Miami Beach Pre-Construction Condo Investment
Pre-Construction Condo Buying Process
The following scenario illustrates a typical Miami Beach pre-construction condo buying schedule of events. Please keep in mind that the process can vary by project and developer. That's why it's critically
important that you read and understand every nuance of your developer Agreement. [I can help].
Like any investment opportunity, there are risks, but with qualified guidance from the right Realtor, and all the information you need to ask the right questions and make an educated choice, you'll know what to anticipate at every step.
This will greatly increase the potential of your Miami Beach pre-construction condo purchase.
I'm committed to providing you a realistic, honest appraisal of the possibilities, so your expectations are in line with the likely outcome.
You are usually required to put down a cash deposit of
10 percent with a Letter of Interest or Reservation to reserve a Miami Beach pre-construction condo unit. Occasionally, a project can go straight to Contract without a Reservation. Funds are typically placed in an interest-bearing bank trust account and are fully refundable with interest anytime during the pre-purchase-agreement phase of the transaction.
A Letter of Interest or Reservation is the equivalent of a First Right of Refusal to purchase. [Both buyer and developer have the option to cancel a Reservation. See FAQs]. However, if you place a deposit and are unable to secure sufficient funds at closing, you will lose your deposit.
A second installment of
10 percent can be due six to 12 months
later with a
Purchase Agreement. This may occur at either a predetermined time or phase in the Miami Beach condo construction process; for example: when the project breaks ground, when your floor is poured or when the building is topped off. You may have just one to two weeks or as much as 90 days or more to convert from a Reservation to a Purchase Agreement and bind the Contract.
The second 10 percent is held with an escrow agent, but is available to the developer for building costs. Should the developer use your funds, but not finish the project, this 10 percent would be non-refundable, per your contract. In other words, your second deposit is always subject to the risk, however small, of loss.
After the Purchase Agreement has been signed, you are typically given 15 days [Rescission Period] to move forward with the purchase of your Miami Beach condo or void the Agreement for a full refund.
The balance is usually due when the building is completed
Tell Kevin More About Your Pre-Construction Objectives
Some Miami Beach pre-construction condos sell out in a matter of days or a few weeks! Tell Kevin more about your buying objectives, and sign up for condo announcements now.
Kevin Tomlinson is an independent Realtor associated with Calibre International Realty. Kevin recommends that buyers, sellers, investors and renters of/in real estate consult legal, financial and investment professionals for specialized advice.