Treating Customers Fairly: A Short Guide for Residential Parks
Some Key Laws
Consumer law protections on residential parks include:
- The Mobile Homes Act 1983 and related laws give homeowners security of tenure and set the form of their Written Statement, Implied Terms and controls on park rules, pitch fees and homeowner re-sales.
- Full transparency – “Buyer beware” does not apply. When selling a park home, parks must disclose all relevant information, both positive and negative.
- Fairness in contracts and park rules – It is not just about the written terms, but how they are used in practice. Does your business explain them in detail at the point of sale, are all terms recorded and do you apply them precisely and fairly?
- Level playing field – Businesses may not take unfair advantage of their customers. For example, when an owner re-sells their park home, they should be able to advertise in the same ways as the park.
Some Questions for your Business
These questions may help you make improvements:
- Is your sales team familiar with the Chartered Trading Standards Institute guidance on consumer vulnerability?
- Do you give buyers time to consider before signing, or do you allow same-day signings? The Act requires parks to provide the Written Statement 28 days before the sale. The buyer may agree to reduce this but should not be put under pressure to do so.
- Does your park have a complex ownership structure under which the company running the park does not own the freehold? If so, have you taken advice to ensure that you are transparent with your homeowners and protect their interests where you can?
- Do you tell buyers everything which may affect their decision? We recommend writing your sales process down as key points or scripts. As one example, if you market your park as a retirement destination, are you careful to present not only the advantages but also potential drawbacks?
Some Legal Tips
- Sales records – Make sure you document what was said to and agreed with each customer. Emails should be kept and notes made of calls and meetings. They may help with questions later.
- Pitch fee reviews – Follow the statutory procedure closely. We are happy to check your proposal letter and the statutory notice under your Parklaw subscription.
- Promises must be kept – Buyers may rely on information provided to them even if it is not in your agreements. Promises should only be made if the park is sure that they will be kept in all circumstances.
Next Steps
Having read this note, you may wish to consider:
- Introducing sales audits – always having a second pair of eyes review a sales process and paperwork before completing the deal.
- Checking your sales process, marketing information and scripts – ensuring consistency between what is promised and what is delivered.
- Reviewing training– it’s essential that your team understands your processes and how the law applies to their work.
- Speaking to us – we can answer your questions and help you review your procedures. We also provide bespoke training.
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