Faena Miami Residences Deposits & Purchase Protection

Faena Miami Residences Milestone	Payment
At Contract	20%
At Groundbreaking	10%
12 Months After Groundbreaking	10%
Pouring of Highest Residential Unit	10%
At Closing	50%
Total	100%

How Your Deposit Is Protected Under Florida Law

Buying pre-construction always raises the same question: what happens to my money before the building exists? In Florida, the answer is governed by statute Chapter 718, not by the developer’s goodwill.

• Under Florida Statute 718.202 (the Florida Condominium Act), a developer selling a unit that isn’t yet substantially complete must place buyer deposits into an escrow account rather than using the funds for construction or operations.
• The escrow agent — typically a title company or law firm, not the developer — holds these funds independently and must issue a receipt for the deposit upon request.
• Escrowed funds may only be held in accounts insured by a U.S. federal agency (such as FDIC-insured institutions) or invested in U.S. government securities, which is what gives buyers the “insured” protection.
• If a developer fails to comply with the escrow requirements, the purchase contract becomes voidable by the buyer, with a full refund plus interest.
• In lieu of a cash escrow, the state allows a developer to instead post a surety bond or an irrevocable letter of credit for the same amount — so it’s worth confirming which mechanism a specific project uses.

Important nuance: Florida law requires escrow protection on the first 10% of the purchase price by default. Deposits collected above that 10% are not automatically required to be escrowed unless the developer voluntarily commits to it in the purchase agreement, posts a bond covering the excess, or state regulators impose additional conditions. Many luxury developers choose to escrow deposits well beyond the statutory minimum as a buyer-confidence measure — this should always be confirmed in writing in the specific project’s purchase agreement and disclosure documents, not assumed from the general statute.

Why This Matters For You

 

A staged deposit schedule tied to construction milestones — rather than one large upfront payment — spreads your risk across the project’s timeline.

• Because only half the price is due before closing, buyers retain significant leverage and liquidity until the Faena Miami Residences is substantially delivered.
• Our team reviews each project’s specific escrow and disclosure documents with you before you sign, so you know exactly where your money sits and under what protection at every stage.

•   Common Questions About Faena Miami Residences Deposits — the questions our buyers ask most often before signing a purchase agreement.

Can I get my deposit back if I change my mind? Once the rescission period defined in your purchase agreement has passed, deposits are generally non-refundable outside of the developer-default protections described above, so it’s worth reviewing that specific window before signing.

What happens if construction is delayed? Reasonable delays are typically addressed directly in the purchase agreement and don’t by themselves trigger a refund. A refund right usually applies only when the developer fails to meet a hard outside closing date specified in the contract.

Is this deposit structure typical for the market? Yes — a staged schedule similar to Faena Miami’s is standard among Miami luxury preconstruction developments, though exact percentages and milestones vary by project and should always be confirmed against the current purchase agreement.

Have questions about deposit protection on this or another Miami development? Call +1 305 571-6319 or connect with our team.

This page is for general informational purposes and does not constitute legal advice. Buyers should review the specific purchase agreement, disclosure documents, and escrow arrangements for this project with a licensed Florida real estate attorney for legal opinion and interpretations.