Leasehold condominium

Started by BonnieG1 • 6 replies • 1648 views

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BonnieG1 (Nebraska)
Posts: 1,186

Posted:

Can anyone here explain what this is in simple language? I am reading the NE laws for condominiums established after 1984. We want to update our documents and in my opinion, the first step is to have members vote to abide by the laws for condominiums established after 1984. We were established in 1981.

Leasehold condominium in the law is defined as a condominium is which all or a portion of the real estate is subject to a lease the expiration or termination of which will terminate the condominium or reduce its size.

I read this, but I don't really understand it. Any help would be appreciated.
Thanks

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Bonnie

I am not nor do I play a lawyer

My understanding of a lease hold is where the association does not own the land their buildings/homes are on but they lease the land like for 100 years. At the end of the lease, the land and all on it revert back to the land owner.

Typically the association will buy the land rather then let it revert to the lease holder.

Only justification I ever heard for a lease hold is that it was cheaper going in as the builder/developer did not need to buy the land outright.

Candidly it is an arrangement I would stay away from.

MatthewW4 (Arizona)
Posts: 500

Posted:

Bonnie & John,

There was a recent story on the newsfeed for this website a few days ago dealing with leasehold condominiums. After reading that, I agree with John that it is something to avoid.

EllieD (Vermont)
Posts: 446

Posted:

Bonnie,

Would you clarify where you are reading about “leasehold condominiums”?

You wrote in “the NE laws”. Is this from just one of numerous sections, that perhaps you want to understand? By “the NE laws” are you referring to a State Statute?

I know little about “leasehold condominiums” except I believe, as others have posted – leasehold condominiums are built on LEASED land rather than built on OWNED land.

Are, by chance, your Condominiums built on leased land, rather than on land that is owned by the Association of all owners, that is owned in common?

CarolR11 (Colorado)
Posts: 2,563

Posted:

Say, Bonnie, you've mentioned revising your documents three-five times now. Based on your previous and current questions on the topic, I truly think your Board needs to hire an attorney to handle interpretations of the relevant laws.

I also don't get why owners should vote to abide by the 1984 laws. I don't think they have a choice. The law prevails. Or am I missing something!

Meantime, my understanding of a leasehold, as with John46, Matthew & Ellie, is that someone other than your HOA owns the land.

BonnieG1 (Nebraska)
Posts: 1,186

Posted:

Quote:

Posted By CarolR11 on 07/16/2013 12:36 PM
Say, Bonnie, you've mentioned revising your documents three-five times now. Based on your previous and current questions on the topic, I truly think your Board needs to hire an attorney to handle interpretations of the relevant laws.

I also don't get why owners should vote to abide by the 1984 laws. I don't think they have a choice. The law prevails. Or am I missing something!

Meantime, my understanding of a leasehold, as with John46, Matthew & Ellie, is that someone other than your HOA owns the land.

Since our condominium was established in 1981 the laws that prevail are the laws that were inforce prior to 1984. I will have to look, but it seems as though I read that the older condominiums could go by the newer laws if the membership voted to do so. I am quite certain we will get an attorney when the rubber hits the road on updating our documents. I just don't believe in turning everything over to an attorney. The Board needs to be know the law also.

BonnieG1 (Nebraska)
Posts: 1,186

Posted:

Quote:

Posted By EllieD on 07/16/2013 10:11 AM
Bonnie,

Would you clarify where you are reading about “leasehold condominiums”?

You wrote in “the NE laws”. Is this from just one of numerous sections, that perhaps you want to understand? By “the NE laws” are you referring to a State Statute?

I know little about “leasehold condominiums” except I believe, as others have posted – leasehold condominiums are built on LEASED land rather than built on OWNED land.

Are, by chance, your Condominiums built on leased land, rather than on land that is owned by the Association of all owners, that is owned in common?

When I refer to NE law and am Referring to a State Statute. The Leasehold part is in just one of numerous sections.

Our Condominium is not built on leased land; therefore, this State Statue would not apply to us. The reponses I have received has helped me to have a better understanding of a "leasehold" condominiun.

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