In a market where branded residences from St. Regis, Ritz-Carlton, and Rosewood are reshaping the coastline, pre-construction offers a rare thing: the chance to own tomorrow's landmark at today's price. But the process is nothing like buying a resale home.
What pre-construction actually means
Pre-construction — sometimes called pre-sale or "buying off the plans" — means purchasing a residence before, or during, the building's construction. You are buying based on architectural renderings, floor plans, finish schedules, and a developer's reputation rather than a finished, walkable home.
Developers sell early for a simple reason: pre-sales prove demand to construction lenders. Most projects must sell a significant share of units — often 50% or more — before a lender will fund vertical construction. That's why the earliest buyers are rewarded with the lowest pricing and the best selection.
Why buyers choose pre-construction
- Lowest pricing in the building's life. First-phase pricing is typically the lowest it will ever be. As construction progresses and inventory sells, developers raise prices in stages.
- Best selection. Early buyers choose the best lines, floors, views, and layouts before they're gone.
- Time to plan. With a two-to-four year timeline, buyers have room to arrange financing, sell an existing home, or plan a relocation.
- Built-in appreciation potential. In a rising market, the value at delivery can exceed the contract price locked in years earlier — though this is never guaranteed.
- Brand-new everything. A never-lived-in residence with current building codes, modern systems, warranties, and the latest amenities.
The deposit schedule
This is the single biggest difference from a resale purchase. Pre-construction requires staged deposits paid over the construction timeline — typically totaling 20% to 50% of the purchase price before you ever close. A common South Florida luxury schedule looks like this:
Every developer structures this differently. Some ultra-luxury projects require 50% or more in deposits; others offer more buyer-friendly terms to stand out. These deposit amounts are frequently a point of negotiation — which is where representation matters.
Escrow and how your deposits are protected
In Florida, buyer deposits on pre-construction condominiums are governed by state law and, in most cases, held in escrow rather than handed directly to the developer. Under the Florida Condominium Act, a developer must hold certain deposit funds in a Florida escrow account.
Generally, the first portion of deposits (up to a defined threshold) must remain in a protected escrow account. Beyond that threshold, developers may be permitted to use additional deposit funds toward construction — but only after meeting specific legal conditions and disclosures. Understanding which of your dollars are protected and which are at risk is essential before you sign.
The developer must provide a prospectus (offering documents) describing the project, the budget, the deposit terms, and your rights. It is a dense legal document — and it is where the real story of any project lives.
The 15-day rescission right
Florida law gives pre-construction condominium buyers one of the most important protections in the process: a 15-day rescission period. After signing the purchase agreement and receiving the developer's required offering documents, you have 15 days to cancel the contract for any reason — or no reason at all — and receive a full refund of your deposit.
This cooling-off window exists specifically because you are buying something that does not yet exist. It gives you time to review the prospectus carefully, have an advisor and attorney examine the terms, and confirm the purchase is right for you. If material changes are made to the offering later, additional rescission rights can arise.
The 15-day clock starts when you have both signed the agreement and received the last of the required documents. Do not let it lapse without a full review.
How developer pricing phases work
Developers rarely release all units at once. Instead, inventory is released in phases or tiers, with prices rising as each phase sells through and as construction milestones are met. The earliest buyers — sometimes called "friends and family" or "platform" buyers — access the lowest pricing before the public sales gallery even opens.
This is precisely where an advisor with developer relationships creates value. Getting into a project early, in the first pricing tier, can mean a meaningfully lower price than a buyer who walks into the sales gallery six months later. Access to these early allocations is often not public.
Financing and the path to closing
One common misconception: you generally do not need a mortgage approved at contract signing. Because closing may be two to four years away, most buyers fund the staged deposits with cash, then arrange financing as delivery approaches.
That said, financing pre-construction has its own considerations. Lenders will appraise the completed unit near closing, and the appraisal must support the price you locked in years earlier. Loan programs for new condominium buildings can also depend on the building's owner-occupancy ratios, warranty status, and whether the project is warrantable. Planning the financing path early prevents surprises at the finish line.
Rental and use restrictions
For investors, this section can make or break the entire thesis. Every condominium has rules governing how often you may rent, for how long, and to whom. Some luxury buildings prohibit short-term rentals entirely; others permit a limited number of leases per year with minimum lease terms.
- Minimum lease terms — some buildings require 30-day, 90-day, or even annual minimums.
- Rental caps — a maximum number of times per year a unit may be leased.
- Approval processes — associations may require tenant applications and approval.
- Branded-residence programs — some hotel-branded buildings offer optional rental programs, with their own economics and restrictions.
If your plan depends on rental income, these rules must be confirmed in writing, before you sign — not assumed from a sales presentation.
The risks you should understand
Pre-construction is not without risk, and an honest advisor names them:
- Construction delays. Timelines slip. A projected 2027 delivery can become 2028 or later.
- Market shifts. If the market softens between contract and delivery, the completed value could come in below your locked price.
- Developer risk. Not all developers are equal. Track record, financial strength, and the lender behind the project all matter enormously.
- Changes to the plan. Finishes, layouts, and amenities can change from the original renderings within the limits the contract allows.
- Assessment and cost growth. HOA budgets are estimates until the building operates; real costs can differ.
Why representation matters here most
In a resale, the home is in front of you. In pre-construction, you are buying a promise — and the sales gallery staff work for the developer, not for you. Their job is to sell the building. Your advisor's job is to protect you.
Maureen represents your interests in a pre-construction purchase: securing early-phase pricing and allocations, reviewing deposit structures and escrow terms, coordinating with your attorney during the rescission window, confirming rental rules for investors, and managing the process from contract through the closing that arrives years later. Her representation typically costs you nothing — the developer pays the buyer's agent commission.
Never walk into a sales gallery unrepresented. Once you sign in with the developer's team, you may forfeit your right to independent representation — and the advocate who would have protected you.