Thinking about reserving a new condo in Downtown Miami and wondering how those deposits really work? You are not alone. Pre-construction deposits can look complex at first, but once you know the stages, the escrow rules, and what is refundable, you can move with confidence. In this guide, you will learn the typical deposit schedule, how escrow is handled in Florida, what to watch in your contract, and smart steps to protect your position. Let’s dive in.
What pre-construction deposits cover
Pre-construction deposits secure your unit before the tower is built and help the developer fund the project. You will typically place a small reservation first, then a larger contract deposit, followed by staged construction deposits tied to milestones. Your final balance is due at closing when the building receives a certificate of occupancy.
In Downtown Miami, total deposits before closing often land in the 20% to 40% range of the purchase price. Some luxury projects or lender-driven deals may request higher totals, sometimes up to 50%. Exact numbers vary by developer, building, and market conditions.
Typical deposit schedule in Downtown Miami
While every project is different, here is a general pattern you may see:
- Reservation deposit to hold a unit: typically $5,000 to $25,000. Applied to your contract deposit later.
- Initial contract deposit: often 5% to 20% of the price, due within 7 to 30 days of signing the agreement.
- Construction progress deposits: one or more installments, commonly totaling another 10% to 30%, tied to stages like foundation, podium, superstructure or topping out, and mechanical completion.
- Balance at closing: remaining amount due at closing through cash, financing, or both.
Example illustrative schedule (your contract controls):
- Reservation: $10,000
- 10% within 30 days of signing
- 10% at foundation completion
- 10% at topping out or exterior completion
- Balance at closing
Where your money sits: escrow
Deposits are generally held in escrow by a title company, an escrow agent, or a licensed real estate broker’s escrow account, as described in your contract. Florida rules require brokers to handle escrowed funds according to the written agreement and state guidance. Always confirm the name of the escrow holder in writing and request a copy of the escrow instructions.
Ask whether your deposit will be placed in an interest-bearing account and how any interest is handled. Confirm who authorizes a release of funds and under what conditions. Clarity upfront helps avoid surprises later.
Refunds and contingencies
Whether a deposit is refundable depends on your contract. Some developers offer a short review window, often 5 to 10 days after contract signing, during which you can cancel and receive a refund. Others make deposits non-refundable once you sign or once certain milestones pass.
If you need financing, a clear financing contingency with deadlines is essential. Some contracts also include contingencies related to developer delivery, such as failure to obtain a certificate of occupancy or other required approvals. Keep in mind that design and upgrade deposits are often separate and may become non-refundable once work begins.
Timeline milestones that drive payments
Developers in Downtown Miami commonly link deposit stages to construction milestones. You might see payments at foundation completion, superstructure or topping out, and mechanical completion. Your closing date depends on local approvals, including Miami-Dade inspections and the certificate of occupancy.
Even if your lender is ready, closing typically happens only after the building receives the necessary sign-offs. Schedules can shift with permitting and inspection timelines, so build in some flexibility.
Developer practices in Downtown Miami
Downtown Miami is a mature high-rise market with both national and local developers launching new towers. Larger or luxury projects often require higher early deposits, tighter limits on assignment, and separate design-center payments. Mid-market buildings may spread deposits more evenly.
Construction lenders often require a portion of units to be presold before funding begins, commonly cited in the 50% to 70% range, though requirements vary by project and lender. To reach these thresholds, some developers increase early deposits to secure committed buyers. Assignment rights can be common, but rules range from open permission to outright prohibition, with potential approval processes or fees.
Contract clauses to check twice
- Financing contingency: define timelines and refund terms if your loan is denied.
- Assignment rights: confirm if you can assign the contract, under what conditions, and any fees.
- Liquidated damages and default: understand what happens to your deposit if you default.
- Public offering and condo documents: note delivery timelines and any cancellation windows set by applicable condo law.
- Title and escrow: verify the escrow holder, release conditions, and whether the account is interest-bearing.
For large commitments, consider having a Florida real estate attorney review the documents before you sign. Your lender and advisor can also flag financing and timeline issues early.
Protect your position: a simple checklist
- Review the sample contract and deposit schedule before placing a reservation.
- Confirm the escrow holder in writing and request escrow instructions.
- Ask about any review window for refunds after contract signing.
- If financing, negotiate a clear financing contingency with dates.
- Confirm assignment rules, approval steps, and any fees.
- Clarify design and upgrade deposits, due dates, and refundability.
- Ask if deposits sit in an interest-bearing account and who gets the interest.
- Pre-qualify with a lender familiar with new-construction condos.
- Engage a Florida real estate attorney to review contract language.
- Work with a buyer’s agent who has early access to Downtown Miami pre-sales.
Investor notes you should know
If you plan to assign the contract before closing, confirm assignment rights in writing and understand approval steps and fees. Consider how deposit timing, resale conditions, and closing dates line up with your investment horizon. If design selections matter for your strategy, request deadlines and cost estimates at the start and understand how change orders affect both timing and refundability.
Work with a trusted Downtown advisor
When you buy off-plan, the details behind the numbers matter. A seasoned local advisor can help you understand the deposit cadence, compare developer practices, confirm escrow handling, and negotiate the right contingency mix for your situation. You get early access to inventory, context on milestones and timelines, and clear guidance informed by Downtown Miami experience.
If you are considering a new tower in Downtown Miami, let’s talk strategy, timing, and the right contract protections for your goals. Schedule a Confidential Consultation with Jorge Hidalgo.
FAQs
How much cash is due upfront for a Downtown Miami pre-construction condo?
- Expect a reservation in the thousands and an initial contract deposit of about 5% to 20% within 7 to 30 days, with additional staged deposits during construction.
Are pre-construction condo deposits in Miami refundable?
- Refundability is contract-specific, sometimes refundable during a short post-signing review window, and often non-refundable after certain dates or milestones.
Where are Downtown Miami pre-construction deposits held?
- Deposits are typically held in escrow by a title company, an escrow agent, or a licensed broker per Florida rules and your written agreement.
Can I cancel if my mortgage is denied on a pre-construction condo?
- Only if your contract includes a financing contingency with clear deadlines and terms for cancellation and refund.
Can I assign my Downtown Miami pre-construction contract before closing?
- Maybe, since assignment rules vary by developer, and may require approval, fees, or may be prohibited altogether.
When do closings happen for Downtown Miami pre-construction condos?
- Closings usually occur after the building receives required municipal sign-offs, including the certificate of occupancy, which can affect timing.
