Earlier this month a petition was presented to Downing Street requesting a review of the 10% commission that has historically been paid to site owners on the sale of a park home.
The Park Home Owners Justice Campaign (“PHOJC”), who presented the petition, claims that the 10% commission charge is outdated and inequitable particularly now site owners have no involvement in the sales process. PHOJC is seeking an amendment in the law so that the level of commission payable on the sale of a park home is the difference between the last sale price and the current sale price. In particular PHOJC state that when compared to the commission earned by Estate Agents on the sale of traditional bricks and mortar homes the commission payable on the sale of a park home is unfair.
In order to trigger a debate in the House of Commons the e-petition needs to accrue 100,000 signatures or more. The campaign is picking up pace and has attracted the support of Towergate Insurance who consider that the law should be reviewed to ensure a relationship of mutual trust and consideration between park home owners and site owners.
It is anticipated that the campaign will be met with resistance by site owners, many of whom rely on the income from commission to maintain and improve their park sites and also to earn a living.
There have been previous reviews of the 10% commission charge which have been unsuccessful and only time will tell what the outcome of the current review will be. However it has certainly attracted some attention in Parliament and will be the subject of much debate in the coming months.
Commercial Dispute Resolution Department
0113 2279 203