How to Fix Contingency Issues in Nokomis
Contingency Issues in Nokomis Can Cost You Big
Quick Answer
To fix contingency issues in Nokomis, you must address them early in the transaction process. Florida’s real estate transactions are governed by statutes such as Florida Statute 718 for condos and 720 for HOAs, which can create hurdles if not navigated properly. For instance, failing to secure HOA approval can delay closing by weeks, risking your deposit. If these issues are discovered late, you may face contract termination or be forced to renegotiate under unfavorable terms. 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
HOA and Condo Approval Bottlenecks
The problem often arises when buyers underestimate the time needed for HOA or condo association approvals. Governed by Florida Statute 718, these approvals can take weeks, and any delay can push back the closing date. In one deal, a buyer’s failure to secure timely condo approval resulted in a two-week delay, causing the seller to demand additional compensation. The consequence was a forced renegotiation that cost the buyer an extra $5,000.
My home buying experience with Mike and Eric continues to exceed my expectations, even long after the sale. Not only did they deal with me honestly and efficiently for the sale itself, their service didn’t stop there. They continue to keep an eye on my condo when I’m not there and have even referred rental clients to me, which has worked out very well! This is well beyond the norm in the real estate industry. Good, old fashioned service. I will be calling them again for my next purchase, for sure!
– ppugielli, Zillow Review
Insurance Binding Failures
Insurance binding is a critical step that can derail a deal if not handled correctly. In Florida, the Office of Insurance Regulation oversees this, and coastal properties in Nokomis often face higher scrutiny. I once saw a deal fall apart three days before closing because the insurance binder was denied due to outdated wind mitigation reports. The buyer lost their deposit and had to start the search all over again.
Where It Usually Blows Up
Contingency issues typically surface during the final stages of the transaction, often during the underwriting process or just before closing. This timing is brutal because all parties are financially and emotionally invested, and any delay can lead to significant financial losses. Buyers risk losing their earnest money deposits, which can be tens of thousands of dollars, and sellers may face extended carrying costs or have to re-list the property.
What I Tell Clients Before They Risk Money
- Verify HOA Approval Timelines: Always check with the HOA or condo association for their approval process timelines before making an offer.
- Secure Insurance Early: Obtain an insurance binder as soon as possible to avoid last-minute denials.
- Review Inspection Reports Thoroughly: Ensure all inspection reports are current and address any issues immediately.
- Confirm Lender Conditions: Double-check that all lender conditions are met well before closing.
- Request Estoppel Certificates: Obtain these from the HOA to confirm there are no outstanding dues or special assessments.
After looking at multiple possibilities for a vacation home in Florida I decided on Longboat Key. I had the very fortunate opportunity to work with Mike Renick and his team in finding the right place for myself and my family. Ihad heard positive things about Mike, but the services and supports he and his assistant, Eric, and the other team members offered went above and beyond even my expectations. They were available at all times to answer questions, research properties, and to offer numerous recommendations for all the services needed to make a purchase and to close quickly and efficiently. Whatever was needed, from e-signing forms to videoing the interior of a condo, was provided, so even when you were geographically far away, everything that needed to be done could be accomplished as if you were actually there. Emails, texts, and phone calls were returned quickly and you were always kept in the loop if any issues came up. I would enthusiastically recommend Mike Renick and his team for anyone looking for a real estate team. They are the ultimate professionals who do everything in their power to ensure that your needs are met quickly and effectively. Your satisfaction is their number one priority. I truly made the right choice when I picked them!!
– boscom, 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.
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Questions Clients Actually Ask
What happens if I don’t get HOA approval in time?
If you don’t secure HOA approval before the closing date, you risk delaying the transaction, which can lead to penalties or even losing your deposit. It’s crucial to start this process early and stay in constant communication with the HOA.
Can insurance issues really stop a deal?
Yes, insurance issues can absolutely stop a deal. If your property is in a high-risk area like Nokomis, the Office of Insurance Regulation may require additional documentation, and failure to provide this can result in a denied binder, halting the transaction.
What To Do Right Now
Request an estoppel certificate from the HOA or condo association to ensure there are no outstanding dues or special assessments that could affect your transaction.
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