Selling before 1 year
 

I signed something with the villages that said i could not sell my home before i owned it for one year. What is the penalty if i sell it before the year is up.

It is my understand that all of the proceeds of the sale of a new home within one year of closing in excess of what you originally paid the Developer must be returned to the developer. The intent is to discourage speculators.

You are able to sell before the year is up any and all profit will be collected buy the VILLAGES no way around it. They will go after it.

Look at your paperwork, I vaguely remember a penalty when we purchased, this was related to people who were buying the houses on speculation. As I recall you cannot make a profit on the sale. Now having stated that I know there was another thread on this and the general consensus was that it probably could not be enforced.....
Hope this helps.

I don't know the answer to that question, but I do know that if you sell your residence before living in it for two years, you cannot exclude the capital gains on your tax return.

Read whatever you signed. If there is a penalty, it will state what it is.

I think if you sell for anymore money over your purchase price, the profit has to go back to the villages. I am new here, but to the best of my recollection this is the "penalty".

Should be spelled out in what you signed???

We all signed that. If I recall, you will split the profit with TV.

I believe the rule is, you can sell it anytime you want, however, if you sell it within the first year, you cannot make a profit on it. You must sell it for the same price you paid for it

I think what we signed said we could not make a profit from the sale for 1 year. If we sold in the 1st year the villages would get the profit!?!

Not 100% sure but this is what I remember!

If yhou sell before the year is up, any profit goes to the developer. This was put in place to discourage "flippers".

As I understand it, you can sell just not with a profit, I don't think there is any "penalty"

I didn't buy new so I don't have any paperwork with the restrictions. I'd be interested if someone would post the language in the contract. There would be a significant difference between a profit and selling for more than one paid. There is no profit if you made capital improvements, paid a realtor, paid off a bond, closing costs etc. all of which could result in a higher selling price but actually losing money on your home.

You can sell it for MORE. I don't think you have to pay the whole amount OVER to The Villages, but there is a penalty...or folks would come in and buy lots of houses and resell them and make a business of it. It was to discourage blatant flipping and protect the developer AND us..

You can sell before the year is up, but the profit of the price you paid for the house goes to the villages closing costs lessen and other things lessen the profit

That policy was started years ago. Folks would buy a number of homes duing the hay days then turn around a sell them at a profit.

If a homeowner sells within the first year and makes a profit that amount of profit goes to The Villages, unless you purchase another home in The Villages. If that happens that rule doesn't apply. The one thing you should check out is if someone sells within one year, makes a profit on the sale and purchases another home that is a lower price than the sale of the previous home I'm not sure if the rule applies.

If you sell before a year and the home sells at a profit, the villages will get the profit over the original sale price. Call your broker and ask .

Nope. TV gets all of the profit.

There are so many exclusions to that. I have sold many homes before the 2 year limit. Some are....illness, retirement, divorce, closer to work, etc, etc.

I believe it is your profit LESS real estate expenses incurred.
However if you had a medical emergency or a compelling reason to sell,
I think The Villages may make an exception.

I think that real estate expenses can be deducted from the profit.
And if you have a medical or other compelling reason to sell, I've heard The Villages can be compassionate.

By profit, they also mean you can tack on improvements to the cost of the home. Let's say you paid $200K for your home. You add landscaping, driveway coating, window treatments, etc for a grand total of $20K. That means anything more than $220K would be profit, not $200K, also don't forget to deduct real estate commission from your profit. That now takes you up to about $233K before you realize any profit.