Who Pays Closing Costs in Venice?
Who Pays Closing Costs in Venice? The Real Risks
Quick Answer
In Venice, Florida, both buyers and sellers typically share the responsibility for closing costs, but the specifics can vary based on the contract terms. Florida Statute 689 governs real estate transactions, and understanding this can prevent unexpected expenses. For example, buyers might pay for inspections and loan origination fees, while sellers cover title insurance and documentary stamp taxes, potentially totaling thousands of dollars. Discovering these obligations late can lead to deal 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
Unexpected Insurance Denials
The problem often arises when the insurance binding process fails due to the age or condition of a property, especially in coastal areas like Venice. Florida’s Office of Insurance Regulation oversees these policies, and a last-minute denial can derail a closing. I once saw a deal collapse three days before closing because the insurer refused to bind coverage on a 1970s condo without costly updates. The consequence was a lost deposit and a terminated contract.
We recently purchased a home in Sarasota, FL. We moved from Cleveland, OH so most of our research was done through emails. My husband had contacted Team Renick about 3 years prior and for those 3 years Mike Renick had sent us perspective houses that were for sale that fit our criteria. In 2019 after we retired, we came down to Florida in August for the purchase of our forever home. This is when we met Eric Teoh, part of Team Renick. Upon our meeting he had put together a portfolio of homes for us to look at. Not only is Eric professional but he treated us like family. He picked us up and took us around for a couple of days looking at houses to purchase. In a very short period of time we found exactly what we were looking for. We could not have been happier with the service we received from Eric and Team Renick. Living out of state made things a bit more challenging for us but Eric made it seem effortless. Thank you again to Eric and Mike! They are the best of the best!!
– danddnorman, Zillow Review
Condo Association Approvals
Condo questionnaires and estoppel certificates are critical in Venice, where many properties fall under HOA governance. The Florida DBPR regulates these associations, and delays in approval can stall a deal. In one case, a buyer was forced to walk away after a condo association took too long to approve their application, resulting in a forfeited deposit and additional legal fees.
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 both parties have already invested significant time and resources, and any delay or failure can mean losing earnest money or having to renegotiate terms under pressure. Buyers and sellers can lose thousands of dollars, not to mention the opportunity cost of missing out on other potential deals.
What I Tell Clients Before They Risk Money
- Review the Contract Terms: Ensure you understand who is responsible for each closing cost item.
- Verify Insurance Binding: Confirm with your insurer that the property can be covered without additional requirements.
- Check Condo Association Rules: Obtain and review the condo questionnaire and estoppel certificate early.
- Inspect Thoroughly: Conduct a detailed inspection and address any issues that could affect insurance or financing.
- Confirm Lender Conditions: Make sure all lender requirements are met well before closing to avoid last-minute surprises.
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
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 the typical closing costs for buyers in Venice?
Buyers in Venice can expect to pay for inspections, loan origination fees, and sometimes a portion of the title insurance. These costs can add up to several thousand dollars, depending on the property’s price and the lender’s requirements.
Can sellers negotiate their closing costs?
Yes, sellers can negotiate their closing costs, often covering title insurance and documentary stamp taxes. However, failing to agree on these terms early can lead to forced renegotiations or even a failed deal if discovered too late.
What To Do Right Now
Request a detailed closing cost estimate from your real estate agent or attorney to understand your financial obligations before signing any contract. This document will outline who pays for what and help you avoid unexpected expenses at the closing table.
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