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Pre-Construction
Explore pre-construction in South Florida. Browse project details, floor plans and available residences, then contact Post Property Group for guidance.
Ask an AdvisorOpen the catalog in a new tabBuying New Construction Before It's Built
How Pre-Construction Buying Works in Florida
A pre-construction condo isn't a finished apartment you can walk through. It's a contract plus a pile of disclosure documents. You pick a floor plan and a stack, sign, then pay deposits in stages while the tower goes up. Florida's Condominium Act governs how that deposit money is handled and which documents you must receive, and the protections are stronger than most buyers assume.
The numbers on this page are taken directly from the statute. Your contract then adds its own terms: when deposits are due, the completion deadline, and what happens if the building runs late. Have a Florida-licensed real estate lawyer read it before your cancellation window closes.
- 15 daysto cancel in writing once you have signed and received every required document, and this right cannot be waived.F.S. §718.503(1)
- 10%of the price: any deposit up to that share is held in escrow by an agent who is independent of the developer.F.S. §718.202(1), (8)
- Over 10%can fund construction, but only when the first page of the contract permits it in bold type.F.S. §718.202(3)
- 100%of a reservation deposit is refunded when you ask in writing, as long as no contract has been signed.F.S. §718.202(6)
Step by step
From reservation to keys
Reservation
Some developers take reservations before the contract is even offered. That money goes to an escrow agent. Ask in writing and all of it comes back right away. The developer receives it only as part of your down payment, and only after you sign the contract.
Contract and documents
With the contract come the prospectus or offering circular (required for projects of more than 20 residential units), the declaration, the estimated operating budget with a schedule of what each unit type pays, and the Frequently Asked Questions and Answers sheet.
The 15-day window
Cancel in writing within 15 days of the date you've signed and hold every required document. A later amendment that worsens the offering gives you a fresh 15 days from the day you receive it. The developer can't close during that 15-day period without your written consent.
Deposits during construction
Your contract's schedule sets the payment timing, typically at signing and at build milestones. The first 10% stays in escrow; a bond or a letter of credit can replace it if the state accepts it. Money beyond 10% can pay for construction only if the contract permits.
Completion and closing
Under the escrow rules, a building counts as complete once it has its certificate of occupancy. You pay the balance at closing, so before that day confirm your financing, walk the unit and list anything still unfinished, then go over the closing statement.
Reading the documents
Six Items to Look for in Your Paperwork
The estimated budget
Look for the developer's budget and a payment schedule for each unit type. The contract itself cautions that those figures are estimates and real costs may come in higher.
F.S. §718.503(1)(a)
Guaranteed assessments
A developer may guarantee that assessments won't exceed a stated amount for a set period and cover any shortfall. Write down the date that guarantee ends, because your real budget begins then.
F.S. §718.116(9)
Leasing and resale rules
Before you count on rental income, read the FAQ sheet, which must state any restriction on leasing a unit in plain words. Whether you can assign the contract before closing depends on what the contract itself says.
F.S. §718.504
Fees for amenities
Rent or land-use fees that unit owners pay for recreational or shared facilities must be disclosed in the prospectus in conspicuous type. They're costs the sticker price doesn't show.
F.S. §718.504
Flood disclosure
The contract must state that homeowners' insurance excludes flood damage. It must also disclose whether the developer knows of flooding at the property, and any flood claim that has been filed.
F.S. §718.503(1)(a)
What the salesperson said
Contracts and sales brochures must warn you not to rely on verbal statements. So if a promise matters to you, whether it's a view, a finish or a delivery date, get it into the contract or its exhibits. You can also inspect the complete plans and specifications.
F.S. §718.503(1)(a), (3)
Two Ways to Buy a Condo, Compared
Pre-construction or resale
Pre-construction
- What you see before signing
- Floor plans, renderings, a model and the complete plans and specifications.
- Cash before closing
- Deposits paid in stages as the building goes up, often a bigger portion of the price than a resale calls for.
- The building's finances
- A budget the developer projects, sometimes with a guarantee on assessments for a set time.
- Your right to cancel
- 15 days after you sign and receive the documents, and a separate 15 days after any adverse amendment.
- Timing
- Delivery after construction, on completion terms set by the contract.
Resale condo
- What you see before signing
- The actual unit, its view and the building as it stands.
- Cash before closing
- An initial deposit when you sign the contract, then the balance at closing.
- The building's finances
- Real budgets and reserves, plus the milestone inspection summary and structural integrity reserve study where they apply.
- Your right to cancel
- 7 business days once you've signed and have the association documents, unless those documents reached you more than 7 business days before you signed.
- Timing
- You close when the contract says, typically within weeks, not years.
The cancellation rights in the comparison above come from F.S. §718.503(1) and (2). A contract may give you longer than the law does, and a waiver of these rights is void.
Questions
Buyer Questions on Pre-Construction
Where is my deposit held, and how can I confirm it?
Your contract has to name the escrow agent and list its address, and if you ask, the agent owes you a receipt. The agent can't be tied to the developer; independent options include a title insurer, a licensed real estate broker, a Florida Bar attorney, a bank or a savings and loan.
If the contract is terminated, what happens to my deposit?
You get the escrowed money back, with any interest it earned, when the termination is proper under the contract or the Condominium Act. Ask early whether any part of the deposit above 10% has already been released for construction. Money released that way is no longer in escrow.
Is pre-construction in Florida open to foreign nationals?
Most foreign nationals are free to buy a condo in Florida. State law does place limits on certain buyers domiciled in specific countries, so have a Florida attorney confirm you qualify before signing.
Are the budgeted monthly fees final?
No. The developer drew up those monthly numbers as an estimate in good faith, and your contract says real costs may run higher. Costs that rise beyond the developer's control, by themselves, don't give you a right to cancel.
What happens if the developer changes the plans?
You can cancel in writing within 15 days of receiving a material amendment that hurts the offering. Keep every amendment and record the date it arrived.
Plan the numbers
Calculators for New-Construction Purchases
Sources
The original sources behind the rules cited here.