What Every Miami New Construction Condo Buyer Needs to Know Before Signing the Deal

How to Avoid Disappointments When Buying a Miami New Construction Condo

Today, we’re joined by Greg Herskowitz, an experienced real estate attorney, to dive into a topic that could save buyers from costly mistakes: contracts for new construction projects in South Florida.  New construction contracts often favor the seller, who controls the terms, funds, and process. Many buyers enter the market unaware of how it works, and some agents don’t provide proper guidance. Without legal support, buyers can be blindsided by last-minute changes at closing, leaving them feeling powerless. What you think you’re buying may differ significantly from what you actually get. In this article, we’ll break down key clauses, explain how to navigate them, and show you how to protect your interests. 

Process and Timeline

When buying a Miami new construction condo  the process starts with either reserving a unit or signing a contract. At this stage, buyers and developers negotiate key details such as price, finishes, and materials. Once finalized, the agreement sets the purchase in motion.

The payment schedule typically works as follows:

  • Contract Signing: 20% of the purchase price is due.
  • Construction Start: 10–15% is required.
  • Top-Off Phase: Another 10–15% is due when the building reaches its highest point.
  • Closing: The remaining balance is paid at the end, often a year or more after top-off.

By completion, buyers usually pay about 40% of the total cost, with the balance due at closing.

Delivery Timelines and Developer Reliability

A sales office may promise a completion date of 2027, but contracts often include an “outside date” that could extend delivery to 2029 or even 2030. Most new construction contracts set an estimated completion timeline of one to three years after signing but also allow developers an additional one to two years through this “outside date.”  These extensions are supported by contract clauses, often drafted in the developer’s favor. For example, a “force majeure” clause accounts for delays beyond their control—not just natural disasters, but also labor disputes, material shortages, or government-related delays. Without understanding these terms, buyers may be caught off guard by extended timelines outlined in the fine print.

Factors Influencing Timely Delivery

Developers often include extra time in contracts for flexibility, so understanding their motivation to stay on schedule is key. Factors like land ownership, financing, and timely groundbreaking play a big role. Developers who own the land outright and have strong finances are less affected by interest rate changes and more likely to deliver on time. Those reliant on financing may delay construction if interest rates rise, as even small increases can significantly impact costs.

An experienced agent is essential to navigate these complexities. They can identify reliable developers with strong track records and help assess the architect and builder’s reputations, ensuring higher confidence in the project’s timeline and quality. Buyers can also negotiate terms like the “outside date” in the contract. Adjustments such as earlier delivery deadlines or penalties for delays can provide extra protection. This makes working with a knowledgeable agent who understands the Miami market and its key players invaluable.

Financial Obligations in Miami New Construction Condo Purchases

In Florida, developers can use a portion of buyer deposits (up to 10%) for construction, unlike in states like New York where escrowed funds are protected. Buyers should verify if the developer has bond protections or other safeguards in case of default or delays, and in some cases, you may be able to negotiate terms to recover your deposit if the developer doesn’t meet deadlines. To make the contract “hard” and meet lender requirements, developers typically ask for a 20% deposit. Lenders often require 50% of units to be under contract before financing begins. Buyers can ask about cancellation options if this threshold isn’t met by a specific date. These terms may be negotiable, depending on the developer and the buyer’s leverage, such as the experience or connections of the agent.

Miami New Construction Condo

Payment Flexibility and Developer Obligations

Developers have strict financial obligations to their investors, so payment schedules are rarely negotiable. If you’re looking to adjust the schedule or pay less upfront, expect pushback. Similarly, developers are firm on deadlines and won’t easily let you back out if they fall behind. Their flexibility often depends on confidence in their ability to meet project timelines. Contracts typically aren’t contingent on buyer financing. If you need financing later, you may request a timeline adjustment within 10 days of closing, or, if you’re paying cash, you can often request an extension for funds tied up elsewhere. Developers, especially larger ones, are generally open to granting a 30-40 day extension without much resistance. While some contract terms can be negotiated, others are rigid due to the developer’s financial commitments. An experienced agent can help you navigate these details to ensure a smooth process.

Closing Process and TCO


The building closes once it receives its TCO. This Temporary Certificate of Occupancy confirms the building is safe to live in, but it doesn’t mean everything is finished . It’s issued when the city deems the building safe, but the unit might not be perfect yet. The Certificate of Occupancy (CO) is given when everything is fully completed. This means that if  certain amenities are essential for you or you bought the property as an investment it will be nbeneficial t include in the contract that you want all amenities to be fully functional before closing. Whether they respect this request depends on the developer But we have baked this intro contact for investors who for example bought a unit yo put in hotel program they didnt want to close til the hotel was p and running. Some people prefer an early closing cause it provides them with thhe opportunity to choose parking spaces, which can be a benefit. For investors, closing early can also offer an advantage cause they can setup a simultaneous closing.  This means you close on your unit, and then, within 24 hours, the other buyer also closes. All of this can be negotiated with the developer. Finally, its important to mention that at closing, you’ll usually receive a credit instead of a discount on the price. Developers prefer credits because offering discounts can affect the overall pricing.

Developer Fees and other Closing Costs

The Developer Fee typically ranges from 1.25% to 1.7% of the sales price and is often listed near the purchase price. In addition, when you close, you’ll need to prepay HOA fees, including one month’s HOA and two months’ capital contributions. These capital reserves are required to help the building maintain a healthy financial balance and cover emergencies—this is a new rule in the market. The Developer Fee also covers costs like owner’s title insurance, transfer taxes (dock stamps), and deed recording. The remaining costs are administrative fees charged by the developer, which may be negotiable depending on the developer.

Expectation vs Reality when buying a Miami new construction condo

When buying a condo, it’s essential to match your expectations with reality. Renderings often differ from the final product, with finishes and layouts subject to change. After signing a contract, you have 15 calendar days to cancel, including weekends, but we ensure this period starts only after receiving the condo documents to maximize your time. Review these carefully, as marketing floor plans can differ by 10-15% from recorded square footage, and unexpected changes, like added columns, can occur. We also ensure developers notify you of any significant alterations. Do your due diligence beyond the contract. Check surrounding properties for potential view obstructions, and use tools like drones to confirm your views. Many agents miss these details, but they’re crucial for long-term satisfaction. Before closing, conduct a walkthrough with an inspector to create a “punch list” of issues for the developer to address. While developers typically comply, they aren’t legally bound to fix everything quickly, so we often include a timeline in the contract. Once the list is resolved, future maintenance becomes your responsibility, so thorough inspections are key. Be cautious about material substitutions, as developers may swap promised finishes like marble for porcelain. Demand detailed material lists to hold them accountable. Additionally, verify the building’s operating costs and HOA fees. While initial estimates may change, ensure they’re realistic to avoid surprises after closing.

Conclusions

When buying a pre-construction condo in Miami, it’s crucial to fully understand the risks and protections involved. Pre-construction condo contracts can be complex, and common mistakes often stem from overlooking crucial terms, like deposit usage and developer deadlines.  Work with someone who knows the difference between a great deal and a risky one—someone with direct connections to developers (not just their sales teams), who understands what to scrutinize in a condo and its contract. Choose an agent who handles many deals, collaborates with experienced attorneys, and knows how to protect your interests. Don’t assume these transactions are straightforward—many unexpected changes can occur. While our goal isn’t to alarm you, we aim to help you avoid surprises. Without proper guidance, you could find yourself at closing only to discover the square footage is smaller than promised, amenities are missing, or other details don’t align with expectations. Many agents will simply take you to sales centers and repeat what they’re told. Instead, work with an experienced agent who asks the right questions and ensures thorough due diligence, so you can move forward confidently.

Schedule a Meeting with David Siddons

If you want to avoid costly mistakes when buying a Miami new construction condo, please give me a call or schedule a meeting via the app below.

FAQ

These are the most commonly asked Google Real Estate Related questions

1. What are the Current Best New Condos in Miami?

If you want to hear in more details our opinions on the best new Miami new construction condos. Please read this article:Best New Construction Condos 2022-2023. 

In our opinion, the Residences at Pier Sixty-six are certainly the most interesting and unique. Already well underway this 32 Acre project will be home to the first of its kind Marina where owners will be able to anchor up vessels up to a staggering 400 ft! For specifics of this project see our independent review of this project.

Our Best Luxury Condos in Miami article will prove to be very useful to those looking to compare the existing to the new. You may also want to watch this video which shows the performance of the best Condos in Miami over the last 15 years!

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