Buying pre-construction means signing a contract today for a unit that will be finished, and closed on, in the future. Buyers choose it for different reasons: picking a floor plan early, paying the deposit in stages instead of all at once, or owning in a new building. None of those guarantees the unit will be worth more at completion than you agreed to pay, and the contract carries risks a resale purchase does not.

This guide explains how the process works under Florida condominium law and what to evaluate before you reserve. It is general information, not legal, tax or investment advice. Have a Florida real estate attorney review any developer contract before you sign.

What you are actually agreeing to

With a developer, the purchase agreement sets the price, the deposit schedule, the estimated completion window and your rights if something changes. Every developer writes its own contract, so there is no standard deposit schedule or timeline, even between buildings in the same neighborhood.

A few practical consequences:

  • You typically close after the building is completed and the unit can be delivered, which may be years after you sign.
  • Renderings, finishes and amenities in marketing materials can change. What counts is what the contract and the offering documents say.
  • Your deposits are committed long before you know the building's final monthly fees, the insurance market at closing or what the unit will be worth when it is finished.

Your 15-day right to cancel

Florida gives buyers of new condominium units from a developer a cooling-off period. Under section 718.503(1), the buyer can cancel by written notice within 15 days after signing the contract and receiving all the documents the developer must deliver. The contract must state this right in a prominent legend.

For condominiums with more than 20 residential units, the developer must also provide a prospectus or offering circular (section 718.504). Among other things, it includes:

  • an estimated operating budget and estimated assessments by unit type;
  • a schedule of estimated closing expenses the buyer will pay;
  • a copy of the escrow agreement for deposits;
  • a description of the recreational and other common facilities;
  • whether the developer can keep control of the association after most units are sold.

Use those 15 days to read the documents, not just the sales summary. The same statute says that increases in budget items beyond the developer's control are not treated as an amendment that gives buyers a new right to cancel. In practice, the monthly fee at closing can be higher than the first estimate.

Where your deposits go

Section 718.202 sets the escrow rules for deposits paid to a developer:

  • Payments up to 10% of the purchase price must be held in escrow.
  • If the contract provides for it, the developer may withdraw deposit funds above 10% once construction has begun, to pay actual construction costs. Those funds cannot be used for salaries or commissions, advertising or marketing, or loan fees.
  • If the developer does not comply with these escrow rules, the buyer can void the contract and recover the deposits with interest.

So the practical question is how much of your money will sit above the 10% line, and whether your contract lets the developer spend it on construction. Money already spent on construction is tied to the progress of the project in a way escrowed funds are not.

Our checklist on how pre-construction deposit schedules work lists the questions to ask about each payment.

Timeline risk

Completion dates in marketing materials are estimates. Before signing, find the completion deadline in the contract and what happens if it passes: whether you can cancel, whether your deposits come back and whether the developer can extend the date.

A delay also moves your closing into a different interest rate environment, insurance market and personal situation than the one you planned around.

Financing happens at the end

You usually do not get a mortgage when you sign. You apply as closing approaches, and the lender evaluates your income, credit and debts at that point, at the rates available then. For reference, Freddie Mac's average 30-year fixed rate was 6.76% in the week of September 10, 2026. Nobody can tell you what it will be when your building is finished.

Plan for these possibilities:

  • An appraisal below your contract price. If the lender's appraisal comes in lower, you may need more cash to close.
  • Changes in your own finances between signing and closing.
  • Project review. Lenders evaluate the condominium project as well as the borrower. Ask early which lenders expect to finance units in the building at closing.

If you are buying from outside the United States, financing options and requirements are different; see our checklist on buying in Miami from abroad.

Costs beyond the price

Budget for more than the purchase price and the deposits:

  • Closing costs from the developer's schedule of estimated closing expenses, which can include charges a resale buyer would not see.
  • Association fees from closing onward, based on a budget that can change.
  • Reserves. Florida requires structural integrity reserve studies and reserve funding for condominium buildings three habitable stories or higher (section 718.112). Ask how the estimated budget handles reserves.
  • Property taxes based on the finished unit. If it will not be your homestead, there is no homestead exemption, and annual assessment increases for non-school taxes are capped at 10% (section 193.1555).
  • Insurance: a condominium unit-owner (HO-6) policy, plus flood coverage if appropriate.
  • Carrying costs while the unit is empty, whether you are furnishing it, looking for a tenant or deciding to sell.

If you plan to rent it out

Rental income is not guaranteed, and a new building has no rental history to go on. Before you sign:

  • Read the declaration and rules for minimum lease terms, limits on how often a unit can be leased and any waiting period after purchase.
  • Confirm whether short-term rentals are allowed by both the building and the city. Do not rely on marketing materials.
  • Build your numbers with vacancy, management fees and the full association fee included.

Our project waitlist checklist explains how to compare projects by their rental rules before a launch.

Selling or assigning before closing

Some buyers expect to sell their contract before completion. Developer contracts can restrict assignments, require the developer's approval, charge a fee or limit marketing while the developer is still selling units. Read that clause before you sign, and do not assume an early exit will be available.

Questions to ask before you reserve

  • What is the full deposit schedule, in writing, with dates or construction milestones?
  • How much of my money can be used for construction, and when?
  • What is the completion deadline in the contract, and what are my options if it passes?
  • What are the estimated monthly fees, and how are reserves funded?
  • What closing costs will I pay at completion?
  • What are the rental and assignment rules?
  • What has this developer completed before, and are those buildings finished and occupied?

What this means for you

Pre-construction can fit a buyer with a long time horizon, a reliable plan to pay every deposit and a clear reason to want a new unit. It fits poorly if you need a guaranteed exit, depend on a specific rent or would struggle if closing moved back a year or the appraisal came in low.

A useful test: run your numbers assuming the unit is worth exactly what you paid when it is finished. If the purchase still makes sense for you, you are evaluating the property and the contract, not a forecast. Past price trends in any market do not guarantee future results.

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