{"id":3324,"date":"2008-07-05T10:53:11","date_gmt":"2008-07-05T17:53:11","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3324"},"modified":"2008-07-05T10:54:26","modified_gmt":"2008-07-05T17:54:26","slug":"musical-chairs-you-can-buy-a-home-on-leased-land-for-a-bargain-price-but-you-must-be-prepared-to-sell-before-the-music-stops","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3324\/musical-chairs-you-can-buy-a-home-on-leased-land-for-a-bargain-price-but-you-must-be-prepared-to-sell-before-the-music-stops\/","title":{"rendered":"Musical chairs: You can buy a home on leased land for a bargain price, but you must be prepared to sell before the music stops"},"content":{"rendered":"

This is my column for this week from the Arizona Republic<\/i> (permanent link<\/a>).<\/p>\n

 
Musical chairs: You can buy a home on leased land for a bargain price, but you must be prepared to sell before the music stops<\/strong><\/p>\n

We’re preparing to list a condominium that sits on leased land. Land leases aren’t common in the Phoenix area, but they do exist.<\/p>\n

The most common way to own real property in the Valley is in fee simple: You own the land and all the structures on it, plus any mineral, water and air rights that haven’t been alienated by legislation or previous sale.<\/p>\n

A very distant second way of owning property is the condominium plat: You own the airspace described by your interior walls, and you and all of your neighbors own the land and structures in common. Most often you will also own the air conditioner, and possibly also the roof. These are expensive to replace, so crafty developers and their HOAs socialize the risk to you.<\/p>\n

We have a few co-ops in the Phoenix area, but very few. In a cooperative, you and all of your neighbors own the land and the structures in common, and you have a right to occupy your living space.<\/p>\n

In a land lease, the structures can be owned in any one of these three ways — by individuals, by a condominium HOA or by a cooperative corporation. The important difference is that the land is owned by a landlord, and the landlord will be taking that land back someday.<\/p>\n

What happens to the structures? They revert to the landlord’s ownership, and the former owners of those structures are left owning nothing.<\/p>\n

In essence, it’s a game of musical chairs. The structures on the leasehold pass from owner to owner, but, when the music stops, no one then on that land has a place to sit. This tends to depress property values on leased land.<\/p>\n

But land leases are written for very long terms, and a lot can happen in that time. If the landlord gets a huge offer for the land, the people who own the structures could get bought out early at Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column for this week from the Arizona Republic (permanent link).  Musical chairs: You can buy a home on leased land for a bargain price, but you must be prepared to sell before the music stops We’re preparing to list a condominium that sits on leased land. Land leases aren’t common in the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,6,5],"tags":[],"class_list":{"0":"post-3324","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":203,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/203\/indian-givers-great-white-father-makes-plans-to-take-back-reservations\/","url_meta":{"origin":3324,"position":0},"title":"Indian givers? 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Catherine Reagor has a feature in today's Arizona Republic on the idea of building new residential housing in North Scottsdale using leased land from Native American reservations:New homes will keep going up on metropolitan Phoenix's fringes,\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11252,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11252\/real-estate-broker-sued-for-secondhand-smoke\/","url_meta":{"origin":3324,"position":1},"title":"Real Estate Broker Sued for secondhand smoke","author":"Robert Worthington","date":"February 10, 2010","format":false,"excerpt":"Alyssa Burrage was smoked out of her $405,000 condominium. Burrage has a history of asthma and has smelled smoke since she first viewed the unit on the south end of Boston in 2006 with her real estate broker.\u00a0 The broker assured Burrage the smoke she smelled was from a previous\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2010\/02\/burning_cigarette1-150x150.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":882,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/882\/real-estate-in-deadwood-how-fremont-street-in-las-vegas-became-a-ghost-town\/","url_meta":{"origin":3324,"position":2},"title":"Real estate in Deadwood: How Fremont Street in Las Vegas became a ghost town . . .","author":"Greg Swann","date":"January 11, 2007","format":false,"excerpt":"My mother gives us money for Christmas every year. This year we used the lucre to buy seasons one and two of Deadwood, the acclaimed HBO television series about gold-mining, lawlessness and profanetasizing -- a condition afflicting screen writers, who pretend to affect to believe that people in the past\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":905,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/905\/shackpricescom-anything-but-ordinary\/","url_meta":{"origin":3324,"position":3},"title":"ShackPrices.com: Anything but ORdinary . . .","author":"Greg Swann","date":"January 16, 2007","format":false,"excerpt":"Responding to my kvetching last night, ShackPrices.com today launched itself into a new ORbit among map-based real estate search pORtals -- with OR without MLS access. Not satisfied with ORdinary searching, the Seattle-based company yesterday added a loosely-structure keywORd search. The search suppORted the AND and NOT logical operatORs, but\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6747,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6747\/times-are-tough-but-thats-no-reason-to-be-a-thief\/","url_meta":{"origin":3324,"position":4},"title":"Times Are Tough – But That’s No Reason To Be A Thief","author":"Doug Quance","date":"January 30, 2009","format":false,"excerpt":"I haven't had a good rant in a while... and unfortunately, I don't have enough time to have one right now - so the Reader's Digest condensed version will have to do. Most agents who have been in this business a few years or more know when something doesn't look\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18290,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18290\/overnight-news-if-you-were-looking-for-the-top-of-the-real-estate-market-i-may-have-found-it\/","url_meta":{"origin":3324,"position":5},"title":"Overnight News: If you were looking for the top of the real estate market, I may have found\u00a0it…","author":"Greg Swann","date":"July 6, 2021","format":false,"excerpt":"I have a listing at 12 Days On Market \u2013 literally my worst performance in years. It's leased, so it's being marketed to investors only. Were it vacant, it would have gone in the first weekend. But: Still: I may have found the top of the market. All real estate\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=3324"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3324\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=3324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=3324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=3324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}