LONG TERM LEASES EXEMPT
Because the Mobile Home Residency Law (Civil Code
section 798.17) exempts any lease with a term of more than one year from mobilehome rent control, many
park owners seek to avoid the effects
of a rent ordinance by requiring that all new purchasers sign such a lease as a mandatory condition of residency in the park. In
order to prevent this type of
"end run" by park owners, many ordinances have adopted a provision
which protects prospective
purchasers from this tactic.
BUYERS DO NOT KNOW
The problem, however, is that the typical mobilehome buyer
may not know that this protection
exists. Due to this lack of knowledge, and/or a general lack of bargaining power, the purchaser may feel that there is no
choice but to sign the lease.
This typically results in at least a five-year term during which the purchaser will not be covered by the ordinance.
NOTICE PROVISIONS
To cure this problem, some
local ordinances include provisions which are designed to provide additional notice to
prospective residents of their right to
reject long-term lease requirements. It is highly recommended that wherever
protection is given to prospective purchasers, a notice provision should also
be present to inform buyers of
this protection.
Source: The GSMOL Mobilehome Rent Stabilization Ordinance Handbook, Second Edition: Guidelines for Drafting and Enacting a Mobilehome Rent
Stabilization Ordinance.
Prepared by: Bruce
Stanton, Esq., Corporate
Counsel
Image courtesy of Stuart Miles at freedigitalphotos.net
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