How to Handle Disclosures in Barrier Islands

The Risk of Mishandling Disclosures in Barrier Islands

What Actually Breaks Deals in Florida

Unforeseen Insurance Issues

Barrier islands come with unique insurance challenges due to their susceptibility to storms and flooding. The Office of Insurance Regulation oversees these policies, and failing to secure appropriate coverage can halt a deal. I once had a client whose insurance binder was denied just days before closing, forcing them to scramble for alternative coverage. This delay nearly cost them their deposit and required renegotiation of the closing terms.

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

Homeowners Association (HOA) approvals can bottleneck transactions, especially in older condo developments. Florida Statute 720 outlines HOA processes, but these can be slow and unpredictable. In one transaction, the HOA delayed approval until the eleventh hour, causing the buyer to miss the closing date. This resulted in additional fees and nearly voided the contract.

Where It Usually Blows Up

Disclosures often become problematic during the inspection period or final walkthrough. This timing is brutal because buyers have already invested time and money, and discovering issues late can mean losing leverage or deposits. If a seller fails to disclose significant defects, the buyer might have to renegotiate terms or even walk away, losing their earnest money in the process.

What I Tell Clients Before They Risk Money

1. Understand Local Insurance Requirements: Barrier islands have unique risks that can affect your insurance options and costs.
2. Verify HOA Rules Early: Delays in HOA approvals can derail your timeline and increase costs.
3. Conduct Thorough Inspections: Uncover potential issues early to avoid costly surprises later.
4. Review Disclosures Carefully: Ensure all relevant information is disclosed to prevent legal and financial repercussions.
5. Prepare for Renegotiations: Be ready to renegotiate terms if new information arises late in the process.

When my husband Mike and I bought our condo at Seaplace212 in 2018, we were fortunate that we had the Renick Team on our side. Eric & Mike are very Professional and honest with full disclosure. I am a licensed Real Estate agent in Florida. I feel comfortable referring my clients to Eric and Mike. I know that they will receive competent representation.

– Marge Nuzzo, Google Review

Questions Clients Actually Ask

What happens if insurance is denied before closing?

If insurance is denied, it can delay the closing and put your deposit at risk. The Office of Insurance Regulation can provide guidance, but securing alternative coverage quickly is crucial.

How do HOA delays affect my transaction?

HOA delays can push back your closing date, leading to additional costs and potentially voiding your contract if deadlines are missed. Florida Statute 720 governs these processes, so understanding them is essential.

What To Do Right Now

Review all disclosure documents with a fine-tooth comb and consult with a real estate attorney to ensure compliance with Florida Statute 718 and other relevant regulations.

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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/