Who Pays Closing Costs in Siesta Key?
Who Pays Closing Costs in Siesta Key? Risk and Reality
Quick Answer
In Siesta Key, closing costs are typically negotiated between the buyer and the seller, but the buyer often shoulders the majority. Florida’s real estate transactions are governed by systems like the Florida Statutes and lender underwriting, which can impose unexpected costs. For example, a buyer might agree to cover title insurance and lender fees, only to discover additional costs during underwriting. If these costs are realized late, it can lead to last-minute renegotiations or even deal collapse. 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: In Florida, especially on barrier islands like Siesta Key, securing insurance can be a nightmare. The Office of Insurance Regulation oversees this, but I’ve seen deals fall apart when insurers refuse to bind policies due to coastal risks. Just days before closing, a client discovered their insurance was denied, forcing them to scramble for alternatives or risk losing their 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
HOA Approval Bottlenecks: Many Siesta Key properties are part of homeowners’ associations, governed by Florida Statute 720. I’ve witnessed deals stall when an HOA delays its approval process, which can take weeks. This delay can push closing dates back, causing buyers to incur additional costs or even lose their financing lock-in rates.
Where It Usually Blows Up
The most brutal timing for discovering closing cost issues is during the final walkthrough. At this stage, buyers are financially and emotionally committed, and any unexpected costs can feel like a betrayal. If a buyer learns they must cover additional fees, they might face a tough choice: pay up or risk losing their earnest money and the property itself.
What I Tell Clients Before They Risk Money
- Understand All Costs: Get a detailed breakdown of potential closing costs early in the process.
- Insurance Readiness: Secure an insurance binder well before closing to avoid last-minute denials.
- HOA Approvals: Start the HOA approval process as soon as possible to prevent delays.
- Inspection Contingencies: Use the inspection period to uncover any hidden costs or issues.
- Lender Conditions: Stay in close contact with your lender to ensure all conditions are met without surprise fees.
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 my insurance is denied last minute?
If your insurance is denied late in the process, you might face a delay in closing or even risk losing your deposit. The Office of Insurance Regulation governs these policies, and finding an alternative quickly can be challenging.
Can HOA delays really affect my closing?
Yes, HOA delays can significantly impact your closing timeline. Under Florida Statute 720, HOAs have specific processes, and any delay in their approval can push back your closing date, potentially affecting your financing terms.
What To Do Right Now
Review your closing cost estimates with your real estate agent and lender to ensure there are no surprises.
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
Get my weekly Market Update — 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:
To read more about what Michael shares with his clients:
