3 Closing Mistakes in Casey Key

Avoid These Costly Closing Mistakes in Casey Key

What Actually Breaks Deals in Florida

Insurance Binding Failures

The unique coastal risks of Casey Key mean that securing insurance can be a complex process governed by the Office of Insurance Regulation. I once saw a deal fall apart three days before closing when the insurance binder was denied due to the property’s proximity to the water. This oversight left the buyer scrambling to find alternative coverage, risking their deposit and the entire transaction.

We had a great recommendation for Mike Renick and Eric even before we were in the Sarasota area from a former client of his summering in Baltimore whom we happen to meet. When we decided to actively start looking for a place in the Sarasota area, I spoke to Mike over the phone and he was truly courteous and welcoming. When we came down in person, he first took the time to get to know my wife and I personally to better gauge what would work best for us. Since we had limited time, he was unsparing of his own time to efficiently but thoroughly show us the inventory that would work best for us. He patiently explained the pricing rational and the factors that go into these considerations. He helped us through the closing procedures and assisted us in issues such as homeowners and flood insurance. The bottom line– we bought a place that was utterly perfect for us due to his extraordinary effort. We met Eric toward the end of our process, as he was on vacation initially, but I could readily see he is a man of great knowledge and integrity and capability, as was Mike. I highly and without any reservation recommend Mike and Eric to anyone in the market for Sarasota area real estate. You will not be disappointed!

– Ronald ginsberg, Google Review

HOA or Condo Approval Delays

Florida Statute 718 requires condo associations to approve buyers, which can be a lengthy process. In one case, a buyer was ready to close, but the condo association delayed approval due to incomplete paperwork, causing a two-week delay. This not only postponed the move-in date but also added unexpected costs for temporary housing.

Appraisal Gaps

Lender underwriting systems often reveal appraisal gaps, which can derail financing. I had a client who faced a $50,000 shortfall when the appraisal came in lower than the purchase price. This forced them to either renegotiate the price or bring additional cash to closing, putting the deal at risk.

Where It Usually Blows Up

These issues typically surface during the final stages of the transaction, such as the underwriting process or just before closing. The timing is brutal because buyers and sellers have already invested time and money, and any delay or failure can lead to significant financial losses. When these problems arise late, buyers might lose their deposits, face increased costs, or even see the deal collapse entirely.

Recently my husband and I bought a condo in Longboat Key. We initially chose Team Renick simply because they were representing a property we were interested in, but decided to stay with them because they were so attentive. Eric Teoh was the agent assigned to us and he was very efficient, always prompt, and extremely knowledgeable about every property on LBK. When the day came for the walk-thru of the property we decided to bid on, Eric actually helped me measure the walls and even noticed when I wrote the dimensions on the wrong parts of the floor plan. When we had our closing, our attorney was impressed that our realtor was providing us with such a good home warranty. And then there’s Team Renick’s contribution to the LBK nature conservancy for every sale they make. On every front, an outstanding realtor!

– LWGraboys, Zillow Review

What I Tell Clients Before They Risk Money

1. Secure Insurance Early: Start the insurance process as soon as the contract is signed to avoid last-minute denials.
2. Complete HOA/Condo Paperwork Promptly: Submit all necessary documents to the association immediately to prevent approval delays.
3. Prepare for Appraisal Gaps: Have a financial buffer or be ready to renegotiate if the appraisal comes in low.
4. Verify All Lender Conditions: Ensure all lender requirements are met well before closing to avoid financing issues.
5. Conduct Thorough Inspections: Address any inspection findings early to prevent unexpected repair costs or deal termination.

Questions Clients Actually Ask

What happens if my insurance is denied last minute?

If your insurance is denied last minute, you risk losing your deposit and the entire deal. The Office of Insurance Regulation oversees this, and without coverage, lenders won’t release funds.

How can HOA approval delay my closing?

Under Florida Statute 718, condo associations must approve buyers, and delays can occur if paperwork is incomplete. This can push back your closing date, adding costs for temporary housing or storage.

What To Do Right Now

Review your insurance options and start the application process immediately upon signing a contract. This proactive step can prevent last-minute denials and ensure a smoother closing process.

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To learn more about Michael and Team Renick:

https://www.teamrenick.com/

To search for local properties:

https://search.teamrenick.com/

To read more about what Michael shares with his clients:

https://blog.teamrenick.com/