3 Closing Mistakes in Siesta Key
Avoiding Costly Closing Mistakes in Siesta Key
Quick Answer
In Siesta Key, failing to review closing documents early can lead to financial losses or even contract termination. Florida Statute 718 governs condominium associations, and not complying with HOA processes can result in unexpected fees or liens. For example, unpaid HOA fees can amount to thousands of dollars, jeopardizing the entire transaction. Discovering these issues late can force buyers to bring unexpected cash to the table or walk away from the deal. 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
Unresolved Title Issues
Title defects, such as unpaid liens or undisclosed heirs, can derail a closing. Florida law requires a clear title, and any encumbrances must be resolved before the deal can proceed. In one case, a buyer discovered a mechanic’s lien just days before closing, leading to a delay and additional legal fees. The consequence was a postponed closing and potential loss of the property to another buyer.
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
Insurance Binding Failures
Securing insurance on barrier-island properties like those in Siesta Key can be tricky. Florida’s Office of Insurance Regulation oversees these policies, and last-minute denials can halt a deal. I’ve seen insurance binders denied days before closing due to underwriting issues related to coastal risks. This can lead to a forced renegotiation or even contract termination if not addressed promptly.
Where It Usually Blows Up
The final walkthrough is a critical stage where many issues surface. Waiting until the day of closing to conduct this walkthrough is risky because any unresolved repairs or damages can require renegotiations or contract amendments. If these problems are discovered too late, buyers may face closing delays, additional costs, or even the loss of their earnest money deposit.
What I Tell Clients Before They Risk Money
- Review Documents Early: Ensure you review the Closing Disclosure at least three days before closing.
- Conduct a Pre-Closing Walkthrough: Schedule this at least 24 hours before closing to verify property condition.
- Verify Insurance Coverage: Confirm your insurance binder is in place well before closing day.
- Check for Liens: Request a title search to identify any outstanding liens or encumbrances.
- Budget for Closing Costs: Obtain an estimate of all closing costs, including HOA fees and taxes, early in the process.
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 there are unpaid HOA fees?
Unpaid HOA fees can lead to liens on the property, which must be resolved before closing. Florida Statute 720 requires these fees to be settled to ensure a clear title. If discovered late, it could delay the closing or require the buyer to cover these costs unexpectedly.
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
How can insurance issues affect my closing?
Insurance issues, particularly on barrier islands like Siesta Key, can result in last-minute denials or increased premiums. The Florida Office of Insurance Regulation oversees these policies, and failure to secure proper insurance can halt the closing process. This could lead to renegotiations or even the collapse of the deal if not addressed in time.
What To Do Right Now
Request a title search from your title company to identify any potential liens or encumbrances on the property. This proactive step can prevent last-minute surprises and ensure a smoother closing process.
Get my monthly Market Brief — I track what is actually happening in Florida: pricing, inventory, insurance problems, and deals falling apart. Subscribe here
To learn more about Michael and Team Renick:
To search for local properties:
https://search.teamrenick.com/
To read more about what Michael shares with his clients:
