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Named Storms Can Halt a Real Estate Closing

By Sandy Shores FL Realtor®, Melbourne Real Estate

Real Estate Broker/Owner with M & M Realty of Brevard Inc. BK629999

August 31, 2010 03:02 AM

Named Storms Can Halt A Real Estate Closing by Sandy Shores

It's Hurricane season again, and it's time for us to keep our eyes and ears open on what's brewing in the Tropics. It's been quite busy out there lately. Currently the National Hurricane Center is indicating that there are 2 storms in the Tropics, Earl and Fiona.

Hurricane Season runs from June 1 to November 30. The peak of the season usually comes sometime in August and lasts through October.

Tropical Storms can wreak havoc on real estate closings. A named storm within a specific demographic of the state of Florida can bring the closing on your new home to a screeching halt. Insurance companies will not write new policies on homes when a named storm is headed our direction.

In 2004, when Brevard County FL was hit with Hurricane Frances and Jeanne, which came just a couple of weeks apart, real estate closings were delayed for weeks. When Frances left, Jeanne was right behind and some companies would not issue new policies.

The majority of insurance policies are paid for on the day of a real estate closing. If a homebuyer cannot get insurance, then the mortgage company refuses to do the loan on an uninsured piece of property. This could prove to be an incredibly difficult situation for all parties involved.

During this time of year, often some insurance companies will allow a homebuyer to bind their policy ahead of time. They just request that they be paid the full premium amount ahead of time and the company will issue a binder for the insurance for the date of the closing. This way buyers are not held up on their closing during a busy Tropical Storm season.

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Aaron Seekford

Arlington Realty, Inc. - Arlington, VA

Ranked Top 1% Nationwide 703-836-6116

Hurricanes truly do bring EVERYTHING to a halt. Hopefully this season won't be too harsh for you folks down in FL. I'll be thinking about you and hope you're able to close lots of sales hurricane-free!

Aug 31, 2010 03:04 AM

Sun City Grand Homes; Surprise AZ Real Estate and Homes,Josee Plant Long Realty West Valley

Long Realty West Valley - Surprise, AZ

Arizona Retirement Communities Specialist

Sandy-great post, I had no idea that insurance companies could stop an escrow. I learn something new every day from Activerain through posts like yours.

Ritu Desai 703-625-4949

Samson Properties - Chantilly, VA

Northern Virginia,Washington DC & Maryland Realtor

Sandy, I agree with Josee I did not know that closing in parts of country can run into storm and destroy the transaction. Great point. Added for suggest...let everyone be aware about this!

Aug 31, 2010 03:10 AM

Michael DeGel

Exit Island & Beach Realty - Cocoa, FL

Sandy,

Yesterday Sam Champion from ABC's Good Morning America was doing a live feed from Cocoa Beach. The one segment was about the waves expected from the hurricanes being out in the Atlantic and his second segment was with Brevard County Lifeguards and talking about rip currents.

Aug 31, 2010 03:13 AM

Rob Arnold

Sand Dollar Realty Group, Inc. - Altamonte Springs, FL

Metro Orlando Full Service - Investor Friendly & F

Boy do I remember 2004. It stopped our real estate market here in its tracks. Seemed like half the houses got pulled off the market once Charley blasted through this place. Then as soon as they started getting fixed, here comes another. "Hurricane fatigue" became household words for a few months.

Aug 31, 2010 03:31 AM

Paul S. Henderson, REALTOR®, CRS

Fathom Realty Washington LLC - Tacoma, WA

South Puget Sound Washington Agent/Broker!

I love the area but I don't think I could take the storms every year!
I'm glad Monday is over, aren't you Sandy?
Paul

Aug 31, 2010 04:17 AM

Gary L. Waters Broker Associate, Bucci Realty

Bucci Realty, Inc. - Melbourne, FL

Eighteen Years Experience in Brevard County

They are a pain, especially if you don't have a binder and a storm is active. Good advice for all buyers. Another good piece of advice, if a storms does come in the area, consider another inspection!

Aug 31, 2010 04:35 AM

Sandy Shores FL Realtor®, Melbourne Real Estate

M & M Realty of Brevard Inc. - Melbourne, FL

Brevard County Real Estate, Florida's Space Coast

Aaron, Thanks for the well wishes. Over the last several years we have been quite fortunate - hurricane free. And I've been here since 1975 and we have seen very little activity over the years.

Michael, They are really keeping their eyes and ears open on these out in the tropics. Did you hear about the surfer lost on Satellite Beach? What a terrible tragedy! We don't hear that much in the surfing world.

Rob, That's right - your area was hit with Charley. We did have talk of hurricanes for along time. And houses did get pulled off the market. It was a tough time around here for awhile.

Paul, We do live in a beautiful area. Luckily, we don't get the storms every year. Otherwise, I think I would be like you - I might have to reconsider being here. Although, we do see the threat of storms though.

Gary, I know what you mean - unfortunately been there and done that in the past - but it hasn't happened again - thank goodness - now we know to prepare ahead. That's a GREAT footnote - get an inspection after a hurricane if you are under contract - remember when the appraisers where having to go back out to properties after Frances and Jeanne to check for damage before closings?

Aug 31, 2010 05:57 AM

Bruce Walter

Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Hi Sandy, this was a very interesting and informative post; not being anywhere near hurricane central this post is great information especially for any snowbirds coming down to buy early before winter!

Aug 31, 2010 06:06 AM

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

Each year I watch in amazement as storms born on the West Coast of Africa, find their way and develop as they come across the Atlantic, and then ultimately use the East Coast or the Gulf of Mexico as a Bowling Alley. I have friends in Sarasota, Florida, that I always worry about!

Aug 31, 2010 06:56 AM

Kevin J. May

Florida Supreme Realty - Hobe Sound, FL

Serving the Treasure & Paradise Coasts of Florida

I'm keeping a watchful eye on East Coast surf webcams. Sebastion, here I come!

Aug 31, 2010 07:15 AM

Mary Douglas

United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO

REALTOR, Red Feather Lakes, Colorado

Hi Sandy, Great information on this subject! Something most non-hurricane area agents would never know. I am keeping my eyes out for Earl & Fiona...of course I thought of you when I saw the news.

Sep 01, 2010 04:41 AM

Named Storms Can Halt a Real Estate Closing

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