The following is a list of some real estate terms that you will frequently run across when looking to buy or sell a home in Rossmoor.
Golden Rain Foundation
GRF is a trust that was established to maintain the public property within Rossmoor. GRF is responsible for all the roads and public buildings within Rossmoor. GRF is not responsible for anything within a mutual association.
A Mutual is a geographical area with specific boundaries that includes a specific number of condominiums or co-ops. A Mutual is incorporated in the State of California and is part of a large master community association called Golden Rain Foundation. The land within the boundaries of a Mutual is owned and maintained by the Mutual Homeowners Association. The Homeowners Association (HOA) is responsible for the buildings, streets, and grounds of Mutual. The common area is all of the structural elements of the buildings housing the individual condominium units and parking garages, and all land and exterior areas. Members of Mutual pay a fee to the HOA that is used to maintain the buildings, roads and grounds in the Mutual.
Each Homeowners association assesses a monthly fee. This fee goes to two separate entities, the Homeowner Association and the Golden Rain Foundation. Approximately ½ of the fee goes to Golden Rain to cover the operating cost of all public areas, i.e. Movie Theater, roads and open space in Rossmoor. The other ½ goes to the local homeowner association and pays for the maintenance of all homes in the association, water, sewer, trash removal charges for all homes and the landscaping of the grounds within the association and maintenance of the roads within the association.
Condominiums may be either vertically stacked or horizontal units. An individually owned portion is called a unit or manor and consists of interior space within a defined set of walls, floors and ceilings. Condominium owners are responsible for the maintenance of the interior space of their unit. The condominium owner is also responsible for the furnace, a/c and water heater. The condominium owner has exclusive use of decks, patios and parking areas assigned or attached to their unit. In a condominium association, each homeowner owns a share of all the land in the association. For example, if there are 75 homeowners in the Mutual, each homeowner owns 1/75th of the Mutual, not necessarily the land under or near their home. The home can be placed in a trust or willed to heirs like
In a co-op the buyer is purchasing a membership in a corporation. He is not purchasing a specific manor but is buying an equity position in a corporation. The corporation owns all the buildings and the lands within the association. The buyer signs an occupancy agreement, which is similar to a rental agreement. Co-op buyers are responsible for the maintenance of the interior space of their home. They have exclusive use of that space and a carport space. Equity in the corporation may be willed. Co-ops can not be owned by a corporation. Co-ops were originally designed as affordable housing. and were financed by 40 year FHA/HUD loans. Some of these loans are still in place. As of January 2006 co-op units may be financed. If a buyer pays with cash only they must show an income of 4 times the monthly HOA fee and have $70,000 in liquid assets.