How to Avoid Liens in St. Armands

Avoiding Liens in St. Armands: Real Risks and Real Money

What Actually Breaks Deals in Florida

Unresolved Liens and Florida Statute 713

Liens can arise from unpaid contractor bills or unresolved disputes, governed by Florida Statute 713. In one instance, a buyer discovered a lien during the title search, which was not disclosed initially. This oversight forced the buyer to renegotiate terms, delaying the closing and risking their earnest money deposit.

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

Association Approvals and Condo Questionnaires

In St. Armands, many properties fall under condo associations, which require detailed questionnaires and approvals. During one transaction, a buyer faced delays because the association’s approval process was bottlenecked, leading to missed deadlines and potential contract termination. This can result in the buyer losing their deposit or having to renegotiate under less favorable terms.

Insurance Binding on Barrier Islands

Insurance issues are common due to the coastal location of St. Armands. A deal once fell through when an insurance binder was denied just days before closing due to updated flood zone maps. This denial left the buyer scrambling for coverage, risking the entire transaction and potentially leading to a loss of the property and deposit.

Where It Usually Blows Up

The most critical stage for discovering liens is during the title search and due diligence period. This timing is brutal because it often occurs just before closing, when buyers have already invested significant time and resources. If a lien surfaces late, buyers face the risk of losing their earnest money, incurring additional legal fees, or even having to walk away from the deal entirely.

What I Tell Clients Before They Risk Money

1. Conduct a Thorough Title Search: Ensure a comprehensive title search is conducted to uncover any existing liens.
2. Verify Association Standing: Check with the condo or homeowners association for any pending assessments or disputes.
3. Secure Insurance Early: Begin the insurance binding process early to avoid last-minute denials.
4. Review Florida Statute 713: Familiarize yourself with lien laws to understand potential risks.
5. Consult a Real Estate Attorney: Engage a professional to review all documents and ensure compliance with local regulations.

Purchasing a home can be a time-consuming and stressful venture: visiting prospective homes; identifying the pros and cons of each property; deciding which properties are right for you; final visit at these properties; making an offer (and counteroffer); dealing with the Sellers realtor; reviewing the Agreement For Sale; finding an attorney; finding a home inspection company; and acquiring home and flood insurance. Then the difficult task starts, working with a bank and filling out all the paperwork (Ugh!). Mike and Eric were very helpful throughout the process and kept us informed of our requirements and responsibilities for each deadline.

– bshea20047, Zillow Review

Questions Clients Actually Ask

What is a lien, and how does it affect my property purchase?

A lien is a legal claim against a property due to unpaid debts, governed by Florida Statute 713. If a lien is present, it can prevent the sale from closing until the debt is resolved, potentially costing you time and money.

How can I ensure there are no liens on a property?

Conduct a thorough title search through a reputable title company. This search will reveal any existing liens, allowing you to address them before proceeding with the purchase.

What happens if a lien is discovered after closing?

If a lien is discovered post-closing, you may be responsible for the debt, which can lead to legal battles and financial loss. It’s crucial to resolve any liens before finalizing the purchase to avoid such consequences.

What To Do Right Now

Engage a qualified title company to perform a comprehensive title search on any property you’re considering. This step is crucial to identify and address any potential liens before they become a costly issue.

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To learn more about Michael and Team Renick:

https://www.teamrenick.com/

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https://search.teamrenick.com/

To read more about what Michael shares with his clients:

https://blog.teamrenick.com/