Once developer gets needed licenses and permissions and has legal authority to sell units, you can enter into a hard contract. At time of signing hard contract, you have to make balance up-front payment. Usually, upfront payment is 20% of total cost of completed unit but can be more or less. You can pay by a direct deposit with builder or through a letter of credit. After signing contract and making an up-front payment, you do not have to make any other payment until unit is ready and you close deal and take possession.

However, before signing a hard contract you must be careful because by signing it, you are entering into a binding commitment to purchase unit, failing which builder can forfeit your deposit. In some states like Florida, you have a 15-day rescission period during which you can withdraw from hard-contract without any obligations. Before signing hard contract, you should check to see if you have rights to assign property to a qualified intermediary. If you would like to play safe, take a professional opinion on terms and conditions of hard-contract for preconstruction purchase.

The construction phase normally lasts for 6 months to 2 years (depending on project type) and you have an expiration date on hard-contract. If builder fails to complete construction and handover possession, you can claim for refunds and will have no legal obligation to buy unit. During construction period as building would move towards completion, there is typically several price increases but of course, you cannot absolutely count on that happening. If you are able to find a suitable buyer prior to closing, you can resell unit and claim your profits on closing of deal.

If you have not assigned contract until completion, you will have to close unit. Closing in preconstruction process is similar to all real estate deals and you have to make balance payment with additional payments like association fee as disclosed in "Good Faith Estimate".

There are a lot of things to consider when entering into a preconstruction investment and we strongly encourage you to learn all do's and don'ts. Hopefully this article has given you an overview of process.

If you are cramped for space in your linen closet, Home Depot’s ClosetMaid line also includes storage items such as 10-runner drawer kit. This item is portable, making it ideal for extra towel storage. Drawer kits are also great for a child’s closet design, as they are ventilated and easy to access. Another idea for your linen closet design is ClosetMaid’s 3.5 ft Closet Wall Stack Organizer. This item takes up a very small amount of space and works well for folded articles, such as towels.

Home Depot’s ClosetMaid 6-pocket canvas Garment Organizer is a great way to hang up folded items. This closet design solution can be used in any type of closet, but is particularly useful in bedroom closets. The Garment Organizer hangs on closet rod and has drop-down storage cubicles, perfect for undergarments, accessories, hats, or anything foldable.

If you’re come to conclusion that only way you’re going to have a successful closet design is to eliminate some of your items, think about purchasing a Shelftrack?

4-Shelf Organizer. Only 4-feet long, this attractive item looks great in any part of your house, not just as part of a closet design. It is ideal for storing those photographs, knick-knacks, and everything else that you have shoved into back of your closets and forgotten about. This versatile item is easy to install and easy to rearrange, making it a must-have purchase during your closet design agenda.