Seagrass Resale Restriction Explanation

The terms of the deed restriction on this property terminate at the unit's resale. After three years, applicants can sell the unit at the Market rate and are subject to an equity share of the unit. Below is a breakdown of how this equity share works.

For example, suppose the Initial Purchase Price is $600,000. In that case, the Initial Appraised Market Value is $800,000, and the sales price is $1,000,000, the Excess Sales Proceeds will be $200,000 (calculated as $600,000 - $800,000); the Proportionate Share will be 25% (calculated as $200,000/$800,000 = 25%); the Appreciation will be $200,000 (calculated as $1,000,000 - $800,000 = $200,000) and the Proportionate Share of the Appreciation will be $50,000 (calculated as 25% x $200,000); therefore Owner will owe the County a total Recapture Amount of $250,000 (calculated as $200,000 in Excess Sales Proceeds, plus $50,000 in the Proportionate Share of Appreciation).

Based on this calculation example, of the $1,000,000 you sold your home, you would deduct the $250,000 that you would owe the county and further deduct what remains on your mortgage and realtor fees.

Remember that you can only access this sales price because of the resale restriction. Other programs do not allow you to sell at market rate until after their deed restriction terms expire.