Page one of a Miami pre-construction contract can carry a boldfaced sentence directly above the buyer's signature line. Section 718.202 of the Florida Statutes requires it whenever a developer wants the right to spend buyer deposits, and it says any payment beyond 10 percent of the purchase price may be used for construction purposes by the developer. Everything a buyer pays after the first tenth can become the developer's building fund, and the contract decides whether it does.
That makes the deposit schedule a financing arrangement as much as a payment plan. It also changes what a buyer should compare between towers, because the price per square foot says nothing about how much of your money is at work in someone else's construction budget.
The First Tenth Sits Behind a Wall
Section 718.202 of the Florida Statutes, in its 2025 text, sets two tiers of protection. Payments up to 10 percent of the sale price go into escrow held by an agent independent of the developer. Payments above that level go into a separate special escrow, and the developer cannot touch them before closing unless the contract allows it and construction has begun.
When the contract does allow it, the statute limits what the money can pay for. The 2025 text describes the permitted uses this way:
- Demolition and site clearing
- Permit, impact and utility reservation fees
- Architectural, engineering and surveying fees tied to construction of the condominium
It also bars use of the funds for:
- Salaries or commissions of salespeople
- Advertising, marketing and promotion
- Loan fees, loan principal and interest
- Attorney, accounting and insurance costs
Two release rules matter as much as the spending list. If a buyer properly terminates under the contract or the chapter, the escrowed funds return to the buyer with interest. If the buyer defaults, the funds go to the developer with interest. Where the contract is silent on interest, it goes to the developer at closing.
One timing detail affects which version of the rules a given tower follows. Amendments to subsection (3) made in 2024 apply only to condominiums whose declarations were recorded on or after October 1, 2024. Two towers selling side by side in Brickell can therefore sit under different text, depending on when each declaration was recorded. This post reviewed the 2025 statute, and a buyer's attorney should confirm the current language against the specific declaration.
A Deposit Ladder Turns Buyers Into Lenders
Deposit schedules vary by project, and no single template applies. One structure reported across the 2026 Miami market starts with a reservation deposit of roughly $20,000, then 10 percent at signing, then further 10 percent installments at groundbreaking, at a mid-construction milestone and shortly before closing. Total pre-closing deposits in that pattern run from 30 to 50 percent of the price, with ultra-luxury towers toward the upper end.
The statute's 10 percent line turns that ladder into a simple calculation. On a $2 million unit:
| Total deposits before closing | Amount committed | Protected first 10% | Above the line, usable for construction if the contract permits |
|---|---|---|---|
| 30% | $600,000 | $200,000 | $400,000 |
| 40% | $800,000 | $200,000 | $600,000 |
| 50% | $1,000,000 | $200,000 | $800,000 |
The protected portion stays fixed while the exposed portion grows with every installment. A buyer who reads the schedule as a payment calendar sees when cash leaves the account. A buyer who reads it against section 718.202 sees how much of that cash becomes construction funding, and for how many years.
Two contract terms shape how that exposure can be managed. Assignment policies differ from tower to tower. Some developers allow a contract to be sold before closing, some allow it only after a set share of the building has sold, some charge a fee and some prohibit it. And because a buyer default sends escrowed funds to the developer, the contract's definition of default deserves a slow read.
The Closing Cost Figure You Have Probably Seen Is Too High
Many Miami buying guides state that a condo purchase carries a 1.05 percent deed tax, which would be $31,500 on a $3 million unit. The Florida Department of Revenue describes something narrower. Miami-Dade's deed rate is 60 cents per $100 of consideration, and a 45 cent discretionary surtax applies unless the document transfers only a single-family dwelling.
Florida Senate staff analyses of the surtax statute state that a single-family residence may be a condominium unit. Miami-Dade County's own surtax program page says transfers of single-family residences are exempt. The Department of Revenue's documentary stamp page gives the same rule and works its surtax example with a vacant lot, where no exemption exists.
For a deed conveying one condo unit, the arithmetic looks like this:
| $3,000,000 purchase, deed only | Rate per $100 | Tax |
|---|---|---|
| Single unit, surtax exempt | $0.60 | $18,000 |
| With surtax applied | $1.05 | $31,500 |
The gap is $13,500 on a single closing. The surtax does reach some transfers. A December 2022 note from the Miami law firm Olive Judd reported that the county applies it to a bulk condominium purchase recorded in one deed, or any single deed covering more than one residential unit, while separate deeds for each unit fall within the exemption. Vacant land is also subject to it. A buyer acquiring two adjoining units should ask the closing attorney how the deeds will be structured before anyone builds a budget.
Who pays is a contract question. On resales the seller customarily covers deed stamps. Developer contracts commonly move that cost to the buyer, and the Department of Revenue states that all parties to a document are liable for the tax regardless of which one agrees to pay it. Financed purchases add documentary stamps on the note at 35 cents per $100, as EPGD Law explains, and an intangible tax applies to the loan.
Developer agreements also commonly assign the owner's title insurance policy to the buyer, and some add a closing fee or a working-capital contribution to the association. Those items vary by developer, so the purchase agreement is the only reliable place to find them.
The Median Does Not Describe This Segment
MIAMI REALTORS reported that the Miami-Dade condo median in August 2026 was $408,000, down 0.49 percent from $410,000 a year earlier. The same release states that its sales totals exclude South Florida new construction, pre-construction and condo-conversion sales, because those are largely not reported in the MLS. A buyer holding that median is looking at resale data about a different product.
Resale supply does affect what a pre-construction buyer holds at the end. MIAMI REALTORS data put Miami-Dade condo inventory at 12.3 months of supply in June 2026. August 2026 readings from other datasets ranged from about 12.1 to 12.7 months, depending on the source and method. A unit bought off plan eventually joins that pool of resale stock, or its buyer takes possession and stays.
Financing rules are part of that exit. On August 3, 2026, Fannie Mae and Freddie Mac eliminated the limited review option for many condo loans. MIAMI REALTORS also reported that only 21 of the 2,397 condominium buildings across Miami-Dade, Broward and Palm Beach counties are approved for FHA loans. A future buyer who finances will meet those review standards, so the building's reserves, insurance and documentation shape the resale a new-construction buyer is planning.
Percent Sold Is a Dated Claim
Sales-gallery momentum arrives as percentages, and each one belongs to a date. Arbor Residences in Coconut Grove received its certificate of occupancy on August 20, 2026, reportedly at 80 percent sold across 45 residences. Four Seasons Residences Coconut Grove was reported to be 30 percent pre-sold within two months at an average near $10 million. Reports of $1 billion in reservations at the Nobu-branded 619 Brickell trace to a Commercial Observer story from June 16, 2026. Waldorf Astoria Pompano's figure of more than 85 percent under contract dates to its May 5, 2026 top-out.
All of these are developer-reported, and a reservation tally is not a closed sale. Each figure describes one moment. A buyer who asks for the current number and the date behind it is comparing towers on equal footing.
Questions to Put to Your Attorney Before a Reservation Becomes a Contract
- Does this contract permit the developer to use deposits above 10 percent for construction, and does the boldfaced legend appear on page one above the signature line?
- When was the declaration recorded, and which version of section 718.202(3) applies?
- Who is the escrow agent, and how is interest treated on the escrowed funds?
- Which review and cancellation windows apply, and when does each clock start?
- What counts as default, and what happens to escrowed funds if a deposit date is missed?
- Is assignment allowed, at what stage of the building's sales, and at what fee?
- Which closing items move to the buyer, including deed stamps, the owner's title policy, any developer closing fee and the working-capital contribution?
- Will the deed cover one unit, or more than one?
This post is educational and does not replace advice from a Florida real estate attorney, a title agent or a tax adviser.
If you are weighing a specific tower, Privé Advisory Group can go through its deposit schedule, escrow terms and closing line items with you. Request a Private Call before the reservation form is signed, so the terms on page one are settled while you can still ask about them.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
