You want the energy and convenience of Downtown Nashville, and a brand‑new condo with modern finishes sounds perfect. But pre‑sale timelines and builder warranties can feel like a maze. You deserve a clear path from reservation to move‑in and confidence about what is covered after closing. In this guide, you will learn how downtown condo presales work, realistic delivery timelines, what warranties usually cover, and smart steps to protect your purchase. Let’s dive in.
How presales work in Downtown Nashville
Reservation vs. contract
A pre‑sale often starts with a reservation. You place a reservation fee to hold a specific unit, and in many cases that fee is credited at contract. The reservation is not a purchase agreement, and refund terms vary by developer. You stay non‑obligated until you sign the Purchase and Sale Agreement, so review the developer’s reservation disclosure carefully.
From reservation to PSA
The reservation period is usually short, often days to a few weeks. Ask for written timing on when you will receive the Purchase and Sale Agreement and how long the developer will hold the unit and price. Keep your lender looped in so you are ready to move quickly once the PSA is issued.
Key contract terms to watch
Your PSA sets the price, deposits, and delivery conditions. Pay close attention to:
- Deposit schedule and whether deposits are refundable under specific conditions.
- Financing contingency terms, which some presales limit or exclude.
- Inspection rights, including your pre‑delivery walkthrough and punch list.
- Estimated delivery date, the developer’s right to extend, and remedies for significant delays.
- Condominium documents and budget, since the developer typically controls the HOA until turnover.
Construction timelines you can plan around
Typical downtown milestones
Downtown projects move through predictable milestones: planning approvals and permits, site work and foundation, vertical construction and building envelope, interior systems and finishes, inspections, and a Certificate of Occupancy. After the building receives its CO, you complete your walkthrough, confirm punch items, and close.
How long it usually takes
From presale launch to occupancy, many mid‑ to high‑rise downtown buildings take about 18 to 36 months. Smaller low‑rise buildings can be quicker. If permits are still pending when you sign, expect added time before vertical construction starts.
Common sources of delay
Delays happen, especially with complex urban buildings. Frequent causes include permitting and plan reviews with Metro Nashville Codes, long‑lead materials like curtain wall glass, elevators, and HVAC, labor scheduling, developer design changes, weather, and financing or entitlement issues. Contracts generally list these as valid grounds to extend estimated delivery.
Smarter planning moves
- Build in flexibility. Assume your move‑in could slip and plan lease dates or temporary housing with a buffer.
- Ask when HOA dues begin so you can budget carrying costs early.
- Request a milestone schedule and ask about the developer’s track record on similar projects.
Warranties you should expect
Standard coverage structure
Most new‑construction condos include a layered warranty model. Many builders offer a one‑year workmanship and materials warranty for cosmetic items, a two‑year systems warranty for HVAC, plumbing, and electrical due to installation issues, and a longer structural warranty that can run five to ten years for major structural defects. Confirm exact durations, coverage limits, and start dates in your contract and warranty documents.
Tennessee specifics to know
Developers must comply with Tennessee condominium law, including recording the declaration and providing disclosure documents. You can verify contractor licensing and any complaints with state authorities. Warranties are contractual in Tennessee, so follow the written claim procedures and any dispute resolution terms listed in your PSA.
How to handle warranty claims
Conduct a detailed pre‑delivery inspection before closing and document items with photos and a punch list. Submit warranty claims in writing per the stated process and keep all communications and repair appointments in one file. Allow reasonable time for repairs, and if issues repeat or remain unresolved, follow the contract’s remedy steps, which may include mediation or arbitration.
Typical limitations and exclusions
Most warranties exclude normal wear and tear, owner‑caused damage, or issues from modifications after closing. Cosmetic items often have short reporting windows, while systems and structural coverage last longer. Some warranties are third‑party backed and may be transferable; others require a fee to transfer or are nontransferable for a period.
Closings, costs, and HOA turnover
When closings happen
Closings usually occur after the building or your unit receives a Certificate of Occupancy. Some developers close in phases or permit limited early occupancy with a temporary CO if allowed by your contract. Expect a final walkthrough shortly before closing to update your punch list.
What closing costs include
Plan for buyer closing costs around 2 to 5 percent of the purchase price, excluding your down payment. Common items include loan origination and appraisal fees, title search and title insurance, settlement or attorney fees, recording charges, prepaid property taxes, prorated HOA dues and any association transfer fees, and homeowners insurance. Some developers offer credits toward closing costs; make sure any incentives are written into your PSA.
Financing notes for presales
Many lenders will not fund until your unit is ready for occupancy or has a CO. Rate locks have expiration dates, so delays can require an extension or a new lock. Confirm where deposits are escrowed and the conditions for release or refund.
HOA operations and rentals
Review the initial budget and how reserves will be funded as the association matures. Understand the developer’s control period, what happens at turnover, and what documents owners receive at that time. Check condo rules on rentals and short‑term rentals, and confirm how any local ordinances apply to your intended use.
Due diligence checklist
Documents to review before you sign
- Purchase and Sale Agreement with all addenda
- Public offering statement, declaration, bylaws, rules, and budget
- Builder warranty and any third‑party warranty terms
- Project schedule and developer’s track record on similar buildings
- Building permits if issued, plus any outstanding approvals
- Sample closing statement and when HOA dues begin
- Proof of contractor licensing and general liability insurance
Smart questions to ask
- What does the reservation fee cover and is it refundable?
- What is the deposit schedule and when are deposits refundable?
- What remedies exist if delivery is significantly delayed?
- When do HOA assessments start and what do they include?
- Who pays for upgrades, building‑level items, and initial reserves?
- What are warranty start dates, coverage lengths, and claim procedures?
- Is the warranty third‑party backed and transferable?
- Does the PSA require arbitration or limit legal remedies?
Helpful local pros
- Real estate attorney experienced in Tennessee condominium law
- Title company familiar with Davidson County condo closings
- Lender experienced with presale and new‑construction financing
- Independent home inspector and specialists for major systems
Your next steps
If you want clarity on a specific downtown project, we can help you compare timelines, contracts, budgets, and warranties side by side. We will guide you through the reservation and PSA, coordinate lender and title partners, and prepare your walkthrough plan so you close with confidence. Ready to take the next step? Schedule a White‑Glove Consultation with Tammi Weed.
FAQs
What is a condo reservation, and is it binding?
- A reservation holds a unit for a short period with a fee, but it is not a purchase contract and refund terms depend on the developer’s written disclosure.
How long from presale to move‑in for downtown Nashville?
- Many mid‑ to high‑rise projects run about 18 to 36 months from presale launch to occupancy, with smaller low‑rise buildings sometimes finishing sooner.
What if the builder misses the estimated delivery date?
- Most PSAs allow developers to extend for listed reasons like permitting or material delays, so review your contract for any buyer remedies if delays become significant.
What does a 1‑2‑10 builder warranty usually cover?
- Typically one year for workmanship and materials, two years for major systems due to installation issues, and up to ten years for structural defects, subject to contract terms.
How much should I budget for closing costs on a new condo?
- Buyers commonly see about 2 to 5 percent of the purchase price for lender, title, recording, prepaid taxes and dues, association fees, and insurance, depending on the loan.
When do HOA dues start for a new building?
- Dues often begin at occupancy or as specified in the condo documents, so confirm the start date in your PSA and budget materials.
