Buying a home before it is built can feel exciting and uncertain at the same time. You see the vision, but you also want clarity on timelines, deposits, finishes, and your rights if things change. If you are considering a pre-construction condo in Coconut Grove, you deserve a simple, practical roadmap.

Below, you will learn how the process works from reservation through closing, what to watch in developer contracts, how deposits and escrow are handled, and the key risks specific to Coconut Grove. You will also get a due‑diligence checklist and smart questions to ask before you commit funds. Let’s dive in.

The pre-construction roadmap

From reservation to closing

• Reservation: You place a small, often refundable fee to hold a specific unit while you review documents and prepare for a formal contract. The reservation is not the binding purchase agreement.
• Purchase and Sale Agreement: The developer’s binding contract sets your deposit schedule, estimated completion date, finishes, assignment rules, and any contingencies. Review carefully.
• Deposits and escrow: Initial and staged deposits are paid into escrow with a title company or escrow agent. The final balance is due at closing.
• Construction and selections: You make finish selections by set deadlines. Change orders are priced and documented in writing.
• TCO or CO and closing: Once the project receives a Temporary or final Certificate of Occupancy, you complete the final walkthrough, confirm punch list items, and close.
• Post‑closing: Warranty claims begin, and the condo association moves toward turnover after the developer period.

Deposits and escrow basics

• Typical structure: Many projects collect a reservation fee, then an initial 5 to 10 percent at contract signing. Additional staged deposits can be due at milestones such as slab pour, topping out, or a set date. The final balance is due at closing.
• Escrow handling: Confirm exactly who holds your funds, whether interest accrues, and the conditions under which the developer can draw on deposits. Ask for a copy of the escrow agreement.
• Investor vs. end‑user: Some boutique Coconut Grove projects require larger deposits or faster schedules for investors. Early presales can sometimes offer more flexible terms, but reputable developers often use standardized schedules.

Contract terms to review

Completion dates and delays

Most developer contracts state an estimated completion date and provide broad extensions for delays, including force majeure. Your remedies for material delay are often limited. Confirm what happens if the project misses its estimate and whether you can rescind and recover deposits under specified conditions.

Contingencies that matter

• Financing: Many developer forms are written without financing contingencies. If you plan to finance, attempt to include one or confirm lender programs in advance.
• Title and survey: Ensure you have a review period for title, survey, and condominium documents.
• Condo disclosures: Confirm how long you have to review the public offering statement and whether you can cancel during that window.
• Inspections: Understand any limits on access during construction and whether third‑party inspections are allowed.

Parking, storage, and HOA details

In Coconut Grove, parking allocation is a recurring concern due to tight urban lots. Make sure your contract clearly identifies parking and storage rights. Review the draft condominium budget, expected monthly assessments, and any planned amenities.

Finishes, upgrades, and change orders

Selections and packages

Developers typically provide a base finishes package with curated upgrade options. Early buyers often have more choice. Get material specifications in writing so you know exactly what will be delivered.

Pricing and deadlines

Expect firm deadlines for selections tied to construction milestones. Change orders should be itemized in writing with clear pricing, payment timing, and refund terms. Structural changes are usually prohibited, and late requests can carry higher costs.

Managing “as‑built” variance

Marketing photos often show upgraded or model finishes. Confirm what is included in your unit, what is an upgrade, and how warranty coverage applies to any substituted materials or fixtures.

Assignment and resale before closing

What assignment means

An assignment lets you transfer your contract rights to another buyer before closing. This can provide flexibility for investors but is often limited by the developer’s agreement.

Coconut Grove norms

Boutique projects in Coconut Grove frequently restrict assignments or charge an assignment fee. Restrictions can help maintain owner‑occupancy targets and lender expectations.

Legal and tax notes

If assignments are permitted, confirm consent requirements, documentation, and any title insurance implications for an assignment. Profits on an assignment are typically taxable. Consult qualified advisors for structuring and tax planning.

Warranties and post‑closing support

Typical coverage framework

Many builders follow an industry pattern: roughly 1 year on workmanship and materials, 2 years on major systems like mechanical, electrical, and plumbing, and up to 10 years on structural components. Always verify the exact warranty terms in writing.

Punch list and claims

You will conduct a pre‑closing walkthrough to document punch list items. Keep records of communications and repair commitments. Early warranty claims are often handled by the developer or property manager. After association turnover, building‑wide issues shift to the condominium association.

Insurance and completion security

Ask about builder’s risk and general liability coverage during construction. Performance or completion bonds are less common in boutique projects but can exist. Also verify whether the developer has construction financing in place and the lender’s role if the developer defaults.

Permits, inspections, and timing

Coconut Grove projects follow City of Miami and Miami‑Dade County processes for permits and inspections under the Florida Building Code. A Temporary Certificate of Occupancy may allow partial occupancy before the final CO. Boutique projects often take 18 to 36 months from groundbreaking to CO, but weather, supply chains, and permitting can change timelines.

Risks to watch in Coconut Grove

• Construction delays: Weather, permitting, and supply chain can shift delivery dates.
• Developer solvency: Smaller developers can face financing gaps. Ask for evidence of construction financing and completion assurances.
• Deposit exposure: Confirm where your deposits are held, when funds can be drawn, and the exact refund conditions.
• Assignment restrictions: Limits can affect investor exit strategies before closing.
• Market shifts: Prices can move between contract and delivery. Consider your horizon and financing plan.
• Insurance and resilience: Understand wind and flood insurance costs, building elevation, and deductible exposure.
• Post‑turnover assessments: Associations may levy special assessments for items discovered after turnover.
• Parking and zoning: Verify parking assignments and municipal approvals early.
• Historic and design overlays: Some sites face added review that can affect schedules or finishes.

Due‑diligence checklist

Before you reserve or sign

• Confirm jurisdiction and permitting path with City of Miami and Miami‑Dade County.
• Request the developer’s disclosure package, draft condo documents, and review timelines.
• Check developer background, completion record, references, and construction lender details.
• Verify the escrow holder, deposit schedule, refund conditions, and whether interest accrues.
• Clarify assignment rules, fees, and required approvals.
• Review the draft condo budget, reserves, and projected monthly assessments.
• Confirm warranty terms and claims process in writing.
• Ask for estimated wind and flood insurance costs and coverage structure.
• Get finish specifications, selection deadlines, and change‑order procedures.

At key milestones

• Obtain a written schedule of selections and cut‑off dates.
• Document all change orders with itemized pricing.
• Conduct pre‑closing walkthroughs and record punch list items in writing.
• Confirm TCO or CO status before closing.

Professionals to involve

• A local buyer’s agent experienced with Miami new construction.
• A Florida real‑estate attorney familiar with condominium law and developer contracts.
• A title company with condo development experience.
• A tax advisor for investor structuring and assignment planning.
• An independent inspector or construction consultant if your contract allows access.

Smart questions to ask the developer

• Who holds the deposit funds, and when are they refundable?
• Is there construction financing in place, and who is the lender?
• What is the estimated timeline to TCO or CO, and what remedies do buyers have for delays?
• Are assignments allowed, and if so, what are the fees and approval steps?
• What warranties are provided and how are claims handled?
• Will full condominium documents and the budget be provided for review before closing?
• Are any variances, permits, or approvals still outstanding?
• Can you share references for completed projects and former buyers?

Final thoughts and next steps

Pre‑construction in Coconut Grove can be a smart way to secure a distinctive home in a limited‑supply neighborhood, but the right preparation matters. Focus on clear contract language, escrow protections, selection deadlines, and realistic timelines. Confirm the developer’s track record, financing, and warranty structure before you commit. With careful due diligence and the right team, you can move from renderings to keys with confidence.

If you want discreet guidance and access to boutique opportunities across Coconut Grove and Greater Miami, connect with Shayna Hanson. Request a Private Consultation to discuss your goals and next steps.

FAQs

What is a reservation agreement in Coconut Grove pre‑construction?

• A reservation is a short document and fee that holds a specific unit while you review documents and prepare the full contract; it is not the binding purchase agreement.

How much are deposits for Coconut Grove condos?

• Many projects collect 5 to 10 percent at contract signing, with additional staged deposits at milestones; the final balance is due at closing.

Can I have a financing contingency on a new condo?

• Some developer contracts are written without financing contingencies; if you plan to finance, try to negotiate one or confirm lender programs in advance.

What happens if the project is delayed past the estimate?

• Contracts usually allow extensions for delays; remedies are often limited, so confirm whether you can rescind and recover deposits after material delay.

Are contract assignments allowed before closing?

• Boutique Coconut Grove projects often restrict assignments or charge fees; always confirm the rules, approvals, and any costs in the contract.

What warranties do new condos typically include?

• Many follow an industry pattern of about 1 year for workmanship and materials, 2 years for major systems, and up to 10 years for structural elements, but verify the exact terms in writing.