Who Covers Title Fees in Lido Key?
Who Pays Title Fees in Lido Key? The Real Risk
Quick Answer
In Lido Key, the party responsible for covering title fees is typically negotiable, but often falls on the buyer. This is influenced by Florida’s real estate practices and local customs, where the buyer usually pays for the owner’s title insurance policy. For example, in a $500,000 transaction, title fees could range from $1,000 to $3,000. Discovering who pays these fees late in the process can lead to unexpected cash requirements at closing. 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
Title Insurance Surprises
The problem often arises when buyers assume title fees are covered by the seller, only to find out during underwriting that they are responsible. Florida Statute 627 governs title insurance, and failing to account for these fees can lead to significant financial strain. In one case, a buyer was blindsided by a $2,500 title insurance fee just days before closing, forcing them to scramble for additional funds. The consequence was a delayed closing and a potential loss of the property.
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
Another common issue is the delay in HOA approvals, which can derail a deal at the last minute. The HOA’s statutory process requires thorough review and can take longer than anticipated, especially with older condo stocks in Lido Key. I once witnessed a deal collapse because the HOA approval came back with conditions that the buyer couldn’t meet, resulting in a terminated contract and lost deposit. Understanding these timelines is crucial to avoid such pitfalls.
Where It Usually Blows Up
Title fee issues typically surface during the closing stage, a time when both buyers and sellers are financially and emotionally invested. This timing is brutal because any unexpected costs can jeopardize the buyer’s ability to close, leading to potential loss of earnest money or even the entire deal. When these issues are discovered late, buyers may face a choice between bringing unexpected cash to the table or walking away from the transaction altogether.
What I Tell Clients Before They Risk Money
- Understand Title Fee Obligations: Review who typically pays title fees in your contract and confirm it early.
- Verify HOA Approval Timelines: Check with the HOA for their approval process and expected timeline.
- Budget for Unexpected Costs: Set aside extra funds to cover potential last-minute expenses.
- Review Florida Statute 627: Familiarize yourself with the regulations governing title insurance in Florida.
- Confirm Lender Requirements: Ensure all lender conditions are met well before closing to avoid surprises.
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
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 I can’t cover unexpected title fees?
If you can’t cover unexpected title fees, you risk delaying the closing or losing your earnest money deposit. This can also lead to a renegotiation of the contract terms, which might not be favorable to you. It’s crucial to have a financial cushion to address such surprises.
How do HOA approvals affect my closing?
HOA approvals can significantly impact your closing timeline. If the approval process is delayed or if the HOA imposes unexpected conditions, it can lead to a postponed closing or even a canceled deal. Understanding the HOA’s statutory process and timeline is essential to avoid these issues.
What To Do Right Now
Request a preliminary title report early in the buying process to understand potential fees and obligations. This report will outline any liens, encumbrances, or title issues that could affect your closing.
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