Two buyers can purchase a condo in the same neighborhood, at the same price, on the same day, and sign two very different contracts.
A resale contract and a pre-construction contract may look similar at first. But the way deposits, pricing, and inspections work can change everything about the buyer’s risk. Here are the three differences that matter most.
1. Deposits: One Payment vs. a Multi-Year Schedule
Resale: There is usually one deposit, due within about 3 days of the contract’s effective date. The deadline is strict, but it can be extended if the seller agrees.
Pre-construction: Deposits are paid in stages, often over 2 to 4 years while the building goes up. These deadlines are very strict. Missing a deposit can put the buyer in default and put the deposits already paid at risk.
2. Purchase Price: What You See vs. What You Pay
Resale: The purchase price is the purchase price.
Pre-construction: The purchase price is the starting point. Buyers should plan for developer closing fees, upgrades, and other added items, such as association start-up contributions and certain closing costs a resale buyer may never see.
3. Inspection Period: Inspecting a Home vs. Inspecting a Promise
Resale: The inspection period is usually 10 to 15 days. Buyers can do any inspections they want, and under a standard “As Is” contract, they can cancel during that period for any reason and keep their deposit.
Pre-construction: There is often a 10 to 15 day period as well, but there is nothing to inspect because the property doesn’t exist yet. In practice, it works as a rescission period: a short window for the buyer to back out without penalty.
After that window closes, the buyer is committed.
Why This Matters
In a resale, most of the risk shows up before closing. In pre-construction, the buyer carries it for years. The best protection is understanding the contract before signing, not after the first deposit is due.
At Title X & Escrow, we review contracts with buyers, agents, and lenders from day one, so everyone knows the deadlines, the true cost, and when the exit window closes.
Because the right time to understand a contract is before you sign it.
Talk to Title X Before You Sign
Weighing a resale or a pre-construction purchase? Contact Title X & Escrow to review the contract, the deposit schedule, and the deadlines before you commit.