposit Schedule

South Florida luxury pre-construction projects typically require deposits totaling 30 to 50 percent of the purchase price, paid in stages across the construction period. A common structure:

• 10 percent at contract signing.
• 10 percent at groundbreaking or specified construction milestone.
• 10 percent at top-off.
• Final balance (50 to 70 percent) at closing.

Some projects have different structures — four or five deposit stages, or a larger initial deposit with smaller subsequent payments. International buyers in particular should plan the deposit schedule carefully, as each stage requires funds to be available and in some cases may require currency conversion and international wire.

All deposits in Florida condominium pre-construction sales must be held in escrow by a licensed escrow agent and are protected from creditors of the developer under Florida law. Verify the specific escrow terms in your purchase contract.

Step 5: Construction Period

During construction, your primary obligation is to meet deposit schedule milestones and maintain contact with the developer’s sales team for updates. Construction timelines for luxury high-rise projects routinely extend beyond original estimates — six to eighteen months of delay is not unusual for complex branded projects. This is not a cause for panic, but it is a reality buyers should plan for in terms of their housing situation and capital availability.

Stay in contact with your attorney if you receive any notices from the developer about material changes to the building, pricing adjustments, or amendments to the purchase contract. You have specific rights under Florida law to respond to certain types of changes.

Step 6: Pre-Closing Walk-Through and Punch List

When the building reaches substantial completion, you will be invited to a pre-closing walk-through of your specific unit. This is the opportunity to identify construction defects, incomplete work, and items that do not match what was contracted. Document everything in writing — this becomes your punch list, which the developer is obligated to complete before or shortly after closing.

Florida law provides statutory warranties on new construction: one year for workmanship, three years for major structural defects. Review what your purchase contract says about warranty terms — branded buildings may have different warranty programs negotiated between the developer and the brand.

Step 7: Closing

Closing on a pre-construction condo in Florida is similar in structure to a resale closing, with some differences. You will receive a closing disclosure in advance. The final purchase price may include adjustments for property tax proration and HOA assessments. International buyers should plan for FIRPTA implications on future resale and ensure their legal and tax advisors are engaged well before closing day.

After closing, the HOA will be established if it has not been already, and you will begin paying monthly fees from the date of closing.

How HL Real Estate Group Can Help

HL Real Estate Group provides complimentary access to pricing, floor plans, brochures, and project information across South Florida’s top new developments. We can introduce you to development teams, facilitate site tours, and help you compare multiple projects before committing.

This guide is editorial in nature and does not constitute legal advice. Buyers should engage a qualified Florida real estate attorney before signing any pre-construction purchase contract.