Who Pays Closing Costs in Sarasota?
Who Pays Closing Costs in Sarasota? The Risks You Can’t Ignore
Quick Answer
In Sarasota, closing costs are typically negotiated between the buyer and the seller, but local customs often see the buyer shouldering the majority. Florida Statute 718 and other regulations can heavily influence these costs, especially in condo transactions where estoppel fees and association dues come into play. For example, I’ve seen a deal where unexpected condo questionnaire fees nearly derailed the closing. Discovering these costs late can lead to last-minute scrambling for funds or even losing the deal. 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 Fees and Estoppel Certificates
The problem arises when buyers are hit with unexpected fees from condo associations, governed by Florida Statute 718. In one deal, the estoppel certificate revealed unpaid dues that the seller had to cover, but this wasn’t discovered until days before closing. The consequence was a delayed closing and a stressed buyer who nearly walked away.
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
Insurance Binding Failures
Insurance issues, especially on barrier islands, can break deals when buyers can’t secure a policy in time. I’ve seen deals where the Office of Insurance Regulation‘s requirements led to a binding denial just days before closing. The result was either a renegotiation of terms or the buyer having to bring additional cash to the table.
Where It Usually Blows Up
Closing costs often become a problem during the final walkthrough or just before closing when all financials are reviewed. This timing is brutal because both parties have invested significant time and resources, and any surprises can lead to deal termination. Buyers or sellers who discover unexpected costs at this stage can face financial losses, contract breaches, or even legal disputes.
What I Tell Clients Before They Risk Money
- Understand Local Customs: Know that in Sarasota, buyers often pay more in closing costs, but this can be negotiated.
- Review Estoppel Fees Early: Request estoppel certificates well in advance to avoid last-minute surprises.
- Secure Insurance Early: Bind your insurance policy as soon as possible to prevent last-minute denials.
- Check Association Approvals: Ensure all condo or HOA approvals are in place to avoid delays.
- Prepare for Appraisal Gaps: Be ready to cover any shortfall between the appraisal and purchase price.
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 are estoppel fees, and why do they matter?
Estoppel fees are charges from condo associations for providing a certificate that details any outstanding dues or violations. These fees can be significant and are governed by Florida Statute 718, impacting your closing costs if not accounted for early.
Can insurance issues really stop a deal?
Yes, especially in Sarasota’s coastal areas. I’ve seen insurance denials due to underwriting changes that forced buyers to either renegotiate terms or bring unexpected cash to closing.
When we had the opportunity to purchase another condominium at Seaplace we called to arrange to meet with Michael J. Renick & Co. to discuss the sale of our unit on our coming visit to Longboat Key. Within days Renick associate, Eric Teoh had shown the unit and we had an offer. All of this happened before we arrived, signed a contract or even established a price. We were new to the process and their assistance in walking us through what needed to be done was invaluable. He also assisted with the purchase of the new unit even though it was a private sale. Everything went smoothly and within two months the sale was complete
– jwwicker, Zillow Review
What To Do Right Now
Request a detailed closing cost estimate from your real estate agent or attorney early in the process to avoid surprises.
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Michael Renick · Licensed Florida Real Estate Broker
License #BK3241900 · Verify on Florida DBPR
Mangrove Realty Associates Inc / Team Renick · Serving Sarasota & Manatee Counties since 2011
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