Southeast Florida Condo Recreational Land Leases
Condo Recreational Land Leases in Southeast Florida
Recreational land leases exist where a condominium or co-operative developer maintains title to the land that typically contains amenities such as playgrounds, swimming pools, golf courses, tennis courts and boat docks. The developer leases the land, for recreational purposes, to the association for the exclusive use of unit owners for a specific time and lease payments.
Land lease payments are generally included in the maintenance fees, paid by unit owners to the association. The association typically must maintain the leased property, pay the taxes and insure it. Recreational leases are usually long-term (99 years is not uncommon), with a rent payment, tied to the consumer price index and adjusted every five years or so. If the lease expires and is not renewed at the end of the lease, most stipulate the property will be surrendered back to the developer, along with any improvements made.
It is not uncommon for units to be offered for sale mentioning that the land lease payments have been paid in full for the lease term. Typically, it does not mean that the land lease does not exist for that unit. It still exists; just no payments are due, for the remainder of the lease term, for that specific unit.
All Recreation Land Leases are unique. Prior to your purchase, you should review the specific documents regarding your unit of interest and seek counsel from a Florida Real Estate Attorney to answer any questions you may have.