Your Rights Bytes #11 - Abandoned Mobilehomes

Question:  I own a mobilehome park where there are many abandoned homes.  Can I sell them without registering as a real estate agent?

Background:

The majority of calls on this subject were from residents who reported many observations of illegal acquisitions.  The most egregious example – of, well, theft – were of a few mobilehome park owners and managers who routinely “sold” abandoned homes to persons who were living in this country without proof of citizenship.  The “undocumented” resident would pay for their MH in cash installments.  Then, when the resident paid the last installment on their home, the park owner or manager would order the undocumented resident and their family to leave the park immediately under threat of being reported to immigration authorities.  The family would flee the park and the home was then sold to the next undocumented family with the same outcome.  A penalty of $2,000 would hardly dissuade a theft of a home that would yield thousands more, if the theft was prosecuted at all.

Answer:  Generally, the answer is “no”.  First, in order to act as an agent between a seller or buyer of a used mobilehome or manufactured home, you either must be registered with HCD as a “manufactured home dealer” or with the Bureau of Real Estate as a licensed real estate agent.  Acting as an unlicensed dealer or agent can result in criminal penalties, civil penalties, and citations of up to $2,000 for each illegal sales activity.

The only exception to this is if the prior residents/homeowners have “walked away” from the homes, a park owner may sell them if he/she first obtains the right to ownership through a court action for the judgment of abandonment (Civil Code Section 798.61) or after a warehouse lien sale (Civil Code Section 798.56a).  After that, if the park owner intends to rent, sell or salvage the units, the park owner must go to HCD and transfer title to his or her name, which includes paying all property taxes or HCD fees that are owed.  HCD also has special procedures for when the prior registered owner cannot be found or when there are unpaid or unsatisfied loans on the home.  Only after registering as the new owner may the Park owner (who is now the homeowner) rent, sell, or salvage the abandoned homes.

--Stephanie Reid, formerly on staff with the Senate Select Committee on Manufactured Homes and Communities