Miami Pre-Construction Condos: Deposits, Escrow, Closing

Buying pre-construction in Miami means paying part of the price in stages while the building rises, and the rest at closing. The risk is that your deposits depend on the developer delivering. Florida law protects part of that money, not all of it, so the contract matters as much as the building.

A typical payment schedule

Many Miami projects ask for about 40% before closing, split over two to three years, for example: 10% at signing, 5% at 90 days, 15% over the following year and 10% when the structure tops off. The remaining 60% is due at closing, in cash or with a mortgage.

The advantage is time: you control a new unit at today's price while paying gradually. The cost is that your money is committed and illiquid until delivery.

What Florida law protects

• Escrow of deposits. Under Florida Statutes § 718.202, deposits up to 10% of the price must be held in escrow until closing.
• Deposits above 10%. They may be released to pay for construction if the contract allows it. This is the money most exposed if a project fails.
• Developer disclosures. Section 718.503 requires developers to give buyers the condominium documents, and grants a period to cancel after receiving them.

What to check before signing

1. Who holds the escrow, and whether amounts above 10% can be used for construction.
2. The developer's track record of delivering similar buildings.
3. Whether the construction loan is in place, or still in process.
4. The estimated delivery date and what happens if it slips.
5. The rental rules, because they affect financing at closing. See short-term vs. long-term rental buildings.
6. Your financing plan for the 60%. Mortgage rates are set at closing, not at signing.

The closing: planning the 60%

Most buyers close two to four years after signing. Plan the payment early: talk to lenders before construction ends, and model your monthly cost at more than one rate. On Oct. 22, 2026 the 30-year average was 7.32% (Freddie Mac 30-year fixed average via FRED). Foreign buyers usually need 30% to 40% down, which the 40% of deposits often already covers.

The technical answer: a worked example

For a two-bedroom at $996,300, a typical WOMA schedule looks like this:

• Signing, 10%: $99,630
• Day 90, 5%: $49,815
• During 2027, 15%: $149,445
• Top-off, 10%: $99,630
• Paid before closing, 40%: $398,520
• At closing, 60%: $597,780

[[chart:cash]]

Dates are projections; the purchase agreement governs.

What is protected: under section 718.202, the first 10% ($99,630 here) stays in escrow until closing. What is exposed: up to $298,890 above 10% may be used for construction if the contract allows. That second number is the one to underwrite.

The cost of waiting, as a formula

Each month you wait, the same unit costs P × ((1 + g)^1/12 − 1) more if prices grow at rate g. At 3% a year that is about $2,460 a month on $996,300; at 5%, about $4,070. Over three years: about $92,000 and $157,000. In a flat market, waiting costs nothing.

[[chart:wait]]

Run these numbers for your own unit, rate and income in the calculator on the Wynwood Intelligence page.

How we look at it

We read the contract before the brochure. The questions that decide a pre-construction purchase are about money flows: where each deposit sits, who controls it, and what has to happen before it is released. A beautiful building with a weak escrow structure is a worse purchase than a plain one with a strong one.

We apply this framework to a real Wynwood building in the Wynwood Intelligence Report, including a month-by-month payment schedule.

Frequently asked questions

Are pre-construction deposits safe in Florida?

Deposits up to 10% of the price must be held in escrow. Amounts above 10% may be used for construction if the contract allows, so they carry more risk.

Can I cancel a pre-construction condo contract in Florida?

Florida law gives buyers a period to cancel after receiving the developer's required documents. After that, the contract terms govern.

When do I pay the rest of the price?

At closing, when the building is delivered, in cash or with a mortgage set at that time.

Disclosure: Infinity⁹ is a co-sponsor of WOMA Wynwood and has an economic interest in its sale; Infinity⁹ is not a real estate broker. This content is educational and does not constitute legal, tax or investment advice, or an offer to sell real estate. Figures are approximate and may change. Oral representations cannot be relied upon as correctly stating the representations of the developer; refer to the documents required by section 718.503, Florida Statutes.

Sources

• Florida Statutes § 718.202
• Freddie Mac 30-year fixed average via FRED