Wednesday, December 24, 2014

Should you buy property on "Leased Land?"

For most "condos", you "own" an "air parcel", no actual land.  The "home owner association", usually ends up owning the land, and all "air parcel owners" become manditory members of the "home owner association".  The legal documents forming the "home owner association" are usually very specific about what the association can do with the land and the responsibilities and options of the "members".

A leased land situation is entirely different.  Sometimes a developer is not able to buy out the land from the owner and can only get a long term lease.  This often happens when property is owned by non-profit entities (such as churches), or when it is official "native american" property, or when it is owned by the Federal Government (such as in a national forest).

And of course most "trailer parks" and "modular home" parks are leased property with the landlord owning and maintaining the site and providing utility connections.

YES, you can buy your own home in the "national forest"; but most of the homes are not on private land.  The same is true of many camp properties.  For the Federal Government, the most common leases are 20 year leases, and 99 year leases, and they tend not to issue new ones, but only renew existing ones.  Usually the leases are transferable with the sale of the structure.

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