Buying a Lake House is Exciting, and a wonderful financial investment, but in this series, you will see there are some precautions you must take prior to purchasing that will insure a smooth and lower stress transaction and that will save you many thousands of dollars.
“I’ve heard horror stories about people buying a lake house and losing dock privileges. What do I need to do to make sure this doesn’t happen to me?”
Having a dock on your lake front property is estimated to be worth approximately $100,000 in real money. If you lose these privileges over not taking the right steps at the right time, it could cost you dearly. And it is totally avoidable. Here’s how:
The US Army Corps of Engineers is responsible for all of the boat docks on Old Hickory Lake. There is an assumption that because, a dock exist when you buy the real estate that it is automatic that it can stay. The reality is it is your responsibility as the new homeowner to meet with the appropriate Ranger within a couple of months after purchasing the home. At this meeting, the Ranger will go over all of the myriad rules and regulations involving your dock (which is private property located on Publicly Owned Property, commonly known as the “Corp Property”). He or she will walk you through the application process. Once the permit is approved, no further inspections need to be made until you reach the end of the five year term. Every 5 years, the permit must be renewed. Which means an inspection of your dock, and if there is electrical on the dock, and this is very common for any covered dock, it requires an electrical inspection to make sure all of the wiring is safe and up to date with all current requirements.
Before purchasing the property, your Realtor will recommend that you receive a letter from the US Army Corp of Engineers ( 5 Power Plant Rd, Hendersonville, TN 37075 615-822-4846) stating the property is approved for a dock, or that the existing dock can remain so long as you make application for a five year permit in your name as the new owner. Permits do not transfer from one owner to another and this is why receiving this letter is important to insuring the dock can remain, or that you may build a dock.
Stay tuned as we explore other issues that you will want to know before you sign the contract to purchase a lake home. If you are looking to purchase a lake home and have questions, give me a call. Mike Hastings – 615-992-8817, [email protected]