As many of you know, Orange County has one of the lowest vacancy rates in Southern California. Community owners should be on the alert, in tight markets, for mobilehome dealers attempting to take control of spaces in your communities. Their usual method is for the dealer to buy old homes with the promise of pulling them out for "replacement" with new homes. After making a few minor repairs to the home, it is advertised for resale - in place, at a huge profit for the dealer. Community owners are not required to allow either of these activities. You have rights to your property! Do not waive these rights by allowing dealers to assert control over spaces to which they have no legitimate claim.

Recently, Hart, King & Coldren won a case against a dealer who tried to pull this trick on the community owner. The dealer advertised to buy "pull outs" with the intention of, in effect, "buying" the space. It took a decision by a Superior Court judge to evict them from the community!

In many communities, available spaces are scarce, and in some cases, nonexistent. This market situation could well lead other dealers to attempt this ploy or variations of the same. Community owners need to remember that the purchase of a home does not grant the dealer residency rights in the community. Civil Code Section 798.75 requires that a signed rental agreement be a part of the escrow on a mobilehome, which is sold in the park and is to remain in place. If there is no such agreement, the buyer has no rights of tenancy. You are not required to allow a dealer to "floor" any mobilehome he buys on speculation in your park!

There are ways to protect your property against this ploy.

  1. Be sure that you prominently display signs in your community reflecting Section 798.75.
  2. If you determine that you want to allow a dealer sell a dealer owned home in place, we strongly recommend that you require a written storage agreement outlining how long the dealer has to accomplish the sale and what happens at the end of the term.
  3. Consider updating your rules and regulations to require that the registered owner be the person who lives in the mobilehome.
  4. We also recommend that you obtain a completed application from every adult who is to reside in the home.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances