How to Avoid HOA Fees in Longboat Key

Avoiding HOA Fees in Longboat Key Risks Your Deal

What Actually Breaks Deals in Florida

HOA Fee Enforcement

The problem arises when buyers underestimate the binding nature of HOA fees. Florida Statute 720 requires that these fees be paid as part of property ownership. During a transaction, I had a buyer who was shocked to find out that unpaid fees from the previous owner became their responsibility, leading to a significant financial setback. The consequence was a forced renegotiation of the purchase price to cover these unexpected costs.

We recently purchased a condo on LBK. Eric is the reason. We were looking for several years. Eric is extremely knowledgable, professional, patient, kind, and most importantly, honest. As an example, his always gave his honest opinion of the price/value of a property instead of just supporting the list price in order to make a sale.

– Cynthia Tessler, Zillow Review

Estoppel Certificate Surprises

An estoppel certificate can reveal unpaid fees or pending assessments that the buyer must cover. This document, governed by Florida law, is crucial during the closing process. In one instance, a deal nearly collapsed when the estoppel certificate showed thousands in unpaid fees, which the buyer had to settle to proceed. The consequence was a delay in closing and additional out-of-pocket expenses for the buyer.

Where It Usually Blows Up

The transaction stage most vulnerable to HOA fee issues is the closing phase. This timing is brutal because all financial obligations must be settled before the property can legally change hands. When these issues surface late, buyers or sellers face the risk of losing their earnest money deposit, additional legal fees, or even the entire deal falling apart if they cannot meet the financial requirements.

What I Tell Clients Before They Risk Money

1. Understand HOA Obligations: Review all HOA documents thoroughly before making an offer.
2. Request an Estoppel Certificate Early: This can reveal hidden financial obligations tied to the property.
3. Budget for Unexpected Fees: Always have a financial cushion for unforeseen HOA assessments.
4. Consult with a Real Estate Attorney: Legal advice can prevent costly misunderstandings.
5. Negotiate with Knowledge: Use any discovered fees as leverage in negotiations.

Questions Clients Actually Ask

What happens if I refuse to pay HOA fees?

Refusing to pay HOA fees can lead to legal action by the association, including liens on your property, as governed by Florida Statute 720. This can severely impact your credit and ability to sell the property.

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

Can I negotiate HOA fees?

While the fees themselves are typically non-negotiable, you might negotiate who pays them during the sale. However, this requires clear communication and agreement documented in the purchase contract.

What To Do Right Now

Request an estoppel certificate as soon as you consider a property to uncover any hidden financial obligations.

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To learn more about Michael and Team Renick:

https://www.teamrenick.com/

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To read more about what Michael shares with his clients:

https://blog.teamrenick.com/