Lot rent or Home Owners Association?
Which one is right, which one is wrong and what does this all mean when looking to buy a mobile home located on leased land within the greater Sarasota Florida area?
When looking at buying a mobile home in the greater Sarasota Florida area one has to first decide on whether or not they want to own the land the home sits on or rent the land and buy the home within the mobile home park.
In the state of Florida, when one buys a mobile home and leases the land that it is located on this is viewed as and taxed as personal property and not real property. The purchase process of this type of home attaches a title with the home purchase and not a deed and is thus the same transaction type of buying a vehicle.
Here, the title will need to be transferred from the Seller to the Buyer and registered with the state.
When purchasing this type of property lot rent is the payment made each and every month to the mobile home park. This lot rent payment may include several different services such as the residents water bill, sewer bill, trash bill, lawn care and usage and upkeep of all the park amenities such as the pool and walking trails.
If a Buyer is looking to buy a mobile home where they own the home and the land that is attached to the home then this will be viewed as real estate as there is a purchase of land that is included in the sale of the home.
This purchase has a land deed attached to the ownership of the property and is transferred at the to the new Buyer at the time of sale.
Here, in this purchase, the mobile home with land attached to it will have a HOA payment attached to the property. This HOA payment will usually cover the upkeep of the community such as the streets, common areas and amenity services but will usually not cover the services attached to the actual unit itself such as the water, sewer or trash bills.
When looking at buying a mobile home in Sarasota Florida it is important to realize that lot rent and HOA payments are not the same and that the difference between the two largely depends on who owns the land the home resides on.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.