Rent to Own and SAFE Act Implications

Question: We just acquired a manufactured home in our community. I would rather sell it to a new tenant, but would consider renting it out or doing a rent-to-own. If I pursue rent-to-own option, will I be subject to the new SAFE Act?

Answer: Remember that the SAFE Act only applies if the seller/landlord is providing financing, and in doing so, is going to make a credit decision regarding the buyer’s financial capacity.

Resident Pays After FED Issued Settles Before Hearing

Question: We have had to file two consecutive FED Complaints against a resident. The day before the first appearance for each case, the resident tender the rent that was due, although he do not pay the court fees of $115.00. After two months of this, he owes us $230.00. He promises to repay this amount but does not. Now rent is due for January, 2012. We are sure the same thing will happen again. How can we collect the court fees?

Phil Querin Q&A: Selling Homes and Working With a Third Party Mortgage Banker & the SAFE ACT

Question*: If a community owner sells one or more homes (e.g. those received via abandonment or pre-abandonment) with the help of a Mortgage Loan Originator (“MLO”) working for a third party mortgage banker or mortgage broker, after the buyer’s installment contract is completed and signed, can the community owner then collect the payments himself? In other words, now that MLO has complied with the SAFE Act, can this receivable be returned to the community owner to collect the monthly payments? My concern is that someone might say that since the owner is now receiving the payments, he is engaged in the business of “loan servicing” - even though it’s his own home; he’s not in the lending or servicing business; and not receiving or expecting compensation for the act of servicing). It could pose a real financial hardship on community owners if they had to pay a third party for servicing that they can do themselves. The primary reason park owners do this is to fill vacant homes, not to make big money on the sale itself.

Changing 55 and Older Status and Community Rules

Question: A landlord changed the status of the community from "Family" to "55&Older" in June. Management did not change the rules and regulations. However, they did advertise the community as “55&Older”; identified that status in the community’s Application Criteria; and have met the requirements of the "80/20 Rule". Now the community owner is changing the rules. One of the many rule change includes altering the status of the community from "Family" to "55 & Older". It is likely that the residents will have enough votes in the petition to vote down the rule changes.

Phil Querin Q&A: Storage Agreement About to Expire Home Unlikely to Sell

Question: A community owner entered into a Storage Agreement on a home in early January 2011. The agreement provides that the home must be removed by November 30th if it does not sell. We are now approaching the end of November, and the community owner does not believe the home will be sold by the end of this month. What’s next? Does the community owner take the homeowner to court? Doesn't the landlord have to give one year to the home owner?

Medical Marijuana and Landlord Rights

Question: Our community is seeing an increase in the use of “medical” marijuana. Although those using it say they have “cards” permitting them to grow limited amounts, often this limited personal use appears to turn into more than that. We are noticing increasing late night traffic at some users’ homes, and believe they are expanding their grow operations in order to sell the marijuana to unauthorized users. What can be done about this? It is quite disruptive to the rest of our community.