3 Closing Mistakes in Longboat Key
Avoid These Costly Closing Mistakes in Longboat Key
Quick Answer
Three common closing mistakes in Longboat Key include failing to secure insurance, overlooking condo association approvals, and mismanaging escrow deposits. Florida’s Office of Insurance Regulation oversees insurance policies, and failing to bind insurance can leave you without coverage just days before closing. For example, I’ve seen buyers scrambling when their insurance binder was denied due to last-minute underwriting issues. Discovering these problems late can lead to contract termination or unexpected costs. Call me at 941.400.8735 or reach out directly to Michael Renick – I’ll share my approach with you.
What Actually Breaks Deals in Florida
Insurance Binding Failures
The problem often arises when buyers wait too long to secure insurance, and the Office of Insurance Regulation plays a critical role here. I once had a client who assumed their insurance was in place, only to find out two days before closing that the binder was denied due to the property’s coastal location. This resulted in a delay that nearly cost them their deposit and forced a renegotiation of terms.
Condo Association Approvals
Condo associations in Longboat Key can be a bottleneck due to Florida Statute 718, which governs condominium operations. During one transaction, the association’s approval process dragged on, causing a two-week delay. The buyer was at risk of losing their financing rate lock, which could have increased their costs significantly.
We recently purchased a home in Sarasota, FL. We moved from Cleveland, OH so most of our research was done through emails. My husband had contacted Team Renick about 3 years prior and for those 3 years Mike Renick had sent us perspective houses that were for sale that fit our criteria. In 2019 after we retired, we came down to Florida in August for the purchase of our forever home. This is when we met Eric Teoh, part of Team Renick. Upon our meeting he had put together a portfolio of homes for us to look at. Not only is Eric professional but he treated us like family. He picked us up and took us around for a couple of days looking at houses to purchase. In a very short period of time we found exactly what we were looking for. We could not have been happier with the service we received from Eric and Team Renick. Living out of state made things a bit more challenging for us but Eric made it seem effortless. Thank you again to Eric and Mike! They are the best of the best!!
– danddnorman, Zillow Review
Mismanagement of escrow deposits can lead to significant financial loss. In one case, a buyer failed to meet a lender condition related to the appraisal, which was part of the underwriting process. This oversight put their $50,000 deposit at risk when the deal fell through because the appraisal came in lower than expected.
Where It Usually Blows Up
These issues typically surface during the final stages of the transaction, such as the underwriting process or the final walkthrough. The timing is brutal because by then, both parties are heavily invested in the deal, both financially and emotionally. When these problems arise late, buyers or sellers can lose deposits, face increased costs, or even see the entire deal collapse.
What I Tell Clients Before They Risk Money
- Insurance Early: Secure your insurance binder as soon as the contract is signed.
- Association Approvals: Start the condo association approval process immediately.
- Escrow Vigilance: Monitor your escrow conditions and deadlines closely.
- Appraisal Awareness: Be prepared for appraisal gaps and have a plan to address them.
- Rate Locks: Ensure your financing rate lock is long enough to cover potential delays.
Let’s continue this conversation.
Call me at 941.400.8735 or schedule a 15-minute call. I’ll tell you what I would look for.
Call 941.400.8735 or Schedule a Call
Questions Clients Actually Ask
What happens if my insurance binder is denied?
If your insurance binder is denied, you risk not closing on time, which can lead to losing your deposit or having to renegotiate terms. The Office of Insurance Regulation oversees these policies, so it’s crucial to secure your binder early.
How do condo association delays affect my closing?
Delays in condo association approvals can push back your closing date, risking your financing rate lock and potentially increasing your costs. Florida Statute 718 governs these processes, making it essential to start early.
What To Do Right Now
Contact your insurance agent to confirm your binder is in place and meets all requirements for your Longboat Key property.
We recently purchased a condo on LBK. Eric is the reason. We were looking for several years. Eric is extremely knowledgable, professional, patient, kind, and most importantly, honest. As an example, his always gave his honest opinion of the price/value of a property instead of just supporting the list price in order to make a sale.
– Cynthia Tessler, Zillow Review
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Michael Renick · Licensed Florida Real Estate Broker
License #BK3241900 · Verify on Florida DBPR
Mangrove Realty Associates Inc / Team Renick · Serving Sarasota & Manatee Counties since 2011
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