3 Closing Mistakes in Sarasota
Avoid These Closing Mistakes in Sarasota
Quick Answer
Three common closing mistakes in Sarasota include failing to secure insurance, overlooking condo association approvals, and underestimating closing costs. Florida’s Office of Insurance Regulation governs insurance, and failing to bind a policy can lead to a denied mortgage. For example, I’ve seen deals fall apart when a buyer couldn’t secure insurance on a barrier island property. If discovered late, this can mean losing your deposit and the property. 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 Florida Office of Insurance Regulation plays a crucial role in ensuring properties are insurable, especially in high-risk areas like Sarasota‘s barrier islands. I once witnessed a deal collapse three days before closing when the buyer‘s insurance binder was denied due to the property’s coastal location. Without insurance, the lender refused to fund the mortgage, leading to the buyer losing their earnest money deposit.
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
Condo Association Approval Delays
Florida Statute 718 governs condo associations, requiring buyers to obtain approval before closing. In one case, a buyer was blindsided when the condo board delayed approval due to incomplete documentation, pushing the closing date back by weeks. This delay forced the buyer into a costly hotel stay and nearly resulted in the seller terminating the contract.
Underestimated Closing Costs
Many buyers fail to account for all closing costs, which can include unexpected fees from the county clerk’s office or additional lender conditions. I recall a situation where a buyer was shocked to find they needed an extra $10,000 at closing due to underestimated taxes and lender fees. This miscalculation almost led to the deal falling through as the buyer scrambled to secure additional funds.
Where It Usually Blows Up
These issues typically surface during the final stages of the transaction, often just days before the scheduled closing. At this point, buyers and sellers are heavily invested, both financially and emotionally, making any disruptions particularly painful. Discovering these problems late can result in lost deposits, additional living expenses, or even the complete collapse of the deal, leaving both parties scrambling for solutions.
Purchasing a home can be a time-consuming and stressful venture: visiting prospective homes; identifying the pros and cons of each property; deciding which properties are right for you; final visit at these properties; making an offer (and counteroffer); dealing with the Sellers realtor; reviewing the Agreement For Sale; finding an attorney; finding a home inspection company; and acquiring home and flood insurance. Then the difficult task starts, working with a bank and filling out all the paperwork (Ugh!). Mike and Eric were very helpful throughout the process and kept us informed of our requirements and responsibilities for each deadline.
– bshea20047, Zillow Review
What I Tell Clients Before They Risk Money
- Secure Insurance Early: Confirm insurability with your agent as soon as you sign the contract.
- Get Condo Approval Fast: Submit all required documents to the condo association immediately.
- Double-Check Closing Costs: Review estimated costs with your lender and agent to avoid surprises.
- Monitor Lender Conditions: Stay in constant contact with your lender to ensure all conditions are met.
- Prepare for Delays: Have a backup plan in case of unexpected delays or 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.
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Questions Clients Actually Ask
What happens if my insurance binder is denied?
If your insurance binder is denied, your lender will not fund the mortgage, which can lead to losing your deposit and the property. The Florida Office of Insurance Regulation requires that properties meet certain criteria to be insurable, especially in high-risk areas like Sarasota.
How can condo association delays affect my closing?
Condo association delays can push back your closing date, resulting in additional costs and potential contract termination. Florida Statute 718 requires condo approval, and any delay can disrupt the entire transaction timeline.
What To Do Right Now
Contact your insurance agent to confirm that your property is insurable, especially if it’s in a high-risk area. This proactive step can prevent last-minute surprises and ensure your deal proceeds smoothly.
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