HOA Fees Hidden in Casey Key
Hidden HOA Fees in Casey Key: A Real Risk
Quick Answer
Yes, HOA fees can be hidden in Casey Key transactions. Florida Statute 720 governs homeowners’ associations, requiring them to disclose fees, but these disclosures can sometimes be incomplete or delayed. I’ve seen unexpected fees amounting to thousands of dollars surface just days before closing. Discovering these fees late can lead to deal renegotiations or even contract termination. 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
The Problem: Incomplete HOA Disclosures
Florida Statute 720 mandates that HOAs provide a disclosure summary, but these summaries can be misleading or incomplete. In one case, a buyer discovered a special assessment for seawall repairs on Casey Key only after the estoppel certificate was issued. This surprise added $15,000 to the buyer‘s closing costs and nearly derailed the transaction. The consequence was a rushed renegotiation, with the buyer forced to either absorb the cost or risk losing their deposit.
We could not have been more pleased with Eric Teoh and Mike Renick during our search and recent purchase of our home on Longboat Key. These guys are a breath of fresh air in today’s business environment operating with “old school” business practices Should we require a realtor in the future we would certainly engage them again. Len & Ann Cincinnati, Ohio
– zuser20170122200015417, Zillow Review
The Problem: Insurance Binding Failures
Barrier-island properties like those on Casey Key face unique insurance challenges. During underwriting, a buyer was denied insurance coverage due to the property’s proximity to the coast, a risk factor not fully disclosed by the HOA. This denial delayed the closing by weeks and required the buyer to secure a more expensive policy, increasing their annual costs by $3,000. Without proper insurance, lenders won’t fund the loan, putting the entire deal at risk.
Where It Usually Blows Up
These issues typically surface during the final stages of the transaction, particularly when the estoppel certificate is issued or during the insurance binding process. At this point, buyers have already invested significant time and money, including inspection fees and deposits. Discovering hidden fees or insurance issues late can lead to financial losses, forced renegotiations, or even contract termination, leaving buyers with little recourse but to walk away or pay unexpected costs.
What I Tell Clients Before They Risk Money
- Demand Full HOA Disclosures Early: Request the HOA disclosure summary and estoppel certificate as soon as possible to identify any hidden fees or assessments.
- Verify Insurance Requirements: Confirm with your insurance provider that the property meets all underwriting criteria, especially for barrier-island properties.
- Review Recent Meeting Minutes: Obtain and review the HOA’s recent meeting minutes to uncover any discussions of upcoming assessments or financial issues.
- Check for Pending Assessments: Ask the HOA directly about any pending or planned assessments that could impact your financial obligations.
- Consult the County Records: Pull property records from the Sarasota County Clerk’s office to verify any liens or legal actions against the property.
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 find out about hidden fees after closing?
If hidden fees are discovered after closing, you may have limited legal recourse. It’s crucial to address these issues before closing by reviewing all HOA documents and disclosures thoroughly.
Can I back out of the deal if hidden fees are found?
Yes, but it depends on the contract terms and timing. If hidden fees are discovered before closing, you may be able to renegotiate or terminate the contract, but doing so could risk losing your deposit.
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
What To Do Right Now
Request an estoppel certificate from the HOA as soon as your offer is accepted. This document will outline any outstanding fees or assessments that could impact your purchase.
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