The Assignment: Manufactured Home Sales and Rental Pads

Manufactured homes are an important source of affordable housing in BC, and real estate professionals have a crucial role to play in helping buyers and sellers of these homes find the housing that best meets their needs. But just because a manufactured home may cost less than a traditional home doesn’t mean the transaction deserves any less care and attention. In fact, transactions involving manufactured homes can be complex and may require specialized knowledge.

One example of the expertise that a real estate professional should bring to a manufactured home transaction is when that home is on rented or leased land – as in a manufactured home park. If the buyer wants to keep the home in the park and continue to rent the site that it sits on, the tenancy agreement for the site (or pad) should be assigned to the buyer. Assigning the tenancy agreement ensures the rent and the schedule of rent increases remains the same for the new tenant.

If for some reason the assignment can’t take place, or the pad rental isn’t assigned properly, the buyer may face significant rent increases that could make the home unaffordable. Without an assignment, a buyer would need to agree to a new tenancy agreement with the landlord. This can result in an increase in the rent payable, and there is no restriction to how much that increase may be.

The Manufactured Home Park Tenancy Regulation sets out the process for assigning and subletting manufactured home pad tenancy agreements. You can find an overview of the process, along with suggested clauses for use in the Contract of Purchase and Sale, in RECBC’s Manufactured Homes on Rented/Leased Pads.

New Materials to Share with Clients

The Residential Tenancy Branch has developed materials that real estate professionals can use to make sure they give accurate guidance to their clients on the legislative provisions for selling homes in manufactured home parks. In particular, their new information sheet, Assignment of Manufactured Home Site Tenancy Agreements, sets out specific guidance for the assignment process. It is a useful fact sheet to share with clients to help them understand the importance of assigning the manufactured home tenancy agreement. It also provides information about what to do if a landlord is unreasonably refusing to allow an assignment.

As a real estate professional, you need to be aware of the special requirements of these transactions. You have a responsibility to work in the best interest of your clients and disclose all material information to them.

An RECBC Professional Standards Advisor can help you find answers to questions about transactions involving manufactured homes. Contact them at advisor@recbc.ca.

For further information about the assignment provisions under the Manufactured Home Park Tenancy Regulation, contact the Residential Tenancy Branch at HSRTO@bc.gov.bc.ca or by phone at 1-800-665-8779.