Common Questions, 9 - 14
Most asked questions that we receive about resident purchases
How do I know if the price we are paying for the community is fair?
Not only have we reviewed the current income and expenses for the community and projected them into a seven-year plan under resident ownership, but the lender providing a mortgage for the community will do the same. In addition, a lender will not provide a mortgage if the income does not support the purchase price of the community. Finally, the mortgage lender will require an independent appraisal report from a professional appraiser to support the purchase price.
At my age, why should I buy a share?
Many elderly homeowners buy a share to protect the value of their home. Would you rather leave your spouse or children real property or a rapidly depreciating mobile home and rent payments? Typically, age is not a negative factor in obtaining a loan to purchase a share in a cooperative.
What will I own?
Under the cooperative form of ownership, you will own a pro-rata share of your entire community including the mobile home lots and common areas such as the pool, clubhouse, streets, utilities, grounds and any of the cooperative’s personal property.
What will I receive to prove ownership?
Each member will receive an individual share to reflect his or her ownership interest in the cooperative property. You will also receive a 99-year occupancy agreement that gives you the right to possess and use your individual lot.
What is a 99-year occupancy agreement?
A 99-year occupancy agreement is a type of agreement that signifies your exclusive right to possession of your lot. The 99-year occupancy agreement gives you the same property rights as though you received a deed to the lot. It is automatically renewed at the end of each 99-year term so your ownership interest in the cooperative lasts forever.
Can my heirs inherit my share and occupancy agreement?
Yes. Because your share and occupancy agreement are an interest in real property, they can be willed and inherited similar to any other parcel of real estate.