Contact me today 305-482-3379 to help you buy your Miami Beach condo.
Miguel is a real estate preconstruction buying expert that can help you find your ideal condo and answer your questions. Here are some frequently asked questions with their answers:
How does a buyer benefit from preconstruction?
Since you will be buying a property 2 - 3 years before it is built, you will be getting your price locked in at today's rate and be able to benefit from appreciation over the contract timeframe.
What deposits are required for preconstruction?
An initial deposit, usually 20%, is due when you sign for your condo with a reservation agreement. Additional deposits are made at each construction phase and these deposit range from 10%-25%. Typically, before construction is finished, you may have provided 50% of the sale price.
Do I need to put my money at risk for the deposit?
Instead of putting your money at risk, you can obtain a letter of credit from your bank stating that you are capable of buying the condominium. The bank will collateralize your liquid assets and they will charge you an annual fee. In the US that fee is generally around 1%, as long as you maintain your liquid assets with the bank.
Who holds the deposit funds?
An escrow agent, usually a title company licensed by the state, holds the deposit funds. Your deposit funds are protected under Florida law by being held in an escrow account. These funds will be not released until the closing of your unit. At times, with mutual agreement expressed in the contract, the developer may designate part of the deposits to be used for construction.
Can I sell my preconstruction condo before it is completed?
If the developer allows you via written agreement, you can sell your option to purchase. Either you, the developer or your real estate agent can sell the condo.
Why should I hire a Realtor© to help me buy a preconstruction condo?
A professional real estate agent will: (1) present you with all preconstruction condominium options and help you compare them; (2) inform you of infrastructure developments that may affect the future value of your Miami Beach, Surfside or Bal Harbour property; (3) help you negotiate contract terms and advise you on alternatives that may better meet your needs; (4) provide you with financing alternatives, which can cover 80% of the sale price for US citizen or foreigner; (5) share the developer's track record and financial strength; and, (6) since the seller pays the real estate commission, you get the services of the Realtor©
What happens if the building is not built?
Your deposit will be refunded or your letter of credit will expire and not be called.
When are formal contracts signed?
Once the developer obtains the required reservation agreements for the lender to secure construction financing, you will be asked to sign a formal contract. This contract is a binding agreement and commits you to close in the future on the purchase of the property.
Once under contract, is there any way that I can get out of the purchase?
When you buy a preconstruction condominium, you have a 15 day cancellation period in which to review the condominium documents. You can provide a cancellation notice in writing before the 15 days are over. This will void the contract and you would then be returned your deposit funds.