Thinking about getting in early on a new Downtown Miami tower? Pre-construction can unlock brand-new finishes, curated amenities, and strong long-term potential, but the process is different from buying a resale condo. You want clear steps, realistic timelines, and a plan for risks and deposits. This guide walks you through the essentials in Downtown Miami, including Miami Worldcenter, so you can move forward with confidence. Let’s dive in.
Why pre-construction in Downtown Miami
Downtown Miami, including Miami Worldcenter, has seen a wave of large, mixed-use residential development over the past decade. Buyers include local renters converting to ownership, second-home owners, and investors who want access to amenity-rich towers near business, dining, and culture. Market conditions like interest rates, construction and insurance costs, and condo financing trends can influence deposit requirements and developer timelines. Understanding these levers helps you set expectations before you commit.
How the process works
Reservation vs. contract
Developers often start with a short reservation. This holds a specific residence while you review details and prepare for a formal Purchase and Sale Agreement. The reservation usually requires a small deposit and a brief window, and it may be refundable under the reservation terms.
The Purchase and Sale Agreement is the binding contract. It sets the price, deposit schedule, projected delivery window, and key terms. Once you sign the PSA, your obligations and any contingencies are defined by that document.
Typical deposit schedule
Developers commonly collect deposits in stages. You can expect an initial contract deposit at signing, followed by additional payments tied to dates or construction milestones like foundation or topping-off. In many South Florida projects, cumulative deposits are often in the single digits to low double digits percent across staged payments, but exact terms vary by building.
Deposits are usually held in escrow under the PSA and title instructions. Review how funds are handled, when they become nonrefundable, and what happens in the event of default or delays.
Construction milestones and selections
During construction, you will make finish selections and optional upgrades through the developer’s design center. Deadlines are strict, so missing a window can limit your options or increase costs. A concierge-style advisor can help you track selections, pricing, and cutoffs.
Timeline and delivery
From reservation to move-in, high-rise projects in Downtown Miami often take 18 months to 4 years. Developers set an estimated delivery window and may extend it for causes like weather, permitting, labor, or supply chain issues. Closings usually require a Temporary Certificate of Occupancy or a full Certificate of Occupancy issued by the City of Miami.
Financing basics
Some buyers choose cash. Others use construction-to-permanent or bridge loans during the build, then convert at closing. Conventional, FHA, VA, and agency-backed loans depend on the project’s approval status and presale thresholds, so lender options can be limited until the building meets program requirements.
Your PSA may or may not include a financing contingency. If you plan to borrow, confirm contingencies, approval timelines, and lender requirements before you sign. Without a financing contingency, you could risk your deposits if a loan does not materialize at closing.
Key documents you will review
- Reservation agreement or option form
- Purchase and Sale Agreement
- Condominium offering plan or prospectus with budgets and reserves
- Declaration, bylaws, and rules
- FAQ or disclosure summaries covering amenities, parking, and storage
- Construction schedule and amenity commitments
- Design center materials and upgrade pricing
- Title and escrow instructions and a sample Closing Statement
- Warranties and punch list procedures
- Parking and storage assignments or licenses, if separate
Florida condominiums are governed by Chapter 718, Florida Statutes. Downtown projects also follow City of Miami permitting and Certificate of Occupancy rules.
Critical clauses to check
- Developer identity and track record, including past deliveries and litigation history
- Deposit refund rules and cure periods for defaults
- Assignment rights before closing and any fees
- Financing contingency language and deadlines
- Estimated monthly assessments, reserves, and special assessment policies
- Rental and short-term rental rules relevant to your investment strategy
- Parking and storage rights and whether they are deeded or licensed
- Phasing and shared amenities across multiple towers or projects
- Force majeure and delivery extensions and your remedies
- Construction and finish warranties and how to submit issues
- Insurance obligations for the association and owners, and how rising costs could affect dues
Risks to plan for
- Project cancellation or developer financial issues can affect access to deposits depending on escrow protections and the PSA.
- Construction delays are common and often addressed by extension clauses.
- Financing risk if lenders change requirements or a project does not meet approval thresholds.
- Market risk if prices shift between contract and closing, coupled with possible limits on assignment or resale.
- HOA cost risk from insurance, construction inflation, or special assessments.
- Regulatory or permitting changes that affect scope or delivery.
- Insurance and climate-related cost pressures that may influence monthly expenses.
Smart ways to reduce risk
- Hire a Florida real estate attorney to review the PSA and condominium documents before signing.
- Confirm where deposits sit in escrow, how they are handled, and when they become nonrefundable.
- Negotiate financing protection if you need a loan and confirm lender timelines early.
- Research the developer, the construction lender, and presale thresholds as available.
- Use a dedicated buyer advisor to coordinate selections, timelines, and closing steps alongside your attorney and title company.
- Budget for upgrades, closing costs, HOA dues, insurance, and property taxes.
- Verify rental and short-term rental policies and local restrictions before you commit.
- Learn the punch list and warranty process so you can report issues promptly after delivery.
Closing and after you move in
Developers schedule closings once a TCO or CO is issued. Final payment, deed recording, and title transfer occur with a title company. The PSA will state who pays specific closing costs, recording fees, and taxes.
After closing, you will complete a final inspection and submit a punch list within the required timeframe. The association will transition from developer control to unit owners according to the condominium documents. If you plan to apply for homestead or other exemptions, track those deadlines.
Quick buyer checklist
- Confirm the developer’s track record and references
- Understand the deposit schedule, escrow protections, and refund triggers
- Clarify assignment policy and any fees
- Secure financing contingencies if needed and confirm lender requirements
- Know the projected delivery window and allowable extensions
- Read the offering plan, operating budget, and reserves
- Verify parking and storage rights
- Review all rental rules and local restrictions if you plan to lease
- Confirm title and closing costs and who pays what
- Understand warranties and how to submit punch lists
- Work with a Florida real estate attorney and an experienced buyer advisor
How Miami Rental Queen helps
You get an owner-led, concierge approach that keeps your pre-construction purchase organized and on track. We help you align the building, floor plan, and contract terms with your goals, and we coordinate with your attorney and the title company so deadlines and selections do not slip. For investors and relocating buyers, we also plan the post-closing phase with lease strategy and full-service property management when your residence delivers.
Our practice focuses on Greater Downtown Miami, including Downtown and Miami Worldcenter. You receive discreet guidance, VIP access to curated opportunities, and lifecycle support from renting or relocating through ownership and management.
Ready to explore pre-construction options with a trusted local advisor? Connect with the concierge team at Miami Rental Queen with Leni Giraldo.
FAQs
What is a pre-construction reservation in Downtown Miami?
- A reservation is a short, early step that holds your selected unit for a brief period with a smaller deposit while you review details before signing a binding Purchase and Sale Agreement.
How are deposits structured for new towers in Downtown Miami?
- Deposits are typically staged, starting with a contract deposit and additional payments tied to dates or construction milestones, with funds held in escrow per the PSA.
Can I get a mortgage when the building is not finished?
- Financing depends on the project’s approval status and presales; some buyers use cash or bridge options during construction and close with a loan when the building qualifies.
What happens if the developer delays delivery?
- PSAs usually include extension clauses for delays caused by weather, permitting, labor, or supply issues; your remedies and timelines are defined in the contract.
Can I assign or resell my contract before closing in Downtown Miami?
- It depends on the PSA; some developers allow assignments with conditions and fees, while others prohibit them until after closing.
What should I inspect after closing on a new condo?
- Complete a final walkthrough, document punch list items, submit them within the required timeframe, and track warranty periods outlined in the PSA and condo documents.
