In Florida, a buyer of a pre-construction condo pays for it in deposits during construction, usually 30% to 50% of the price, and pays the rest at delivery, in cash or with financing that's only approved at that point. State law requires deposits of up to 10% of the price to be held in an escrow account. Anything above that can be used for construction, if the contract says so. You have 15 days after signing to cancel without penalty.
How much you deposit, and when
There's no official schedule: each developer sets it in the contract. Some market figures:
- The initial deposit can start at 5%, but is usually 10%. With the later installments, the total reaches 30% to 50% before delivery (Condo Black Book, Feb 2025).
- With slower sales, developers in the Miami urban core cut the required deposit from 50% to 30% of the price (Peter Zalewski, May 2025).
A typical schedule looks like this (an example, not a rule):
| Milestone | Deposit | Cumulative total |
|---|---|---|
| Contract signing | 10% | 10% |
| Groundbreaking | 10% | 20% |
| Mid-construction or structure complete ("top-off") | 10% | 30% |
| Delivery (closing) | 70% | 100% |
In dollars: on a $600,000 condo with that schedule, you deposit $180,000 during construction and need $420,000 at delivery, plus closing costs. That last payment is the one that most often catches foreign buyers by surprise.
What Florida law protects
Deposits of up to 10% stay in escrow. For a condominium unit, the developer must keep deposits of up to 10% of the price in an escrow account until closing. The state agency may accept a surety bond or letter of credit instead (Fla. Stat. 718.202).
Above 10%, the money can go into construction. Anything over 10% also goes into escrow. But if the contract allows it, the developer can withdraw that amount once construction has begun to pay for construction, permits and design. It can't use it for commissions, marketing or loan costs. The contract must disclose this conspicuously, in capital letters (Fla. Stat. 718.202). In practice: if the project goes wrong, the portion above 10% is the one most at risk. Read that disclosure before you sign.
Pre-construction houses and townhouses fall under a different law. For developers that sell 10 or more units a year, the buyer has the right to require escrow for deposits of up to 10%, but can waive that right in writing (Fla. Stat. 501.1375). Don't waive it without talking to an attorney.
15 days to cancel. The contract with the developer can be canceled in writing within 15 days after you sign it. The same period applies after any change to the project that adversely affects the buyer. This right can't be waived (Fla. Stat. 718.503). Use those 15 days to have an attorney review the contract and the condominium documents.
The real risks
Delay. Projects get delayed by permits, costs, labor or slow sales. One example: at the Mandarin Oriental in Boca Raton, 2018 buyers expected delivery by 2023. In 2024 the tower was still at the structural stage, and a couple sued the developer to recover a $697,500 deposit (Palm Beach Post via AOL, Jul 2024). Check the contract for the outside delivery date and what happens if it's missed.
Project cancellation. If the developer doesn't sell enough units or can't finance construction, the project can be canceled. What you get back depends on the contract and on what's still in escrow.
Price at delivery. You lock in the price today, but the market can fall by delivery. In May 2025, pre-construction units in downtown Miami were offered at $1,100–2,000 per square foot, versus $865 for resales in completed buildings (Peter Zalewski). Always compare with resales in the area.
Financing at delivery. Pre-construction contracts are usually not contingent on financing: if the lender doesn't approve you, you're still obligated to pay (Condo Black Book). Foreign national loans require 25% to 40% down (NQM Funding) and are always subject to lender approval. The lender's appraisal only happens at the end, and if it comes in below the price, you cover the difference. Interest rates and exchange rates can also change by then. Model scenarios in the mortgage calculator.
Contract assignment. Many contracts prohibit or limit reselling the contract before delivery (Condo Black Book). Don't count on "selling before it's finished" without reading that clause.
Building costs. The pre-construction condo budget is the developer's estimate. The 2022 and 2025 condo laws require inspections and reserve studies that, over time, affect the monthly fee (Withum). Also ask whether the building will allow vacation rentals (see vacation rentals in Florida).
Checklist before you sign
- [ ] Read the deposit schedule and the disclosure about the use of deposits above 10%
- [ ] Confirm who the escrow agent is (bank, title company or attorney)
- [ ] Check the outside delivery date and the consequences of a delay
- [ ] Read the rules on contract assignment and on rentals
- [ ] Ask for the estimated condo budget and the reserve policy
- [ ] Get pre-qualified for financing at delivery, subject to lender approval
- [ ] Have a Florida attorney review everything within the 15 days
- [ ] Plan how you'll send the money from abroad (see sending money from Brazil to buy US property)
Pre-construction or resale?
Pre-construction can make sense if you have a long time horizon, accept the risk of delay and want a new building. A completed property makes more sense if you want income right away, want to see what you're buying and need financing with more predictability. Rui, who is also a licensed General Contractor, helps you compare both sides with numbers, including construction and maintenance costs. Also see buying Florida real estate as a foreign national and Orlando, Miami or Fort Lauderdale. For the contract, consult an attorney.
FAQ
How much do I need to put down on a pre-construction condo in Miami?
It depends on the building. The initial deposit is usually 10%, and the total during construction ranges from 30% to 50%, according to market sources. In 2025, several developers in downtown Miami lowered the requirement from 50% to 30%.
Is my deposit protected if the project doesn't get built?
For condos, deposits of up to 10% of the price must be held in escrow (or backed by a surety bond). Anything above that can be used for construction if the contract allows it, and is more at risk. Have an attorney review the contract.
Can I cancel after signing?
Yes, within 15 days after signing, in writing, without penalty. The same period applies after a change to the project that adversely affects you. After that, cancellation depends on the contract.
Can I finance the balance at delivery as a foreign national?
It's possible, with 25% to 40% down and subject to lender approval at the time of delivery. But a pre-construction contract is usually not contingent on financing, so have a plan B.
Can I sell the contract before the building is finished?
Only if the contract allows it. Many developers prohibit or limit assignment. Confirm before you sign.
Talk to Rui
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