Who Pays HOA Fees in Longboat Key?
Who Pays HOA Fees in Longboat Key? The Risk of Misunderstanding
Quick Answer
In Longboat Key, the responsibility for paying HOA fees typically falls on the property owner. Florida Statute 720 governs homeowners’ associations, and failure to pay these fees can lead to liens on the property, affecting its marketability. For example, I’ve seen a deal where unpaid HOA fees surfaced during the estoppel process, threatening to derail the closing. Discovering this late can result in unexpected financial burdens or even losing the property. 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
Unpaid HOA Fees and Liens
The problem arises when sellers have outstanding HOA fees, which can lead to liens under Florida Statute 720. During the estoppel certificate process, these unpaid fees are revealed, potentially halting the sale. In one case, a seller was unaware of a lien due to unpaid fees, causing a significant delay and forcing renegotiation of terms. The consequence was a delayed closing and increased costs for the buyer, who had to cover additional inspection and appraisal fees.
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
Insurance issues are another deal breaker, especially on barrier islands like Longboat Key. The Office of Insurance Regulation oversees these matters, and I’ve witnessed insurance binders being denied just days before closing due to the property’s location and age. This denial left the buyer scrambling for coverage, risking their deposit and the entire transaction. The lack of insurance can prevent lenders from approving the mortgage, leading to contract termination.
Where It Usually Blows Up
The transaction stage where these issues typically surface is during the final walkthrough or just before closing. This timing is brutal because buyers and sellers have already invested significant time and money, and any disruption can lead to financial losses or the collapse of the deal. When problems like unpaid HOA fees or insurance denials emerge late, buyers may lose their earnest money deposit or face increased costs to resolve the issues quickly.
What I Tell Clients Before They Risk Money
- Verify HOA Status: Always request an estoppel certificate early to uncover any unpaid fees or liens.
- Insurance Check: Secure an insurance binder well in advance to avoid last-minute denials.
- Review Association Rules: Understand the HOA’s financial health and rules to prevent surprises.
- Inspect Thoroughly: Conduct detailed inspections to identify potential issues that could affect insurance or financing.
- Prepare for Delays: Be ready for possible closing delays due to unforeseen complications.
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 HOA fees are unpaid?
Unpaid HOA fees can lead to liens on the property, as governed by Florida Statute 720, which can complicate or halt a sale.
Can insurance issues really stop a closing?
Yes, if an insurance binder is denied, it can prevent lender approval, risking the entire transaction.
What To Do Right Now
Order an estoppel certificate as soon as you consider purchasing a property to identify any outstanding HOA fees or liens early.
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
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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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