"What's a land lease?"
That's the question an investor asked me after she purchased a home at auction.
"It depends" was my initial answer.
A look at her paperwork revealed that she owned the home but not the land, which was owned by the golf community trust.
There were a number of paragraphs which explained the land usage renewals and transfer clauses.
As it turned out, her investment was still a good one.
There were plenty of people looking to live in the subdivision.
Upon listing the home she provided documentation in which she disclosed all encumbrances.
Although I titled this "beware" I don't mean to scare anyone off.
It's possible that purchasing a home that has such encumbrances could be good or could be bad.
The determination of that varies according to the desires of the potential owner.
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Chuck Willman is an agent who works with those who wish to buy or sell properties- either as an investor or as a consumer. He serves people in Utah and Arizona.
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