How to Avoid HOA Fees in Siesta Key
Avoiding HOA Fees in Siesta Key: A Risky Proposition
Quick Answer
Avoiding HOA fees in Siesta Key is nearly impossible if you’re buying into a community governed by an HOA. Florida Statute 720 governs homeowners’ associations, mandating fees for maintenance and community services, which are non-negotiable. For example, I once had a client who tried to sidestep these fees by negotiating directly with the seller, only to find out during the estoppel process that the fees were mandatory. Discovering this late can lead to unexpected financial obligations and potential legal issues. 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 is a formal document that outlines the current status of HOA fees and any outstanding obligations. I once had a deal where the buyer was unaware of a special assessment until the estoppel came back, revealing thousands in additional fees. This discovery forced a renegotiation, delaying the closing and putting the buyer‘s deposit at risk.
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 Siesta Key face unique insurance challenges. During underwriting, I’ve seen insurance binders denied due to outdated building codes, leading to last-minute scrambling for coverage. This can result in closing delays and increased costs, as buyers are forced to secure more expensive policies to meet lender requirements.
Where It Usually Blows Up
The issue of HOA fees often surfaces during the estoppel certificate review, a critical stage in the transaction. This timing is brutal because it occurs just before closing, when buyers have already invested significant time and money. If unexpected fees or assessments are discovered, buyers may face financial strain or even lose their earnest money if they cannot proceed.
What I Tell Clients Before They Risk Money
- Understand HOA Obligations: Always review the HOA’s governing documents and fee structures before making an offer.
- Request an Estoppel Early: Obtain the estoppel certificate as soon as possible to identify any hidden fees or assessments.
- Insurance Preparedness: Ensure your property meets current building codes to avoid insurance binding issues.
- Budget for Assessments: Anticipate potential special assessments, especially in older communities.
- Consult a Real Estate Attorney: Legal advice can help navigate complex HOA rules and protect your interests.
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
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
Can I negotiate HOA fees?
No, HOA fees are typically non-negotiable as they are set by the association to cover community expenses and are governed by Florida Statute 720.
What happens if I refuse to pay HOA fees?
Refusing to pay can lead to liens on your property, legal action, and potential foreclosure, as the HOA has the authority to enforce payment through legal means.
How can I find out about upcoming assessments?
Requesting an estoppel certificate and reviewing meeting minutes can provide insight into potential assessments, helping you budget accordingly.
What To Do Right Now
Request an estoppel certificate early in the buying process to uncover any hidden fees or assessments that could impact your financial planning.
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