5 mistakes when reading the payment plan of a Miami pre-construction project
A payment plan looks simple until you put it on a calendar. These are the mistakes I see most often and how to avoid them before you reserve.
The payment plan is the first thing my clients look at and, oddly enough, the source of the most misunderstandings. On paper it is four percentages. In practice, each one has a date, a destination account and conditions. These are the five mistakes I run into most.
1. Assuming the "from" price is the price of your unit
The price in the ads belongs to the smallest or least favourably oriented unit still available. At Domus Brickell Center, for example, entry starts at $525,900, but a higher floor or a better view changes the figure. Always ask for the price list with the unit number.
2. Reading percentages without checking the dates
A 10 + 10 + 10 plan does not mean three payments a year apart. In some projects the second payment is due a few weeks after signing, and then you need twice what you expected at the start. Put every deposit on the calendar before you commit.
3. Not knowing which account your money goes into
In Florida, pre-construction deposits go into an escrow account controlled by a third party. Always ask which part of your deposits the developer can use during construction and which part stays protected until delivery: it is in the contract and worth reading before you sign.
4. Forgetting about the final payment
The big payment comes with the keys. You can make it with your own funds, with a mortgage or by selling before delivery, but the decision is made at the start, not the month before. If you plan to finance, find out early what a bank asks of a foreign buyer.
5. Ignoring what comes after delivery
With the keys come closing costs, the monthly building fee, insurance and the annual property tax. And if you want to rent by the night, check that the building allows it: in a condo-hotel like Domus it is designed for that; in other buildings it is restricted.
My advice
Before reserving, ask for the payment plan in a table with exact dates and amounts for your unit. That is what I prepare for every client. If you are looking at a project, send it to me and I will put it in writing for you.
