Breaking up is hard to do

Breaking up is hard to do

Do you live on a golf course?  Would you like to?  Staring over manicured green fairways as your property abuts up to the course.  Or does it?

Let’s take a step back and review the development process of a golf course that meanders through a residential neighborhood.  During the planning process, you not only have single family lots and golf course acreage.  You also have HOA property that often acts as a buffer between the golf course and residential lots.  Typically, this little love triangle is not problematic when the original developer owns the lots, the golf course and controls the HOA.  The problem, though, comes into play when the developer chooses to sell the golf course. 

You see, a funny thing happens when the golf course is sold.  The buyer wants to actually know exactly what they are purchasing.  This is where the problems can occur.  Unless the lots clearly abut the out of bounds areas of the course, it can get confusing as to who owns what.  Are certain areas clearly marked as HOA lands?  If so, can they be easily accessed after the course is sold?  Are the plats clear as to ownership?  Has the survey been done correctly?  It sounds like a simple process.  However, I can tell you that it is one of those things that tend to slip through the cracks until various ownership groups come into play.  Are there any irrigation separation issues?  Have the golf course and HOA budgets clearly accounted for maintenance expense of the potentially disputed areas.  The list goes on.

In the end, the issue is typically resolved.  However, as with any dispute, there is usually some blood that is spilled on all sides.  As easy as it is to let this issue slip during the early years of a community development, it would serve all parties best interests to make sure that the appropriate time is spent after the golf course is complete to walk the course, identify what is golf course maintenance and what is HOA maintenance and to then make sure that the boundaries are adjusted and set as appropriate so that this issue does not spin out of control by the time the course is sold.  And, make no mistake, that course will be sold.  With few exceptions, developers do not like to be long term owners of golf courses for one very simple reason.  They rarely make any money!

Until next time…

Keep kicking the dirt!

Jeff Gersh is President of Gersh Consulting Services, a real estate advisory firm, headquartered in Orlando, FL.  He may be reached at jsgersh@gmail.com or 407-468-9328