Who Pays HOA Fees in Siesta Key?
Who Pays HOA Fees in Siesta Key? The Real Risk
Quick Answer
In Siesta Key, the responsibility for paying HOA fees typically falls on the property owner. Florida Statute 720 governs homeowners’ associations, and failing to understand this can lead to unexpected financial obligations. For example, a buyer might discover during the estoppel process that the seller is delinquent on fees, which can delay closing. If this is discovered late, the buyer could face unexpected costs or even a 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
The Estoppel Trap
The estoppel certificate is a critical document in Florida real estate transactions, particularly in Siesta Key. It outlines any outstanding fees or violations associated with the property. I once had a deal where the estoppel revealed the seller owed several months of unpaid HOA fees. The buyer was shocked and nearly walked away, risking their deposit. This is governed by Florida Statute 720, and ignoring it can lead to significant financial exposure.
We came to know Team Renick through a chance meeting while grilling burgers at Seaplace. My wife and I had previously purchased two units at Seaplace working with other realtors. Upon meeting Mike Renick and Eric Teoh we knew there would never be any other Realtor for us than these guys. We recently worked with Team Renick selling and buying again in Seaplace. Our direct contact was Eric Teoh who operates at a higher level of customer service and care than we have ever experienced. His attention to detail, knowledge of the market, and overall commitment to us made the process actually fun ! Eric treats every party to the deal with the highest level of respect, honesty and integrity. It is always a pleasure to do business with friends and at the end of the day we consider Team Renick our friends
– vacking44, Zillow Review
Barrier-island properties like those in Siesta Key face unique insurance challenges. Insurance binders can be denied if the property has unresolved HOA issues, such as non-compliance with maintenance requirements. In one case, a buyer’s insurance was denied just days before closing due to an unapproved roof repair by the HOA. This led to a forced renegotiation and nearly $10,000 in unexpected costs. The Office of Insurance Regulation plays a crucial role here, and overlooking this can derail a deal.
Where It Usually Blows Up
The most brutal timing for discovering HOA fee issues is during the final days before closing. At this stage, buyers have already invested time and money into inspections, appraisals, and loan processing. If an estoppel reveals unpaid HOA fees or violations, buyers may face delays or additional costs to clear these issues. This can lead to a loss of earnest money or even the collapse of the transaction, leaving both parties scrambling.
What I Tell Clients Before They Risk Money
- Verify HOA Status Early: Always request an estoppel certificate early in the process to uncover any hidden fees or violations.
- Understand Insurance Requirements: Ensure your insurance binder is secured and compliant with HOA regulations well before closing.
- Review HOA Documents Thoroughly: Read all HOA documents to understand fee structures and potential assessments.
- Plan for Unexpected Costs: Set aside a contingency fund for any surprise fees or repairs mandated by the HOA.
- Consult a Real Estate Attorney: Have a legal expert review all HOA-related documents to avoid costly misunderstandings.
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 if the seller hasn’t paid their HOA fees?
If the seller is delinquent on HOA fees, it can delay closing and potentially increase your costs. The estoppel certificate will reveal any unpaid fees, which the seller typically must settle before the transaction can proceed.
Can unpaid HOA fees affect my mortgage approval?
Yes, lenders may refuse to approve a mortgage if there are unresolved HOA issues. This is because unpaid fees can become a lien on the property, affecting its value and your ability to secure financing.
What To Do Right Now
Request an estoppel certificate as soon as you enter into a contract to identify any outstanding HOA fees or issues.
We have 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
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Michael Renick · Licensed Florida Real Estate Broker
License #BK3241900 · Verify on Florida DBPR
Mangrove Realty Associates Inc / Team Renick · Serving Sarasota & Manatee Counties since 2011
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