Purchase Agreement for Mobile Home Template

The sale or buying of a mobile home must be accompanied by a solid legal document covering the terms of the transaction to ensure that the two parties involved are clear about their rights and responsibilities.

A mobile home purchase agreement performs such a role through documentation of significant information such as purchase price, mobile home description, serial number, seller names, and any terms and conditions involved.

Without a proper agreement, property taxes, unpaid assessments, and unlisted encumbrances can soon make a sale complicated. A sales agreement for a mobile home is a critical tool for protecting buyers’ and sellers’ interests. It defines payment terms, including down payment, lists any warranties involved, and establishes a closing date.

If financing is involved, then the agreement describes the position of the lender, and any buying liability involved. Whether the residence is in a mobile home park or considered real property, knowing the state’s specific laws regulating the transaction is important to the success of the transaction.

This article will address the role and legal ramifications of a purchase agreement for a mobile home, contrast commercial and private sales, and break down its provisions.

Commercial vs. Personal Use of Sales Agreements for Mobile Homes

A mobile home purchase agreement is used in both commercial and private sales, with slight variations in the provisions and terms of the agreement. Let’s run through the differences in the purposes of this contract.

Commercial Use

Professional sellers, such as real estate investors and dealers, must have contracts that comply with commercial and consumer protection laws. A dealer’s sales contract usually includes warranties, financing, and disclosure statements outlining the condition of the property.

Purchasers are given a bill of sale at closing as official documentation of the sale. In commercial sales, provisions for safeguarding the seller can be included, such as a penalty for delayed payment or failure to pay financing when due.

Some contracts have provisions for buyers to work with approved lenders or become qualified for credit beforehand. Sales of factory-made homes by companies must comply with state licensing requirements, sales taxes, and zoning laws.

Private Use

When selling a pre-owned manufactured home, in contrast to dealership sales, private sales will not often include full warranties and financing. Most private sellers demand payment in full at purchase, or a down payment with a payment schedule agreed in advance.

If the property is in a mobile home park, buyers will have to inspect any agreement for a lease attached to the property and verify that the management in the park permits its transfer.

For a private purchase to become legally effective, a sales agreement must include a description of the mobile home, its serial number, and any terms concerning personal property involved in the purchase.

Private sales will have to pay proper consideration to governing legislation, with state laws potentially mandating certain disclosures, notarization, and payment of sales taxes. If a contract lacks the necessary legal requirements, then the state will not necessarily accept the transfer.

Types of Transactions Included in a Mobile Home Purchase Agreement

A mobile home purchase agreement forms the basis for several types of sales, and each one will require specific terms to fit with the characteristics of the sale. By addressing all of these key provisions, the agreement forms a transparent and enforceable framework that minimizes risk and simplifies ownership transition.

Used Mobile Home Sales

Private transactions most often include a seller who is providing a previously occupied and manufactured dwelling. Buyers will have to ensure the title is free of encumbrances or unpaid property taxes. If the property is situated in a mobile home park, any lot rental terms must be mentioned in the agreement.

New Mobile Home Acquisitions

When buying from a dealer, the contract will normally have warranties, documented terms for the size of the down payment, and financing terms agreed with an approved lender. State regulations may require a bill of sale form to accompany the contract to document the purchase. Buyers should review terms for delivery, installation, and any additional charges applicable.

Mobile Home Sales with Land 

A standard sales contract will detail both the legal conveyance of real property (the land) and the conveyance of personal property (the mobile home). Buyers often have an agent represent them in negotiations with regard to zoning restrictions, transfers of title, and state titling requirements. 

Lease-to-Own Agreements 

Structured installment payments pave a path toward future ownership. The lease agreement must include monthly payment amounts due, the duration of the agreement, and provisions for when and under what terms the title will pass. 

If the purchaser defaults, the seller can maintain title and receive payments over the agreed period. Certain contracts provide the buyer with an option to purchase the property at a later time at a price set at closing, with a credit of payments against the purchase price. 

Financed vs. Cash Purchase Payment 

The financing method directly affects contract terms. A financed purchase must include information about approval for a loan, the role of a lender, and any requirements for completing a purchase. 

Cash buyers have fewer terms in a contract, but sales tax, title transfer, and ownership verification must still be settled. If the seller will finance the deal, payment terms and any penalties for default must be specifically defined in the agreement.

Key Provisions and Clauses to Include in the Contract

A mobile home purchase agreement must be specific enough to protect both parties and comply with state laws in the state in which a purchase occurs. Missing or undefined provisions can generate uncertainty, delayed title conveyances, and financial disputes.

A properly drafted agreement will include specific provisions for financial terms, property transfer, legal obligations, and potential risks involved in the transaction.

Basic Information

All legally binding agreements require the proper identification of parties. The buyer’s and seller’s full legal names, as they appear on official identification documents, must be used in the contract.

Any mistakes in misspelling a name or omission of a middle name can make processing a form, or recording of the transfer with a proper state agency, extremely cumbersome. A properly drafted agreement must include current contact information for both parties, including addresses, phone, and email addresses.

The date of the agreement must be mentioned, and the document should state in which location the transaction will take place. In Arizona—for example—there may be different legal obligations required between parties than transactions carried out in Florida or New York, regarding sales tax and title transfer processes.

Property Details

There must be a complete description of the mobile. The make, model, model year, and square footage of the dwelling, along with any other identifying information, such as a serial number, are recorded. These requirements are necessary for registration, tax purposes, and proof of ownership.

The agreement must specify if the produced home is being sold, new, used, or with modifications. If repairs become necessary, both parties will have to agree to the extent of costs involved with necessary repairs beforehand.

The seller will have to make a statement about the property’s current state, especially in private sales when a proper examination is not a requirement. A mobile home in a mobile home park can have an in-force lease for the property, and such a lease can have requirements for additional paperwork and approval before a completed sale can occur.

If the home sits on private property, the agreement should state if the land is part of the sale contract or if the purchaser is required to move the property upon acquisition.

Purchase Price and Payments 

The agreed-upon purchase price must be mentioned in the agreement, with payment terms discussed in detail. In the case of installment purchases, details regarding the down payment, subsequent monthly payments, and interest have to be stated clearly. The total cost of the sales agreement, including any sales taxes payable, must be included in the financial terms.

A seller can request an earnest money deposit in anticipation of a transaction, reflective of the buyer’s willingness to consummate a sale. The contract must specify under what conditions and terms such a deposit can be refunded or forfeited.

If the purchase is financed through a lender, terms of financing such as duration, interest, and payment schedule have to be put in writing. Any late payment penalties or missed payment penalties should also be included, particularly in cases where direct financing is provided by the seller.

Title and Ownership Rights

A bill of sale for a mobile home is documentation of the transfer of ownership, but the title needs to be legally re-transferred. The agreement must outline the title transfer procedure, as well as charges or waiting periods required by state agencies. The deadline for title reassignment completion must also be clearly stated.

Liens and Encumbrances

A mobile home cannot legally pass to a new owner when it carries unpaid debts.

The seller is obligated to reveal any encumbrances, including delinquent property taxes and claims filed with lenders. 

If any debts persist, the agreement must specify whose role it will be to settle them at closing. Purchasers who unwittingly buy a house with unpaid liens can be saddled with unforeseen monetary obligations or have trouble securing lawful ownership.

Warranties and Disclosures

A sale of a mobile home can include warranties when purchasing from a dealership. Such warranties must specify duration, restrictions in terms of coverage, and claim-filing procedures. In private sales, warranties will not normally apply unless specifically mentioned in the agreement.

Sellers must disclose any known defects, past damage, or repairs performed on the home. Buyers who subsequently learn about hidden defects in structures have a basis for canceling a purchase agreement or suing for damages.

For sales “as-is,” an explicit as-is clause must be inserted to make it clear that the buyer takes title to the property in its current state, with no warranties at all from the seller.

Inspection and Contingencies

Before finalizing, a purchaser can opt for an inspection to assess the condition of the produced home. The contract should specify whether inspections can occur, who will cover incidental expenses, and when the review must be completed.

If any necessary repairs are identified during the inspection, the contract must specify who will handle them and under what conditions the sale will proceed. Financing contingencies have to be included, allowing for termination of the agreement in case of a failure to obtain approval for a loan in a specific period of time.

Closing and Handover Conditions

The closing date is when all payments must be finished and the title must be exchanged formally. The contract should have a definite closing date and any other actions that need to take place before a mobile home bill of sale is issued.

Handover terms may include the handing over of keys, documents, and/or evidence of lien releases. In case a move is necessitated for the mobile home, the terms of payment for transportation and arrangements must be included in the agreement. 

Default and Termination Terms 

Failure to abide by contractual terms can have legal consequences. The agreement should include default, such as failure to pay, misstatement of property information, or failure to pass title. The agreement will also include a termination procedure in the event of default by one party in adherence to the terms of the contract. 

Consequences for default can include financial penalties, termination of a contract, or legal recourse. If disputes arise over termination, then the governing law clause will state whose laws will apply.

Dispute Resolution and Governing Law 

A properly drafted mobile home purchase agreement form will include provisions for resolving any dispute out of court. Mediation and arbitration provisions provide formal methods of dispute resolution without incurring the cost of litigation. 

The agreement should also mention under which jurisdiction any legal disagreement will be settled, with state laws detailing terms and in what form the agreement will be construed and executed. A carefully crafted sales agreement is critical for protecting both buyers and sellers. 

Tips for Drafting a Sound Purchase Contract for a Mobile Home

A mobile home purchase agreement should contain the precise terms of the sale and adhere to state laws. Ignoring legal necessities and using vague terms in a contract may lead to controversy, delay, or financial loss. Every provision must be drafted with care, with consideration for legal accuracy and both parties’ welfare.

The Role of Notarization and Witness Signatures

Though not necessarily required, notarization brings an added level of security, attesting that everyone signed the agreement in a voluntary manner free of coercion. Some states demand a notarized form of a bill of sale for a purchase agreement for a mobile home, especially when financing is involved.

A lender can even insist on a notarized agreement when granting a loan for a manufactured home. Witness signatures may be necessary in transactions involving real estate agents or third-party escrow services. In the event a dispute arises, a notarized agreement or witness attestation can be used to validate the agreement, giving a boost to the seller and buyer’s legal standing.

Consult an Attorney for State-Specific Needs

Legal standards for the sale of a mobile home differ according to location. A few states provide a form for a bill of sale, while others treat mobile homes as real property and demand supporting documentation.

A legal expert with expertise in real property and personal property transactions can detail provisions that must be included in compliance with state legislation. Title transfer processes, sales taxes, and disclosures have to be checked for compliance with state laws.

Keeping Multiple Signed Copies for Recordkeeping

Buyers and sellers must maintain records of the signed agreement, and supporting documents including a mobile home bill of sale, a form of a bill of sale, and title transfer documents. Keep these documents in physical form, and in digital format. The digital format is easy to share.

If financing is involved, a secondary copy can at times be requested for processing a loan completion. Keeping these documents accessible helps avoid complications during ownership transfer or in case of legal action.

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