Manufactured Homes

Navigating Manufactured Home Sales on Rental Sites: Understanding Processes and Ensuring Compliance

Navigating the sale of manufactured homes on rental sites comes with its own set of unique challenges and considerations. REALTORS® involved in these transactions must be well-versed in the specific processes and regulations governing such sales. To navigate the sale of manufactured homes on rental sites, and to ensure a smooth process for both buyers and sellers, it requires a comprehensive understanding of the Manufactured Home Park Tenancy Act and the requirements surrounding disclosure and the park owner’s consent.

Seller’s Disclosure: Navigating Park Rules and Site Tenancy Agreements

Understanding the disclosure process is crucial when representing buyers and sellers of manufactured homes on rental sites. The timing of the seller’s disclosure plays a pivotal role in the transaction. Upon listing the property, the listing agent may obtain the current park rules and regulations from the seller or the landlord. If the rules are obtained from the seller, the REALTOR® should verify with the landlord that the rules and regulations are current. If they have them, the listing agent should provide the park rules and regulations to the buyer’s agent.

If the buyer’s REALTOR® receives information about the site tenancy agreement and park rules before making an offer, the corresponding boxes in Section 4 should be appropriately filled.

However, if this information is not available at the time of the offer, the buyer or the buyer’s REALTOR® should mark the corresponding box indicating that the seller shall provide the information and a subject clause must be included. After the offer is made, the seller or seller’s REALTOR® fills out the boxes in 4 (a) and 4 (b) as required, the seller initials the changes, and the updated offer is presented back to the buyer. The buyer then initials if they are accepting the seller’s revisions.

The Subject to Seller’s Disclosure, used when the information is unavailable at the time of offer, ensures that the buyer has 48 hours from acceptance to receive and review the seller’s disclosure and 48 hours to review and approve the seller’s disclosure. If the buyer accepts the seller’s disclosure after reviewing and approving it, the buyer provides written notice to indicate they are waiving or declaring the condition filled.

Park Owner’s Consent: Navigating Legalities and Procedures

In manufactured home sales on rental sites, the park owner’s consent is a critical aspect often dictated by the Manufactured Home Park Tenancy Act. REALTORS® should guide sellers through the consent process outlined in Section 5 of the contract:

• Review the tenancy agreement and the park rules, if any, to see if there is a requirement to request consent from the park owner to assign their tenancy agreement to a buyer.
• If the park owner’s consent is required under the site tenancy agreement, the buyer and seller must complete and serve a request for consent to the park owner in adherence to the Manufactured Home Park Tenancy Act and Regulations for the sale to complete. The park owner has ten days to give or withhold consent.
• The RTB-10 form published by the Residential Tenancy Branch can be used for this purpose. It is essential that the seller and buyer carefully and completely follow the procedure for the application for consent.
• If the park owner fails to respond within ten days of the request for consent, their consent is deemed to have been provided.
• To ensure the park owner is provided with the full-time period to provide consent, the date in Section 5 should generally be at least ten days.
• To allow designated agents/brokerages to assist, Section 5 grants explicit authorization for dealing with the park owner during the consent request phase.
• REALTORS® should remember that the park owner may not know who they are, given that their relationship is with the seller. If a REALTOR® approaches the park owner on behalf of the seller to request consent, the REALTOR® should identify themselves and the seller they represent, and ensure they follow the procedures set out in the tenancy agreement and the Act (including submitting the proper forms and allowing for the prescribed notice periods).
• REALTORS® should keep in mind that the consent process, when required, is in place so that the park owner can review and assess the buyer as a new proposed tenant of their manufactured home park. REALTORS® should also be mindful of the fact that the park owner is not required to give consent to the assignment in all cases. Section 48 of the Manufactured Home Park Tenancy Regulations sets out the provisions for which the park owner may withhold consent.
• If consent is withheld for any other reason than permitted under the Regulation, the seller can submit a request for a resolution hearing.
• If the consent cannot be obtained by the date specified in Section 5, the contract will terminate unless amended.
• In cases where the landlord requests that a buyer sign a new tenancy agreement, this is not covered in the Act, buyers should consider the implications of this request and discuss it with their REALTOR® and/or lawyer before doing so.

Under Section 30 of the Real Estate Rules, REALTORS® have a legislated duty to advise the client to seek independent professional advice on matters outside of the expertise of the licensee. If the sale of manufactured homes on rental sites is outside of the expertise of the licensee, clients should be referred to a REALTOR® who specializes in these transactions in order to foster a culture of compliance and professionalism while acting in the best interest of the client and protecting the consumer.

For more information on selling Manufactured Homes, BCREA offers a two-hour online course. See below for details.

Professional Development Opportunity

The new and improved Manufactured Homes: What REALTORS® Need to Know 2.0 release ensures REALTORS® are familiar with the legislation, requirements, and exemptions for manufactured homes based on the Manufactured Homes Act, the Electrical Safety Regulation, and the BC Safety Standards Act.

In this two-hour accredited and self-paced PDP course, learn more about the unique requirements and considerations when working with a client on the purchase or sale of a manufactured home.

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