3 Contract Mistakes in Bird Key

Avoid These Costly Contract Mistakes in Bird Key

What Actually Breaks Deals in Florida

Misunderstanding Condo Association Rules

The problem often arises from not fully understanding Florida Statute 718, which governs condo associations. During a deal, a buyer might skip reviewing the condo questionnaire, leading to a surprise when the association denies approval due to financial instability. This can result in a terminated contract and loss of deposits. The governing system here is the condo association’s approval process, which is critical in Bird Key due to the age of many condo properties.

Purchasing a home can be a time-consuming and stressful venture: visiting prospective homes; identifying the pros and cons of each property; deciding which properties are right for you; final visit at these properties; making an offer (and counteroffer); dealing with the Sellers realtor; reviewing the Agreement For Sale; finding an attorney; finding a home inspection company; and acquiring home and flood insurance. Then the difficult task starts, working with a bank and filling out all the paperwork (Ugh!). Mike and Eric were very helpful throughout the process and kept us informed of our requirements and responsibilities for each deadline.

– bshea20047, Zillow Review

Insurance Binding Failures

Insurance binding on barrier islands like Bird Key can be tricky due to increased risk factors. I’ve seen deals fall apart when, days before closing, the insurance binder was denied because the property didn’t meet updated coastal construction codes. This left the buyer scrambling to secure last-minute coverage at a much higher cost or risk losing the property. The Office of Insurance Regulation plays a key role in these scenarios, dictating the terms under which insurers operate.

HOA Approval Delays

HOA approval processes can bottleneck transactions, especially in Bird Key where seasonal influxes strain resources. In one case, a buyer faced a closing delay because the HOA board only met monthly, and their application missed the cut-off. This delay not only pushed back the closing date but also risked the buyer’s mortgage rate lock expiring, potentially increasing costs. The HOA’s statutory processes under Florida Statute 720 are crucial to navigate efficiently.

Where It Usually Blows Up

These issues typically surface during the final stages of the transaction, often when it’s too late to easily resolve them. The timing is brutal because buyers and sellers are already financially and emotionally committed, with deposits and moving plans in place. When these problems arise late, buyers might face increased costs, lost deposits, or even the collapse of the entire deal.

What I Tell Clients Before They Risk Money

1. Understand Condo Rules: Always review the condo association’s financials and rules under Florida Statute 718.
2. Secure Insurance Early: Get insurance quotes and binders well in advance, especially for barrier-island properties.
3. Plan for HOA Delays: Submit HOA applications early to avoid meeting schedule delays.
4. Check Construction Codes: Ensure the property meets current coastal construction codes to avoid insurance issues.
5. Prepare for Appraisal Gaps: Be ready to cover any differences if the appraisal comes in low.

I had been looking for a local condo for over a year and was very unhappy with the service. I had worked with three agents from three different national chains. None of the three seemed to know the market very well, took the time to understand what I’m looking for, and most importantly rarely followed up when they told me they would. I have never experience such a lazy approach to working with a buyer. Things changed when I met Mike and part of his team at their St. Armands office. The first thing Mike did was apologize for the poor service…even though it wasn’t his fault. I already knew that I found someone who help himself accountable. What a breath of fresh air! After spending about 30 minutes with me understanding what I was looking for, Mike introduced me to Eric. Between the two of them, they found five condos for me to look at. Each of the five, met my criteria. They actually did listen. I’m excited because we plan to submit an offer later today. The market analysis they prepared was thorough and easy for me to understand. I cannot recommend more highly any other realtors to work with. Thank you Mike and Eric!

– Jules Schroder, Google Review

Questions Clients Actually Ask

What happens if the HOA denies my application?

If the HOA denies your application, it can lead to the termination of the contract and loss of your deposit. This is why understanding the HOA’s rules and approval process under Florida Statute 720 is crucial.

Can I get insurance for a property on Bird Key?

Yes, but it can be challenging due to barrier-island risks. The Office of Insurance Regulation oversees these policies, and it’s essential to secure coverage early to avoid last-minute denials.

What To Do Right Now

Review your contract and ensure all contingencies are in place, especially regarding insurance and HOA approvals.

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To learn more about Michael and Team Renick:

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https://blog.teamrenick.com/