Westhill Park Homes
Buying a Park Home
The purchase of a park or mobile home in Scotland is similar in procedure to the sale of a bricks and mortar property but the legal requirements are very different. When you buy a park home you buy the property but not the land it stands on and essentially rent the land for the lifetime of the home. Legal conveyancing is therefore not a requirement, home reports and energy performance certificates are not required by law but these may still be desirable.
A park home is ‘conveyed’ by assignment of the contract between the resident and site owner. A seller does not require the permission or participation of the site owner in the transaction other than to be informed of certain details of the transaction after a bargain has been struck and to receive the rate of commission laid down by law
If you wish to live permanently in a park home with full protection of your residency rights, in law, be sure you choose a site with a permanent residential licence and not a holiday park. While some holiday parks may have a permanent licence for a proportion of their homes, others advertise holiday homes or lodges for permanent residency but only with a holiday agreement. These agreements are not protected in law for permanent main home residency and the agreements for such parks are not ‘written statements’ in terms of the Mobile Homes Act.
The contract documents which cover ownership and the right to station a park home on a given site is called the ‘Written Statement’; this document is a contract between a site owner and a resident and is enforceable in law BY both parties. The Written Statement is a legally binding agreement under the Mobile Homes Act 1983 and The Mobile Homes (Written Statement) (Scotland) Regulations 2013 and consists of a statement of who the parties to the agreement are, the location and size of the pitch, the pitch fee, implied terms of the agreement which are set by law, express terms set by the park owner and any park rules. This agreement may be freely assigned (transferred) to another party if the park home is sold, with the purchaser enjoying the same terms, conditions and rate of pitch fee as the seller. The site owner may not change these terms.
Park Homes Scotland Ltd recommends the procedure below based on The Mobile Homes (Written Statement) (Scotland) Regulations 2013 and The Mobile Homes Act 1983 (Amendment of Schedule 1) (Scotland) Order 2013. (See Appendix 1). The Order extended the provisions of the Regulations to all park home agreements in Scotland including those contracted prior to 1 September 2013. Park Homes Scotland Ltd can act for you in this whole process in Scotland, much as an Estate Agent or Solicitor would do.
BUYING A PARK HOME ON A RESIDENTIAL MOBILE HOME SITE
Park Home living is a relatively new concept in Scotland although it is well established elsewhere in the UK. South of the Border, park homes change hands for very substantial sums particularly in desirable locations but the reasonably priced homes in Scotland offer a genuine alternative to a bricks and mortar bungalow.
So with a park home, you own the home but you do not own the ground it stands on. This belongs to a site owner who charges a rent for the right to station your home on the land and for the garden ground surrounding your home. This rent usually covers roads, street lighting and amenities within the park. Rents are strictly controlled by law and Council Tax is generally Band A, thus offsetting the rent to a great extent. This is where the Written Statement mentioned earlier, comes into play; this is the contract between you, the home owner and the site owner; this contract is strictly controlled by law and residents have long term protection for their homes.
A park home is a heritable asset; it is yours for as long as you chose to live there (there are strict rules on security of tenure) and you can will it on to your family or you can sell it if you so wish, although the sale is subject to certain conditions. The most specific condition is that when you sell a park home, under current legislation, the site owner is entitled to (up to) 10% of the selling price as a commission. You can obtain a loan to buy a park home although not a traditional mortgage.
Park Home owners now market their park homes in the same manner as bricks and mortar homes. Homes are advertised in the media and you may be reading this because you have seen a home that interests you. In Scotland, government regulations cover transfer of a home from one owner to another ensuring that the Written Statement is properly and legally transferred but there is no legal requirement for a seller to produce a Home Report or Survey. Scottish and English Mobile Homes Regulations differ from each other and buyers in Scotland should be particularly aware of the seller’s responsibilities under contract law as well as the Mobile Home Acts provisions, to ensure that all the information given to a prospective buyer about the property, its location, condition, the written agreement and the park rules is completely accurate and not misleading in any way.
A solicitor is not required within this process but as always with any major transaction, professional advice should be sought. Park Homes Scotland Ltd can assist you in the following steps of the purchase and transfer process and also act for you in a professional capacity much as an Estate Agent or Solicitor would.
professional capacity much as an Estate Agent or Solicitor would.
SUGGESTED PROCEDURE
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Preparing your Park Home for Sale As with any property, the condition of the property will be crucial to achieving a sale. First impressions count and a pristine pitch with fences, walls, driveways, mono block and gardens in a clean and tidy condition. Next, is the exterior up to scratch? Are there any water penetration bubbles or bulges in the wall render, is the paintwork in good order (Was the home painted in the last three years as recommended by the manufacturer, if not, your home insurance could be invalid.) Check the skirt for cracks in the pointing, check underneath for water lying on the base and check if your chassis is in good order. (In the case of homes unoccupied for more than 30 days, the home insurance may be void. We suggest you check with your insurer of you are selling an unoccupied home.) Moving inside, is there any damp, are fixtures and fittings in good order, does everything work, do you have current gas safety and electrical safety certificates in place? These are things a potential buyer will look for. One simple way of ensuring things are tiptop is to commission an Park Home Home Report from the Park Homes Scotland Ltd which will give you a professional full colour report on every aspect of the condition of your property with recommendations for any repairs required. This report will be invaluable when it comes to selling your home and is a bargain at £295 + VAT + Travel costs. Call 01501 228687 for details.
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Stage 2 Marketing your Park Home When you are satisfied that the home is ready for sale, you will need to compile a Schedule of Particulars to let people know about your home even if you are selling it privately. If you appoint an agent, they will prepare the schedule for you or you could ask the Park Homes Scotland Ltd to assist you. An example of the Park Homes Scotland Ltd Property Schedule of Particulars is available on request from 01501 228687 or by email at info@parkhomesscotland.com. If you decide to employ either an estate agent or solicitor or Park Homes Scotland Ltd, you have the right to invite your agent to the park to survey, value and market the property, to advertise it, to erect sales notices on your pitch and on your home, and of course potential buyers can visit without interference from the site owner. Ask viewers to park in designated areas however, to avoid giving offence to neighbours or better still park your car in the visitor’s area and leave your driveway free for your viewer. That creates a great impression – they can see themselves in the home already! Park Homes Scotland Ltd will undertake to manage the sales process for you from advertising to moving - and all the bits in between. More details by calling 01501 228687
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Dealing with Potential Buyers Let’s hope you have lots of viewers and some potential buyers. In Scotland, when selling a bricks and mortar property sellers require to have a Home Report available for potential buyers; this will include information about your property and a professional survey of the property with a valuation - all of which is a legal requirement. The situation when selling a park home is different – no Home Report is required nor is a survey but a buyer is likely to have just sold a bricks and mortar home where they have had to pay to have these reports prepared and available for their buyers. Is it not likely that they will want the same information from you? At Park Homes Scotland Ltd, we are increasingly seeing a demand from potential buyers for this level of information on park homes for sale. To meet this demand, as mentioned above, Park Homes Scotland Ltd has developed the ONLY Park Home Property Home Report in the UK. The Park Home Home Report incorporates a Park Home Information Schedule and Park Home Property Survey Report and is based exactly on the Scottish Governments Home Report forms but adapted to be relevant to park homes. No other property agency can provide you with this exclusive service which will go a long way to satisfying potential buyers of the condition of your home but also fulfil your obligations to a buyer under contract law. Call us on 01501 228687
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Completing the Sale of your Park Home You now have some interest in your home, so what next? Take it a stage at a time; discuss a price with your buyer but establish what that price will cover. Is the buyer buying all or some of your furniture, are the carpets and curtains included? This is important because you will require to pay the site owner a percentage of the price you obtain for the home, but not anything else. Park homes Scotland Ltd can help you negotiate with potential buyers to obtain the best price for your home and ensure that only the equitable correct commission amount is due. When a price is agreed and an entry date decided, have the buyer or their agent write to you or your agent, confirming the offer details in writing but why not let Park Homes Scotland Ltd take away all the hassle and handle the whole transaction for you? Call us on 01501 228687.
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Scottish regulations require that at least 28 days before the date of entry, you provide the buyer with the following. (The 28 day timescale can be shorter if the buyer agrees to a shorter time but agreement must be in writing!) It is imperative that you do so. A copy of your Written Agreement. A copy of the Park Rules. A forwarding address for yourself. Let Park Homes Scotland Ltd take the strain for you - Tel: 01501 228687
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Assigning your Written Agreement to the Buyer When you receive a written offer which you intend to accept, the next step is to check timescales for the buyer to move in and for payment of the sale price and commission. In Scotland the commission is the joint responsibility of both Buyer and Seller but in practice the seller arranges payment of the commission direct to the site owner and the balance of the sale price to the seller. The commission must be paid before the buyer is permitted to take possession of the home. Next step is assigning your Written Statement to the buyer. This is a legal requirement and must be done correctly, consult us on this.
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Your written agreement might already have an assignment form attached but this is likely to be out of date.. Park Homes Scotland Ltd can handle all this for you. Make sure that your buyer meets the park rules in respect of age, pets etc. prior to agreeing a sale. This is your responsibility and the sale can be voided if you do not do so. Whilst there is no need for you to inform the site owner of the impending sale and assignment, courtesy suggests that it might be well to do so in advance of the settlement date so that you are clear what the site owners procedures are for receiving the commission payment. This will probably involve obtaining the site owner’s bank details to allow electronic transfer of funds on Settlement Day. It is also courteous to let the site owner have the name of the buyer but this is not a requirement at this stage.
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Handing over the Property It is hand over day and the removers are on the way. Before the assignment can complete and the buyer move in, the park owner must have received his commission payment. It has become customary for settlements of property transactions to take place almost simultaneously - your buyer receives funds for the property they are selling, they pay you and you then pay the site owner so it is likely all of this will be done by electronic bank transfer over a period of a few hours. It is your responsibility to pay the commission – not the buyer’s responsibility (as in England) and you would be in breach of contract to both the buyer and the site owner if the commission is not paid timeously. The site owner or his representative does not require to see or to sign the assignment form but the sale cannot go through until the commission payment has been received by the site owner. You should give careful thought to the time scales because the law states that “Neither the sale nor the assignation are to have any effect until the owner has received the commission.” To facilitate the process Park Homes Scotland Ltd Property Agency have produced a ‘Notice of Assignment’ form for notification of the assignment to the park owner. Make sure you hand over the original Written Agreement to the new owner.
SUMMARY
So to summarise.....Prepare your property for sale with a condition report from. Consider having a Park Home Property Schedule of Particulars showcasing your home - available exclusively from Park Homes Scotland Ltd. Market your home privately or through an agent or through Park Homes Scotland Ltd Property Agency. Have available (for potential purchasers) a Park Home Property Report comprising a home information schedule, a park home survey and valuation -available exclusively from Park Homes Scotland Ltd. (To avoid excessive cost, be aware if you use an estate agent or solicitor, that they do not treat your home as a bricks and mortar bungalow with the attendant requirements for home reports and surveys - in our experience this happens regularly.)Ensure that you have your Written Agreement papers ready, in advance, to hand to a buyer. Negotiate the sale of your home, agreeing a price for the home and any extras you will be including. Ensure that you hand a copy of your Written Agreement, the park rules and your forwarding address to the buyer 28 days in advance of Settlement Day. Make sure that your buyer meets the park rules in respect of age, pets etc. prior to agreeing a sale. This is your responsibility and the sale can be voided if you do not do so. Find out in advance, from the park owner the procedure for paying over the commission payment and for their accepting the assignment notice e.g. where should you send the notice. Complete the assignment form with the buyer and complete the notice of assignment form. The buyer should give the site owner the notice of assignment and will probably also need to provide bank details to the site owner for rent payments, depending on local arrangements. Pay the Site owner’s commission prior to final handover of the home. The transaction cannot complete until the site owner has received this payment. No other payment such as rent guarantee payments or such like can be demanded from you or the buyer. (The site owner is specifically prohibited by law from requesting any payment other than commission.) Hand the original Written Agreement over to the new owner and the process is complete! Staff of Park Homes Scotland Ltd has been involved since 2008 in working with the Scottish Government in producing the legislation covering park homes sales and operations in Scotland and are uniquely placed in Scotland to provide you with the expertise to help YOU market your property in this new environment which it is hoped will increase the demand for park homes in Scotland.