marielarson7…, Home Owner in Saint Petersburg, FL

What does it mean when they say!Buyers recieves a share in the assocaition worth 50,000

Asked by marielarson7562, Saint Petersburg, FL Wed Mar 13, 2013

I'm looking to buy a small Mobile home in a park and I find this said alot.
All so a share in! Which I think means time share.

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Barry Smith, Agent, Saint Petersburg, FL
Wed Mar 13, 2013
Dear Marie, First you should ask that question to the seller, but here is what it might mean. The mobile home park is probably a CO-OP PARK, a cooperative, where the park is owned collectively by all the "owners" in the park. Together, it makes a corporation. You would own a share stake in the park; usually, in name only, the parcel of land your mobile home sits on. You own it but you don't concept. (No doubt, the mobile home is being sold for a price of more than $50000.)

The $50,000 for the stake is represented by a stock certificate that the buyer will receive from the park management just after close of escrow. There is a usually a stock transfer fee paid by the buyer, like about $100. The value stated for the share should be taken with a grain of salt as it is what the park "thinks" it's worth. It really has nothing to do with market conditions. You should weigh your options of other properties that could be a better investment, like a condo. A mobile home does NOT appreciate and you don't own the land so it is not a good investment, but.....if you don't care about that and you simply want the lifestyle that the mobile home park offers then enjoy your cake. Know that selling a mobile home in a coop park is not easy; in other words, it's a hard sell. Most people don't understand co-ops plus, when you can buy a condo for the same amount and have it appreciate, which route will most take.

This is a what if to explain: When you sell your mobile home, you are selling that share stake along with your mobile home so part of the list price is the share stake. There could be two separate transactions ( or not, if no mobile home involve...if you got rid of/sold it separately ); one for the share stake and one for the mobile home. A mobile home is for all intents and purposes, a vehicle and a bill of sale will transfer title. In doing this transaction, I suggest you get an attorney who specialized in the coop mobile home sales. Jonathan Damonte, attorney. 727-586-2889. They will handle the transaction. You should also have your own Realtor and not the park's Realtor.

If I can help you find a better investment, then please contact me.

Barry Smith
Excellent Service Realty
727-773-6677
Web Reference:  http://www.damontelaw.com
1 vote
Pamela Cohn, Agent, Clearwater, FL
Mon Mar 18, 2013
Marie,

Barry has explained it very well. Realtors can only sell "Real Property" where actual land is invovled. If a mobil is in a park where you rent the space...then it is considered personal property, like a car or motor home and you will receive a similiar title, not a deed. Realtors can not even sell these. As Barry stated like cars and motor homes they depreciated and do not go up in value. After 25 years of age insurance is hard if not impossible to get.

Owning land can be "fee simple" where you own the land your home is on, Condo- where you own from the studs in and the rest is common area owned in common with all other condo owners in the community or Co-Op where you own a "share" in the co-op. Should the co-op go under...well that's a problem. Like stock you own a share of ???

I feel an informed client makes the best decisions regarding their real estate needs. Let me know if I can be of assistance.

Sincerely,

Pam Cohn
Broker Associate, GRI, SFR, NHS
Real Estate Consulting, Marketing & Sales
Prudential Tropical Realty
2539 Countryside Blvd #3 Clearwater, FL 33761
pcohn@prutropical.com
727-204-7155
0 votes
Ron Thomas, Agent, Fresno, CA
Wed Mar 13, 2013
Normally, I encourage Buyers to visit a complex before buying: Investtigate the HOA, talk to other residents and find out where the bodies are buried, what's good and what's bad.
If you are buying into the park; are they $100,000 in the red, or facing a big lawsuit?
How's the parking?

Good luck and may God bless
0 votes
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