What Happens If Monarch Bay Owners Don't Buy The Lease Land?
Posted by Sam Smith on Friday, September 20th, 2019 at 12:05pm.
The situation dealing with the Monarch Bay Land Lease is starting to get very serious as an estimated 100 plus owners have not paid for the land that is currently being leased. We have reported before that the Monarch Bay owners have the opportunity to purchase the land for 65% of the appraised value which is a pretty good deal considering the location of Monarch Bay which is a prime oceanfront community with direct access to the beach in Dana Point. We have received many questions regarding this including what happens to owners who don't pay for the land before the expiration date. After doing some research we found some information on the Keystone, formerly Progressive Community Managment website that has a 12 page information booklet answers many questions regarding the land lease.
On page 12 of this booklet it reads "What happens to those who remain but don’t buy their lots in 2020?" "Under the existing agreements, each sublease and individual option will terminate in 2020. If a lot’s option is not exercised and the homeowner does not purchase it, the Moultons own the land and can take over the house and improvements. They can decide whether to renew the lease on new terms or list the house for sale. THOSE WHO DO NOT PURCHASE THEIR LOTS BY 2020 ARE AT SERIOUS RISK OF LOSING THEIR HOMES."
This is a very scary and serious consequence for not purchasing the land. Several current active listings on the market have indicated that the land purchase must take place before June 30, 2020. For example, 167 Monarch Bay is on the market for $2,500,000. This does not include the purchase of the land with the buyout amount being listed at $1,478,750.00. So you can purchase the home for $2.5 million but would still be responsible for paying the land amount of $1,478,750 by the end of June 2020. As we have reported earlier these values are still very attractive for being located in a community that is located on the ocean side of Pacific Coast Highway with a mixture of ocean front and beach close homes. We will continue to monitor this situation and bring reports as they come along. Currently there are 6 homes on the market for sale in Monarch Bay.
7 Properties Found. Showing Page 1 of 1
