Who Pays Closing Fees in Venice?
Who Pays Closing Fees in Venice? The Real Risks
Quick Answer
In Venice, Florida, closing fees are typically negotiated between the buyer and seller, but local customs often see the buyer shouldering the majority. The Florida Statutes, particularly Florida Statute 718, can influence these negotiations, especially in condo transactions where association fees and estoppel certificates come into play. For example, I’ve seen a deal where unexpected estoppel fees nearly derailed the closing. Discovering these fees late can lead to rushed 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 Estoppel Fees
The problem often arises when the estoppel certificate reveals unexpected fees or assessments. Governed by Florida Statute 718, these certificates are crucial in condo transactions. I once had a deal where the estoppel came back with a hefty special assessment that the buyer hadn’t anticipated, leading to a last-minute scramble to renegotiate terms. The consequence was a delayed closing and increased buyer costs.
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 can be a deal-breaker, especially in coastal areas like Venice. The Office of Insurance Regulation oversees these policies, but binding can fail if issues are discovered late. During underwriting, I’ve seen insurance binders denied due to unreported roof damage, forcing the buyer to either pay for repairs upfront or risk losing the property. This can lead to significant out-of-pocket expenses or even losing the deposit.
Where It Usually Blows Up
The transaction stage most vulnerable to these issues is the final walkthrough and closing. This timing is brutal because all parties are committed, and any surprise can lead to financial loss or deal collapse. Buyers or sellers can lose deposits, incur additional costs, or face legal penalties when these issues surface late in the process.
What I Tell Clients Before They Risk Money
- Understand Estoppel Fees: Always review the estoppel certificate early to avoid surprise assessments.
- Secure Insurance Early: Bind your insurance policy well before closing to prevent last-minute denials.
- Inspect Thoroughly: Conduct a detailed inspection to uncover potential deal-breaking issues.
- Negotiate Closing Costs: Clearly outline who pays what in the contract to avoid disputes.
- Prepare for Appraisal Gaps: Be ready to renegotiate if the appraisal comes in lower than expected.
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 estoppel reveals unexpected fees?
If the estoppel certificate reveals unexpected fees, it can lead to a renegotiation of the contract terms. This is governed by Florida Statute 718, and failing to address it early can delay closing or even result in contract termination.
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
Can insurance issues really stop a closing?
Yes, insurance issues can halt a closing if the policy cannot be bound due to undisclosed property conditions. This can lead to the buyer needing to cover repairs or risk losing their deposit.
What To Do Right Now
Review your contract and ensure all closing costs and responsibilities are clearly outlined. This proactive step can prevent disputes and financial surprises at the closing table.
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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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