what is "paid rec lease" mean?

Asked by Dmc61611, The Villages, FL Thu Jan 16, 2014

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Oleg Volfman, Agent, Rockville Centre, NY
Thu Jan 16, 2014
Hello Dmc61611.

Can you give more info on that. Maybe copy and paste from where you are getting that info.

There are many abbreviations, and you are not giving much to go on.

If my response was helpful, consider clicking BEST ANSWER!

Thank you for your valuable time!

Oleg Volfman, CBR, RSSP
Lic. RE Associate, Office Manager
Quick Deal Realty, Inc
134 Merrick Rd
Lynbrook, NY 11563
Office 516-599-5559
Mobile 917-685-0489
ovolfman@yahoo.com
2 votes
Joan Lorberb…, Agent, Boca Raton, FL
Thu Jan 16, 2014
Years ago there were developments built wherein buyers had to pay "rent" to the owners of the clubhouse. Simply put the clubhouse was not owned and run/managed by the unit owners. The lease would run for a number of years (let's say 30 years) and each month the unit owner would pay an amount in addition to the condo fee. In some subdivisions it was/is possible to pay off the lease amount early and in a lump sum. In other subdivisions one would not have the opportunity to pay off the rec (recreation) lease early and the owner would continue to have to pay the lease amount until the lease expires. And, I believe there are a couple of developments wherein the lease on the recreation area never expires or it runs for almost forever.

I know of no recently built developments that were or are being built with recreation leases. I believe those type of developments date from the early 1970's.

I hope I was able to answer your question!
Please let me know if I haven't or if you have any other questions. It would be my pleasure to assist you.

JOAN LORBERBAUM MOORE
Broker Associate, GRI
Lang Realty
9858 Clint Moore Road
Boca Raton, Florida
Joanmoorerealtor@gmail.com
561-573-3238
http://Www.boca-delray-boynton.com
1 vote
Joan is 100% spot on. The builders, during the boom in the late 60's were able to offer lower prices in senior communities by retaining ownership of the common areas. This long term (usually 99 years) kept an income coming into the builder, offsetting his costs. Leisureville is a good example. Some of the leases are owned by the builders heirs and they have at times allowed owner to pay off their lease, so the term paid rec lease. You need to take the cost of the lease into account when comparing one that has it and one that doesn't. Homes where they are paid off usually command a higher sales price. I know of one condo where the lease is re-negotiated every 10 years and it's on the pool against the whole complex. The last time the complex and the leaseholder could not agree to new terms and he shut the pool down! Best to thoroughly examine any rec lease situation. Don't be afraid of it but know what you're signing up for.
Flag Sun Feb 2, 2014
Thank you for your detailed answer. The area was an older area. I appreciate it!
Flag Thu Jan 16, 2014
Leonard and…, Agent, Palm Beach Gardens, FL
Sat Jan 18, 2014
Some communities charge for using their amenities. If the homeowner pays the fee upfront, when the home is sold there is no charge to the new buyer.
0 votes
Thanks for the info. Appreciate it. I had never seen those words/terms before on other houses.
Flag Sat Jan 18, 2014
Thanks for the info. Appreciate it. I had never seen those words/terms before on other houses.
Flag Sat Jan 18, 2014
marc jablon,…, Agent, Boca Raton, FL
Thu Jan 16, 2014
Per the excellent explanation above, "pd rec lease" usually indicates that this unit's recreation lease has been paid in full so that it will not be part of your monthly expense if you are purchasing the unit.

Marc Jablon, the Jablon Team
Re/Max Complete Solutions
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com
0 votes
Thank you for the explanation. Appreciate your help.
Flag Fri Jan 17, 2014
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