Buying a pre-construction condo in Miami is not complicated — but it is different from buying a resale property, and it is very different from buying real estate in most Latin American countries. This guide covers the full process, from first contact with a developer through closing, with specific attention to the issues that matter most for international buyers.
Step 1: Choose Your Agent Before You Talk to Any Developer
This is the most important step, and the one most buyers skip.
When you walk into a developer sales gallery, register online, or call the developer’s number, you become that developer’s registered client. The agent sitting across from you works for the developer. Their fiduciary duty runs to the developer — not to you. They are paid to sell you the unit at the highest price the developer can get.
By contrast, a buyer’s agent represents your interests exclusively. We negotiate on your behalf, review the contract independently, and tell you when a project’s valuation is inflated, when the deposit structure is unfavorable, or when the developer’s financial position raises questions. Our fee is paid by the developer at closing, so you pay nothing extra.
The time to engage a buyer’s agent is before you have any contact with the developer — not after. Once you’re registered directly with the developer, it’s often too late to add representation.
Step 2: Understand What You’re Actually Buying
In a pre-construction purchase, you are not buying a finished apartment. You are buying a contract — a promise that the developer will build a unit matching the agreed specifications, at a future delivery date, in exchange for a series of deposits leading to a final payment at closing.
This has important implications:
You cannot inspect what you’re buying. You’re reviewing floor plans, renderings, and model units. The finished product will be close — but not identical — to what you saw in the sales gallery. Material substitutions are permitted under most contracts. Understanding which specifications are locked and which can be changed is critical before you sign.
The developer can delay. Most contracts include significant flexibility on delivery timelines. A project expected to deliver in Q4 2026 may not close until 2028. Your deposits are typically held in escrow during this period, but your capital is committed and illiquid.
The market will change. You are locking in today’s price for a unit that won’t close for 2–4 years. In a rising market, that’s advantageous. In a flat or declining market, you may close at a price higher than comparable resale units available at closing. We help clients model these scenarios honestly before committing.
Step 3: Evaluate the Developer and the Project
Not all developers are equal. Before committing a deposit, research:
- Track record: Has this developer delivered projects before, on time, and at the quality advertised?
- Financing: Is the project fully funded, or is it contingent on achieving a sales threshold? What happens to your deposit if the project doesn’t proceed?
- Operator (for branded residences): Is the hotel or brand operator tied contractually, or is it a marketing relationship that could change?
- Location: Is the view permanent, or could it be obstructed by future development on adjacent lots?
We review all of this before recommending any project to a client.
Step 4: Review the Purchase Contract
The developer’s contract is written by the developer’s attorney. It is long, detailed, and strongly favored toward the developer. Key clauses to understand:
- Deposit escrow terms: Where are your deposits held? Are they released to the developer during construction, or held until closing?
- Developer’s right to make changes: What substitutions are permitted without your consent?
- Default provisions: What happens if you can’t close at the scheduled date?
- Assignment rights: Can you sell the contract before closing? Under what conditions?
- Completion guarantees: What recourse do you have if the project is never completed?
We work with real estate attorneys experienced in pre-construction contracts to review these terms on your behalf before you sign.
Step 5: Structure Your Purchase Correctly
For international buyers, the structure of the purchase matters for tax efficiency and estate planning. Options include:
- Direct personal purchase (simplest, but may have estate tax implications for US property owned by non-residents)
- US LLC (common for investors; provides liability protection and can simplify tax reporting)
- Foreign corporation (used by some buyers from specific jurisdictions based on treaty benefits)
The right structure depends on your home country, your intended holding period, and your exit strategy. This decision should be made before signing the purchase contract, because changing the purchasing entity afterward can be complicated. We refer clients to FIRPTA-experienced tax attorneys and CPAs who specialize in cross-border real estate transactions.
Step 6: Manage Your Deposit Timeline
Pre-construction deposits are typically made in installments tied to construction milestones. A standard structure:
| Milestone | Deposit Due |
|---|---|
| Reservation | 10% |
| Contract signing | 10% (or 20% if going straight to contract without a reservation) |
| Groundbreaking | 10% |
| Top-off (structure reaches final floor) | 10% |
| Closing | 60% |
International buyers should plan how they will move capital into the US well in advance of each deposit deadline. Wire transfers from Latin American banks can take 3–10 business days depending on the country and the bank. Some banks require documentation of the source of funds. Starting this process early avoids the stress of a missed deadline.
Step 7: Prepare for Closing
Closing on a pre-construction condo involves more documentation than a standard resale closing. You will need:
- Proof of identity (passport, and often a secondary ID)
- Source of funds documentation (bank statements, investment account statements showing where closing funds are coming from)
- Entity documents (if purchasing through an LLC or corporation)
- FIRPTA compliance (if you are a non-US person, the buyer is typically required to withhold 15% of the purchase price and remit to the IRS, unless an exemption applies)
We coordinate with your closing attorney throughout this process to make sure nothing is missed.
What to Ask Before You Commit
Before signing any pre-construction contract in Miami, you should be able to answer these questions:
- Who is my agent, and do they represent me or the developer?
- Has this developer delivered projects of this scale before?
- Where are my deposits held, and are they truly protected?
- What is the realistic delivery date — not the optimistic one?
- What is the resale market for comparable units in this building and this location?
- How will I structure this purchase for my personal tax and estate planning situation?
If any of these questions don’t have clear answers, that’s a signal to slow down.
We’re happy to walk through any of these questions with you directly. A consultation costs nothing and takes about 30 minutes. It’s the single highest-value thing you can do before making a multi-million dollar pre-construction commitment.
Carlos Olivares is a Broker-Associate at Berkshire Hathaway HomeServices EWM Realty, Chairman’s Circle Gold. FL License #3051724
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