How to Avoid Liens in Bradenton
Avoiding Liens in Bradenton: Protect Your Investment
Quick Answer
To avoid liens in Bradenton, ensure thorough due diligence before purchasing a property. Florida Statute 713 governs construction liens, and failing to address these can lead to costly legal battles and potential loss of property. For example, a buyer discovered a lien for unpaid contractor work just days before closing, jeopardizing the entire transaction. Discovering such issues late can result in closing delays, increased costs, 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
Construction Liens and Florida Statute 713
The problem arises when previous owners or contractors have unpaid debts that lead to liens under Florida Statute 713. During a deal, a title search revealed a significant lien from a contractor who hadn’t been paid for work done months prior. This discovery forced the buyer to either negotiate a price reduction or risk losing their deposit. The consequence of not addressing this promptly is a potential legal battle and a failed transaction.
Team Renick did a fantastic job. Their attention to detail was outstanding. Not only did they listen well when I conveyed to them the type of condo that I’m looking for, they carefully watched my reaction to the different features I found while we were looking. It’s funny to look back at our first visit together. Mike spent an inordinate amount of time during each tour taking detailed notes about my reaction to different features! He knew what he was doing. Yes, you can’t go wrong with this team. The service they provide is certainly “big company” feel!
– Joseph Perez, Google Review
HOA Liens and Estoppel Certificates
Homeowners’ associations (HOAs) can place liens for unpaid dues, which can be uncovered through an estoppel certificate. In one instance, a buyer found out about a substantial HOA lien just before closing, which had not been disclosed earlier. This led to a renegotiation of terms and nearly caused the deal to collapse. The governing system here is the requirement for an estoppel certificate, which outlines any outstanding dues or violations.
Where It Usually Blows Up
Liens often surface during the title search phase, a critical part of the closing process. This timing is brutal because buyers have already invested time and money into inspections, appraisals, and securing financing. When liens are discovered late, buyers face potential loss of their earnest money deposit, increased legal fees, and the stress of renegotiating or even walking away from the deal.
What I Tell Clients Before They Risk Money
- Conduct a Thorough Title Search: Ensure a comprehensive title search is performed to uncover any existing liens.
- Request an Estoppel Certificate: Obtain this from the HOA to identify any unpaid dues or violations.
- Verify Contractor Payments: Check that all contractors have been paid to avoid construction liens.
- Review Public Records: Look for any recorded liens or judgments against the property.
- Consult with a Real Estate Attorney: Get legal advice to navigate any discovered liens effectively.
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
How can I ensure there are no liens on a property?
To ensure there are no liens, conduct a thorough title search and request an estoppel certificate if the property is part of an HOA. These documents will reveal any outstanding debts or obligations tied to the property.
My experience was working with Eric Teoh of Team Renick in searching for and purchasing a condo on Long Boat Key, Florida. Eric went above and beyond in his attentiveness, support, and assistance. My wife and I bought in April 2020 after the COVID pandemic had closed or limited many businesses. Whatever problem we had (such as no service being willing or able to pick up trash or unwanted furniture), Eric rose to the occasion and solved the problems for us. No issue was too big or too insignificant. He was knowledgeable about inventory, pricing and legalities. I’ve brought a number of residences but never have had a more positive and satisfying experience.
– Tom OHara, Google Review
What happens if a lien is discovered after closing?
If a lien is discovered after closing, the new owner may be responsible for settling the debt, which could lead to unexpected financial burdens and potential legal action. This underscores the importance of thorough due diligence before finalizing the purchase.
What To Do Right Now
Order a professional title search and request an estoppel certificate as soon as you enter into a contract. This proactive step will help identify any liens early in the process, allowing you to address them before they jeopardize your deal.
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