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How to Buy a Park Home: A Guide By IBB's Park Homes Team

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Guide to buying a park home
Guide to buying a park home
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How to Buy a Park Home: A Guide By IBB's Park Homes Team

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IBB Solicitors' park homes solicitors advise individuals and businesses on all aspects of park homes, holiday homes, holiday parks, sales, purchases, dispute resolutions.

How to buy a park home:
https://www.ibblaw.co.uk/service/park-and-holiday-homes-services/buying-residential-park-home

How to sell a residential park home:
https://www.ibblaw.co.uk/service/park-and-holiday-homes-services/selling-residential-park-home

How to buy a caravan home:
https://www.ibblaw.co.uk/service/park-and-holiday-homes-services/buying-caravan-holiday-home

Advice for owners of of residential parks:
https://www.ibblaw.co.uk/service/park-and-holiday-homes-services/residential-parks

It is therefore important for holiday park owners to take specialist advice to ensure that they know their legal rights and responsibilities, and avoid making costly mistakes.
https://www.ibblaw.co.uk/service/park-and-holiday-homes-services/holiday-parks

The Mobile Homes Act 2013 is designed to give
greater protection to occupiers of residential mobile (park)
homes in England. One of the most important aspects
covers the procedure for buying and selling park homes,
and for transferring (“assigning”) the occupation
agreement to the incoming buyer.

The procedures set out in this guide must be followed
whenever a residential park home is purchased on a park
in England; the exact procedure to be followed will depend
on whether the agreement being assigned is an “Existing
Agreement” or a “New Agreement”.

IBB Solicitors' park homes solicitors advise individuals and businesses on all aspects of park homes, holiday homes, holiday parks, sales, purchases, dispute resolutions.

How to buy a park home:
https://www.ibblaw.co.uk/service/park-and-holiday-homes-services/buying-residential-park-home

How to sell a residential park home:
https://www.ibblaw.co.uk/service/park-and-holiday-homes-services/selling-residential-park-home

How to buy a caravan home:
https://www.ibblaw.co.uk/service/park-and-holiday-homes-services/buying-caravan-holiday-home

Advice for owners of of residential parks:
https://www.ibblaw.co.uk/service/park-and-holiday-homes-services/residential-parks

It is therefore important for holiday park owners to take specialist advice to ensure that they know their legal rights and responsibilities, and avoid making costly mistakes.
https://www.ibblaw.co.uk/service/park-and-holiday-homes-services/holiday-parks

The Mobile Homes Act 2013 is designed to give
greater protection to occupiers of residential mobile (park)
homes in England. One of the most important aspects
covers the procedure for buying and selling park homes,
and for transferring (“assigning”) the occupation
agreement to the incoming buyer.

The procedures set out in this guide must be followed
whenever a residential park home is purchased on a park
in England; the exact procedure to be followed will depend
on whether the agreement being assigned is an “Existing
Agreement” or a “New Agreement”.

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How to Buy a Park Home: A Guide By IBB's Park Homes Team

  1. 1. Guide to Buying a Park Home The Mobile Homes Act 2013
  2. 2. Guide to Buying a Park Home The Mobile Homes Act 2013 Introduction The Mobile Homes Act 2013 is designed to give greater protection to occupiers of residential mobile (park) homes in England. One of the most important aspects covers the procedure for buying and selling park homes, and for transferring (“assigning”) the occupation agreement to the incoming buyer. The procedures set out in this guide must be followed whenever a residential park home is purchased on a park in England; the exact procedure to be followed will depend on whether the agreement being assigned is an “Existing Agreement” or a “New Agreement”. John Clement Partner
  3. 3. Assignment of Existing Agreement If your occupation agreement commenced before 26 May 2013, and has not been assigned since 26 May 2013 it will be an “Existing Agreement”, and the following procedure should be used:
  4. 4. • a copy of the agreement/written statement • a copy of any previous assignment of the written statement • a copy of the Park Rules • written details of any charges payable in respect of electricity, gas, water, sewerage or other services supplied to the park home, including details of when these charges are payable and when they are next due for review • written details of any other charges relating to the home or the Park, including any charges for the use of a garage, parking space or outbuilding • a copy of any current warranty for the home, and • a copy of any structural survey of the home, the base or the pitch which the seller has had carried out by a surveyor in the previous 12 months Once you have found a park home you want to buy, and have agreed a purchase price with the seller, the seller must by law provide you with copies of certain documents at least 28 days before the date when you intend to complete your purchase of the home, unless you have agreed to a shorter period being given. The documents which you should receive from your seller are as follows: 1 If the seller is unable to provide any of the documents mentioned above, they should give you a written explanation as to why this is the case.
  5. 5. • the proposed sale price of the park home details of the commission (normally 10% of the sale price) payable to the Park owner on completion of the sale and purchase • details of the pitch fee, including when it is payable and when the annual review date is • details of any pitch fee arrears, and of any agreement which the seller may have reached with the Park owner for clearing the arrears • the council tax band for the park home • the name of the Park owner, and the address where any notices may be served on them • the name and address of the local authority which licenses the Park • the date when the agreement first started, and if the seller was not the original owner, the date when the agreement was assigned to the seller • an explanation of the assignment process and the effect of any Refusal Notice or Refusal Order on the prospective sale • a statement that the seller is the legal owner of the park home, that the home will be vacant upon completion, and that there are no outstanding loans relating to the home; and • details of any legal proceedings relating to the home, the agreement or the Park which the seller is involved in, and which are ongoing at the time when the information is given to you. As well as the documents set out above, the seller must also by law provide the following information to you, again not less than 28 days before completion of the purchase, unless you have agreed to a shorter period being given: 2
  6. 6. • inform the seller in writing that they have applied to the First Tier Tribunal (Property Chamber) (formerly the Residential Property Tribunal) for an Order to prevent the sale and assignment from going ahead (a “Refusal Order”), and • apply to the Tribunal for a Refusal Order. • The Park owner can only object to the sale if you, or someone who is intending to live with you: • does not meet any minimum age limit on the Park • wants to keep any types of animals which are not allowed on the Park • wants to park vehicles of a type which are not allowed on the Park, or • wants to park more vehicles on the Park than are allowed. All of this information must be provided in a “Buyer’s Information Form”. This form and all of the other prescribed forms referred to in this Guide, can be downloaded free of charge here: www.gov.uk/park-homes-guidance. Both you and the seller must also complete a “Notice of Proposed Sale Form” and the seller must then send this form to the park owner at least 21 days before the proposed completion date. Once the Park owner has received the Notice of Proposed Sale, if they wish to object to the proposed sale and assignment they must, within 21 days of receiving the Notice: 3
  7. 7. • your name and the name(s) of anyone else who intends to live in the park home with you • the address of the park home • the date of assignment of the agreement • the sale price of the park home and the amount of commission payable to the Park owner, and • a forwarding address for the seller. If the Park Owner does not take both of the steps set out above within the 21-day period, then your purchase can go ahead. Immediately before completion you and the seller will both need to complete and sign an Assignment Form to transfer the seller’s occupation agreement to you. This form will be exchanged at the point of completion of the sale, and you and the seller will both need to keep a completed copy of the form. On completion you will need to pay you the agreed sale price, less the 10% statutory commission payable to the Park owner, which you must retain to pay later. You are responsible for paying the commission to the Park owner following completion. Within 7 days of completing the purchase of the park home, you must complete and send to the Park owner a Notice of Assignment, which must state: 4
  8. 8. After receiving the Notice of Assignment the Park owner will provide you with the details of the bank account where they want the commission to be paid - you must then pay the commission to the Park owner within 7 days of these details being provided. If you fail to provide any of the required information you will not have complied with the legislation, which could lead to the assignment being unlawful and/or a civil claim being made against you by your seller and/or by the Park owner for breach of statutory duty. Assignment of a New Agreement Where the occupation agreement being assigned commenced after 26 May 2013, or has been assigned since 26 May 2013, it will be a “New Agreement”. To purchase a park home and take an assignment of a New Agreement you and your seller will need to follow all of the steps set out in this guide, except for step 3 (the “Notice of Proposed Sale” Form), which only applies to Existing Agreements. 5
  9. 9. Why use a Solicitor? The Mobile Homes Act 2013 introduced a new procedure which must be followed whenever a residential park home is sold by a resident to a new buyer. Although many people who buy a park home choose not to use a solicitor, we would recommend using an experienced solicitor who will be able to guide you through the process, deal with any problems which may occur, and ensure that your purchase goes through smoothly and with as little stress as possible. Why choose IBB? Our advisors are genuine specialists in park home law. IBB is an Associate Member of the British Holiday and Home Parks Association (BH&HPA) and a member of the National Caravan Council (NCC). We have over 20 years’ experience in the park homes industry, so you can be assured that we know what we are doing and can provide clear, reliable and cost- effective advice. What will we do for you? If you are buying a residential park home our experienced and specialist advisors will be happy to help. We can: • Review the documents provided by the seller and explain to you the effect of the written statement and the Park Rules; • Check that the Park is licensed for full residential use; ensure all of the required forms are completed and served within the prescribed time limits; • liaise with your seller (and their solicitors), the estate agents and the Park owner to ensure everything is in order; • deal with the assignment of the written statement on completion; and ensure that the purchase price and commission payments are transferred safely and securely. What will it cost? To assist park home buyers, we offer a number of competitively priced, fixed-fee options which will guide you through the process and give you peace of mind:
  10. 10. Bronze Level We will review the three key documents which your seller should provide to you (the Mobile Homes Act written statement, the Park Rules and the site licence) and send you a written report identifying any potential problems. We will also send you blank copies of the various forms that you and the seller will need to complete. However, we will not correspond with the seller, their agents or the park owner or deal with any money transfers. The cost of this service is £450 plus VAT. Silver Level In addition to all of the steps in the Bronze Level service we will liaise directly with your seller, their agents and the site owner to manage the entire transaction for you. We will complete all of the paperwork that needs to be completed, and arrange for it to be sent out within the required deadlines. We will also deal with the money transfers to the seller and park owner. This is our most popular service, and costs £700 plus VAT. Gold Level As well as all of the steps covered by our Bronze and Silver Level services, we will make enquiries of the local authority to see if they are aware of any particular issues. This will establish whether there have been any problems on the Park with issues such as flooding, whether there has been any non-compliance with the site licence conditions or planning permission, or if any enforcement action is planned. The cost of this service is £800 plus VAT, plus any fees charged by the local authority. What if matters become complicated? Whilst our standard packages are suitable for most buyers, we recognise that it is sometimes necessary to investigate issues in more detail, or matters occasionally arise which require us to do more work than is covered by our fixed-price packages above. If that happens we will always notify you, and explain what additional costs may be necessary, before carrying out any extra work. Can you also deal with my related sale? Absolutely! If you have a property to sell as part of the process of buying your park home then our Residential Conveyancing team will be very happy to deal with the sale for you. Please contact the team to obtain a free, no-obligation quote. If you have any questions, or would like a free, no-obligation quote for buying a park home, please contact our team on: 03456 381381 or email: parks@ibblaw.co.uk
  11. 11. Capital Court 30 windsor Street Uxbridge UB8 1AB 03456 381381 parks@ibblaw.co.uk T E ibblaw.co.uk Relax we’re working for you

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