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Rented Leased Properties- Ground Properties- FAQ

General FAQs


Q. WHAT IS GROUND RENT?
A. Ground Rent is the fee you pay a community for the lot where your home is located.
Q. WHAT IS INCLUDED IN THE GROUND RENT?
A. Your fee for ground rent will include: your lot and in most cases use of the amenities and trash removal. Some of the communities will also include water, sewer and grass cutting, but they are limited.
Q. WHAT OTHER FEES WILL I HAVE TO PAY?
A. The fees associated with your ground rent, in the mobile home communities are water and sewer (if they are not included in your ground rent) these charges are billed every 3 months. You will also pay the county taxes, for your home. These taxes will range from approximately $300.00 to $500.00 per year. The tax period is from July to July and Statements will be mailed directly to your sometime in August and would be due in September.
Q. DO I GET A REDUCTION IN TAXES IF I AM RETIRED?
A. If your primary residence is here in Delaware, you can apply to the county for a reduction in your county tax. This reduction can be substantial in some cases and is definitely worth the effort.
Q. IF I AM NOT A RESIDENT FULL TIME, WHO IS RESPONSIBLE FOR MAINTAINING THE EXTERIOR OF THE HOME AND GROUND?
A. As an owner if grass cutting is not included with your ground rent, you will need to maintain your home and ground. In most communities there are community bulletin boards with names and numbers of local contractors that provide a number of services. You can also talk to your agent about making any necessary arrangements you may need for services.
Q. IF I WANT TO BUY A HOME IN A RENTED GROUND COMMUNITY, HOW DO I GET PARK APPROVAL?
A. When you and your agent find the perfect home you wish to purchase, your agent will give you the necessary paperwork you will need to apply to the community. You will fill out the application and mail directly to the community or give to your agent to take to the park manager. Always be sure to fill out as much information on your application as you can, if you have questions call your agent and they will be able to guide you through the process.
Q. ARE THERE FEES ASSOCIATED WITH A PARK APPLICATION?
A. Yes, fees are charged by the community to process the application. The communities will do a credit check and in some locations a criminal background check. The fees associated with the applications range from $25.00 to $65.00 per person. This is a non-refundable fee.
Q. WHAT IF I AM PAYING CASH FOR THE HOME? DO I STILL HAVE TO GET PARK APPROVAL?
A. Yes, even if you are paying cash for a home, you will need to complete the application process to the community in order to become a resident.
Q. WHY? IF I AM PAYING CASH?
A. When you are a resident, in a rented ground community, most of the communities have amenities for their residents; this will give you complete access to those amenities you are paying for. This is protection for you, as well as other residents in the community. The communities will make sure every resident meets the same required standards if your home is financed or paid for by cash. When you are paying a fee to reside in any community, you want to be assured of your safety as well as your family, this process will assure that safety. This process also makes sure "Residents only & Their Families" have access to amenities.
Q. WHAT IF I AM NOT SURE WHAT MY CREDIT SCORE IS?
A. It is important for you to know what your credit score is, if you are unsure. To obtain a current FREE credit score you can log onto www.mycreditscore.gov this website allows you to obtain your score 1 time a year at no charge to you. Knowing your credit score ahead of time will allow you to make the correct decision on lending and approvals that will work best for you.
Q. ARE THERE CREDIT SCORE REQUIREMENTS TO OBTAIN PARK APPROVALS?
A. Yes, most of the communities will require a credit score of 620 or better to obtain residency. They will also search for any issues with any previous landlords and bankruptcies. If you are concerned about any issues you may have, discuss with your agent and they will be able to help direct you on how to approach the problem.
Q. WHAT CAN I EXPECT NEXT, ONCE I HAVE A COMMUNITY APPROVAL?
A. Once you an accepted contract on a property and have obtained park approval, your agent will begin the process of scheduling the settlement and giving you the contact information to schedule a home inspection on the property, if that is a condition of your contract. If you are financing your home, your agent will give you the necessary documents needed to apply to your lender and begin that process.
Q. WHAT IF I DO NOT HAVE A LENDER AND NEED TO FINANCE A PROPERTY?
A. Your agent will be able to provide a choice of lenders that specialize in financing homes in rented ground communities. Just make sure you let your agent know ahead of time, this will allow your agent to help guide you in this process.
Q. IS FINANCING AVAILABLE FOR EVERY HOME?
A. No, not every home is able to be financed. The lenders will consider the age of the home along with the amount you will be financing. This decision is up to the lender. A thought to keep in mind, when needing financing, is most lenders will not approve financing under $25,000.00 or will not approve lending on a home older than 1976. There have been situations where the home has been completely remodeled and the lender will take this into consideration. It is important to discuss the requirements for a home with the lender before choosing a home. Your agent will be able to provide you with the necessary information to give to your lender.
Q. HOW DO I KNOW WHO TO CONTACT FOR UTILITIES TO BE TRANSFERRED?
A. Your agent will provide you with the correct contact information needed for each utility company that you will need to have transferred. This is usually completed about a week prior to your settlement date.
Q. WHO WILL HANDLE THE SETTLEMENT?
A. Your agent will provide you with the contact information for the settlement coordinator or attorney. You and your agent, together, will determine who will suit your needs best.
Q. HOW MUCH WILL A SETTLEMENT COST?
A. Fees for settlement will vary, depending on if you need an attorney or if you are able to use a settlement coordinator. Your agent will provide you the information to help you determine this selection. If you are able to use a settlement coordinator (this would be only for homes with a title and not a deed) the charges start at $300.00, for a buyer, to provide service. If you need to use an attorney, the fees usually start around $1,000.00 and up depending on what services are needed. (An attorney would be needed if you are purchasing a property that you will also own the ground)
Q. DO I NEED HOMEOWNERS INSURANCE?
A. Most of the communities will require that you carry some type of liability insurance coverage. The average cost for coverage on a home including content will start around $500.00 per year. The costs will increase with any additional coverage of structures, content and /or liability you may wish to carry.
Q. WHY IS IT IMPORTANT FOR ME TO HAVE INSURANCE, IF I DO NOT OWN THE GROUND?
A. You never know what life will throw at you or how "Mother Nature" could hand you that unexpected curve ball. You may not own the ground but, you do own the home and any other structure that sits on it. If someone fell on your deck or had a box fall on them in your garage, you want to be assured any hospital bills would be covered, if they were to need medical attention. On the other hand if a trash can or chair went flying through your window during an unexpected storm, you would want to have the window replaced and not stress about not having the funds to cover the charges. You work hard for what you own in life, why not have the security of knowing you could replace, repair or even break even with what you have paid for your home and give yourself peace of mind.
Q. DO I NEED TO HAVE A HOME INSPECTION?
A. A home inspection is not required if you are paying cash for a property but, if you are financing, the lender may require that an inspection is done on the property to assure everything is in proper working order. As a buyer, you would want to have as much "safety nets" as you possibly could with your purchase. A home inspection can provide that for you, along with confirming the choice you made to purchase that particular property.
Q. WHO PAYS FOR A HOME INSPECTION?
A. The purchaser (buyer) of the property would be responsible for the charges associated with conducting a home inspection.
Q. WHAT IF SOMETHING "WRONG" IS FOUND IN A HOME INSPECTION?
A. Once a home inspection is completed, you will receive, from the inspection company, a complete result report of the inspection. It is very important you request the inspection company to send a copy of the report to your agent as well. Together, you and your agent can review the report, to determine whether there are any areas of concern. If issues are found, and considered to be listed as "A Major Defect" with the home, your agent will assist you in deciding if any requests for repairs would need to be made to the seller of the inspected property. Any result of decisions would be addressed at that time and take place prior to a settlement date, to assure the transaction would proceed without issue.


Beach- Lewes DE- Millsboro DE- Rehoboth DE- Delaware

Rented Ground Properties- Leased Properties- Lewes- Millsboro- Rehoboth- Delaware

19606 Coastal Hwy. • Rehoboth Beach, DE 19971 • (302) 645-2030