Who Pays HOA Fees in Siesta Key?
Who Really Pays the Price for HOA Fees in Siesta Key?
Quick Answer
You risk losing thousands if you don’t understand who pays HOA fees in Siesta Key. Florida Statutes 718 and 720 govern these fees, and they are non-negotiable obligations for property owners. For example, Siesta Sands Beach Club charges around $600 per month, and failing to budget for this can derail your finances. Discovering this 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
When HOA fees aren’t understood, deals can crumble. The governing documents of the HOA, often overlooked, dictate these fees and their increases. I’ve seen buyers at the closing table shocked by unexpected assessments, forcing them to either come up with extra cash or walk away, losing their deposit. The Florida Department of Business and Professional Regulation (DBPR) oversees these associations, but if you don’t review the association’s financial health and reserves, you’re gambling with your investment.
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 is another deal-breaker. Coastal properties in Siesta Key face unique challenges due to hurricane exposure, and insurance costs can skyrocket. I’ve witnessed insurance binders denied just days before closing because the property didn’t meet the insurer’s requirements. This can lead to significant delays or even a complete collapse of the deal if alternative coverage can’t be secured in time.
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 all parties are ready to finalize, and any hiccup can lead to significant financial losses. Buyers or sellers who discover these issues late often face closing delays, increased costs, or the need to renegotiate terms, which can result in losing the property or forfeiting deposits.
What I Tell Clients Before They Risk Money
- Review HOA Documents: Always request and review the HOA’s financial statements and governing documents before making an offer.
- Verify Insurance Requirements: Confirm with your insurer that the property meets all requirements for binding coverage.
- Understand Special Assessments: Ask about any pending or recent special assessments that could affect your costs.
- Check Reserve Funds: Ensure the HOA has adequate reserves to avoid unexpected fees for major repairs.
- Consult the DBPR: Check the DBPR for any complaints or issues with the HOA that could impact your investment.
We bought two units from Mike and Eric and sold one over the last four years. One thing that made life much easier for us was how they understood our feelings and situation regarding pricing. They knew where the other party was coming from, which made the process faster without all the back and forth. Once the contract was signed, their staff was great; I literally had to do nothing other than decide what color pen to sign with. Eric wasn’t just out to make a sale; he was tremendously helpful to us. Every week, he checks our apartment without asking for money, and when we had a storm, he even moved our car to safety. It wasn’t just about the sale; he became a friend and helped us out after the sale, just because we don’t live here.
– Mindy and Joe, Customer 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
What happens if I can’t pay the HOA fees?
Failure to pay HOA fees can result in serious consequences, including liens on your property or even foreclosure. Florida Statute 720.3085 allows associations to place a lien on your property for unpaid assessments, which can escalate quickly if not addressed. It’s crucial to budget for these fees and understand the financial obligations before purchasing.
How do I know if the HOA is financially stable?
You should request the HOA’s financial statements and reserve study. These documents will provide insight into the association’s financial health and its ability to cover future repairs without imposing special assessments. A poorly funded HOA can lead to unexpected costs, which can significantly impact your financial planning.
What To Do Right Now
Request the HOA’s estoppel certificate before making an offer. This document will outline the current status of fees, assessments, and any pending litigation that could affect your investment.
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