What is an Access Residential Lease on Lake Sinclair?

By
Real Estate Broker/Owner with Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 GREC# 169695

Ooops, is really what it is, but hey it happens.  Well actually it really doesn't happen anymore except on rare lots where the fee simple portion isn't large enough to build a home on, but it did happen quite a few times and this type of ownership exists and we have to deal with it.

You'll need to go back and read my detailed explanation of "strip lease lots" to really understand what a Residential Access lease is on Lake Sinclair.  That's because this ownership is a strip lease lot where the dwelling encroaches on the part of the land owned by Georgia Power.

In my example the right the part of the plat that is #1 is fee simple, the part that is #2 is leased from Georgia Power. The part where the red X is a structure on the land that is owned by and leased from Georgia power. When this occurred in the past without permits then what used to be a strip lease is now an access residential lease.Rates are vastly different for this type of lease although at this time there is no transfer fee for this type of lease.

The leases are 15 year terms and if the property sells a new lease is written for the new owners once the application has been completed and a copy of the warranty deed for the fee simple part is given to the management office at Georgia Power. Typically when we have a contract on property that involves any type of Georgia Power lease we will set the closing for the morning and assist you in getting an appointment with Georgia Power for that same afternoon and recommend an attorney that will provide them all the documentation to be prepared to write you a lease the same day of your closing.

Access residential fees for 2015 are as follows: Year 1 to 3 1,050./year, Year 4 - 8 1100./year Year 9 - 13 1200.00/year  Year 14 & 15 1300./year   Copies of applications can be found on the Georgia Power web site. 

The agents at Lane Realty are aware of the areas where these type lots exist and we always call Georgia Power to verify we have the correct information on our listings in the MLS. However, just because the MLS says fee simple doesn't make it so.  Tomorrow I have an agent who has an appointment with both a buyer and a representative from Georgia Power because the listing agent had incorrect information.  We always go to the source.  Georgia Power knows exactly what they own.  We've even had owners have leases and not understand it was a lease and why they were paying Georgia Power.  (mind you, they weren't our buyers when they purchased) So when it's another firm's listing we never trust the information in the MLS and we always call Georgia Power to verity or have our clients call them.

 

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Ambassador
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Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Interesting Tammy. In a town near me that I work has shared driveways. IT is because when they were built in the 1940's they were Summer homes because Lake Michigan was close by. A similar situation. You did a very good job explaining.

May 25, 2015 03:47 AM #1
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

We have lots of shared driveways with maintenance agreements and even a few areas of shared wells here.  Like your area it happened because no one was living in those homes as their primary residence when they were built.

May 25, 2015 08:04 AM #2
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

You sure it's not a strip tease lot?
Both, a strip lease and a residential access lease, are new to me. Hope no one tries to buy at Lake Sinclair without your expertise.

May 25, 2015 09:27 AM #3
Rainmaker
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Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

This is new to me. We do have these situations but we call them something else. 

May 25, 2015 10:44 AM #4
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

This is a perfect example of why it's important to use a local expert real estate professional. No one outside of Lake Sinclair is likely to know about a strip lease or access residential lease. Nice work and thanks for sharing this information, Tammy. 

May 25, 2015 12:00 PM #5
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Margaret Rome, Baltimore Maryland it was really upsetting to see many of the agents NOT in attendance at the last GA power informational meeting.  The same ones go every time.  Only two were not there from my office and they had appointments.

Sussie Sutton would be a great topic to write a post about

Debbie Laity definitely need an agent aware of the different types of ownership here.

May 25, 2015 01:07 PM #6
Rainmaker
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Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Hi Tammy Lankford ,  That's interesting, having to deal with Georgia Power on your transactions.

May 25, 2015 02:29 PM #7
Rainmaker
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Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Tammy. Nice job explaining access residential lease. Pretty common in our area, but called something different.

Make it a great week!

May 25, 2015 06:59 PM #8
Rainer
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Jerrill Ewing
N & J Lake Properties, LLC - Eatonton, GA
Builder

How about lease lots?  when are you going to write about those?

May 26, 2015 04:45 AM #9
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Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

This is pretty scary information for a buyer who is not familiar with residential lease lots on Lake Sinclair. I mean, what if they go to some agent who doesn't understand how these things work? Of course, if they all go to see Tammy Lankford at Lane Realty, problem solved and crisis averted.

May 26, 2015 11:51 AM #10
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

We have something similar around our lakes with TVA. The Corp. of Engineers has to approve access and of course collect the fee.

May 26, 2015 12:22 PM #11
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Broker GA Lake Sinclair/Eatonton/Milledgeville
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