3 Closing Mistakes in Sarasota

Avoid These Costly Closing Mistakes in Sarasota

What Actually Breaks Deals in Florida

One major problem is insurance denial due to the unique risks associated with barrier-island properties in Sarasota. The Office of Insurance Regulation requires specific coverage, and failing to bind insurance can halt a closing. In one case, a buyer discovered their policy was denied three days before closing, risking their $20,000 deposit. Without insurance, lenders won’t fund the mortgage, leading to deal termination.

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

Another issue is condo association approval delays, governed by Florida Statute 718. Associations can take weeks to approve new buyers, and any delay can push back closing dates. I’ve seen deals fall apart when an association’s approval came too late, forcing buyers to walk away or renegotiate terms under pressure.

Lastly, underestimating closing costs can derail a deal. Lender underwriting systems require precise cost estimates, and unexpected fees can catch buyers off guard. For example, a buyer might need to bring an additional $10,000 to the table due to overlooked fees, risking the entire transaction if they can’t cover it.

Where It Usually Blows Up

These issues typically surface during the final stages of the transaction, right before closing. This timing is brutal because buyers and sellers have already invested significant time and money into the deal. If insurance issues, association approvals, or unexpected costs arise late, it can lead to lost deposits, delayed closings, or even contract termination. The financial and emotional stakes are high, and resolving these problems at the last minute is often impossible.

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 I Tell Clients Before They Risk Money

1. Secure Insurance Early: Bind your insurance policy well in advance to avoid last-minute denials.
2. Confirm Association Approval: Ensure condo or HOA approvals are in place before the closing date.
3. Review Closing Costs: Get a detailed estimate of all closing costs from your lender to prevent surprises.
4. Check Lender Conditions: Verify all lender conditions are met to avoid funding issues.
5. Inspect Thoroughly: Complete all inspections early to address any repair negotiations without delay.

Questions Clients Actually Ask

What happens if my insurance is denied before closing?

If your insurance is denied, your lender will not fund the mortgage, putting your deposit and the entire deal at risk. It’s crucial to secure a binding insurance policy early in the process to avoid this pitfall.

How can condo association delays affect my closing?

Condo association delays can push back your closing date, potentially leading to contract termination or renegotiation. Florida Statute 718 governs these approvals, and it’s essential to follow up regularly to ensure timely processing.

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 To Do Right Now

Request a detailed closing cost estimate from your lender and review it line by line to ensure you understand all potential expenses. This proactive step can prevent unexpected financial demands at the closing table.

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https://www.teamrenick.com/

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To read more about what Michael shares with his clients:

https://blog.teamrenick.com/