How to Avoid Closing Delays in Nokomis
Avoiding Closing Delays in Nokomis: Real Risks and Real Money
Quick Answer
To avoid closing delays in Nokomis, ensure all aspects of the transaction are meticulously managed from the start. Florida’s real estate transactions are governed by systems like the Department of Business and Professional Regulation (DBPR) and Florida Statute 718, which can introduce risks if not properly navigated. For example, failing to secure timely HOA approval can halt a deal. Discovering such issues late can lead to costly delays 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
Condo Association Approvals
The problem often lies with delayed or denied condo association approvals. Governed by Florida Statute 718, these approvals can bottleneck a transaction if the association is slow to respond or has stringent requirements. I’ve seen deals where, just days before closing, the buyer was informed that the association had not yet approved their application, leading to a postponed closing. The consequence is not just a delay but potential financial penalties or even loss of the property if the seller decides to walk away.
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
Insurance Binding Issues
Insurance binding can also derail a closing, especially in coastal areas like Nokomis. The Office of Insurance Regulation oversees this, and I’ve witnessed situations where, a week before closing, an insurance binder was denied due to updated flood zone maps. This not only delays the closing but can also increase costs significantly if alternative insurance is more expensive or unavailable.
Where It Usually Blows Up
The transaction stage where these issues typically surface is during the final week before closing. This timing is brutal because all parties are prepared to finalize the deal, and any delay can disrupt moving plans, financing arrangements, and more. Buyers or sellers lose leverage and may face increased costs or even lose their earnest money deposit if the deal falls through at this late stage.
What I Tell Clients Before They Risk Money
- Verify Association Approval Timelines: Always check how long the condo or HOA approval process typically takes and plan accordingly.
- Secure Insurance Early: Get insurance quotes and binders as soon as possible to avoid last-minute surprises.
- Understand Lender Requirements: Make sure you know all lender conditions and have them satisfied well before closing.
- Conduct Thorough Inspections: Complete all inspections early to leave time for negotiations or repairs.
- Review All Documents Promptly: Go through all contracts, disclosures, and estoppels immediately to catch any issues early.
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 condo association delays approval?
If the condo association delays approval, it can push back the closing date and potentially breach the contract terms. Florida Statute 718 governs these associations, and delays can lead to financial penalties or even losing the property if the seller decides to terminate the contract.
Can insurance issues really stop a closing?
Yes, they can. If an insurance binder is denied or altered last minute, it can prevent the lender from approving the loan, thereby halting the closing process. This is particularly common in coastal areas where flood insurance requirements can change.
We could not have been more pleased with Eric Teoh and Mike Renick during our search and recent purchase of our home on Longboat Key. These guys are a breath of fresh air in today’s business environment operating with “old school” business practices Should we require a realtor in the future we would certainly engage them again. Len & Ann Cincinnati, Ohio
– zuser20170122200015417, Zillow Review
What To Do Right Now
Start by reviewing your contract and ensuring all contingencies are clearly understood and planned for. This includes verifying association approval processes, securing insurance, and satisfying lender conditions early.
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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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