Management Approval of Buyers

Can a park manager decline to approve a buyer in order to retaliate against the current home owner? Yes/No/Maybe

The correct answer is no. The MRL allows park operators to require that they approve a buyer prior to a home sale. Approval cannot be withheld if the buyer 1) has the financial ability to pay space rent and other charges and 2) the buyer will comply with park rules, based on evidence from past tenancies.

Can a park manager check the finances of a potential buyer? Yes/No/Maybe

The correct answer is yes. Potential buyers should contact park managers prior to closing on a home. Managers may not require personal income tax returns. They can require buyers to document the amounts and sources of monthly income or financial support. Managers may conduct a personal interview.

Do managers have fifteen days to accept or reject a buyer? Yes/No/Maybe

The correct answer is yes. According to the MRL, within fifteen business days of receiving information from the buyer, park managers must notify the seller and buyer, in writing, if the buyer is accepted or rejected. If rejected, managers must provide the reasons.

Can park managers charge buyers a fee for ordering a credit report? Yes/No/Maybe

The correct answer is yes. Park managers may collect a credit report fee from buyers. The full amount of the fee shall be credited toward payment of the first month’s space rent of the actual buyer. If buyers are rejected for any reason, park managers shall refund the full amount of the fee within thirty days.  If a buyer is approved but they decide not to purchase the home, park managers may retain the fee to pay for their administrative costs.

Civil Code Section 798.74.

Copyright - Carl Eric Leivo, Ph.D.
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