Corporate Home Purchases
 

So, I came across a house which is owned by a corporation. How is that possible in a 55+ community?

Anyone can own a house in The Villages. The over-55 restriction only applies to the residents, not the owners.

There are reasons an individual may want to establish an LLC for a home purchase.

In Florida, property ownership details are readily accessible through online public records. By buying property under LLC, only the Florida-based LLC will be identified as the property owner, safeguarding in that way, the confidentiality of the owner's investment.

They offer investors, including liability protection, federal tax flexibility, ease of estate planning, and potential probate avoidance.

But there are complications...

A Guide To Buying A House With An LLC | Rocket Mortgage

Technically 80% of homes must have one titled deed holder 55 or older. Is that enforced and how is a good question? Many investors put rental properties in a LLC.

The over-55 restrictions are stated in the deed restriction document. My deed document only specifies that one "resident" must be over 55. It says nothing about the deed holder or owner of the house. Can you provide a source that requires the house owner to be of a certain age?

Very common, husband and wife are the officers in the corporation, limits liability.

Just looked it up, my bad and you are correct. It’s one occupant, not a deeded property owner. Makes one wonder how in the world that could possibly be monitored and enforced? Just another worthless internal deed restriction without enforcement.

An 18-year-old can buy a house in The Villages. They can't live there until they're 19, but they're legally old enough to sign a contract and therefore legally old enough to buy a house here. They can buy it for their grandparents as a present if they want. Whether any 18-year-old WOULD buy a house here is another matter, but the fact remains - they can.

I looked at a house that was owned by a corporation. Not an LLC. An actual corporation that owns, sells & rents out housing as its business. I think it was based in California, but I am not remembering the name.

Monitored when Villages IDs are issued. Enforced is really not a conversation since I suspect the percentage of homes with at least on resident 55+ is in the mid to high 90s. Just look at your own neighborhood, how many homes do not have at least one 55+.

There are corporations that buy property to use as guest homes. If a board member is coming from another state, or the CEO of the headquarters somewhere else - comes for a periodic long weekend meeting or convention, they'll put them up in those guest homes.

The Deed Restriction merely mirrors State and Federal Law, which requires 80% of the homes be occupied by a person over 55.

Ours is owned by a corporation, an LLC.

The Villages does not sell to a corporation, but sells to an individual who then places the house into an LLC to then be operated as a residential real estate corporation.

that's how we did ours from the developer. Of course, we are over 55 so all is fine.

google certified lawyer :throwtomatoes:

An LLC is a limited liability company, not a corporation. They are different and distinct types of legal entities. LLC vs. Corporation - What is the difference between an LLC and a corporation?.

The primary reason residential real estate gets put into ownership by an LLC is to avoid personal liability by the member(s) (owner(s)) of the LLC. Holding residential and investment real real estate in LLCs is common.

Of course corporations can own real estate as we all know.

Could have been a reverse mortgage. If the owner(s) have passed away then the reverse mortgage company would be the seller.