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, overlooking condo association approvals, and mishandling estoppel certificates. Florida’s Office of Insurance Regulation governs insurance policies, and failing to bind insurance can lead to denied coverage, risking your entire investment. For example, I’ve seen deals fall apart when a buyer couldn’t secure insurance just days before closing. Discovering these issues late can result in losing your deposit or having to renegotiate terms under pressure. 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 of failing to secure insurance is governed by the Office of Insurance Regulation. In one case, a buyer was unable to bind insurance on a barrier island property due to high-risk flood zones, leading to a last-minute scramble that nearly cost them their deposit. Without insurance, lenders won’t fund the deal, causing delays or outright cancellations.
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 Delays
Condo associations in Florida, regulated by Florida Statute 718, can delay or deny approvals, which are crucial for closing. During one transaction, the condo board took longer than expected to approve a buyer, pushing the closing date and risking the buyer’s financing terms. This delay can lead to increased costs or even losing the property if the seller decides to back out.
Estoppel Certificate Mishandling
Estoppel certificates, essential for confirming any outstanding fees or violations, can derail a deal if mishandled. I once saw a deal collapse when an estoppel revealed unexpected assessments, and the buyer couldn’t cover the additional costs. This oversight can lead to contract termination or forced renegotiations under unfavorable terms.
Where It Usually Blows Up
These issues typically surface during the final stages of the transaction, often just days before the scheduled closing. The timing is brutal because buyers and sellers have already invested significant time and money, and any hiccup can lead to substantial financial losses or the collapse of the deal. When these problems arise late, buyers risk losing their deposits, and sellers may face extended market time and additional carrying costs.
We met Eric two months ago when we decided to sell our wonderful condo on Longboat Key. It was an incredible experience. We met with Eric and Mike Renick on a Tuesday evening in our condo. After discussions, we signed our listing agreement. Woke up the Wednesday morning to see our listing up on MLS. Thursday, Eric brought his photographer for pictures. First showing two days later. Offer three days later. Final signed contract next day. Eric was on top of everything. Nine days after final sales contract was signed buyers inspected property. Three weeks later property closed. Thirty days between final contract and closing. Eric was proactive and kept all parties in the loop through closing. We would definitely engage him again and highly recommend him to anyone interested in buying or selling property on Longboat Key.
– karlpond, Zillow Review
What I Tell Clients Before They Risk Money
- Secure Insurance Early: Start the insurance binding process as soon as the contract is signed.
- Check Condo Approval Timelines: Understand the condo association’s approval process and timelines.
- Request Estoppel Certificates Promptly: Obtain estoppel certificates early to uncover any financial obligations.
- Verify Lender Requirements: Confirm all lender conditions are met well before closing.
- Prepare for Unexpected Costs: Have a financial cushion to cover any last-minute expenses or assessments.
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 I can’t secure insurance before closing?
If you can’t secure insurance, your lender will likely refuse to fund the loan, leading to a failed transaction. This can result in losing your deposit and the property.
How do condo approvals affect my closing?
Condo approvals are crucial and governed by Florida Statute 718. Delays or denials can push back your closing date, potentially affecting your financing terms and increasing costs.
What To Do Right Now
Immediately consult with your insurance agent to ensure you can secure a policy for your property. This proactive step can prevent last-minute surprises and protect your investment.
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