3 Closing Mistakes in Sarasota
Avoid These Costly Closing Mistakes in Sarasota
Quick Answer
Three common closing mistakes in Sarasota include failing to secure insurance, mishandling condo approvals, and overlooking estoppel certificates. Florida’s Office of Insurance Regulation and the condo association approval process can both delay or derail a deal if not properly managed. For example, I’ve seen deals fall apart when a buyer couldn’t bind insurance due to the property’s barrier-island location. Discovering these issues late can lead to lost deposits or forced renegotiations. 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
Securing insurance in Sarasota, especially on barrier islands, can be a nightmare. The Florida Office of Insurance Regulation governs this process, and I’ve seen buyers struggle to bind insurance just days before closing due to high-risk coastal conditions. In one case, a buyer’s deal collapsed when the insurer refused coverage, leaving them scrambling for alternatives. This not only delayed the closing but also put their deposit at risk.
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
Condo Association Approval Bottlenecks
Condo approvals can be a silent deal killer. Under Florida Statute 718, condo associations have significant power over the approval process. I once had a client who faced unexpected delays because the association’s board only met monthly, pushing the closing date back by weeks. This delay forced the buyer to renegotiate terms, risking both time and money.
Estoppel Certificate Surprises
An estoppel certificate can reveal hidden financial obligations that can derail a deal. Governed by Florida Statute 720, these documents detail any outstanding fees or violations. In one transaction, a client discovered a hefty special assessment during the estoppel review, which nearly doubled their expected closing costs. Such surprises can lead to last-minute negotiations or even contract termination.
Where It Usually Blows Up
These issues typically surface during the final stages of the transaction, often just days before closing. This timing is brutal because buyers and sellers have already invested significant time and money, making any delays or renegotiations particularly costly. When these problems arise late, buyers can lose deposits, face increased costs, or even see the entire deal fall apart.
What I Tell Clients Before They Risk Money
- Secure Insurance Early: Start the insurance process as soon as you have a signed contract to avoid last-minute surprises.
- Understand Condo Approval Timelines: Research the condo association’s approval process and timelines to prevent unexpected delays.
- Review Estoppel Certificates Thoroughly: Obtain and review estoppel certificates early to uncover any hidden financial obligations.
- Prepare for Appraisal Gaps: Be ready to cover any shortfall if the appraisal comes in lower than the purchase price.
- Stay in Close Contact with Your Lender: Ensure all lender conditions are met well before the closing date to avoid last-minute financing issues.
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 I can’t get insurance before closing?
If you can’t secure insurance, the lender may refuse to fund the loan, causing the deal to collapse. This is especially common in high-risk areas like Sarasota’s barrier islands.
We recently closed on our dream home due to Eric Teoh’s market knowledge and expertise. His grasp of the market and his hands on approach were instrumental to our successful purchase. Eric had remarkable market information available at a moment’s notice. He skillfully assisted us in preparing our strategy. He interfaced with our seller, assisting while remaining professional. I wholeheartedly recommend Eric Teoh as a valuable resource in any Sarasota real estate transaction.
– N Isaacson, Google Review
How do condo approvals affect my closing timeline?
Condo approvals can significantly delay your closing if the association’s board meets infrequently or requires extensive documentation. This can lead to renegotiations or even losing the property if deadlines aren’t met.
What To Do Right Now
Request a detailed timeline from your real estate agent that includes all critical steps, such as insurance binding and condo approvals, to ensure nothing is overlooked.
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