Ask the right information to a broker, before you make out that ‘chunky” check!!!

I recently had a couple referred to me who were searching for property in a golf club community. The broker they had been working with only knew about the houses in the golf communities, not the clubs themselves. So a mutual friend who knows I specialize in Golf Community Real Estate referred them to me.

The question they had but the other broker could not answer: “Was the community they were considering a corporation or an equity club?”

An excellent question from a financial perspective.

If a community is a corporation, owned, for example by 'Company ABC', then your dues go directly to operating costs dictated by the corporation. You are not responsible for major investments. The corporation also has the right to dictate when the club /golf course is opened and when it is closed… and sometimes at the last minute….you, the homeowner has no say in the matter!!!

If, however; the community is an equity club, you and your fellow homeowners are in control, thus a Board of Directors are elected by the homeowners. That Board is the decision making body for the club; and for anything else club related the homeowners are responsible for. Also, if the items are not included in their budget, decisions regarding assessments are made by the Board of Directors.

When a new community is ‘built out’ (all the master plan of homes built is fulfilled) the club, the builder and the homeowners negotiate a list of demands from the builder. Then the golf course and community are ‘turned –over’ to the homeowners who are responsible for all assessments, decisions , etc. going forward. at that time a Board of Directors is elected from among the homeowners.

Some communities, such as Ibis Golf and Country Club are still after years of existence is still a Corporate club ... Whereas, Frenchman’s Creek is entirely equity....and each community is very different...the ideal situation is to buy a home in an equity community, ask for full financial reports ,to make certain the community is in the best financial position..

Ask as many questions as possible, as the last thing you want to do is move into a community in a bad financial position... a homeowner’s nightmare!!!!

As a buyer’s broker (I do not have listings in any golf communities, thus my objectivity is never compromised). I would rather advise my client to rent, and ultimately buy, and keep the client, rather then sell a client a multi-million dollar home and have then fined out, the financial position is not exactly what was understood…the worst possible professional position a broker can end up!!!!

Buying a home in a South Florida golf community is an undertaking that should not be taken lightly or without expert guidance.

Call me. As a life-long member of equity golf clubs I know the answers relating to the communities and clubs. And as a Palm Beach area realtor/broker for over 17 years I certainly know the homes and lifestyle my clients are looking for.