Golf Course Lots - Major Problems

   We’ve already chatted a bit about minor issues with living on a golf course. Now I’d like to toss around a few major problems that can happen when it comes to golf course living. I’m classifying a “minor issue” as one that’s basically a possible annoyance and a “major problem” as one that can drastically affect your enjoyment of the property and have a massively negative affect on the resale value of that property.

   I’m going to outline a few examples below of what I’ve seen happen. This is by no means a complete list. I want to illustrate what can happen so you check these things out before you buy a lot. Finding out there is a massive problem after you own the land, like these folks did, can really put a dent in your day (and your wallet). This is not meant to steer you away from the idea of golf course living but to help you understand what is possible. Find out before you buy!

   “They’re going to WHAT?!”

   Image you’ve purchased a lot within a golf course community. A nice lot that you paid extra for, because it was on the golf course. Now image getting a memo one day stating that the golf course your living on will be torn out and replaced with condos. So, instead of looking out at a beautifully manicured fairway you’ll be looking at a condo parking lot and the back of a building. Insane? Illegal? Criminal? If it’s an option in the HOA or POA documentation then there’s nothing to stop it. This scenario actually happened in a community not far from me. You can image the reaction from the property owners when they learned of the intention of the developer to tear out 9 holes of the course that had been there for years and build condos. However, there was a standing clause in the community documentation stating that if certain conditions were met (eg. golf course loses money for X number of years, property value increases by a predetermined percent or whatever) the developer has the right to remove 9 holes and build condos. If the property owners had really looked at the documention they would have known it was possible. Most people don’t really look. Learn from this. 

   “Should the fairway grass be 6 feet tall?”

   Knowing exactly who owns, who operates and who is responsible for a golf course in a community you’re looking to buy in is critical. Never assume that the golf course belongs to the community or the members. Here’s an example that happened in another community not far from me (about 5 miles from the community in the previous example). The land the 27 hole golf course is located on is owned by the community however it was maintained and operated by a third party golf course management company. When the economey started to slow in the mid 2000’s this particular golf course started losing money. Lot’s of money. The management company in charge of running the course pulled out. Just simply sent all the guys home, closed the driving range, put the golf carts and lawn mowers on a truck and closed the course. Not only was the course now closed but it was no longer being maintained. Ever see a golf course with fairway grass 6 feet tall? The Home Owners Association and the golf course management company went at it tooth and claw, legal action quickly followed and it got tied up in the courts. 

   Now image all the people who spent good money to live on that golf course. Homes  in this particular community start at around half a million and go up well over a million. The resale value of homes and land in that community dropped like a rock and stayed at the bottom. With no operational golf course, a huge eyesore and no end in sight to the court battle these people were stuck for over 2 years. Who in their right mind would by a home in a community with that sort of problem hanging over it?  Finally, after 2 years, they settled the problem and got the course back open and running. However the stigma still exists and the value of the homes has yet to recover from the bad press and issues. 

   Moral of the story

   Get all the documents they have on the ownership and operation on the golf course. Have an attorney look at them. Do not buy anything on a golf course until you fully understand what can happen to that course and how it would affect the lot you’re looking at buying. Talk with people who live in the community to see if there has been an problems, if they are currently having issues or there is a possible issue coming up…the rumor mill may be wrong 9 out of 10 times but that one correct rumor might just save you big bucks.