Why should I use the services of a Realtor when purchasing pre-construction properties?

• The developer compensates the Realtor, so in effect you are getting the services of the Realtor for free. Since the purchase price of the property is the same with or without a Realtor it makes sense to have a real estate agent on your side.
• Realtors have relationships with developers that can be quite beneficial to the buyer. The Realtor is also in a position to inform you when new pre construction opportunities arise before they are even made public. This means the buyer may have an exclusive opportunity to get in on the ground floor of pre construction prices.
• Your Realtor will find out information about the pricing in similar buildings being built in the neighborhood along with information about civic and cultural developments.

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What is a Developer Pre-sale?

• Most developers are unwilling or unable to place all their funds into construction of a development that is not assured of success.
• Typically construction lenders (Banks) feel the same way and want to be assured the construction loans can be repaid in a timely manor. The answer for the developer is pre-selling the development. If for some reason it does not sell, then the developer is out only a small investment.
• Pre-selling of buildings and resort condominiums has become a standard process, and virtually every condominium is pre-sold today. Once the required pre-sales have been reached and construction has begun it is a sure sign of a successful development.

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How am I protected when I buy at a pre-sell?
Florida law protects the purchaser of a pre-sale condominium in several ways.

• The most important protection is the handling of your money or deposit which is held in escrow until the condominium is completed and only released at a proper real estate closing where the unit is transferred to you, unless the developer specifically indicates in the contract that a portion on the deposits will be used for construction.
• Florida Statutes, Section 718.503 gives purchasers fifteen (15) days from receipt to review and complete or rescind any pre-sale purchase and escrow agreement.

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Why buy a pre-sale unit when I can buy a completed one?
Three main reasons:

1. Limited location and availability.
2. By purchasing at pre-sale you are able to buy at a reduced price, the developer sells at the lowest possible price to encourage quick sell-outs.
3. Typically preconstruction properties initially appreciate more rapidly in value than existing properties because of the low prices during the pre-sell .

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How much money do I need to contract a pre-sale condominium unit?
With most pre-sale developments all you need is a 10% deposit of the pre-sale price at contract time, a second 10% deposit when the developer breaks ground to hold the unit until completion.

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Can I resell my unit before completion?
In most cases, yes! You must have written permission from the developer, which is customary in most cases. Some developers handle resale's that make them a profit, encouraging them to make the units assignable.

There are typically two basic ways to resell.

1. Selling your rights to the condominium unit by assigning{transferring}the contract to a subsequent purchaser.
2. Selling your unit under a real estate contract to be consummated upon completion of the condominium. Two real estate closings will occur simultaneously, your purchase, and the sale to the subsequent purchaser.

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Who may resell my condo?
You have two options in most cases:

1. The developer may resell the unit for you for a commission. This is the method most people choose because the developer typically has an on-site sales office.
2. A Realtor may sell your unit for a commission. This is solely up to the client discretion who they feel more comfortable with.

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The information on this site is typical for most developers and may not be accurate for all transactions. For information about a specific development inquire with developer. Information may vary, no representation.

DISCLAIMER The information presented on this website is presented for information purposes only. The PreConstruction information contained in this website is not paid developer advertising. The information was obtained from preconstruction developer's material, public records, news reports, other websites and intensive research.

PreConstructionMan.com is an independent Agent not affiliated with
the developer or development mentioned above.
No representation, information may vary.

Oral representation or any material on this site cannot be relied upon as correctly stating the representation of the Developer. For correct representations, make reference to the documents required by section 718.503, Florida Statutes, to be furnished by the developer. Not an offer where prohibited by state statutes. Plans, descriptions and amenities are subject to change.

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