CDC Land Lease
I just read through one. Although the deed is straightforward (2 pages), the accompanying land lease that a home-buyer signes is confusing (38 pages). If anyone wants a copy, I can e-mail one to you. Drop me an e-mail Bill@AdvantageBenefits.com
The home-owner owns the dwelling but not the land that the dwelling sits on. Instead the home-buyer leases the land for 99 years at $50 per month. Per the terms of the lease the home-owner is reponsible for the property taxes, insurance, upkeep, etc.
The part that gets confusing is when the home-owner wants to sell the house. The landlord has first right of refusal and there is a requirement to sell the home to a "low to moderate income" person amongst other things including "the sale price to a third party shall be subject to DHCD's and to AHTF's approval."
Bottom line, to me, it looks legal to have the home-owner pay the property taxes on the land since that is part of the lease. The thing that jumps out at me is that the home-owner is limited when they try to sell the house. In the event the real estate prices went up, they may not be able to sell it at the corresponsing market value and reap the profits.
posted by Bill Randell @ 1:30 PM
4 comments
4 Comments:
I find the following confusing:
A. How do they get a deed when they are not buying the underlying land. Arent deeds for real estate? When someone buys a house trailer or a modular home there is no deed as these items are considered personalty and not realty. There is just a bill of sale. I am confused.
B. 38 page lease and yet only a 2 page deed! Unusual. I wonder if these buyers had attorneys for these convoluted transactions or were they maybe told they didnt need attorneys because they were not buying real estate? Afterall, do I need a lawyer if I go to Home depot and buy a storage shed building? No, but a storage shed only costs $190 and not $190,000. All these buyers on Beacon St should be interviewed to see if they had lawyers for their $190,000 transactions because a lawyer might very well advise against such a deal.
C. How does the seller of one of these 1/2 duplxes find a "qualified low to Moderate income" buyer?
1. Define moderate
2. Define income.
3. What are the DHCD approval requirements?
4. What are the AHTF approval requirements?
5. Were the buyers informed of these specific requirements?
6. If one of these goes into foreclosure 2 years from now and there is a $185,000 arrearage does Main South buy it at auction for 185,000? Probably not. So they buy it back from the bank at say $55,000 because no investor would ever pay more than that for it with out the land. Main south cannot sell it a profit because they are a non profit so they sell it for $65,000. Now all the other identical duplexes will become "tainted" because of the low selling price.
Limiting the owner's selling price when they try to sell the house (only) does nothing to help move these folks from low income to middle income which is supposed to be the intent here and as we all know this is part of the American dream. The selling price is effectively limited because they can only sell to low or moderate income people and they do not own the underlying land. Did Main South CDC effectively limit their selling price when they sold these duplexes. Absolutely not! If anything, just the opposite. They were overpriced and even after the runup in real estate prices in 2004 and 2005 these poor souls are still under water.
A rental agreement, or lease, is the contract defining such terms as the price paid, penalties for late payments, the length of the rental or lease, and the amount of notice required before either the landlord or tenant cancels the agreement. In general, sportsbook, the landlord is responsible for repairs and maintenance, and the tenant is responsible for keeping the property clean and safe.
Many landlords hire a property management company to take care of all the details of renting their property out to a tenant. This usually includes advertising the property and showing it to prospective tenants, and then, once rented, collecting rent from the tenant and performing repairs as needed.
http://www.enterbet.com
The American Hand Therapy Foundation, established 1989,
enhances the specialty of hand therapy through service by supporting research and education. See Projects,costa rica fishingorganizational Engines, or activity Highlights.
http://www.fishingcostaricaexperts.com
American Hand Therapy Foundation company profile in Zionsville, IN. Our free company profile report for American Hand Therapy Foundation includes business.Costa rica toursthe American Hand Therapy Foundation (AHTF), that seek to support the profession.raises money for education and research in hand therapy. Items related to hands and hand therapy.
http://www.kingtours.com
Post a Comment
<< Home