# Anyone know about commissions on purchasing in a mobile park?



## marina628

Hi Guys ,
Our friends are selling their mobile home which is in a RV Cottage/trailer park.They found a friend who is buying it for $70,000 and when they went to tell the management they plan to sell they were told they have to pay them $7000 fee as commission even though the park did nothing to help with the sell.
Is this even legal?

Marina


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## Rusty O'Toole

I don't know if it is legal or not but I wouldn't give them a cent. Did the seller sign a rental agreement with the park? Did they read it? Is it in there? If they are of legal age and in their right minds, and they signed a lease or rental agreement with a clause like that in it, they need to talk to a lawyer. If there is nothing on paper there is nothing to worry about.


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## sags

The trailer park can refuse to accept the new owners and force them to move the trailer.

I have seen parks charge a fee........but they advertised and sold the trailer.........similar to a real estate agent.

I sold a trailer at a marina through an real estate agent and paid the normal realtor commission and nothing to the park.

I am thinking a little "extortion" game is being played out here.

Pay us or we will force you to move the trailer........type of game.

I would ask them to put the demand in writing, sell the trailer and pay the park under duress. The copy of the demand letter would be necessary to seek a return of the money through legal action.


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## marina628

The buyers already have a place in the park so not accepting them would not be a case but you are correct they could say pay the 7k or move it.Rusty there is nothing in the Schedule docs they sign every year with the park stating the fees if it is sold.


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## Rusty O'Toole

marina628 said:


> .Rusty there is nothing in the Schedule docs they sign every year with the park stating the fees if it is sold.


Then they don't owe a cent. Unless they signed something you are not telling me about.


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## marina628

No I read all docs front and Back with them yesterday and nothing there at all about the sale but interesting that the office wanted to get them to sign another doc at the office which in fact does show a 10% commission for them to sell the unit and transfer of ownership docs.They are going to ask for a blank copy of that doc when they go up in a few days.


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## Synergy

I recall hearing about a commission fee of up to 10% paid to mobile park owners during the sale / transfer of ownership but I can't remember whether this was in Canada, US, etc. A quick google search revealed that this may be the case in the uk. Seems like highway robbery to me. I could see a small 1-2% charge to cover admin expenses - applications to the park, etc. but 10% is excessive. It should be clearly written in a signed contract if there's in fact a commission. If it's not in writing then it's most likely not enforceable.


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## OhGreatGuru

As Sags suggests, advise your friends to tell the park owner to send a written demand for payment, with a copy of the contract provision that authorizes this fee. (Actually, your friends should probably give this request to the park owner in writing too, to create a proper paper trail. They should word it as politely as possible.)


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## marina628

So my friend went to the manager today and they were told it is 10% which is industry standards and they said the only document they will do is their standard sales document. They were told if they don't want to pay the 10% they have to remove it from the park to sell it.


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## OhGreatGuru

"Industry Standard" isn't much of an answer without legal backup. They should consider getting an outside legal opinion. But I have a sinking feeling the owner may have them where he wants them. They aren't just selling a mobile home - they are transferring the leasehold for the land it sits on. And I suspect the park owner has a right to decide who that leasehold goes to for a "consideration". It may be legalized extortion.


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## marina628

Yes I agree with you Guru ,even though the person buying it already had a unit in the park so it is not like he is not a qualified buyer.These are elderly friends of ours ,not really up for a fight so resigned to fact they will have to pay the 10%.


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## Four Pillars

marina628 said:


> Yes I agree with you Guru ,even though the person buying it already had a unit in the park so it is not like he is not a qualified buyer.These are elderly friends of ours ,not really up for a fight so resigned to fact they will have to pay the 10%.


I know nothing about this topic, but I would suggest maybe trying to negotiate the commish down a bit ie threaten legal action etc etc.


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## Mensa

I own a mobile home park. As far as I know, there is nothing "standard" in the industry about this fee. If the park listed and sold the unit, then yes, commission is expected, and would've been in the listing agreement. If not, then all the park can require is a transfer fee from the new owner of the unit to cover their costs in admisnistration.

This is also, imo, illegal. The RTA says:

"Tenant’s right to sell, etc.
156. (1) A tenant has the right to sell or lease his or her mobile home without the landlord’s consent. 2006, c. 17, s. 156 (1).
Landlord as agent
(2) A landlord may act as the agent of a tenant in negotiations to sell or lease a mobile home only in accordance with a written agency contract entered into for the purpose of beginning those negotiations. 2006, c. 17, s. 156 (2).
Same
(3) A provision in a tenancy agreement requiring a tenant who owns a mobile home to use the landlord as an agent for the sale of the mobile home is void. 2006, c. 17, s. 156 (3)."

I'm unclear if your friends live in a mobile home park or have a trailer in a campground though. I'm not sure whether campgrounds are covered by the RTA. 

I'd definitely advise them NOT to pay this fee.


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## carverman

marina628 said:


> Hi Guys ,
> Our friends are selling their mobile home which is in a RV Cottage/trailer park.They found a friend who is buying it for $70,000 and when they went to tell the management they plan to sell they were told they have to pay them $7000 fee as commission even though the park did nothing to help with the sell.
> Is this even legal?
> 
> Marina


Yes Marina. If the trailer/RV is on campground property, the owner can LEGALLY charge a commission. In my trailer park, there are rules that each of the seasonals are handed every year
when they pay their lot rental fees. In there there should be that clause. Typically it is about 5% BUT some campgrounds can charge more. 

A


> ny trailer that is being sold in the park must be listed with management. A 5% commission will be charged regardless of who sells the unit. All purchasers of trailers must be approved by management before the unit is sold. Any trailer coming into the park can be no more than 10 years old and must be in good condition. Everyone should keep their trailers and lots in good repair. It doesn’t take much effort to wash the trailer and keep things neat. At our discretion, we may suggest to some owners that they seriously consider upgrading their trailer.


Here are the rest of the rules and regulations that the owners of the RV should have received at some point.
http://www.greenacrestrailerpark.com/rules-and-regulations.html


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## carverman

Four Pillars said:


> I know nothing about this topic, but I would suggest maybe trying to negotiate the commish down a bit ie threaten legal action etc etc.


They can try and talk to the owner, but the owner IS IN HIS/HER LEGAL RIGHTS to charge the commission. Threatening legal action will JUST GET THEM KICKED OUT OF THE PARK. 
Most campgrounds allow up to 7 days to remove ALL YOUR PROPERTY OFF THE SITE, at the owners descretion. If there is controversy, more than likely the renter of the site 
*GET 24 HRS TO REMOVE THEIR RV* AND WILL LOSE in SMALL CLAIMS court.


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## carverman

Mensa said:


> I own a mobile home park. As far as I know, there is nothing "standard" in the industry about this fee. If the park listed and sold the unit, then yes, commission is expected, and would've been in the listing agreement. If not, then all the park can require is a transfer fee from the new owner of the unit to cover their costs in admisnistration.
> 
> This is also, imo, illegal. The RTA says:
> 
> "Tenant’s right to sell, etc.
> 156. (1) A tenant has the right to sell or lease his or her mobile home without the landlord’s consent. 2006, c. 17, s. 156 (1).


This does not apply to all RV parks. *Most seasonal renters pay by the year and if the owner decides to revoke their privilege, the owner can do so*.

If you are talking about a mobile home park, it may be a different story, and certainly you can sell your mobile home/RV without the owners consent, but a commission payable to the owner/landlord may still apply anyway, but again it depends on the rental agreement signed.


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## marina628

It is a seasonal park closes in October and opens in May .Seems there is not much they can do in this case so on Friday they are signing off the papers and the deal is going through ,thanks for the feedback and guess we know not to buy in one of these parks now lol


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## carverman

marina628 said:


> It is a seasonal park closes in October and opens in May .Seems there is not much they can do in this case so on Friday they are signing off the papers and the deal is going through ,thanks for the feedback and g*uess we know not to buy in one of these parks now lo*l


Marina..ALL the seasonal trailer/RV parks are members of the Ontario Campground owners association. They have conventions from time to time to explore new ways of getting revenue. :biggrin:

The trailer park on hwy 7 west of Perth (McGowan Lake Campground) where we have our trailer...CHARGES A 5% FLAT FEE for any sales of trailers on their camp ground

As well, there is a small fee ($50 I think), for pulling out the trailer from the campsite, and putting it in the front area of the camp ground, so you can tow it away if it's a permanent, since some lots are only accessible with the campground tractor that is required to install and remove the trailers due to campground insurance regulations. 
All trailers at our park MUST BE ON WHEELS..no ands, ifs or buts. That way if you dont abide by the rules (3 warnings and last one in writing I believe) you are give 48 hrs(sometime
more) if you cause a severe situation (selling drugs, or destroying other property on the campground.)
The only way you can move a trailer by yourself is if it's in an overnight camping spot.
I remember a bizarre case where a young couple got kicked out like this after both being caught having s*x in the women's shower. 

However, IMO the commission charged on the sale by this specific camp ground is a bit excessive. Normally if the RV/trailer is valued at say $50k, the commission at 5% (same as realestate sale) is $2500. $7,000 commission (10%) does seem a bit excessive..


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## marina628

Carver I agree the 10% is quite a pill to swallow but I did recommend they sell the deck and shed for 50k and the park trailer for 20k lol.


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