Who Pays HOA Fees in Siesta Key?
Who Pays HOA Fees in Siesta Key? The Real Financial Risk
Quick Answer
In Siesta Key, the responsibility for paying HOA fees typically falls on the property owner. According to Florida Statute 720, these fees are crucial for maintaining community amenities and services, and failing to pay them can lead to liens or foreclosure. For instance, I once saw a deal where the buyer discovered unpaid HOA fees during the estoppel process, which nearly derailed the closing. If such issues are discovered late, it 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
Unpaid HOA Fees and Liens
Florida Statute 720 mandates that HOA fees must be current, or the association can place a lien on the property. During one transaction, the estoppel certificate revealed a significant unpaid balance, causing the lender to suspend the file until resolved. This led to a two-week closing delay and additional legal fees for the buyer.
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
Insurance Binding Failures
Barrier-island properties like those in Siesta Key face unique insurance challenges. In one case, an insurance binder was denied just days before closing due to the property’s age and lack of recent inspections. The buyer had to secure a costly alternative policy or risk losing their deposit.
Where It Usually Blows Up
The estoppel process is where unpaid HOA fees often surface, typically during the final stages of underwriting. This timing is brutal because buyers have already invested time and money into the transaction, and discovering a financial obligation like unpaid fees can jeopardize the entire deal. When this happens late, buyers may face unexpected costs or lose their earnest money if the deal falls through.
What I Tell Clients Before They Risk Money
- Verify HOA Fees Early: Request an estoppel certificate as soon as possible to uncover any unpaid fees.
- Insurance Readiness: Secure an insurance binder well before closing to avoid last-minute denials.
- Inspect Thoroughly: Conduct a comprehensive inspection to identify any issues that could affect insurance or financing.
- Understand Statutes: Familiarize yourself with Florida Statute 720 to know your rights and obligations regarding HOA fees.
- Prepare for Delays: Be ready for potential closing delays due to unforeseen financial or legal issues.
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 HOA fees aren’t paid?
Unpaid HOA fees can result in a lien on the property, as governed by Florida Statute 720. This can lead to foreclosure if not resolved, severely impacting your financial standing and ability to sell the property.
How can I avoid insurance issues in Siesta Key?
To avoid insurance issues, ensure your property meets the latest inspection standards and secure an insurance binder early. Coastal properties often face stricter underwriting requirements, so addressing these proactively can prevent last-minute surprises.
Mike and Eric keeped an eye on my condo at Seaplace while I was away for the summer. I was so relieved to find these two agreed to do it. The nice fact was that their service is free. As Mike explained it, this is all part of their business model;performing services above and beyond for clients. You just don’t find this type of client service anywhere anymore. Always around when we needed them.
– N6194H, Zillow Review
What To Do Right Now
Request an estoppel certificate immediately when considering a property in Siesta Key to identify any outstanding HOA fees or liens.
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