balance sheet, page-2

Hi 77,

Re: "payables to residents".

My understanding is the following - residents do not buy the homes, they loan the purchase price to PrimeTrust which entitles them to live in the home till they move. When the home is "re-sold", the resident get their loan back less the deferred management fee. Then PrimeTrust gets to "sell" the same home again! I'm only guessing, but given the nature of the loan - I don't believe Primetrust pays any interest on it??? But is it a liability and has to be on the balance sheet. However, I stand to be corrected.