I have a letter of intent signed but Realtor wants to use a “Vacant Property Contract” instead of the one I got from MHP Home Study Course. I am not sure what to do except to proceed with “my” contract.
Realtors like to use state forms because they’re allowed to provide input to their Seller with them, whereas with a custom form - one that you’re supposed to have your attorney review prior to using - realtors have no input legally and they’re just a useless middleman (which is what they typically are anyway - minus some very specialized brokers). This is a common theme when a residential agent sells an MHP, and unfortunately an agent can sway the Seller when it comes to items like this. They will tell the Seller, “well with this contract I am not legally allowed to give you any guidance since it’s not on this REC form, so I really cannot help you. I don’t think this is in your best interests to sign…”
Depending on the deal you’ve negotiated you may have to use a simple state REC form to make the deal happen otherwise it could fall through just based on this. If you use a simple form you need to at least have a couple provisions to cover Seller cooperation with documentation for a loan, covering titles to any Park Owned Homes, etc.
You will need to take extra precaution during diligence because the Seller is not providing any warranties as to what you’re getting - you might as well be buying the Park at an as-is auction. At least you can afford yourself the ability to back out of this with a very generous option period.
Last two parks we closed on were done using a standard contract. Even in off market deals you’ll run into this because many sellers like to involve their broker buddy to help out a little in the contract phase. Usually, each of these standard forms has an area where you can add in extra clauses. Put what you like from the contract you have in this area and run it past an attorney to make certain it works. This isn’t a hard fix, but this is one of those things where sellers can be very stubborn.
@lhudson , as per your post:
- “…but Realtor wants to use a “Vacant Property Contract” instead of a MHP Home Study Course…”
My Husband and I own 2 MHPs.
I am also a Licensed South Carolina Real Estate Broker-In-Charge / Realtor.
Most (if not all) Realtors will want to use their state specific Real Estate “Property Contract”.
My Husband and I have made lots of Offers (and 2 purchases) on MHPs using state specific Real Estate “Property Contracts”.
If you are concerned about the Real Estate “Property Contract”, please find an Attorney who specializes in Real Estate (MHP specifically) to review the Contract.
In the Real Estate “Property Contract” make sure that you have lots of “Contingencies” (outs) such as:
- Contingent On Financing
- Contingent On MHP Zoning
- Contingent On x Number Of Park Owned Homes
- Contingent On x Number Of Legal MH Lots
- Contingent On x Acres Of Land
- Contingent On Public Water
- Contingent On Public Sewer
You can create “Addendums” for all of your “Contingencies”.
Make sure to note in the Real Estate “Property Contract” that you have x Number of Addendums (Addendum A / Addendum B / Addendum C / Addendum D).
We wish you the very best!
TY all. I think that’s doable. I appreciate all your help.