Usually, when a homeowner buys a property in a specific community, such as a gated country club community that provides amenities like golf and tennis, paying for an equity ownership is required. However, each locality and every property association is going to have a different set of rules. The quick answer to whether you have to pay equity ownership in the community where you’re buying a home is yes. Even if you’re purchasing a foreclosure property or getting a great deal in a short sale and you’re mostly interested in the property and not so much in the country club, you’re still responsible for the requirements of that community.
If you’re an investor or you’re planning to rent out the house or flip it for profit, you’re still going to have to pay for that equity ownership in order to access the title to the home you purchased. Take a look at the bylaws or the rules and regulations of the country club before you close. The stipulations must be clearly defined and spelled out somewhere. It can be frustrating to have to pay for equity ownership in a community that you don’t actually plan to live in. However, that could be included in the terms of the sale, and you’ll want to know that for sure before it’s too late.
Talk to a lawyer if you think there’s a case to be made. Lawsuits have probably been filed in your jurisdiction around this issue, and if a precedent has been set, you’ll likely be required to follow it.
Stephen K. Hachey, a Florida foreclosure attorney, can help your wade through this process and determine a positive solution. Contact him at 866-200-4646.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.