Who Covers Inspection Costs in Barrier Islands?
Who Pays for Inspections on Florida’s Barrier Islands?
Quick Answer
In Florida’s barrier islands, the buyer typically covers inspection costs. This is often stipulated in the purchase agreement, which is governed by Florida Statute 718 for condos or Florida Statute 720 for HOAs, and failing to adhere can lead to significant financial risk. For example, if a buyer discovers structural issues during the inspection, they may renegotiate the contract or withdraw, but only if this occurs within the inspection period. Discovering such issues late can mean losing your deposit or being forced into a costly purchase. 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
Inspection Period Mismanagement
The inspection period is a critical time governed by the terms of the purchase contract, often influenced by Florida Statute 718 or 720. I once had a client who discovered extensive water damage in a Longboat Key condo just days before the inspection period ended. Because we acted quickly, we renegotiated the price, but failure to do so could have meant a $20,000 deposit loss.
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 on barrier islands is tricky due to coastal risks and post-Surfside regulations. A deal almost fell apart when an insurance binder was denied three days before closing because the property didn’t meet updated building codes. This was a direct result of not addressing these issues during the inspection period, risking both the deal and the buyer‘s earnest money.
Where It Usually Blows Up
The inspection period is where deals often unravel, typically within the first 10-15 days after contract signing. This timing is brutal because buyers are still emotionally committed, but any negative findings can lead to renegotiations or cancellations. If issues surface late, buyers risk losing their deposit or being stuck with a property requiring unexpected repairs.
What I Tell Clients Before They Risk Money
- Understand the Inspection Period: Know exactly how long you have to inspect and negotiate.
- Budget for Inspections: Expect to pay for multiple inspections, especially in older properties.
- Check Insurance Early: Ensure the property is insurable before the inspection period ends.
- Review HOA/Condo Rules: Understand any association requirements that could affect your purchase.
- Negotiate Repairs: Use inspection findings to renegotiate terms or request repairs.
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 I find issues after the inspection period?
If issues are discovered after the inspection period, you’re typically bound by the contract terms, which could mean losing your deposit or having to proceed with the purchase. Florida Statute 718 and 720 govern these situations, and understanding them is crucial.
Can I back out of a deal due to insurance issues?
Yes, but only if the contract includes a financing or insurance contingency. Without it, you risk losing your deposit if you can’t secure insurance, especially in high-risk areas like barrier islands.
What To Do Right Now
Schedule a comprehensive inspection as soon as your offer is accepted to identify any potential deal-breakers early.
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
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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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