RESELLING YOUR HOME
What to do and expect when selling your NWMTCLT home.
Introduction and Overview of Timeline
When a CLT homeowner wants to move, there are several options. The home can be sold directly to an income-qualified buyer, can be sold back to the CLT, or it can be given to other qualified heir of the homeowner.
All CLTs ensure that when a CLT homeowner sells their home they get all of their equity (the amount of money that they used as a down-payment as well as the portion of the mortgage paid off) plus a portion of the appreciated value of the home.
The sales price for the home is determined using an independent appraisal of the value of the house and the resale formula outlined in the ground lease. Different CLTs have different resale formulas.
Please review this page and the associated documents so that you know the steps to take to prepare to sell your home and you’ll know what to expect during the process.
First, we want to manage your timing expectations. The whole process can take about 60-105 days.
If you are hoping to purchase another home, please WAIT to enter into a purchase and sale agreement to purchase a home until you’re well on your way to selling your CLT home.
1. Notification, Home Inspection, and Photos. You must first give Northwest Montana Community Land Trust, Inc. formal notice that you intend to sell your home. You do this by submitting via email, postal mail, or hand delivery of the Notice of Intent to Sell which you can download here.
NWMTCLT staff will then schedule an appraisal and a building inspection that will be paid for by NWMTCLT. Based upon the results of the home inspection, some repairs or replacement of broken items may be required. These expenses are the responsibility of the homeowner.
2. Determining Your Resale Formula Price. Based on the appraisal and the information in your ground lease, NWMTCLT is able to determine the maximum resale formula price under article 10 of the ground lease.
3. Entering into a contract and proceeding towards closing. The homeowner(s) will work with NWMTCLT staff to come to an agreement on the timeline for any repairs and the closing date.
4. Moving out and moving on. Please be sure to take all your belongings with you, do not leave any garbage or packaging materials, clean the appliances inside and out, clean the inside and face of all cabinets, shampoo the carpets, dust the trim and light fixtures, sweep the garage and leave your home in the condition in which you found it.
Why do CLTs use a resale formula to calculate the sales price?
The resale formula preserves the affordability for the next family who will buy the CLT home. The resale formula gives the homeowner 100% of their earned equity plus 25% of the increase in the home value during the period of home ownership.
The example below shows how the selling price for a CLT home would be determined.