Permit Delays in Englewood
Permit Delays in Englewood: A Real Threat to Your Deal
Quick Answer
Permit delays in Englewood can significantly impact your real estate transaction, often causing closing delays and additional costs. The permitting process in Florida is governed by local county offices, and any hiccup here can lead to serious financial consequences. For example, a delay in obtaining a necessary permit can cost you thousands in holding costs or even jeopardize your financing. Discovering this issue late in the process can lead to a forced renegotiation or 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
One major issue is the permitting process governed by the local county building department. During a deal in Englewood, a permit delay occurred because the building department required additional documentation, which the seller had not anticipated. This resulted in a two-week delay, forcing the buyer to extend their rate lock at a cost of $1,500. If the delay had been discovered even later, it could have led to the buyer walking away, losing their deposit.
We bought two units from Mike and Eric and sold one over the last four years. One thing that made life much easier for us was how they understood our feelings and situation regarding pricing. They knew where the other party was coming from, which made the process faster without all the back and forth. Once the contract was signed, their staff was great; I literally had to do nothing other than decide what color pen to sign with. Eric wasn’t just out to make a sale; he was tremendously helpful to us. Every week, he checks our apartment without asking for money, and when we had a storm, he even moved our car to safety. It wasn’t just about the sale; he became a friend and helped us out after the sale, just because we don’t live here.
– Mindy and Joe, Customer Review
Another common problem is the insurance binding process, which can be affected by permit delays. In one transaction, the insurance company refused to bind the policy until all permits were cleared, which was discovered just days before closing. This put the buyer at risk of losing their mortgage approval, as the lender required proof of insurance to finalize the loan. The consequence was a scramble to resolve the permit issue, costing the buyer additional fees and stress.
Where It Usually Blows Up
Permit delays often surface during the final stages of the transaction, particularly during the underwriting or final walkthrough. This timing is brutal because buyers and sellers are typically fully committed, with moving plans in place and financial arrangements settled. When permit issues arise at this stage, buyers risk losing their deposits, and sellers may face extended holding costs or even a collapsed deal. The financial and emotional toll can be significant, making it crucial to address permit issues early in the process.
What I Tell Clients Before They Risk Money
- Verify Permits Early: Always check with the local county building department to ensure all necessary permits are in place before making an offer.
- Include Permit Contingencies: Add a clause in your contract that allows you to back out if permit issues arise.
- Consult the Property Appraiser: Review the property records to identify any unpermitted work that could cause delays.
- Request a Permit History Report: Obtain a detailed report from the county to understand the property’s permit history and any outstanding issues.
- Secure Insurance Early: Confirm with your insurance provider that they will bind coverage even if permits are pending.
My home buying experience with Mike and Eric continues to exceed my expectations, even long after the sale. Not only did they deal with me honestly and efficiently for the sale itself, their service didn’t stop there. They continue to keep an eye on my condo when I’m not there and have even referred rental clients to me, which has worked out very well! This is well beyond the norm in the real estate industry. Good, old fashioned service. I will be calling them again for my next purchase, for sure!
– ppugielli, Zillow Review
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 a permit delay causes me to miss my closing date?
If a permit delay causes you to miss your closing date, you may face financial penalties such as losing your deposit or incurring additional fees for extending your rate lock. It’s crucial to address permit issues early to avoid these costly consequences.
Can I negotiate with the seller if there are permit delays?
Yes, you can negotiate with the seller if there are permit delays. This could involve asking the seller to cover additional costs or extend the closing date. However, any changes should be documented in a formal contract amendment to protect both parties.
What To Do Right Now
Request a Permit History Report from the local Englewood county office to identify any outstanding permit issues before proceeding with your transaction. This proactive step can save you from unexpected delays and financial losses.
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