Decision guide

Preconstruction vs. Resale Condos in Miami: Deposits, Warranties and Risk

By Nick McCandless · Updated October 8, 2026 · Editorial policy

The short answer

A Miami preconstruction condo gets you a new building, statutory developer warranties and a 15-day right to cancel after you receive the developer's documents^[1]^[2]. In exchange you carry completion risk for years: deposits up to 10% of the price must sit in escrow, but amounts above 10% can be spent on construction once it begins if your contract allows it^[3]. A resale condo lets you inspect a finished building and its record — budgets, minutes, the milestone summary and the reserve study — but you inherit its age, its reserves and any pending assessments. Choose the risk you can verify and absorb.

Preconstruction or new construction vs. Resale at a glance

Preconstruction vs. resale condo in Florida: deposits, rights and records
Factor	Preconstruction or new construction	Resale
What you can inspect before committing	Plans, the developer's offering documents and the projected budget. The building does not exist yet.	The finished building, the actual unit and the association's financial and inspection records.
Deposit protection	Payments up to 10% of the price go to an independent escrow agent; amounts above 10% may be used for actual construction costs once construction begins, if the contract says so^[3].	Held under the purchase contract's escrow terms until closing. There is no developer construction draw.
Cancellation window	15 days after you receive all required developer documents; the developer may not close inside that window unless you agree^[1].	Under the statutory contract clause, 7 days (excluding weekends and legal holidays) after you receive the declaration, bylaws, rules, budget, financial statement and FAQ document^[1].
Statutory warranties	Unit: 3 years from completion. Roof, structure and building systems: 3 years from completion or 1 year after owners take control, whichever is later, capped at 5 years^[2].	The same warranties pass to later owners but run from the original completion date, so in an older building they have usually expired^[2].
Who controls the association	The developer, until owners gain board seats — one-third at 15% of units conveyed and a majority at events such as 3 years after 50% are conveyed^[4].	Usually owners already control the board; check the minutes for how it governs.
Financial track record	A projected budget with no reserve history, assessment history or meeting minutes.	Years of budgets, minutes and assessments, plus the milestone summary and SIRS where required^[1].
Inspections	A turnover inspection report is required before the developer hands control to owners^[5]; the first milestone inspection is decades away^[6].	A milestone inspection may be due or completed; ask for the inspector's summary^[6].
Lender review	New projects get their own review; Fannie Mae excludes new projects offering sale or financing structures beyond its policies^[7].	Established-project review; unremediated critical repairs make a project ineligible^[7].

How a preconstruction deposit is protected — and where it isn't

Florida's deposit statute applies when a developer sells a unit before construction is substantially complete. All payments up to 10% of the sale price go into an escrow account with an escrow agent independent of the developer, or the state may accept a surety bond or letter of credit instead^[3]. If you properly terminate under the contract or the statute, the funds and interest come back to you; if you default, they go to the developer.

Payments above 10% go into a special escrow account, but the contract can allow the developer to withdraw them once construction has begun and spend them on actual construction and development costs. The statute bars using them for sales commissions, advertising or loan costs^[3]. In practice that means a deposit schedule of 20% or more can leave a substantial share of your money inside the building. If the project stalls, recovering that money may depend on the developer's finances rather than on escrow. Read the deposit schedule and the escrow agreement together, and ask your attorney which payments remain in escrow until closing. Our post on preconstruction deposit protection covers the documents in detail.

The 15-day and 7-day windows

A developer contract may be cancelled by written notice within 15 days after you receive all the documents the statute requires, and the developer may not close inside that window unless you agree to it in a separate signed document^[1]. Use those days to read the declaration, the estimated operating budget and the prospectus with an attorney, not just to sign.

On a resale, the seller must give you the governing documents, the latest financial statement and budget, the FAQ sheet, the milestone inspection summary where applicable and the most recent structural integrity reserve study or a statement that none was completed. The statutory contract clause gives you 7 days, excluding weekends and legal holidays, to cancel after you receive the core documents^[1]. That is a short window for reading a reserve study, so request documents early.

Warranties and defects

Florida gives buyers of new condo units implied warranties by statute. The unit is warranted for 3 years from completion of the building, measured from its certificate of occupancy. The roof, structural components and mechanical, electrical and plumbing elements serving the building are warranted for 3 years from completion or 1 year after owners other than the developer take control of the association, whichever is later, with a 5-year cap^[2]. The warranties run to later owners, but because they are measured from completion, a resale buyer in an older building usually inherits none of them.

The practical difference is who finds and pursues defects. In a new building, owners and the association must identify problems while the warranty clock runs, often while the developer still controls the board. Before turnover, the developer must obtain a turnover inspection report for buildings three stories or higher^[5]; ask whether one exists and what it found.

Developer control and the budget you can't yet test

Until enough units close, the developer controls the association. Owners other than the developer elect at least one-third of the board once 15% of units are conveyed and a majority at the earliest of several events, such as 3 years after 50% of units are conveyed or 3 months after 90% are conveyed^[4]. During that period the budget is the developer's projection. A resale buyer, by contrast, can read actual budgets, compare them with the reserve study and see in the minutes whether the board has deferred work or discussed assessments.

This guide does not quote preconstruction prices, deposit schedules or completion dates. Those change with each release, and Miami Condo HQ has no live listing feed. Our preconstruction directory lists projects with their source notes. Confirm current terms in the developer's own documents.

When preconstruction is the better choice

You can commit capital for the construction period and could absorb a delay without needing to sell or move in on a fixed date.
You want a new building with statutory warranties and modern systems, and you will read the offering documents with an attorney during the 15-day window.
The deposit schedule keeps most of your money in escrow, or you are comfortable with the developer's track record and the escrow terms.
You accept that the budget is a projection and that assessments may change after owners take control.

When resale is the better choice

You need to move in, rent out or close on a known date.
You want to inspect the actual unit, views and building operations, and read years of budgets and minutes before committing.
You need conventional or FHA financing and want a building whose project eligibility can be confirmed now.
You are prepared to evaluate an older building's milestone inspection, reserve study and assessment history, and to negotiate around them.

Documents to request either way

Track what you have received and what is still missing in the condo document checklist. For a resale, compare the reserve study with the budget and use the special assessment calculator to size your share of any planned work. For a preconstruction purchase, compare the developer's estimated budget with established buildings nearby using our building comparison tool.

Preconstruction: purchase agreement, deposit schedule, escrow agreement, prospectus, estimated operating budget, declaration.
Resale: declaration, bylaws, rules, budget, financial statement, FAQ sheet, milestone summary, structural integrity reserve study, recent minutes, estoppel certificate.
Both: the association's insurance summary and the lender's project-eligibility answer.

Common questions

Is a preconstruction condo deposit safe in Florida?

Partly. Florida requires payments up to 10% of the price to be held by an independent escrow agent (or backed by an approved bond or letter of credit). Amounts above 10% can be spent on actual construction costs once construction begins if the contract allows it, so they carry the developer's completion risk.

How long do I have to cancel a Miami preconstruction contract?

Florida gives a buyer from a developer 15 days after receiving all required documents to cancel by written notice, and the developer may not close in that period unless the buyer agrees in writing.

Do new-construction warranties transfer if I buy resale?

The statutory warranties run to later owners, but they are measured from the building's completion (its certificate of occupancy). The unit warranty lasts 3 years and building-system warranties are capped at 5 years, so in an older building they have usually expired.

When do owners take control of a new Miami condo association from the developer?

Owners elect at least one-third of the board once 15% of units are conveyed and a majority at the earliest of several triggers, including 3 years after 50% of units are conveyed and 3 months after 90% are conveyed.

Sources

[1] The Florida Legislature, Florida Statutes § 718.503 — Developer and nondeveloper disclosure prior to sale. Developer sales: the buyer may cancel within 15 days after receiving all required documents, and the developer may not close in that window unless the buyer agrees. Resales: the buyer is entitled to the declaration, articles, bylaws and rules, annual financial statement and budget, FAQ document, milestone inspection summary (if applicable) and the most recent SIRS or a statement that none was completed; the statutory contract clause gives 7 days, excluding weekends and legal holidays, to cancel after receiving the core documents. Checked October 8, 2026.
[2] The Florida Legislature, Florida Statutes § 718.203 — Warranties. Developer implied warranties: 3 years from completion of the building for the unit; roof, structural components and mechanical, electrical and plumbing elements serving the building for 3 years from completion or 1 year after owners other than the developer take control, whichever is later, but not more than 5 years. Completion means issuance of a certificate of occupancy; warranties run to successive owners. Checked October 8, 2026.
[3] The Florida Legislature, Florida Statutes § 718.202 — Sales or reservation deposits prior to closing. Before substantial completion, payments up to 10 percent of the sale price go into escrow with an independent agent (or alternative assurances the division director accepts); payments above 10 percent go into a special escrow account and, if the contract so provides, may be withdrawn once construction has begun for actual construction costs — not for sales commissions, advertising or loan costs. Checked October 8, 2026.
[4] The Florida Legislature, Florida Statutes § 718.301 — Transfer of association control. Owners other than the developer elect at least one-third of the board once 15 percent of units are conveyed, and a majority at the earliest of several events, including 3 years after 50 percent of units are conveyed and 3 months after 90 percent are conveyed. Checked October 8, 2026.
[5] The Florida Legislature, Florida Statutes § 718.112 — Bylaws (reserves and structural integrity reserve studies). Structural integrity reserve study (SIRS) required at least every 10 years for buildings three habitable stories or higher, covering roof, structure, fireproofing, plumbing, electrical, waterproofing and windows; existing owner-controlled associations needed one by December 31, 2025, or with a milestone inspection due by December 31, 2026; reserves for SIRS items cannot be waived or reduced for budgets adopted on or after December 31, 2024; developer turnover inspection report required before turnover. Checked October 8, 2026.
[6] The Florida Legislature, Florida Statutes § 553.899 — Mandatory structural inspections for condominium and cooperative buildings. Milestone inspections for condominium and cooperative buildings three habitable stories or more: by December 31 of the year the building reaches 30 years after its certificate of occupancy (25 if the local agency requires), then every 10 years; phase one visual inspection by a licensed architect or engineer, phase two if substantial structural deterioration is found; the association must distribute the inspector-prepared summary to owners within 45 days. Checked October 8, 2026.
[7] Fannie Mae, Selling Guide B4-2.1-03 — Ineligible Projects. Projects needing critical repairs, operating like hotels, with more than 35 percent commercial or mixed-use space, or with single-entity ownership above the limits are ineligible; lenders must review each current or planned special assessment, and one tied to an unremediated critical repair makes the project ineligible. Checked October 8, 2026.

Data definitions are explained in our methodology, and how we source and correct articles in our editorial policy. This guide is general information, not legal, tax, insurance or financial advice. Miami Condo HQ is published by Eltherion, LLC, which is not a licensed brokerage; we can introduce you to a licensed partner agent through our contact page.