What are the Key Considerations for Pre-Construction Property Contracts?

Important Considerations When Buying in Pre-construction (New Developments)

Embarking on the purchase of a property in pre-construction, also known as new developments, requires a thorough understanding of this unique process. Here are some key points to give you a clearer understanding:

What is a property in pre-construction?

A property in pre-construction is a real estate project that has not yet been built. Buyers acquire the property during the early stages, before construction is completed.

Also known as New Developments:

The term "new developments" is often used to refer to properties in pre-construction. These projects represent the creation of new communities, buildings, or residential complexes that are still in the planning or construction phase.

Advantages of buying in pre-construction:

1. Attractive Initial Price: Prices are typically lower in the early stages of the project.
2. Customization Options: Some developments allow customization of certain aspects of the property.
3. Appreciation Potential: The property could increase in value during the construction period.

Key conditions when buying in pre-construction:

1. Unilateral Contract: The developer sets the conditions, and the buyer cannot make changes.
2. Cancellation Period: Generally, the buyer can cancel the contract without penalties within the first 15 days.
3. Non-transferable: The property cannot be sold or transferred without the developer's authorization.
4. Payment Structure: The payment follows a standard format, with percentages at different stages of construction.
5. Contingency-Free Financing: If the loan is not approved at closing, the developer may retain funds paid up to that point.
6. Delivery Time: Typically, the property is delivered in 2 to 3 years from the start of the project.
7. Finishes: Finishing details vary, and the property may be delivered with certain basic elements.

Remember, buying in pre-construction can be an excellent opportunity, but it is crucial to understand and consider all conditions before committing. This article is informative and does not replace consultation with a certified specialist. Be sure to make informed and secure decisions for your investment!

Andres J. Ugas

REALTOR®

Andrés is a professional in the Industrial Administration career.  As a company owner in the aviation business, he learned to deal with multiple situations that came his way, pleasing his clients in the best possible way.

He has great knowledge in the state of Florida, especially focused on the South of it.

He is dedicated to guiding and serving you in this complex time of property search. 

He specialized in the commercialization of properties using very modern and efficient technological methods, which provides a great advantage when evaluating market conditions and thus determining what will be the most effective action for both the buyer and the seller.

Its main objective is to provide each of its clients with a unique and pleasant experience. He understands that it is a crucial and stressful time and aims to make negotiating the property very efficient and enjoyable. 

His main idea is to make his customers, customers and friends for life.

That will only be achieved by dedicating the necessary time, at that peak moment of selecting the best for you in the purchase, sale, rental of properties, etc. As a great professional that he is, it is very satisfying for him to see his clients happy when they sign their closing contracts and acquire the keys to their new property.

He belongs to the Miami Association of Realtors.