Your Rights Bytes #22

By Bruce Stanton, GSMOL Corporate Counsel 

HOME UPGRADES ON RESALE:  WHAT ARE YOUR RIGHTS AS A SELLER?

When a mobilehome is sold “in place”, it is common for park management to require certain repairs or upgrades to the home as a condition of it remaining in the park.  These “upgrades” are regulated by Civil Code 798.73.5 (a), which limits management’s ability to require repairs or upgrades at time of resale as follows:

1. The repair or upgrade must pertain to the mobilehome or to accessory structures like sheds, cabanas, porches and the like.  Civil Code 798.83 clearly states that a selling homeowner cannot be required to make repairs or improvements to the park space or park property (i.e. anything in the ground) unless it was damaged due to action of the homeowner.  Thus, for example, management cannot require tree removal as a sale upgrade unless the homeowner caused the need for its removal.
2. The repair or upgrade must be based upon a written rule of the park, or required by a state or local law.  These should be cited in any written response from the park.
3. The repair or upgrade must relate to the exterior of the home or accessory structure.  Thus, management has no jurisdiction over the inside of the home, and cannot require that appliances or flooring be replaced.

It is also important to note that 798.73.5 (b) specifically obligates management to provide to the seller a written summary of repairs or improvements that management shall require as condition of sale “no later than 10 business days following receipt of a request for this information”.  This is a “shall”, and not a “may” requirement. 

A standard practice of some park owners has been to delay any written upgrade/repair responses until just before close of escrow.  This is apparently a strategic move designed to leverage compliance with their demands at a late point in the sales process when the buyer and seller might feel unable to do anything but comply, even if the demands are not supportable.  This is precisely the type of economic duress which 798.73.5 (b) was designed to prevent when it was adopted in year 2000.  Management should be given a written notice of sale by the seller or seller’s agent which includes a request for repairs or upgrades under 798.73.5 (b), and which says that if a timely reply is not received, it shall be presumed that management is waiving the requirement for any repairs or upgrades.  Remember that 798.73.5 is part of the Mobilehome Residency Law (MRL), which is a non-waivable consumer protection law that must be followed.  Also remember that section 798.86 contains a $2,000.00 penalty for willful violations of any part of the MRL.  When challenged with the laws, management may choose to back down and allow the sale, rather than be liable for the monetary amount of a lost sale.

 

The Ed Fund partners with the Golden State Manufactured -home Owners League, Inc. (GSMOL) which is a 60-year old non-profit organization dedicated to the protection of homeowners and their rights.  GSMOL is responsible for the above protections, and virtually all of the Mobilehome Residency Law (MRL) was passed due to the efforts of GSMOL.  You can become a GSMOL member by clicking on the JOIN GSMOL TODAY button at GSMOL's website, https://gsmol.org or call the GSMOL Office at 800-888-1727.