{"id":797,"date":"2019-12-01T07:00:48","date_gmt":"2019-12-01T12:00:48","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=797"},"modified":"2024-04-25T23:20:32","modified_gmt":"2024-04-26T03:20:32","slug":"age-restricted-communities-how-they-affect-your-real-estate","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/age-restricted-communities-how-they-affect-your-real-estate\/","title":{"rendered":"Age-Restricted Communities: How They Affect Your Real Estate"},"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\/2019\/11\/age-restricted-communities-1024x538.jpg\" alt=\"Image of an elder couple walking along a path outside in a rural setting with trees and open areas wearing cool weather clothes holding hands with each other. Captioned: Age-Restricted Communities: How They Affect Your Real Estate\" class=\"wp-image-798\" width=\"512\" height=\"269\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/11\/age-restricted-communities-1024x538.jpg 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/11\/age-restricted-communities-300x158.jpg 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/11\/age-restricted-communities-768x403.jpg 768w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/11\/age-restricted-communities.jpg 1080w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><\/figure><\/div>\n\n\n\n<p>Looking at\nhomes&nbsp;in a 55+&nbsp;community? You might wonder: <em>Will I be able to leave my\nage-restricted condo home to my children? <\/em>&nbsp;<\/p>\n\n\n\n<p>Before\nbuying&nbsp;your new&nbsp;home in an age-restricted community,&nbsp;check the\nhomeowners\u2019 association&nbsp;rules on inheritance. Your realtor might have\nmentioned two pertinent&nbsp;guidelines these communities follow:&nbsp;the\nnationwide 80\/20 rule, and the property&#8217;s own minimum age rule. We&#8217;ll flesh out\nthese guidelines here.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">The\n80\/20 Rule:&nbsp;History and Purpose&nbsp;<\/h2>\n\n\n\n<p>Depending on\nhow your title is&nbsp;<a href=\"https:\/\/www.deeds.com\/articles\/hows-your-property-vested-it-matters-as-much-as-your-will-or-trust\/\">vested<\/a>,\nyour children may inherit your unit, and the community may allow them to live\nthere, as long as they don&#8217;t upset the federally mandated 80\/20\nratio:&nbsp;80%+ of the occupied units must include at least one person who is\n55 or older. And if your children have children of their own, your grandkids\nmight be too young to stay.&nbsp;<\/p>\n\n\n\n<p>But wait.\nDoesn&#8217;t the federal Fair Housing Act forbid&nbsp;discrimination in real\nestate&nbsp;transactions, including&nbsp;the &#8220;familial status&#8221; of\nhaving young&nbsp;children?&nbsp;Yes, but\nit&nbsp;exempts&nbsp;senior&nbsp;housing. And the Housing for Older Persons Act\n(HOPA) of 1995 defines&nbsp;senior housing as a community operated for\noccupancy by at least one person aged 55+&nbsp;per unit\u2014whether or not the\nproperty offers&nbsp;significant features designed for elders. In other words,\nover-55 or &#8220;active adult&#8221; communities are allowed a good deal of\nleeway to set age restrictions.<\/p>\n\n\n\n<p>Outside the\nHOPA or the Fair Housing Act, the right of a&nbsp;surviving spouse or a\nchild&nbsp;to live on the property after the&nbsp;55+ resident passes away is\nan issue for&nbsp;state and local policy. It will have been&nbsp;laid out in\nthe original contractual agreements between&nbsp;developers and purchasers. The\nfederal 80\/20 provision was&nbsp;designed, at least in part, to allow a senior community\nto plan for inevitable ownership changes, yet keep its age-related exemption,\nin these very cases.&nbsp;<\/p>\n\n\n\n<p>The&nbsp;Rules\nand Regulations&nbsp;of a&nbsp;senior housing&nbsp;association sets forth the\nactual allowed&nbsp;percentage of units for residents&nbsp;under 55. Individual\nproperties can have more stringent rules than the 80\/20 formula.&nbsp;Moreover,\neven if a 55+ community has (and is comfortably under) a standard 80\/20 limit,\nits rules still might force&nbsp;heirs under 55&nbsp;to sell the unit.<\/p>\n\n\n\n<p>Bottom line?\nCheck the community&#8217;s&nbsp;Rules and Regulations to avoid&nbsp;surprises.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The\nCommunity&#8217;s Minimum Age Rule:&nbsp;No Kids Allowed?<\/h2>\n\n\n\n<p>The typical\nsenior community&#8217;s minimum age rule is&nbsp;18+ for residents. Some raise their\nminimum&nbsp;to age 21&nbsp;over even higher. This means you won&#8217;t want to pass\none of these units along to your children if they have young kids, unless your\nchildren&nbsp;understand they will be selling the unit.<\/p>\n\n\n\n<p>So,\nbasically, most 55+ communities don&#8217;t let kids&nbsp;(under 18, or the specific\nage set by the rules)&nbsp;live on-site unless&nbsp;an exemption is made.\nFurthermore, most communities require any resident who&#8217;s under 55 to live in a\nunit occupied by someone&nbsp;55 or older.<\/p>\n\n\n\n<p>Now, you\nmight be asking: <em>Can my\ngrandchildren visit and stay with me at a 55+ community?<\/em><\/p>\n\n\n\n<p>Nearly all\nage-restricted properties do let children visit\u2014typically, for a time limit\nranging anywhere from two weeks to three months in a given&nbsp;year. Review\nthe Rules and Regulations to find restrictions on children as\nguests.&nbsp;They&nbsp;might include&nbsp;a provision for registering young visitors\nand keeping tabs on the time they spend on the property. Youngsters&nbsp;might\nalso be barred from using&nbsp;the property&#8217;s amenities without\nadults&nbsp;present, given insurance restrictions.&nbsp;Be sure\nyou&#8217;re&nbsp;comfortable with these provisions before buying.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">On\nthe Rise: Senior Co-Ops<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.deeds.com\/articles\/owning-a-co-op-different-from-traditional-real-estate\/\">Senior\nco-ops are becoming popular<\/a>&nbsp;choices for people who wish to&nbsp;live\nin communities governed directly by the residents. The main idea behind\nthe&nbsp;senior co-op&nbsp;is to age comfortably, surrounded by an involved and\nmutually supportive group of people. &nbsp;<\/p>\n\n\n\n<p>Most co-ops\nonly have one property deed. The residents hold shares, as though in a\ncorporation. Shareholders&nbsp;can convey their shares. But the transfer\nof&nbsp;shares&nbsp;is subject to the&nbsp;co-op&nbsp;board\u2019s\napproval.&nbsp;What about heirs?&nbsp;Check the terms in the&nbsp;proprietary\nlease&nbsp;before investing. Some allow&nbsp;transfers of co-op shares to\nbeneficiaries&nbsp;through a will or through a revocable trust. Some do not.<\/p>\n\n\n\n<p>Moreover,\ninheriting a co-op share does not necessarily mean being allowed to live\nthere.&nbsp;Most co-ops will at least&nbsp;want the person who will get the\nunit to come in for an interview and vetting&nbsp;process. If the transfer\ndoesn&#8217;t work out, the heir may be able to&nbsp;sell the shares back to the\nco-op.<\/p>\n\n\n\n<p>You&#8217;ll need\nto think about vesting in advance. Co-op owners should&nbsp;know&nbsp;how\ntitling is done on the share certificates.&nbsp;If a couple owns\nas&nbsp;tenants in common, their interests will go into probate when they pass\naway. Therefore, owners as tenants in common&nbsp;need wills that\nstate&nbsp;exactly how they want their&nbsp;shares&nbsp;conveyed. What happens\nif an unmarried co-op resident leaves shares to&nbsp;a life partner? A court\nwould likely find that anti-discrimination laws compel the co-op to treat the\nlife partner as it&nbsp;would treat a spouse in the same situation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The\nImportance of Case-Specific Advice<\/h2>\n\n\n\n<p>As\nwith&nbsp;anything that involves federal law, state policy, and local custom,\nthere are plenty of possible situations beyond the scope of our series, which\nis for your general information only. An attorney&nbsp;can explain the state\nprobate code, real estate&nbsp;documents, or&nbsp;your&nbsp;beneficiary&#8217;s\nrights. An attorney can also advise you&nbsp;if&nbsp;anti-discrimination laws\nmay have been violated.<\/p>\n\n\n\n<p>Perhaps most\nimportant of all, an attorney can help you state your clear\nintentions&nbsp;in&nbsp;your will or&nbsp;trust, real estate title, or other\nlegal documents.&nbsp;Whether you choose a senior co-op or condo, things can\nget difficult later if someone contests your&nbsp;will. And the condo or co-op\nfees must be paid until probate&nbsp;is settled, or the home&nbsp;is sold to a\nnew resident.<\/p>\n\n\n\n<p>Consider\nyour move to a 55+ community the right time to get your estate plan in good\nshape, too. Then enjoy your golden years. You&#8217;ve earned them.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Looking at homes&nbsp;in a 55+&nbsp;community? You might wonder: Will I be able to leave my age-restricted condo home to my children? &nbsp; Before buying&nbsp;your new&nbsp;home in an age-restricted community,&nbsp;check the homeowners\u2019 association&nbsp;rules on inheritance. Your realtor might have mentioned two pertinent&nbsp;guidelines these communities follow:&nbsp;the nationwide 80\/20 rule, and the property&#8217;s own minimum age rule. We&#8217;ll [&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":[107],"tags":[],"class_list":["post-797","post","type-post","status-publish","format-standard","hentry","category-elder"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Age-Restricted Communities: How They Affect Your Real Estate - Deeds.com<\/title>\n<meta name=\"description\" content=\"Looking at homes in a 55+ community? 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