Considering a Brickell pre-construction condo and wondering how the deposits actually work? You are right to ask. You are committing real capital well before delivery, so structure and protections matter as much as the view. In this guide, you will learn how deposits are typically staged in Brickell, what they secure, the key risks to watch, and the practical steps to protect yourself. Let’s dive in.
What a pre-construction deposit is
A pre-construction deposit is money you pay before the building is delivered to secure a specific unit and contract rights with the developer. Deposits are usually split into installments tied to milestones like reservation, contract signing, construction stages, and closing.
For you, the deposit can lock the unit, price, and certain allocations like parking or storage. It can also position you for upgrades or customization options. For the developer, deposits signal sales momentum and help support financing, so the structure often reflects lender requirements and the developer’s risk profile.
Brickell market context
Brickell is Miami’s dense financial and residential core with a strong pipeline of luxury and branded towers. In this segment, many developers favor larger, staged deposits to reduce risk. There is no single standard across projects. Terms vary by building, developer, and your negotiation leverage. Treat any numbers as illustrative ranges, not promises.
Typical deposit structures and timing
Below are common elements you will see in Brickell luxury offerings. Exact terms will be defined in each purchase agreement.
- Reservation deposit (optional): Often a small, non-binding amount, commonly $10,000 to $100,000, used to hold a unit while contracts are prepared.
- Contract deposit: Paid at or shortly after signing, commonly 5% to 15% of the purchase price.
- Staged construction deposits: Additional installments triggered by milestones or dates, often totaling an additional 10% to 40% before delivery.
- Balance at closing: The remainder is due at closing. In many luxury towers, earlier deposits can be significant, so your cash at closing varies.
Illustrative schedules you might encounter:
Lower-deposit example:
- Reservation: around $25,000
- 10% at contract within about 10 days
- 10% after 6 to 12 months
- Balance due at closing (financed or cash)
Higher-deposit example:
- Nominal reservation
- 20% at contract within 10 to 20 days
- 10% to 30% spread over construction milestones
- Remaining balance at closing
For UHNW buyers, bespoke structures are common. You may see 25% to 50% early equity, custom escrow setups, or letters of credit instead of large early cash transfers. These arrangements are negotiable and should be documented with clear release conditions.
Where deposits are held
Deposits are usually held in a title company escrow, attorney trust account, or closing agent trust account. The purchase agreement should name the escrow agent and specify how and when funds can be released. Insist that release conditions are clear and tied to objective milestones or joint written instructions.
Legal framework in Florida
Florida law sets the backdrop for new condominium sales, escrow handling, and construction liens. Key regimes include the Florida Condominium Act (Chapter 718), real estate broker and escrow rules (Chapter 475), and the Construction Lien Law (Chapter 713). Many critical terms, however, are governed by the contract. Your rights to rescind, the timing of disclosures, deposit return triggers, and assignment terms are all highly contract specific. An experienced Florida real estate attorney and a Miami title company should review everything before you sign.
What your deposit secures
Your deposit typically secures:
- Reservation of the specific unit at the stated price, plus negotiated parking and storage.
- A purchase price lock per the contract.
- Priority for finishes, upgrades, and customization options, which are often sold separately.
- Assignment rights if permitted by the agreement. Some developers require consent or fees to assign prior to closing.
- In select luxury projects, priority access to limited amenities or memberships.
What your deposit does not automatically secure:
- Guaranteed delivery dates beyond what the contract allows. Delays can be permitted under extension or force majeure clauses.
- Protection from developer insolvency or project foreclosure unless your contract provides explicit safeguards.
- Limits on post-closing HOA assessments unless stated in the condominium documents.
Key risks to weigh
Developer and project risk
- Insolvency or bankruptcy can put deposits at risk if not properly protected.
- Scope or amenity changes can occur if the developer adjusts plans.
Contract and escrow risk
- Broad release language may allow deposits to be drawn by the developer sooner than you expect.
- Ambiguous dispute procedures can prolong or complicate refunds.
Construction and lien risk
- Construction liens can attach during building. Contract terms and title protections should address lien priorities and releases.
- Defects may be found post-closing; confirm warranty coverage and procedures.
Market and financing risk
- Prices can soften between contract and closing. If you are locked in and heavily deposited, your exposure increases.
- Financing contingencies in luxury pre-construction are often limited or absent.
Assignment and resale constraints
- Many contracts limit or condition assignment. Fees, approvals, or outright restrictions can affect your exit options.
Tax and regulatory exposures
- Transfer taxes and documentary stamps add cost at closing. Foreign buyers should coordinate cross-border tax planning early.
Smart protections to negotiate
Escrow and release terms
- Require deposits be held with an independent title company or attorney trust account.
- Use strict release mechanics, such as joint written instructions or objective milestone certifications.
Refund and termination triggers
- Define specific events that mandate a full refund, such as failure to obtain construction financing by a stated date or material adverse changes to the unit or building.
- Tie refund rights to delivery of required condominium documents and disclosures.
Guarantees and credit enhancements
- Seek developer or parent guarantees, deposit bonds, or standby letters of credit.
- Consider a letter of credit in lieu of a large cash deposit where acceptable.
Assignment rights
- Negotiate the right to assign, including to affiliates, with low or no fees and clear timing.
Lien and title protection
- Require lien release procedures and a title commitment that addresses construction-related liens.
- Confirm the identity of the construction lender and the priority of liens.
Delay and delivery remedies
- Include specific remedies if delivery is delayed beyond a defined outside date where possible.
- Cap liquidated damages where the developer is open to it.
Financing and governance terms
- Add a financing contingency if you plan to finance and the developer will agree.
- Review reserve funding, developer control periods, and assessment powers in the condo documents.
Due diligence checklist before you deposit
Use this short list to structure your process:
- Retain Florida counsel with condo and development expertise.
- Review the developer’s track record, financials, and litigation history.
- Obtain and study the public offering statement and condo documents.
- Confirm the escrow agent and get the escrow agreement with release conditions.
- Negotiate the deposit schedule and refund/termination provisions in writing.
- Secure assignment rights if you anticipate transferring the contract.
- Require lien release procedures and review the title commitment for existing liens.
- Evaluate performance guarantees such as letters of credit or parent guarantees.
- Clarify the closing timeline, certificate of occupancy process, and remedies for delays.
- Coordinate tax planning and documentary stamps early, especially for cross-border buyers.
Practical strategies for UHNW buyers
- Consider larger deposits only when paired with strong escrow controls, refund triggers, or letters of credit.
- Tie staged releases to clear, verifiable construction milestones, not just dates.
- If assignment optionality matters, secure permissive assignment language up front.
- Purchase through an appropriate entity for privacy and asset protection, with counsel’s guidance.
- Engage a Miami title company and counsel before the reservation stage to set the right structure from the start.
How to think about tradeoffs
Larger early deposits can unlock priority inventory, bespoke finish packages, and stronger allocation rights. They also increase your capital at risk. Stronger contractual and escrow protections reduce risk, though some developers may resist them. Your goal is to balance access and customization with security and flexibility. A careful contract and a trusted advisory team help you achieve that balance in Brickell’s fast-moving luxury market.
Final thoughts and next steps
Pre-construction deposits in Brickell are negotiable and vary by project. Focus on clear escrow terms, defined refund triggers, and assignment rights that fit your goals. Before you transfer any funds, request the project’s public offering statement, the draft purchase agreement, and the escrow agreement, then have Florida counsel review them in detail.
If you want a discreet, research-driven path to the right unit and terms, connect with Mark Yaffe. You will get development access, finance-minded guidance, and a boutique, white-glove experience from reservation to closing.
FAQs
When are pre-construction funds due in Brickell?
- Expect a reservation deposit, a contract deposit within 7 to 20 days of signing, and additional staged installments during construction, all defined by your agreement.
Are pre-construction deposits refundable in Miami?
- Sometimes, but refundability depends on your contract; negotiate explicit refund triggers and escrow protections before signing.
Can I finance the deposit on a Brickell new condo?
- Deposits are usually paid in cash; financing deposits is uncommon and depends on both lender policies and developer acceptance.
What if the developer goes bankrupt before completion?
- Outcomes hinge on your contract and escrow arrangements; without protections, buyers can become unsecured creditors in a bankruptcy.
Can I assign my pre-construction contract in Brickell?
- Only if the agreement permits it; many developers restrict assignment or charge fees, so address this upfront.
Are my deposits exposed to construction liens?
- Deposits themselves are not liened, but the property can be; require lien releases and title protections to manage construction lien exposure.
