Miami New Development Timeline — Reservation to Delivery

Miami pre-construction operates on a structurally different timeline than resale. The deposit ladder spreads capital deployment over 24–48 months. Sponsor relationships drive trophy-floor allocation. Offering plans set the terms. For UHNW buyers, understanding the full timeline is essential before any reservation deposit goes hard.

Buyer signs a reservation agreement with an initial deposit (commonly 10% of purchase price). At this stage the building is typically not yet under construction, and the offering plan may still be in development. The reservation reserves a specific unit or floor allocation pending full contract. Buyers can typically withdraw with deposit return during a defined initial period set in the reservation agreement; verify the cancellation window with counsel before signing.

When the offering plan is finalized and approved, the buyer signs the full purchase contract and delivers an additional contract deposit (typically 10–20% on top of the reservation deposit). The contract is binding and assignment rights, cancellation provisions, and milestone events are set at this stage. International buyers commonly close this phase remotely via Power of Attorney or wire-instructed signing.

Construction milestone deposits trigger as the building reaches predefined construction events (typically: foundation, structural top-out, vertical completion, TCO). Each milestone deposit is set in the offering plan. Total deposit at this phase commonly reaches 30–40% of purchase price. Buyer is committed; cancellation typically requires sponsor approval and may forfeit deposits already delivered.

Before TCO, the buyer (or buyer’s representative) inspects the unit and identifies punch-list items. Sponsor counsel coordinates the walkthrough and resolution of any deficiencies. For trophy-floor buyers, this phase often involves design coordination and customization sign-off if elected during contract phase.

When the building receives its Temporary Certificate of Occupancy, the buyer’s closing is scheduled. The buyer brings the final balance (typically 50–60% of purchase price) and executes deed transfer. Possession transfers at closing. For financed transactions, the lender funds at this stage. Florida documentary stamp tax + intangible tax (on financed deals) + title insurance are paid at closing.

Where the offering plan permits assignment, the buyer can transfer the contract to another buyer before TCO. Assignment market pricing typically captures the reservation-to-delivery price arc. Sponsor approval and assignment fees usually apply. For investment-positioned buyers, assignment is a common pre-TCO exit pathway. Verify assignment provisions in the contract before reservation; not all sponsors permit assignment.

• Hold horizon — will you take delivery and live/rent, or assign before TCO?
• Acquisition entity — the entity at reservation should match the entity at closing; mid-cycle entity changes can require sponsor approval.
• Customization — design and finish elections are typically time-limited; coordinate with counsel and design team in advance.
• Cancellation window — the reservation agreement’s cancellation window is the primary buyer protection; understand its scope and expiry before depositing.
• FIRPTA exposure — foreign buyers should structure FIRPTA planning at reservation, not at closing or eventual sale.