Closing Costs in Longboat Key
Closing Costs in Longboat Key: The Real Risks
Quick Answer
Closing costs in Longboat Key can be a financial minefield if not properly managed. Florida Statute 718 governs many condo transactions, and unexpected costs can arise from mandatory estoppel certificates or association fees. For example, I’ve seen buyers shocked by a $5,000 estoppel fee just days before closing. Discovering these costs late can lead to deal renegotiations or even cancellations. 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
The Estoppel Certificate Surprise
The estoppel certificate, governed by Florida Statute 718, often reveals hidden fees or outstanding dues that can derail a deal. In one transaction, the estoppel came back with a $3,000 special assessment that the buyer was unaware of. This unexpected cost forced the buyer to renegotiate terms, risking their deposit and delaying closing. Without addressing these fees early, buyers can face significant financial exposure.
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
Barrier-island properties like those in Longboat Key face unique insurance challenges. I’ve seen deals collapse when an insurance binder was denied just days before closing due to coastal risk factors. This denial can lead to a scramble for new coverage, often at a higher cost, or even a complete deal termination. The Office of Insurance Regulation oversees these policies, but the unpredictability of approvals can leave buyers vulnerable.
Where It Usually Blows Up
The final walkthrough is a critical stage where many issues surface. At this point, buyers have limited leverage, and any surprises can lead to costly last-minute negotiations or outright deal failures. If problems like undisclosed assessments or insurance denials emerge here, buyers may lose their deposits or face significant financial penalties to keep the deal alive.
What I Tell Clients Before They Risk Money
- Understand Estoppel Fees: Always request the estoppel certificate early to avoid last-minute surprises.
- Secure Insurance Early: Bind your insurance policy well before closing to prevent unexpected denials.
- Check for Special Assessments: Investigate any pending assessments with the condo association.
- Review Association Rules: Ensure compliance with all HOA or condo regulations to avoid approval delays.
- Prepare for Appraisal Gaps: Be ready to cover any shortfall if the appraisal comes in low.
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 is an estoppel certificate?
An estoppel certificate is a document that outlines any outstanding fees or assessments owed to a condo or homeowners’ association. It’s crucial because it can reveal unexpected costs that might affect your closing budget.
Eric Teoh sets himself apart as a world-class agent. While staying attuned to our “wish list” for the perfect property, he demonstrated vast knowledge of the Longboat Key real estate market, including market valuations and trends. Eric is highly responsive to every inquiry. He works effectively with counter-parties and other professionals, including through negotiations and closing. Eric works tirelessly. He puts his client’s interests first!
– Samuel Isaacson, Google Review
Why is insurance binding a problem on Longboat Key?
Insurance binding can be problematic due to the island’s coastal risks, which may lead to coverage denials or higher premiums. The Office of Insurance Regulation oversees these policies, but the unique location can complicate approvals.
What To Do Right Now
Request an estoppel certificate and insurance binder as soon as your offer is accepted to identify any potential issues early.
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