You may have heard the term ‘manufactured home’ in the news or from a friend, as it is a fast-growing component in the property world. But what exactly is it?
What is a Manufactured Home?
According to the Manufactured Homes (Residential Parks) Act 2003 (Qld) (Manufactured Homes Act), a manufactured home is a structure, that is not a caravan or tent, that:
- is not permanently attached to land;
- is designed to be able to be moved from one position to another; and
- has the character of a dwelling house.
These types of homes are designed to be cost-effective, which means that they provide a more affordable housing option compared to traditional homes.
Where can you find Manufactured Homes?
Manufactured homes are commonly found in lifestyle villages or manufactured home parks, and usually come with a range of amenities. They can vary in size and design and residents often own the home but lease the land on which it sits. This arrangement can also offer shared facilities like swimming pools and recreational areas.
Manufactured Homes and the Law
It’s important to note that the regulations and laws governing manufactured homes vary from traditional housing, particularly in terms of land occupation, building codes, and community living arrangements, so it is important to get legal advice on your transaction before entering into any documentation.
In particular, the Manufactured Homes Act puts a significant legal and disclosure responsibility on the owners of the manufactured home parks when ownership is changing via a site agreement. The documents provided include:
- Form 1A, which is initial disclosure document (given at least 21 days before the sale);
- Form 1B, which is a supplementary disclosure document (given at last 14 days prior to signing);
- Form 1C, which is a precontractual disclosure waiver if you plan on waiving the precontractual disclosure period; and
- two copies of the proposed site agreement.
These documents include information like:
- details of the communal facilities;
- details relating to the park owner, the manager and the park itself;
- rights to termination, assignment and/or transfer of the site agreement;
- how rent can be changed;
- the homeowner’s and park owner’s responsibilities (these are set out in ss 16-17 of the Manufactured Homes Act);
- how disputes are resolved; and
- a recommendation that legal advice is obtained before entering or transferring a site agreement.
As you can see, there is a lot of information that is conveyed through these documents! That is why it is incredibly important to have everything reviewed before entering into them, as it can be quite overwhelming, especially if you have not been involved in a transaction like this before.
Our solicitors have significant experience with Manufactured Homes Contracts and can assist with reviewing contracts and helping with the conveyance process. Click here to book in a free 20-minute consult with us.
