SELLING HOME IN PLACE IN THE PARK
Q. We want to sell our mobilehome and move out of the park, but the management says that, because it is too old, we will have to remove the home and cannot sell it in place. Can they do this?
A. If your home is NOT a mobilehome (less than 8 feet wide x 40 feet long) and is therefore classified as a recreational vehicle (trailer), you have no right to sell it in place and will have to move it. With regard to mobilehomes, the old law required you to move upon sale if it was 17 years of age or older. That has not been the law since 1984. Current law (MRL Sec. 798.73) establishes two standards. Basically, the home cannot be required to be removed upon a resale if it: 1) is more than 17 to 20 years old or older but meets health, safety and construction standards of state law; and 2) is not in substantially rundown condition or disrepair as determined in the reasonable discretion of management. Generally, if the home meets the first test it is hard to fail the second. If the management is rigid on this issue, you may have to hire a private home inspector to look at your home and repair any code violations or defects the inspector finds in his report. You should keep a copy of the inspector’s final report as proof that your home meets state code standards. State HCD inspectors no longer perform this function in most cases; although some local governments that do mobilehome park inspections for the state may be willing to inspect your home. Be prepared to pay an hourly fee in any case, whether it’s a public or private inspector. Several attempted legislative reforms, including SB 339 (Dunn, 2001) requiring HCD to perform home resale inspections have failed to pass the Legislature.
RESALE OF A PARK MODEL IN THE PARK
Q. Six years ago I purchased a “park model” located in a mobilehome park that is mixed-use for mobilehomes and recreational vehicles, but due to a job change I recently notified the park that I will be selling my home in the park in order to relocate. The park, however, now tells me I cannot sell in place and anyone who buys will have to move it. Doesn’t the Mobilehome Residency Law permit me to sell my home in place?
A. Not if it is a park model. Even though it may look like a small home, a park model is not a mobilehome. It is a “park trailer,” as defined in the Health and Safety Code, which is essentially a type of recreational vehicle that has 400 square feet or less of floor space. A number of mobilehome parks in California accommodate both mobilehomes or manufactured homes, as well as recreational vehicles, but provisions of the Mobilehome Residency Law that require parks to allow homeowners to resell their homes in place in the park only apply if the home is a mobilehome or a manufactured home. Also see the previous question for more information on this issue.
PROSPECTIVE BUYERS SUBJECT TO INCOME REQUIREMENTS
Q. We want to sell our home in the park and have had several buyers, but the management has disqualified every one for insufficient income. The park has a 3.5:1 income to rent standard, so the buyer’s monthly income has to be 3 1/2 times the sum total of the monthly rent, utility charges, fees and any mortgage on the home. Most existing residents who live in this park don’t make that much, even though they can manage to pay the rent. By imposing unreasonable income requirements on buyers, can the park keep me from selling my home?
A. Yes. The sale of a mobilehome located in a mobilehome park is a three-party, not two-party transaction. The buyer and seller must not only agree to terms on the sale of the home, the buyer must be approved for residency in the park by the park owner/management. By denying a buyer residency, the park management can effectively veto sale of the home in the park. There have been a number of legislative battles on this issue over the years, and the unfettered discretion of park management has been somewhat restricted, but management can still withhold approval on the basis of: 1) the buyer’s inability to pay the rent and charges of the park and 2) the buyer’s inability to comply with park rules and regulations as indicated by prior tenancies (see MRL Sec. 798.74). Although guidelines used by other landlords or public agencies for rental housing may be more lenient, many park owners impose higher income requirements to assure buyers will be able to afford future rent increases without causing the park problems, such as evictions. Legislative attempts to impose financial qualification standards for parks have not been successful to date.
RIGHTS OF HEIRS INHERITING MOBILEHOMES
Q. My mother, who owned and lived in a mobilehome in a park, died a couple months ago, leaving the mobilehome to me as her sole heir. Although I was not a party to the park rental agreement, I had been living with her for two years in the home. The park manager tells me, however, that I cannot continue to live there unless he accepts me for residency and that as legal owner of the home I would have to continue to pay the monthly rent on an empty home to keep it there or resell it to someone else. Can the park prevent me from living in my own home?
A. Yes, unless you qualify for residency and sign a rental agreement. Upon death of a relative, heirs cannot simply assume they can move into the relative’s home or continue to live there if they are not already a party to the rental agreement. Despite the fact that an heir takes title to the mobilehome, the park management has the right to require an heir or person who had been living with the deceased, to newly apply for residency in the park. If the management rejects the heir’s residency because the heir cannot comply with the rules or doesn’t have the income to pay the rent and charges, the heir can be required to move out. The heir has the right to resell the inherited mobilehome in place in the park, assuming it meets health and safety code requirements, but must continue to pay the monthly space rent until the home is sold in order to maintain the right to sell it in place in the park. Otherwise, the park may terminate the tenancy and require the home to be moved from the park within 60 days of the notice of termination.
USED HOMES - RESALE DISCLOSURE
Q. Two months ago I sold my mobilehome myself “as is” to a buyer who is now threatening to sue because the heating system broke and I did not provide her a real estate disclosure form as required by law along with the sales documents. I was not aware of the disclosure requirement and the Department of Housing (HCD) did not inform me of the requirement when I transferred the home’s title and other sale documents were processed. If the state does not notify homeowners of the disclosure requirement, how can I be liable?
A. As a measure of consumer protection, mobilehome resale disclosure (Civil Code Sec. 1102.6d) became effective in January 2000, making mobilehome sellers and their agents responsible for providing prospective buyers by close of escrow with a resale disclosure statement. The form requires the seller to check off a list of conditions or defects that may affect the value or condition of the home. The seller is not subject to a penalty or fine for failing to provide the disclosure to the buyer, and the fact that disclosure was not made does not invalidate the sale of the home. However, after purchasing the home, if the buyer discovers defects that were not disclosed by the seller, the fact that the disclosure statement was not provided could affect the outcome of the seller’s civil liability in court for the defect. Real estate brokers and dealers are also subject to the disclosure requirements and agent sales almost always include disclosure. Homeowners handling the sale of their home without an agent may not be aware of the disclosure requirement and should seek advice of an attorney, escrow agent, or another professional familiar with documents needed for resale of a mobilehome. HCD is not required to notify selling homeowners at the time of title transfer, which normally occurs only after the sale has already been consummated anyway. A copy of the disclosure form may be found under “Information” on this Select Committee’s website. Additional information about resale disclosure may be found in the supplemental information to the 2008 Mobilehome Residency Law document, on this website.
HOMEOWNERS REQUIRED TO SELL HOME TO THE PARK ON A RESALE
Q. Recently I gave the park notice that I intend to put my mobilehome on the market for resale in the park, but the manager said the park requires homeowners to first offer the home for sale to the park before we are allowed to sell to anyone else. Is this legal?
A. It depends on your rental agreement. The Mobilehome Residency Law (Section 798.19.5) provides that a park rental agreement entered into on or after January 1, 2006 shall not include a provision or rule or regulation requiring homeowners to grant the park the right of first refusal to buy their homes on resale. Hence, if the homeowner entered into a lease on or after January 1, 2006 or is on a month-to-month tenancy, the park could not enforce a right of first refusal to buy the home. However, homeowners may be subject to such a park right of first refusal if they signed a long-term lease with such a provision before January 1, 2006 and that lease has not yet expired. Additionally, the law does not prevent a homeowner and the park from entering into a separate agreement, apart from the lease, for the right of first refusal where the homeowner obtains consideration or compensation from the park for that right.
NEW HOME SALES PROBLEMS
Q. Six weeks ago we moved into a brand new manufactured home we had earlier purchased and had installed on a space in a mobilehome park. Part of the home now appears to be sagging or was not properly leveled in the first place, and some doors and windows won’t open and close properly. Additionally, the kitchen sink is leaking and the air conditioning that came with the home only blows hot air. What are our rights?
A. New mobilehome or manufactured home warranty complaints must be filed in writing with the dealer and manufacturer within the warranty period, by law one year and ten days from the date of delivery or occupancy, whichever is earlier. This is necessary in order to preserve your rights under the warranty should litigation or an HCD investigation not commence until after the warranty has expired. Accessories that were purchased with the home as a package are normally covered by the warranty. A leveling problem may complicate warranty complaints. If the home was installed by a licensed contractor as arranged by the dealer, both the dealer and contractor may be responsible. If the homeowner hired the installer independently from the dealer sale, there may be an issue of whether the problem with the home results from faulty installation, and thus is only the responsibility of the installer, or results from manufacturing defects. If the dealer or manufacturer does not satisfactorily respond within a reasonable period of time after filing the complaint with them, the homeowner should contact HCD’s Office of the Mobilehome Ombudsman at 1-800-952-5295 about filing a dealer complaint. Complaints about licensed contractor installers should also be addressed to the Contractors State Licensing Board at 1-800-321-2952.
|
