Important information before you buy
It’s usually one of the first things that comes up when we work with a client who is buying in the Greater Palm Springs area; they need to know what it means when they see “You own the land” or “lease land” in a listing.
In this post, we’re going to help you understand the difference between “lease land” and “fee simple” land (or known as “fee land”), because they are essential to choosing a home in this region.
Lease Land
“Lease land” is land that is owned by the Native American Agua Caliente Band of Cahuilla Indians. When the Coachella Valley was originally established, the federal government divvied up the land into sections that are one-square mile in size. This creates a checkerboard of land, and the Agua Caliente Tribe was deeded ownership of all the even-numbered sections.
View the image and you can easily see the checkerboard.
The Impact On Your Buying Decision
If the land is on property owned by the tribe, it is lease land, meaning you don’t own it, but you pay to lease it from them. These are often monthly payments, and while you don’t own the land, you may get “more for your money” in the home you want. This is a common benefit of choosing to live on “Indian” or “lease” land.
The leases on the land vary in length — many were initially for 65 years, when established in the ’70s or ’80s. At the end of the land lease, the tribe can determine if they will renew the lease for some period. Most leases will be extended well before they expire, which can help when signing a long-term mortgage (like a 30-year loan).
Fee Land
Many newcomers to the desert mistakenly think that a listing which is “Fee Land” or “Fee Simple Land” is a listing that involves paying a fee for the land itself. In fact, “Fee land” is land you own, more like a traditional housing purchase. Only with “lease land” will you encounter unique issues of tribe land ownership, including lease payments, expiration dates, and tax, resale, and loan matters.
You can view the map below to see the general land layout or visit the Agua Caliente Tribe website at this link below, to search by address. That website will help you find if land involves a lease payment.
https://www.aguacaliente.org/gis
Many buyers want to OWN the land their home is on. For others, it may make more sense to purchase on “Indian” land, perhaps because you could get more house for the money, or you’re buying a condo or other home type which is not subject to the same “land ownership” issues for resale.
This subject is one of many reasons it’s essential to work with an experienced local REALTOR® who knows the intricacies of buying in Greater Palm Springs. I’ve been here for over 20 years and will have access to detailed information to help you understand if buying on “lease land” or “fee land” makes more sense for you.
