Looking at lake places? Chances are you've noticed that some properties are advertised as deeded, while others may mention sublease or leasehold. And chances are you've wondered "what's the difference?" or "why are some one way and not the other?". If so, here is some information that may help you understand.
Deeded means you are buying the dirt with whatever property you're looking at. For example, buying home on a deeded lot means you would own the land under the house (like most in-town residential purchases). It is important to note that deeded at PK may or may NOT apply to the entire surface of the land. Leasehold means you are buying the property, but will pay a lease fee to the owner of the land. Lease terms may vary in length and are available through a number of parties - not just the Brazos River Authority (BRA). Be sure you check on the renewability of the lease; some leases may not renew at the end of the current term.
Sublease means you are buying the improvements on land that someone else has a leasehold to, and you will pay them a sublease fee for the portion of the land they allow you to use. At PK, this generally applies to the 'camps' - Fox Hollow, Rock Creek, Sky Camp, Lefty's, Golden Cove, etc. - there are many areas operated this way. Sublease fees are set by the camp owners, vary from camp to camp, and are mostly renewable on an annual basis at this time. This often effects the ability to get lender financing.
If you are familiar with PK Lake, you are likely aware that the BRA sold the residential leaseholds to the Patterson PK Land Partnership several years ago. Many of those leaseholds have since become deeded properties. Therefore, you will see DEEDED as a well-used term on lake properties for sale these days. Other leasehold areas are currently going through, or have recently completed, the same process. Some of the deeds that were sold to PPKLP are still leasehold properties, as some homeowners selected to continue leasing for the remainder of their lease terms. The same type of process has been discussed for BRA Commercial Leaseholds (including camps). If an agreement is reached to execute the sale of commercial leaseholds, the number of subleases may decrease as camp owners become the Leaseholders.
There are many things that you need to be educated about when considering a property purchase of any kind, and even more so when you are considering a property purchase in an area as diverse as Possum Kingdom Lake. Chances are, you will want some guidance....a visit with a REALTOR may be a wise investment of your time! This article just touches on some of the issues that have been common questions I've encountered from folks shopping for property on PossumKingdomHub.com. Hopefully, the explanations will be helpful. If you'd like more details, research the BRA and Patterson Land Partnership websites, or feel free to contact me at JoLynn@PonderaPK.com. See ya at PK!