What to be aware of when buying a home through RALT

Homes purchased through RALT are limited in how much profit you can make when selling your home. This limit is designed to keep the home affordable for future buyers, but can restrict your financial gain from the sale.

When you buy the home, you are purchasing the house, not the land it sits on. The land is owned by RALT, but leased to you and your heirs for 99+ years. This arrangement can affect your property rights and might require adherence to specific lease terms.

Although you will build equity in your home, the resale limitations and the nature of the CLT model might limit how much equity you can accumulate compared to traditional homeownership.

While RALT is typically able to secure favorable financing options for you, you may still face challenges in securing a mortgage or meeting the lender’s specific requirements if you seek lending options without support. 

RALT encourages active participation and involvement in community decision-making and RALT homeowners will gain the opportunity to apply to serve on the RALT Board of Directors. While this can be positive, it also requires commitment and engagement from homeowners.

RALT has specific guidelines for property maintenance and modifications to ensure properties keep their value for years to come. You may need prior approval for large-scale modifications and changes to your home.

In addition to a pre-set resale price, homeowners must notify RALT when they wish to sell their home, and they cannot list their home on the open housing market. RALT will then assist with the transaction to line up an income-eligible homebuyer on our waitlist to purchase the home. If there is no homebuyer available, RALT may purchase the home directly from the homeowner.  

 Some homes may be located within neighborhoods or communities with HOA rules and regulations. Homes located will have to follow all HOA requirements and pay associated fees. Note, these fees are taken into account during the affordability assessment prior to purchase to ensure the property stays affordable.