For condo buyers, there is little transparency

Downtown Miami condo towers under construction
Downtown Miami condo towers under construction

Buyers beware: the process of buying a preconstruction condo from a developer can be far from transparent or smooth.

Price lists for preconstruction condo units frequently change, the result being that buyers often end up paying significantly different prices for similar units in a building, according to the Miami Herald.

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Fledgling projects are often reconfigured as they go along, with the number of apartments and floor plans changing. When these changes happen, buyers holding reservations can either accept the changes and pay more, or they can settle for a deposit refund with no interest.

“A reservation agreement is a means by which people can express interest in buying a unit. It’s not enforceable,” said Steven Wallace, a Miami attorney who often deals with condo sales. “Either side can cancel.”

“There is no transparency,” added Mauricio Rojas, a Miami real estate agent. [Miami Herald]Christopher Cameron