On Wednesday, April 12, 2017, Doug Stewart (LHRO Vice President) and the LHRO park attorney, Stephen C. Nikoloff, Esq., presented an information briefing to explain current Florida Statutes in relation to purchasing a home in our community.
When the decision was made by the original community owners to buy the park from the developer, an amount of $24,000.00 was determined to be the cost for each of the 293 owners to pay in order to complete the purchase. The $24,000.00 paid by the original owner of the unit was paid to the developer of this community. Initially, the money went to the developer and from that point on all of the money paid by a buyer went to the seller of the unit (coach and lot). The association acted as an “Escrow Agent” for the $24,000.00.
Lake Highlander is a Co-op community, not a mobile home park. A co-op must abide by different state regulations than a mobile home park. Prior to 1992, our co- op was taxed for the entire property, which was a yearly cost to the association. Beginning in 1992, the law was changed so individual owners within the Co-op paid yearly property taxes on their unit (lot and coach), because by state definition it is considered Real Property. By making this change additional tax revenue was generated for the state.
Taxes involved with a transfer of ownership are applied to the entire cost a buyer would pay. Even though the purchaser may have written two different checks in the past (one for coach and one for the membership certificate), the closing tax paid was on the entire amount. If a check was written to Lake Highlander for $24,000.00, LHRO did not keep this money. The association would in turn write a check for $24,000.00 directly to the seller.
What we have now learned is the cost of purchasing a unit should be paid in one check written directly to the seller through a closing/title agent, attorney, etc. The seller has the freedom to determine the amount of money he/she wants to receive for their unit (coach and lot). What acquisitions a buyer receives from purchasing a unit is further explained in the power point presentation.
Finally, the only time a unit owner is “guaranteed” the return of their $24,000.00 is when they exercise the “Put Option” in Section 3.5 of the Bylaws. All other transactions is at the discretion of the individual selling their unit.
To view the PowerPoint presentation, click on the highlighted word “script” and then click on Written Membership Certificate to read more details concerning this issue.