"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.
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.