Canadian and other foreign buyers often plan a Miami preconstruction purchase years before closing. The purchase price is only one part of the required cash. A reliable budget separates deposits, buyer closing charges, financing costs, recurring ownership costs and eventual sale or succession considerations.
There is no universal closing-cost percentage that fits every project. The contract, ownership structure, lender, title arrangement, residency and intended use can change the result. Use this guide to build a question list for a Florida lawyer, cross-border tax adviser, lender and closing professional.
1. Deposits are not the same as closing costs
Deposits are installments toward the purchase price and are governed by the contract. Closing costs are additional amounts due to complete the acquisition. Keep a dated schedule for every deposit, the escrow recipient and the remaining purchase-price balance. Our Miami deposit and closing timeline explains the document trail.
2. Buyer-side closing categories to ask about
- Title search, title insurance and settlement or closing services
- Recording and documentary charges allocated to the buyer under the contract
- Lender appraisal, underwriting, legal, mortgage-recording and prepaid escrow items if financed
- Developer, condominium association, application, capital-contribution, document or transfer charges stated in the contract and condominium materials
- Property-tax and association-fee prorations
- Required insurance and any prepaid utility or management items
- Legal, accounting, entity and cross-border planning fees
- Furniture or rental-management costs when the project requires or offers a program
Ask for a project-specific estimate early and an updated closing statement before funds are due. Do not rely on a percentage copied from a resale transaction or another development.
3. Currency and banking risk for Canadian buyers
If savings or income are primarily in Canadian dollars, the U.S.-dollar purchase obligation creates currency risk. Build a schedule for deposits and closing rather than converting funds at the last moment. Discuss transfer limits, source-of-funds records, bank processing time and currency strategy with regulated financial professionals. Confirm wiring instructions independently with the closing party.
4. Financing can depend on the building model
A lender may evaluate a conventional condominium differently from a condo-hotel, flexible-use or heavily investor-owned building. Ask whether your proposed lender accepts the project, residency status, loan size, entity ownership and rental program. Also plan for appraisals and underwriting documents close to delivery, even if you obtained an early indication.
5. Ongoing ownership costs
A closing budget should connect to the first full year of ownership. Review projected association fees, property tax, insurance, utilities, maintenance, management, furniture replacement, vacancy and leasing costs. New-building budgets are projections and can change after turnover or as actual operating experience develops.
Miami-Dade’s official property search provides assessment information for existing parcels, but preconstruction units may not yet have an individual tax history. Ask your adviser how to estimate taxes for the future completed unit rather than copying the seller’s or parent parcel’s current bill.
6. FIRPTA is primarily an exit-planning issue
Foreign buyers often hear “FIRPTA” during acquisition. FIRPTA generally concerns withholding when a foreign person disposes of a U.S. real-property interest; it is not simply an extra purchase tax charged to every foreign buyer at acquisition. The IRS FIRPTA guidance states that the general withholding rate is 15 percent of the amount realized, subject to specific rules, exceptions and withholding-certificate procedures. In many cases the buyer in that future resale is the withholding agent.
Withholding is not necessarily the seller’s final tax liability. Obtain U.S. tax advice well before a future sale, and coordinate it with advice in your country of residence. The IRS also publishes ITIN guidance for foreign property buyers and sellers.
7. Ownership, estate and succession questions
How title is held can affect financing, liability, tax reporting, succession and administration. No structure is best for every buyer. Before signing or assigning a contract, ask advisers in both jurisdictions to review personal ownership, joint ownership, trust or entity alternatives. Confirm whether the developer permits an assignment or change of purchaser and what fees or approvals apply.
Build a complete file before closing
Keep the executed contract, amendments, condominium documents, escrow receipts, source-of-funds records, loan documents, insurance, closing statement and recorded ownership documents together. Verify the project itself using our Miami condo developer and project checklist.
For location research, compare Brickell, Edgewater, Wynwood and Downtown Miami. Use the Miami new-development guide to compare ownership models before comparing advertised prices.
Last reviewed August 2026. This is general educational information, not legal, tax, accounting, currency, financing or investment advice. Rules and project charges change; obtain written estimates and advice for your facts.
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