Who Pays Escrow Fees in Sarasota?
Who Pays Escrow Fees in Sarasota? The Real Risk
Quick Answer
In Sarasota, who pays escrow fees is typically negotiated between the buyer and the seller, often outlined in the purchase contract. Florida Statute 718, which governs real estate transactions, does not mandate a specific party to cover these fees, leaving it open to negotiation. For example, in a recent deal, the seller agreed to cover escrow fees to make their offer more attractive. Discovering who pays these fees late in the process can lead to unexpected costs and potential deal renegotiations. 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
Escrow Fee Disputes
The problem arises when buyers and sellers assume the other party will cover escrow fees, leading to last-minute disputes. Governed by the terms set in the purchase contract and influenced by Florida Statute 718, these disputes can derail a transaction. In one case, a seller refused to pay the fees they assumed were the buyer’s responsibility, causing a delay that nearly led to the buyer walking away. The consequence was a forced renegotiation under pressure, risking the entire deal.
We recently purchased a home in Sarasota, FL. We moved from Cleveland, OH so most of our research was done through emails. My husband had contacted Team Renick about 3 years prior and for those 3 years Mike Renick had sent us perspective houses that were for sale that fit our criteria. In 2019 after we retired, we came down to Florida in August for the purchase of our forever home. This is when we met Eric Teoh, part of Team Renick. Upon our meeting he had put together a portfolio of homes for us to look at. Not only is Eric professional but he treated us like family. He picked us up and took us around for a couple of days looking at houses to purchase. In a very short period of time we found exactly what we were looking for. We could not have been happier with the service we received from Eric and Team Renick. Living out of state made things a bit more challenging for us but Eric made it seem effortless. Thank you again to Eric and Mike! They are the best of the best!!
– danddnorman, Zillow Review
Insurance Binding Failures
Insurance binding can fail due to the unique coastal risks in Sarasota, such as hurricane exposure. The Office of Insurance Regulation oversees these policies, and failure to secure insurance can halt a deal. I once saw a deal collapse three days before closing because the insurance binder was denied due to a last-minute underwriting issue. The buyer lost their deposit because they couldn’t meet the lender’s insurance requirement.
Where It Usually Blows Up
Escrow fee disputes often surface during the closing stage, a critical point when all parties expect to finalize the deal. This timing is brutal because any delay can lead to expired rate locks, additional costs, or even the loss of the property if the seller decides to walk. Buyers or sellers who discover these issues late may face unexpected financial burdens or lose their earnest money deposit, putting the entire transaction at risk.
When we had the opportunity to purchase another condominium at Seaplace we called to arrange to meet with Michael J. Renick & Co. to discuss the sale of our unit on our coming visit to Longboat Key. Within days Renick associate, Eric Teoh had shown the unit and we had an offer. All of this happened before we arrived, signed a contract or even established a price. We were new to the process and their assistance in walking us through what needed to be done was invaluable. He also assisted with the purchase of the new unit even though it was a private sale. Everything went smoothly and within two months the sale was complete
– jwwicker, Zillow Review
What I Tell Clients Before They Risk Money
- Clarify Escrow Fees: Ensure the purchase contract explicitly states who is responsible for escrow fees.
- Insurance Readiness: Secure an insurance binder early to avoid last-minute denials.
- Inspect Thoroughly: Use the inspection period to uncover any potential deal-breakers.
- Understand Appraisal Risks: Be prepared for appraisal gaps that could affect financing.
- Review Association Rules: Check HOA or condo approval processes to prevent delays.
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 escrow fees aren’t agreed upon?
If escrow fees aren’t agreed upon, it can lead to disputes at closing. This can cause delays or even result in the deal falling through if neither party is willing to compromise.
Can insurance issues really stop a closing?
Yes, insurance issues can halt a closing. If a buyer cannot secure an insurance binder, the lender may refuse to fund the loan, leading to a failed transaction.
What To Do Right Now
Review your purchase contract to ensure all financial responsibilities, including escrow fees, are clearly outlined.
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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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