What are the Key Considerations for Pre-Construction Property Contracts?

Important Considerations When Buying in Pre-construction (New Developments)

Embarking on the purchase of a property in pre-construction, also known as new developments, requires a thorough understanding of this unique process. Here are some key points to give you a clearer understanding:

What is a property in pre-construction?

A property in pre-construction is a real estate project that has not yet been built. Buyers acquire the property during the early stages, before construction is completed.

Also known as New Developments:

The term "new developments" is often used to refer to properties in pre-construction. These projects represent the creation of new communities, buildings, or residential complexes that are still in the planning or construction phase.

Advantages of buying in pre-construction:

1. Attractive Initial Price: Prices are typically lower in the early stages of the project.
2. Customization Options: Some developments allow customization of certain aspects of the property.
3. Appreciation Potential: The property could increase in value during the construction period.

Key conditions when buying in pre-construction:

1. Unilateral Contract: The developer sets the conditions, and the buyer cannot make changes.
2. Cancellation Period: Generally, the buyer can cancel the contract without penalties within the first 15 days.
3. Non-transferable: The property cannot be sold or transferred without the developer's authorization.
4. Payment Structure: The payment follows a standard format, with percentages at different stages of construction.
5. Contingency-Free Financing: If the loan is not approved at closing, the developer may retain funds paid up to that point.
6. Delivery Time: Typically, the property is delivered in 2 to 3 years from the start of the project.
7. Finishes: Finishing details vary, and the property may be delivered with certain basic elements.

Remember, buying in pre-construction can be an excellent opportunity, but it is crucial to understand and consider all conditions before committing. This article is informative and does not replace consultation with a certified specialist. Be sure to make informed and secure decisions for your investment!

Sandra Castano

Sandra Castano | Luxury Real Estate Specialist | Central Florida

With over 26 years of proven success in the real estate industry, Sandra Castano has built a reputation defined by professionalism, dedication, and results. A seasoned expert in both residential and commercial real estate, Sandra channels her steadfast commitment to helping others into every transaction, guiding her clients with integrity, discretion, and a personalized touch.

Specializing in luxury homes and prime investment properties throughout Central Florida, Sandra is known for her deep market insight, strategic negotiation skills, and ability to deliver exceptional outcomes. Whether working with a family purchasing their dream home or international investors expanding a commercial portfolio, she brings the same level of focus, care, and excellence.

Sandra’s approach is rooted in understanding—she listens closely, responds promptly, and ensures her clients feel confident at every step of the process. Her clients don’t just buy or sell properties—they make informed decisions that support long-term financial growth and security.

As a bilingual professional fluent in Spanish, Sandra has built a strong international network, successfully helping clients from across Latin America invest in Florida’s thriving real estate market. She also offers property management services for out-of-state owners, providing peace of mind and seamless oversight for their valuable assets.

Sandra takes immense pride in the lifelong relationships she forms. Many of her clients become cherished friends and trusted connections, drawn by her authenticity, expertise, and unwavering commitment to their success.