Is Escrow Worth It in Palmer Ranch?
Is Escrow Worth the Risk in Palmer Ranch?
Quick Answer
Yes, escrow is worth it in Palmer Ranch, but it comes with risks. Florida Statute 718 governs condo associations, which can delay or derail deals if not properly managed. For instance, a buyer might lose a $10,000 deposit if the condo questionnaire reveals unexpected assessments. Discovering these issues late can lead to forced renegotiations or even contract termination. 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
Condo Association Approvals
The problem arises when condo associations delay approvals or reveal unexpected assessments. Governed by Florida Statute 718, these associations can impose financial burdens that buyers are unaware of until the estoppel or condo questionnaire is reviewed. In one deal, a buyer discovered a pending $5,000 assessment just days before closing, leading to a last-minute scramble to renegotiate the terms. The consequence was a delayed closing and additional legal fees.
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
Insurance Binding Failures
Insurance issues often surface when buyers attempt to bind coverage late in the process. The Florida Office of Insurance Regulation oversees this, but local nuances, like barrier-island insurance behavior, can complicate matters. In a recent transaction, an insurance binder was denied three days before closing due to the property’s proximity to the coast, forcing the buyer to either find alternative coverage quickly or risk losing the property. The result was a significant increase in insurance premiums and a stressful rush to meet closing deadlines.
Where It Usually Blows Up
The transaction stage where these issues typically surface is during the final walkthrough or just before closing. This timing is brutal because buyers have already invested time and money, and any delays or renegotiations can jeopardize the entire deal. When problems like unexpected assessments or insurance denials are discovered late, buyers risk losing their deposits, face increased costs, and endure significant stress trying to resolve issues under tight deadlines.
What I Tell Clients Before They Risk Money
- Review Condo Documents Early: Obtain and review all condo documents, including estoppels and questionnaires, as soon as possible.
- Secure Insurance Quotes in Advance: Get insurance quotes early to avoid last-minute surprises, especially for properties near the coast.
- Understand Assessment Risks: Ask about any pending or future assessments with the condo association to avoid unexpected costs.
- Verify Lender Conditions: Ensure all lender conditions are met well before closing to prevent funding delays.
- Check County Records: Pull county records for any code violations or permit issues that could affect the property.
Mike & Eric have been completely amazing through our entire condo buying process! From the very beginning Mike was attentive and quick to respond to our needs. We were in Longboat Key for a short weekend and the listing for a condo we were interested in came up on a Sunday and we were leaving Monday. Mike promptly returned our call and set up an appointment to see the condo that same day. We made an offer and Mike and Eric walked us through the process every step of the way. Of all the homes we have bought this was truly the easiest journey through home buying that we have ever had. We have recently closed and Mike and Eric continue to assist us by keeping an eye on our condo as we can’t be there all of the time. They have recommended contacts in the community to help us through the move in transition as this can be very tricky with a second home long distance. We cannot say enough about their professionalism, expertise, efficiency and kindness. We would highly recommend Team Renick to anyone for their Real Estate needs.
– user865466, 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
What happens if the condo association delays approval?
If the condo association delays approval, it can push back the closing date, leading to potential financial penalties or even the loss of the property. This is governed by Florida Statute 718, which outlines the responsibilities of condo associations but doesn’t always prevent delays.
Can insurance issues really derail a deal?
Yes, insurance issues can derail a deal, especially if coverage is denied or premiums are higher than expected. In Florida, the Office of Insurance Regulation oversees this, but local factors like coastal risks can lead to unexpected denials or increased costs.
What To Do Right Now
Request a copy of the condo association’s estoppel certificate and review it for any pending assessments or financial obligations. This document will provide crucial information about the financial health of the association and any potential liabilities you might inherit.
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