Minnesota Mobile Homes – In Park Sale
Minnesota Mobile Homes – In Park Sale
In Minnesota, a resident of a Manufactured Home (hereinafter, the “Home”), generally has the right to:
- sell the Home to someone else, and
- allow the Home to remain where it is currently located in a Manufactured Home Park (hereinafter, the “Park”),
pursuant to a transaction known as an “in park sale”.
Minnesota Mobile Homes – In Park Sale – Defined
Minnesota Statutes, Section 327C.01, Subd. 2 defines an in park sale as follows:
“In park sale“ means the sale of a manufactured home owned by a park resident and located in a manufactured home park, after which sale the home remains in the park.
Minnesota Manufactured Home – Defined
Minnesota Statutes, Section 327C.01, Subd. 4 defines a Manufactured Home as follows:
“Manufactured home” and “home” have the meaning specified in section 327B.01, subdivision 13.
Minnesota Statutes, Section 327B.01, Subd. 13 defines a Manufactured Home as follows:
“Manufactured home” means a structure, not affixed to or part of real estate, transportable in one or more sections, which in the traveling mode, is eight body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems contained in it.
Manufactured Home Park – Defined
Minnesota Statutes, Section 327C.01, Subd. 5 defines a Manufactured Home Park as follows:
“Manufactured home park” and “park” have the meaning specified in section 327.14, subdivision 3, but do not include facilities which are open only during three or fewer seasons of the year.
Minnesota Statutes, Section 327.14, Subd. 3 defines a Manufactured Home Park as follows:
“Manufactured home park” means any site, lot, field or tract of land upon which two or more occupied manufactured homes are located, either free of charge or for compensation, and includes any building, structure, tent, vehicle or enclosure used or intended for use as part of the equipment of the manufactured home park.
Manufactured Home Resident – Defined
Minnesota Statutes, Section 327C.01, Subd. 9 defines a resident of a Park as follows:
“Resident” means an owner of a manufactured home who rents a lot in a manufactured home park and includes the members of the resident’s household.
Minnesota Mobile Homes – In Park Sale – New Resident Application Fee
Although a Park Owner is not permitted to charge a fee to a Park Resident (hereinafter, the “Resident”), for exercising the right to make an in park sale, the Park Owner is allowed to charge a fee of up to $25 to process a prospective buyer’s application to become a Resident in the Park.
Minnesota Mobile Homes – In Park Sale – Listing Agreement
While a Park Owner is not allowed to require a Resident to use the services of a Park Owner with respect to an in park sale of the Resident’s Home:
- if the Park Owner is licensed as a Minnesota Manufactured Home dealer,
- the Park Owner may enter into a written agreement with the Resident to act as a broker with respect to an in park sale of the Resident’s Home.
Minnesota Mobile Homes – In Park Sale – No Preferential Treatment
If a Park Owner has entered into an agreement with a Resident to act as a broker with respect to an in park sale of the Resident’s Home, the Park Owner may not give preferential treatment for residency in the Park to persons seeking to buy homes in the Park which are listed by the Park Owner.
Minnesota Mobile Homes – In Park Sale – Park Owner Approval Rights
Every in park sale is subject to the approval of the prospective buyer as a Resident in the Park by the Park Owner.
However, a Park Owner may not reject a prospective buyer as a Park Resident unless:
(a) the Park Owner has previously specified in writing the procedures and criteria which will be used to evaluate the creditworthiness and suitability of prospective buyers as Park residents who are seeking to buy homes offered for in park sale, and such written disclosure:
- is included with the rental application, and
- is available at no charge to residents, prospective buyers, and their agents;
(c) if the Park Owner requires the prospective buyer to make application, or be interviewed, in person, the Park Owner must be available to the prospective buyer at reasonable times for face-to-face meetings;
(d) all of the specified procedures and criteria are:
- reasonable, and
- applied uniformly;
(e) in evaluating a prospective buyer, the Park Owner does not use any stricter standards than it uses for evaluating other prospective residents;
(f) the Park Owner does not deny tenancy to a prospective buyer for any reason prohibited by federal, state or local law;
(g) within 14 days of receiving a completed application form, the Park Owner either:
- makes a decision, or
- gives the prospective buyer, and the current Resident, a written explanation of the specific reasons for the delay, and thereafter makes a decision as soon as practicable.
Minnesota Mobile Homes – In Park Sale – Denial of an Application
If a Park Owner denies an application made by a prospective buyer for residency in the Park:
- the Park Owner must give the prospective buyer a written explanation of the denial within three days of receiving a written request for an explanation, and
- the decision to deny the prospective buyer as a Resident must be reasonable in light of the statutory criteria.
Minnesota Mobile Homes – In Park Sale – Rental Application
The Park Owner may require any prospective buyer to submit information to the Park Owner which is reasonably necessary for the Park Owner to determine whether the prospective buyer satisfies the Park’s criteria for new residents – as stated in the Park’s rules.
Therefore, the Park Owner may require submission of the following information:
- the purchase price of the Home,
- the amount of monthly payments which will be due on any financing of the Home, and
- any documents reasonably necessary to verify the above information.
While the Park Owner may inquire into the creditworthiness of the prospective buyer, it may not make inquiry into any business relationship between:
- a seller-resident of a Home in the Park, and
- a dealer acting for the seller-resident.
Minnesota Mobile Homes – In Park Sale – Park Owner’s Inspection Rights
Before approving an in park sale, the Park Owner may inspect:
- the resident’s lot, and
- the exterior of the resident’s manufactured home,
to see whether such items comply with reasonable and preexisting rules relating to maintenance of Homes within the Park.
However, the Park Owner may not charge a fee for any such inspections.
Minnesota Mobile Homes – In Park Sale – Condition of the Lot and the Home
As a condition to approving an in park sale, the Park Owner:
- may require that either the Resident, or the prospective buyer, take whatever action is necessary to bring the lot or the Home exterior into compliance with preexisting maintenance rules applicable to the Resident, and
- may require that any lot rent and other charges due to the Park be paid.
Minnesota Mobile Homes – In Park Sale – Changes in Park Rules
The Park Owner may require a prospective buyer to agree to rules different from those applicable to the current Resident.
However, the Park Owner may not require a prospective buyer or a Resident to comply with any rule adopted or amended after the Resident entered into the current rental agreement, which would:
(a) significantly increase the difficulty, or the time involved, in selling the Resident’s Home;
(b) significantly decrease the price at which the Resident’s Home can be sold; or
(c) involve any other significant cost for either the Resident or the buyer, except for costs involved in doing any work necessary to bring the Home or lot into compliance with preexisting maintenance rules applicable to the Resident.
However, if a part of the Resident’s Home, shed, or other appurtenance has become so dilapidated that repair is impractical and total replacement is necessary, the Park Owner may require the Resident or prospective buyer to make the replacement
- in conformity with a generally applicable rule,
- adopted after the Resident initially entered into a rental agreement with the Park Owner.
Conclusion – Minnesota Mobile Homes – In Park Sale
Please contact Minnesota Attorney Gary C. Dahle for assistance with:
- Minnesota in park sale – in certain Minnesota counties,
- the preparation of any Minnesota Manufactured Home resale purchase agreement or lease,
- issues relating to seller financing of a Home resale, or
- other title or security interest concerns.
Legal fees will be applicable – and advance payment may be required.
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