{"id":1462,"date":"2021-06-14T11:00:48","date_gmt":"2021-06-14T15:00:48","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1462"},"modified":"2024-04-25T23:20:00","modified_gmt":"2024-04-26T03:20:00","slug":"buying-a-floating-home-heres-how-to-plan-your-purchase","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/buying-a-floating-home-heres-how-to-plan-your-purchase\/","title":{"rendered":"Buying a Floating Home? Here\u2019s How to Plan Your Purchase."},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/06\/buying-a-floating-house.jpg\" alt=\"Image of a floating house on the water. Captioned: Buying a Floating Home? Here\u2019s How to Plan Your Purchase.\" class=\"wp-image-1463\" width=\"480\" height=\"320\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/06\/buying-a-floating-house.jpg 640w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/06\/buying-a-floating-house-300x200.jpg 300w\" sizes=\"auto, (max-width: 480px) 100vw, 480px\" \/><\/figure><\/div>\n\n\n\n<p>Floating homes are hallmarks of many coastal and riverside\ncities. There are also amphibious houses \u2014 built on land, but capable of rising\nup off the ground when storm waters rush in. Flexible utility pipes move to\nmeet the water as its ebbs and flows.<\/p>\n\n\n\n<p>Putting homes over water serves to expand the available real\nestate and can help keep prices down. The waterside lifestyle also appeals to\nthose who\u2019d like to get away from the city hustle and live where they play. Not\nsurprisingly, interest in this type of construction is growing. We might even\nsay it\u2019s buoyant! <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Who Wants a Floating House?<\/h2>\n\n\n\n<p>Floating homes interest architects and buyers for a variety of reasons. <em>Inhabitat<\/em> offers some <a href=\"https:\/\/inhabitat.com\/6-amphibious-houses-that-float-to-escape-flooding\/float-house-by-morphosis\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">striking images of amphibious architecture<\/a>. The aesthetic and recreational possibilities are obvious.<\/p>\n\n\n\n<p>Among the more offbeat trends related to floating homes is <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.seasteading.org\/about\/\" target=\"_blank\">The Seasteading Institute<\/a>, a California nonprofit founded in 2008 by tech entrepreneur Peter Thiel along with Patri Friedman, a grandchild of the economist Milton Friedman. They\u2019re doing it to expand real estate when most all habitable land is already taken, to anticipate sea level rise, and to pursue the goal of \u201c<a href=\"https:\/\/www.seasteading.org\/seasteading-what-about-regulations\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">liberating humanity from politicians<\/a>.\u201c They\u2019ve conceived floating cities as places where a new generation of pioneers might \u201cpeacefully test new ideas for how to live together.\u201d<\/p>\n\n\n\n<p>Most floating homes aren\u2019t quite that novel or edgy. Retirees,\nboaters, and vacation home buyers have long been drawn to them as alternatives\nto oceanfront houses. Given the high cost of buying or renting today,\naffordability is a particularly attractive feature.<\/p>\n\n\n\n<p>Floating homes are versatile. They make great home offices. They\u2019re resilient structures, and that <a href=\"https:\/\/thehill.com\/changing-america\/sustainability\/infrastructure\/485887-can-floating-houses-provide-a-solution-to\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">makes more sense than ever in a disrupted climate<\/a>. Indeed, floating homes may become a key option in waterfront renewal projects, as exemplified by amphibious homes built for the post-Katrina Lower Ninth Ward of New Orleans. Carefully built homes over rising waters can offer living space while also preserving environmentally important coastlines. <\/p>\n\n\n\n<p>For all of these reasons, floating architecture is a promising\nform of alternative housing. And if you\u2019ve read this far, chances are you might\neven envision yourself investing in it. If so, you might be wondering what kind\nof title you will have, and how it will be conveyed to you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">So, What Type of Real Estate Is This?<\/h2>\n\n\n\n<p>Some states, like Washington and California, treat homes\nplaced on floating hulls as real property. Separating floating homes from\nhouseboats, the California tax code defines a floating home as a structure&nbsp;that:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Is built (or modified) to be a stationary,\nwaterborne residence.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Can only be relocated by towing.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Requires land-based utilities.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Is permanently connected to a shoreside sewer\nsystem.<\/li><\/ul>\n\n\n\n<p>Basically, it is <em>not<\/em> <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/1\/3\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">a vessel as defined by federal admiralty law<\/a>. It\u2019s a home, subject to property tax. As with a condo, the owner pays monthly fees for utilities and waste collection to the \u201cmoorage\u201d or harbor owner. In some places, owners buy the slips, too, and pay homeowners\u2019 association fees for dock upkeep and utilities. <\/p>\n\n\n\n<p>Washingtonians and Californians with floating homes have recorded deeds and homeowner\u2019s insurance. Some real estate agents focus on these homes. (<a href=\"https:\/\/www.theportlandteam.com\/floating-homes-for-sale\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Here is an example, in Portland, Oregon<\/a>.) These agents know how to connect buyers with suitable financing. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Much Depends on State and Local Rules?<\/h2>\n\n\n\n<p>Because a floating home is something of a legal hybrid,\ndepending on the state, the buyer should begin by reviewing the applicable law\nwhere the floating home exists. County rules will match provisions in the state\ntax code as well as the state\u2019s real property law, and they\u2019ll have local\nspecifics. &nbsp;<\/p>\n\n\n\n<p>Some jurisdictions regard floating houses as personal property. In Florida, for example, the tax code states that a floating structure is deemed \u201ca type of tangible personal property\u201d rather than real estate. This is the case even though Florida law excludes floating houses from the category of vessels.<\/p>\n\n\n\n<p>In Oregon, where floating homes are a huge industry, there is no recordable deed or property tax for this type of home. But there is a yearly Personal Property Tax Return due to the county assessor.\u00a0When you buy a floating home in Oregon, your seller notifies the county assessor and the state marine board. The state oversees lien removal, and sends the county a copy of the updated title. The dated certificate of title states the home\u2019s precise location, ownership details, and property description. Registration in Oregon currently costs $100 and takes two to six months to process. See more about a typical county\u2019s <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.multco.us\/assessment-taxation\/floating-property\" target=\"_blank\">rules for floating homes here<\/a>. For title information and related forms, refer to the <a href=\"https:\/\/www.oregon.gov\/osmb\/forms-library\/Pages\/Forms-and-Publication-Library.aspx\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">marine board\u2019s website<\/a>.<\/p>\n\n\n\n<p>The Tennessee Valley Authority calls these structures floating cabins. Registration information for TVA permitted homes appears <a href=\"https:\/\/www.tva.com\/environment\/shoreline-construction-permits\/floating-cabins\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">here<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What\u2019s the Best Approach to Shopping for a Floating Home?<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/06\/whats-the-best-approach-to-shopping-for-a-floating-home.jpg\" alt=\"Several floating homes in the harbor of a large city with tall buildings in the background.\" class=\"wp-image-1464\" width=\"640\" height=\"360\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/06\/whats-the-best-approach-to-shopping-for-a-floating-home.jpg 640w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/06\/whats-the-best-approach-to-shopping-for-a-floating-home-300x169.jpg 300w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/figure><\/div>\n\n\n\n<p>Finding your perfect floating home takes a number of steps:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1. Find a Specialized Agent and Mortgage Lender.<\/h3>\n\n\n\n<p>Look for agents and lenders who regularly work with these homes.\nLoans for floating houses (which neither the FHA nor the VA offer) come in 15-\nand 30-year terms. Expect to put 20% down. Your interest rate may be slightly\nhigher than rates for traditional homes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2. Find Your Desired Home.<\/h3>\n\n\n\n<p>What kind of home are you hoping to find? Go over the rules,\nbylaws, and all meaningful documents with your agent. Moorages expect owners to\nfollow regulations and restrictions concerning pets, renting out the home, exterior\nd\u00e9cor, and so forth. If the home is classified as real estate, your agent will\nalso help you with questions about the title and title insurance. And be sure\nyou get the weight capacity you\u2019ll need. Extra weight in the home amounts to a\nneed for reinforced flotation under it \u2014 or the home will sink too low. Your\nreal estate agent will help you steer clear of potential mistakes, and guide\nyou on your way to an offer and agreement with the seller.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3. Have the Home Inspected.<\/h3>\n\n\n\n<p>Your experienced agent can explain the various inspections\nyou\u2019ll need. Buyers also need to get appraisals and surveys, which can include\nunderwater dive surveys.<\/p>\n\n\n\n<p>Local codes have specific information about floating homes. For example, Portland, Oregon requires corrosion-resistant materials that can withstand an aquatic environment. Wood treatment must follow environmental standards. The home must measure up to the energy, fire and ventilation standards required by state law, and other requirements as outlined in <a href=\"https:\/\/www.portland.gov\/code\/28\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Title 28: Floating Structures<\/a>. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4. Obtain Insurance.<\/h3>\n\n\n\n<p>You may be paying more for your insurance policy than you\nwould pay for a standard home policy. This depends on where you\u2019re buying. Special\nconsiderations include whether the owner owns the slip, and whether the moorage\nhas a permanent or renewable land use permit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 5. Conclude Negotiations With the Seller.<\/h3>\n\n\n\n<p>Your agent will go over the inspection reports with you.\nThen you can agree on the final price, and wrap up the legal paperwork, and enjoy\nbroadening your horizon with a home on the water. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Each Floating Home Purchase Is Unique. <\/h2>\n\n\n\n<p>Floating home communities are different \u2014 from traditional\nneighborhoods, and from each other. It\u2019s a good idea to talk with as many\nsimilar buyers as possible before making an offer. Along with learning about\nthe home, the buyer will also want to get to know the community. Most water\ncommunities have a small-town feel. Owners of floating houses typically know\neach other.<\/p>\n\n\n\n<p>And keep in mind that laws change. The IRS, the state, the\ncounty, and the homeowners\u2019 association can all change fees and rules. It\u2019s a\ngreat move to speak with your accountant about tax impacts. A real estate\nattorney can advise with inheritance planning and other legal questions\npertaining to your own set of circumstances.<\/p>\n\n\n\n<p><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\">Anna C. Shimko of Burke, Williams &amp; Sorenson, LLP for <em>ACREL News &amp; Notes<\/em> <a href=\"https:\/\/cdn.ymaws.com\/acrel.site-ym.com\/resource\/resmgr\/news_and_notes\/july\/2018-08_shimko_-_if_it_float.pdf\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">If It Floats, Can It Be Real Property<\/a>? (Aug. 2018).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Erica Gellerman for Rocket Homes: <a href=\"https:\/\/www.rockethomes.com\/blog\/home-buying\/floating-house\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Buying, Financing and Living in a Floating House \u2013 What You Need to Know<\/a> (Jan. 13, 2021).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Marin County, California Recorder Shelly Scott: <a href=\"https:\/\/www.marincounty.org\/depts\/ar\/divisions\/assessor\/residential-property\/floating-home\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Floating Homes<\/a>.<\/p>\n\n\n\n<p class=\"has-small-font-size\">California Revenue and Taxation Code \u00a7229. <\/p>\n\n\n\n<p class=\"has-small-font-size\">City Code of Portland, Oregon: <a href=\"https:\/\/www.portland.gov\/code\/28\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Title 28, Floating Structures<\/a>.<\/p>\n\n\n\n<p class=\"has-small-font-size\">Multnomah County, Oregon. Assessment &amp; Taxation: <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.multco.us\/assessment-taxation\/floating-property\" target=\"_blank\">How Is Floating Property Taxed?<\/a> See also <a href=\"https:\/\/www.multco.us\/assessment-taxation\/floating-property-faq\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Floating Property FAQ<\/a>.<\/p>\n\n\n\n<p class=\"has-small-font-size\">Oregon Business Xpress: <a href=\"https:\/\/apps.oregon.gov\/SOS\/LicenseDirectory\/LicenseDetail\/189\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Floating Home\/Boathouse, Certificate of Title and Identifying Plate<\/a> (updated Jan. 5, 2021)<\/p>\n\n\n\n<p class=\"has-small-font-size\">Image credits: <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/pixabay.com\/photos\/house-water-floating-boat-marine-4128493\/\" target=\"_blank\">Vladvictoria<\/a> and <a href=\"https:\/\/pixabay.com\/photos\/city-shoreline-harbour-4877856\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Tonydesign0<\/a>, via Pixabay. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Floating homes are hallmarks of many coastal and riverside cities. There are also amphibious houses \u2014 built on land, but capable of rising up off the ground when storm waters rush in. Flexible utility pipes move to meet the water as its ebbs and flows. Putting homes over water serves to expand the available real [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-1462","post","type-post","status-publish","format-standard","hentry","category-general"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Buying a Floating Home? 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