We are seeing an increase in the number of people over 50 years of age who are electing to sell their residence and move into a Manufactured Home Park or Retirement Village.
Manufactured Homes can be found in Residential Parks that are purpose built, made up exclusively of Manufactured Homes or in a mixed used Park.
The Park Owner or an appointed Park Manager, manages the Park and the Manufactured Homes (Residential Parks) Act 2003 governs how an Operator of a Residential Park manages Manufactured Homes.
Before buying a Manufactured Home in a Residential Park, you should carefully read the Disclosure Statement so that you are aware of your responsibilities, your rent, park rules, paying utilities as well as the dispute resolution process available under the legislation.
If you are requested to sign a Sales Contract for the Manufactured Home which is yet to be built, we strongly recommend that you obtain legal advice in relation to the Contract as some Contracts can be deficient and lack protection for the Buyer.
A Buyer should also be fully aware of how site rent increases, which in most cases is a C.P.I. increase and some disclosure documentation contains a special term in the Site Agreement to allow the Scheme Operator to also increase site rent by Market Review in addition to any C.P.I. increase.
Whilst you purchase the Manufactured Home, you do not purchase the land and occupy the site within the Manufactured Home Park in accordance with the terms of the Site Agreement.