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Contributor
jonla
Posts: 17
Registered: ‎07-31-2008
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What does "Land: Fee" mean?

I see "Land: Fee" on many listings under 'Land Information'.

 

Can someone please clarify what this means?

 

Thank you. :smileyhappy:

 

Contributor
Analog
Posts: 10
Registered: ‎01-23-2009
0

Re: What does "Land: Fee" mean?

It means that you'll be buying the land underneath the buildings, as well as the buildings.  The alternative is "lease land" where you own the buildings but the actual land belongs to somebody else and you pay a yearly fee, usually a couple of thousand dollars, for the use of it.  The former is much more common; the latter is something you sometimes see in places like Palm Springs where some of the neighborhoods are on Indian land.
Super Contributor
Allyoop
Posts: 224
Registered: ‎12-18-2008
0

Re: What does "Land: Fee" mean?

jonla......

 

You always want to see "fee" when considering buying a property. If it's "lease" that means on top of your mortgage payment, taxes and insurance, you will have to pay land "rent" to someone else & this can be very costly!

NMLS #483966
Redfin Senior Agent
KatrinaJ
Posts: 15
Registered: ‎07-18-2008

Re: What does "Land: Fee" mean?

Yes, Jonia, Allyoop is so right - leased land can be bad news. It may be low and then suddenly reset to a very high amount. One tract in particular in Santa Ana went from $300/month to $2000/month (has been in horrible litigation for 2 years, poor owners!) There is a lot of leased land in South Coast metro and areas of Huntington Beach. If you're wondering (and I know you are) it is advantages for the owners of the land as it is an excellent tax write-off.

 

Land: Fee is Fee Simple. I could give you the entire explaination but here it is on Wikipedia http://en.wikipedia.org/wiki/Fee_simple. Actually pretty interesting, if you like that stuff that is. Good question by the way!

Katrina Jauregui | Redfin OC Team Lead
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