HOA Fees Hidden in Sarasota

Hidden HOA Fees in Sarasota: A Real Risk

What Actually Breaks Deals in Florida

Hidden Special Assessments

The problem often arises when special assessments are not disclosed upfront. Florida Statute 720 requires associations to provide an estoppel certificate, which details any outstanding fees or assessments. In one deal, a buyer found out about a $10,000 special assessment only after the estoppel was reviewed, leading to a last-minute scramble to renegotiate terms. The consequence was a delayed closing and increased buyer costs.

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

Insurance Binding Issues

Insurance can be a deal-breaker, especially on barrier islands like Longboat Key. The Office of Insurance Regulation oversees this, and if insurance cannot be bound due to undisclosed HOA issues, the deal can fall apart. In one case, a buyer’s insurance was denied days before closing because the HOA had unresolved claims, forcing the buyer to either find costly alternative coverage or walk away, losing their deposit.

Where It Usually Blows Up

Hidden HOA fees typically surface during the final stages of the transaction, often when reviewing the estoppel certificate. This timing is brutal because buyers have already invested time and money into inspections and appraisals, and sellers are often counting on the sale to close. When these fees are discovered late, buyers might face unexpected financial burdens or have to renegotiate terms, risking their deposit and potentially losing the property.

What I Tell Clients Before They Risk Money

1. Review the Estoppel Early: Request the estoppel certificate as soon as possible to uncover any hidden fees.
2. Understand Special Assessments: Ask about any planned or ongoing special assessments before making an offer.
3. Insurance Readiness: Ensure your insurance can be bound without issues related to the HOA.
4. Budget for the Unexpected: Have a financial cushion for unexpected fees or assessments.
5. Consult an Expert: Work with a local real estate professional who knows the intricacies of Sarasota‘s market.

Questions Clients Actually Ask

What is an estoppel certificate?

An estoppel certificate is a document provided by the HOA that outlines any outstanding fees, assessments, or obligations associated with a property. It is crucial for verifying the financial standing of the property within the association and can prevent unexpected costs.

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

Can hidden HOA fees affect my mortgage approval?

Yes, hidden fees can impact your debt-to-income ratio, potentially affecting mortgage approval. Lenders may require all fees to be disclosed and accounted for before finalizing the loan.

What To Do Right Now

Request a copy of the estoppel certificate early in the buying process to identify any hidden HOA fees or assessments.

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To learn more about Michael and Team Renick:

https://www.teamrenick.com/

To search for local properties:

https://search.teamrenick.com/

To read more about what Michael shares with his clients:

https://blog.teamrenick.com/