Ooops, is really what it is, but hey it happens. Well actually it really doesn't happen anymore except on rare lots where the fee simple portion isn't large enough to build a home on, but it did happen quite a few times and this type of ownership exists and we have to deal with it.
You'll need to go back and read my detailed explanation of "strip lease lots" to really understand what a Residential Access lease is on Lake Sinclair. That's because this ownership is a strip lease lot where the dwelling encroaches on the part of the land owned by Georgia Power.
In my example the right the part of the plat that is #1 is fee simple, the part that is #2 is leased from Georgia Power. The part where the red X is a structure on the land that is owned by and leased from Georgia power. When this occurred in the past without permits then what used to be a strip lease is now an access residential lease.Rates are vastly different for this type of lease although at this time there is no transfer fee for this type of lease.
The leases are 15 year terms and if the property sells a new lease is written for the new owners once the application has been completed and a copy of the warranty deed for the fee simple part is given to the management office at Georgia Power. Typically when we have a contract on property that involves any type of Georgia Power lease we will set the closing for the morning and assist you in getting an appointment with Georgia Power for that same afternoon and recommend an attorney that will provide them all the documentation to be prepared to write you a lease the same day of your closing.
Access residential fees for 2015 are as follows: Year 1 to 3 1,050./year, Year 4 - 8 1100./year Year 9 - 13 1200.00/year Year 14 & 15 1300./year Copies of applications can be found on the Georgia Power web site.
The agents at Lane Realty are aware of the areas where these type lots exist and we always call Georgia Power to verify we have the correct information on our listings in the MLS. However, just because the MLS says fee simple doesn't make it so. Tomorrow I have an agent who has an appointment with both a buyer and a representative from Georgia Power because the listing agent had incorrect information. We always go to the source. Georgia Power knows exactly what they own. We've even had owners have leases and not understand it was a lease and why they were paying Georgia Power. (mind you, they weren't our buyers when they purchased) So when it's another firm's listing we never trust the information in the MLS and we always call Georgia Power to verity or have our clients call them.
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Tammy Lankford, Broker/Owner
Broker License # 169695 Lane Realty License # H-11420
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