What is Stock Coop and Condo Ownership?

 Condominiums

 

A condominium consists of an undivided interest in the CID’s common area coupled with a separate interest in the airspace defined as a specific unit.  The precise description of the unit will be found in a recorded document called the “Condominium Plan” or “Subdivision Map”. The owner receives a deed of ownership in the particular unit as well as an equal undivided ownership in the CID’s common area.  For example, in a 48-unit development on Main Street, the owner of Unit 8 would have a deed showing the ownership of an individual interest in Unit 8 plus a 1/48^th undivided ownership interest in the common area.

Stock Cooperative

A stock cooperative is usually referred to as a “co-op”. In a stock cooperative, a corporation owns the entire real property.  The homeowner does not receive a deed, but a share of stock in the corporation tied to the right to a specific home on the property. The stock co-op will normally have one share per unit.

Are Pets Allowed in Leisure World?

Pets are permitted in the community subject to the rules and policies of the Mutual Corporations.  These rules and policies include, for instance, a limit to the number of pets per apartment, a maximum weight limit per pet and a current city pet license.

• One quadruped pet is allowed
• The maximum weight at maturity is 25 pounds (20 pounds in Mutual 17)

How Does Remodeling Effect My Prop. 13 Tax Rate?

My thanks go out to Shelley Middleton for researching and sharing of this information

Mr. X lives in LA County.

• He sells residential property, buys residential property in OC for less than the selling price of his LA County residence.
• He expands and remodels his new OC property.
• The cost of the property plus the cost of the remodeling is still less than the selling price of his LA County home.
• He is entitled to the benefits of prop 13 and prop 90.
• He must be 55+;  purchase the replacement property within two yrs of selling the original property;  notify the Assessor within  30 days of completion of the purchase and construction.   

The benefit is that if the cost for the property plus the remodeling is less than the selling price of his new OC property, he may keep this Proposition 13 tax advantage.

 

So, for example:

• Fred sells his property in L.A. for $300,000
• He buys property in Leisure World for $100,000
• Remodels for a cost of $150,000
• He files the required form to the County Assessor w/i 30 days of completion of the project.
• He is entitled to keep his LA County Prop 13 benefit.

This link will take you to the required filing form and also gives a full explanation of the process:

http://www.ocgov.com/assessor/pdf/PersonsAtLeast55YearsOfAge%202-08.pdf

 

Does Leisure World Have a Bus System?

The Minibus system operates Monday through Saturday from about 7:30 am to 8 pm and Sunday mornings.  The fleet consists of eight buses and is provided free to residences.  There are over 100 bus benches in Leisure World for the convenience of the residences.

There are five regular bus routes: A, B, C, D and the evening bus.  Each route is traveled 12 times per day Monday through Saturday and it takes about 38 minutes per round trip.  The bus stops for 5 minutes at the Health Care Center.

 On Sunday the schedule is set primarily to get residents to and from the on site churches.  This is completed by 1:30 pm.  At that time three buses stop running and one bus continues the rest of the day and evening 

An on call wheelchair access bus service is available in the same areas as the regular minibus routes.  Residences will need to call for a pick up.

Can My Visitors Use The Recreational Facilities?

Caregivers and visitors are not permitted to use the swimming pool, golf course, or exercise room because of heavy usage by the residents.

Caregivers and visiting adults or children must be accompanied by a resident owner when visiting any of the other recreational areas or buildings.  It is the responsibility of each resident owner, when accompanying visitors’, to see that there is no abuse of the facilities or disturbance of the residents.

Children are not permitted to participate in any of the recreational activities.  The use of roller skates, in-line skates, skateboards, and scooters is not permitted.

Are prices on the way up or are they headed down?

I am often asked by prospective buyers “Are prices in Leisure World on the way up or are they headed down?”  I always want to give the most accurate answer so in January 2009 I started charting the listing and sales activity.  The graph below clearly shows that over the past 6 months the number of active listing has declined from a high of 280 in March to 232 in June.  Also the number of closed sales has moved up from 9 in January to 31 in June.  This leads me to believe that prices may be starting to stabilize.  If inventory continues to decline and sales continue to increase we could get back to a more normal market by the end of this year.  I will keep tracking the activity and let you know if or when my opinion changes.

YTD sales activity for Leisure World Seal Beach

Does every unit have heat?

Leisure World was built in the 1960’s when electricity was cheep and all electric units were the new thing.  The units all had radiant heating (heating coils in the ceiling).  This type of heating is still in most of the units but not often used because it is expensive to operate and not very efferent.  Most owners have upgraded the heating system by installing wall heaters or heat pumps.

Are taxes based on the actual sale price of the unit?

In California the property tax rate is based on the purchase price of the unit.  However if you are selling a primary residence in California at higher sales price than your Leisure World purchase you do have the option (you would only want to do this if it lowered your tax bill on the purchase) of transferring that tax rate to the Leisure World property.

What are the rules regarding patios and landscaping?

Owners can have potted plants on the patio.  In front of each unit is a planter area about 36 inches wide.  The owner can plant and maintain this area.  If the owner does not want to do this the gardeners will plant standard plants and maintain the area.

Does each mutual have different rules?

Yes they do.  Each mutual is an individual corporation.  They elect officers and set policies.  Most are the same because they still have to abide by the general policies of the Golden Rain Foundation.  Only a few things will very from one mutual to the next.  An example is that some of the mutual will allow owners to park golf carts in front of the units others will not.