The Mobile Homes (Selling and Gifting) (England) Regulations 2013 came into force on 26 May 2013 (‘the Regulations’).
The Regulations detail how a park site owner should deal with an occupier that wishes to sell or gift their mobile home. All park site owners will be well aware of the purpose behind the Regulations which is to prevent the practice of ‘sale blocking’, a topic that has been in the headlines recently.
The actions a park site owner will need to take will depend on the date of the agreement between the park site owner and the occupier:
- If the Agreement is:
a) an existing agreement between the park site owner and the occupier under the Mobile Homes Act 1983 ;
b) was entered into before 25 May 2013; and
c) has not been assigned since 25 May 2013
If the park site owner wishes to object to the sale/gift he must serve a Refusal Notice on the occupier within 21 days of receipt of the Notice. If not the sale/gift is deemed to be approved. The park site owner must also apply to the Residential Property Tribunal within 21 days of receipt of the Notice for an Order preventing the sale/gift.
Under the Regulations a park site owner can only refuse a sale/gift on very limited grounds i.e. that the proposed sale would breach site rules as the new occupier would be below the age limit for the site.
- If the Agreement was:
a) made after 26 May 2013;
b) was made before that date but has been assigned on one or more occasions since 25 May 2013
the occupier does not need to notify the park site owner and the sale or assignment can proceed.
Irrespective of the date of the agreement all occupiers selling or gifting mobile homes will have to give the buyer a prescribed Buyer Information Form together with relevant documentation.
The final main change under the Regulations is that the buyer is now responsible for the payment of the 10% commission to the park site owner.
The Regulations have a huge impact on the way that the sector must now approach sales by occupiers. As a result many park site owners may find that provisions within their site rules are now ineffective such as a requirement for an occupier to conduct a survey of the mobile home prior to its sale.
The specialist Holiday and Home Parks Department at Blacks can advise you on the process of objecting to the sale or gifting of a mobile home. Due to the time constraints involved we advise you to contact us as soon as possible if you wish to serve a Refusal Notice.
Holiday and Home Parks Department
0113 227 9203