The Purchase Agreement and Lease: Sign Or Not

Signing Purchase Agreement

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 “IF I DON’T ACCEPT THE SITE LEASE I’VE BEEN OFFERED CAN I BE FORCED TO MOVE? What happens if I decide to relocate my manufactured home to a different community before this lease ends? I don’t like all the terms in the offered lease, can they be changed?” These and similar questions often are concerns of a first-time manufactured home purchaser in a land-lease community.

While the foregoing represents a small sampling of the common questions that arise, to be most helpful answers to questions should be obtained from an attorney retained to assist with the manufactured home purchase agreement and/or the site lease before they are signed. Unfortunately too many folks think an attorney unnecessary to buy a so-called “mobile home” or sign a site lease only to later face these types of issues and questions.

Despite our recommendation to use an attorney, in the absence of one we advise that New York requires the community manager to offer no less than a one-year site lease, and although the resident-tenant is not required to sign it, without a signed lease that resident enters a month-to-month tenancy. Among other things it means that little more than a notification of thirty days can require the tenant to leave the community for no particular reason. Sure, we’re not likely to terminate a tenancy simply because it could be done, yet by itself such a tenancy virtually offers no protection for the homeowner tenant. Consequently the tenant should not summarily dismiss an offered site lease without serious investigation, consideration and attorney input.

If the resident decides to move before the lease expires, an advance notice of such a decision is required. Assuming the resident’s rental account is current, there are no resident violations and such a notice is received, we then try to negotiate a premature end to the lease. This sometimes means working with the departing resident to find a new tenant for the soon to be vacant site.

Can lease terms be changed? For our properties the lease terms and provisions tend to be based on practice and experience so any request to change the lease would need to be very compelling to be considered.

So what’s the bottom line? As with any substantial or major purchase or obligation, thoroughly read the documents and consult with your attorney before making any commitment. A failure to understand the terms to the transaction and the liability it may bring can lead to problems later.

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Need consulting, coaching or problem troubleshooting regarding other single-family or multi-family housing issues? We’ll be pleased to help you. Visit us at the Inhouse Corporation website or contact us at inhouseco@aol.com

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Blog Terms of Use and Disclaimer: The purpose of this blog is to promote awareness and general discussion of the presented topic. Use of this blog shall be the reader’s agreement this blog is not a substitute for the advice of a qualified professional and each action that may be taken shall be under the specific guidance and oversight and/or performance of a professional qualified in the subject matter. If you have a question or want assistance with a featured or related matter please contact us at InhouseCo@aol.com (include the blog article title on the subject line). Links, references and credits in this blog are for convenience only and are not endorsements by the author or Inhouse Corporation. Statements and/or opinions of guest authors may or may not reflect those of Inhouse Corporation.

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2 Responses to “The Purchase Agreement and Lease: Sign Or Not”

  1. rent to buy Says:

    Hi there, just wanted to say, I loved this blog post.

    It was practical. Keep on posting!

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