Kort & Scott Financial Group (KSFG)

1. K&S
   • 1. Kort & Scott Mobile Home Parks – List
     * Managed by Sierra Corporate Management
   • 2. Kort & Scott Mobile Home Parks – Table
   • 3. Kort & Scott Financial Group
     DBA Dissolution 2020-05-27
   • 4. Kort & Scott Companies (220)
   • 5. Kort & Scott Business Model
   • 6. Kort & Scott Lawsuits
   • 7. Perpetual Breach of Contract
   • 8. Follow the Money $829.8MM+
   • 9. Where Do K&S Profits Go?
   • 10. K&S Space Rent Comparisons
2. SCM
   • 1. Long-Term Lease Agreements
   • 2. 3/60 Termination of Tenancy
   • 4. Non-Receipt of Mobile Home Title
   • 5. Security Deposit Refund
   • 6. SCM/K&S Complaints and Reviews
   • 7. Live in a K&S Mobile Home Park?
   • 8. File a Complaint Against SCM
   • 9. SCM/K&S Utilities Overbilling
3. Lawsuits
   • 1. Lawsuits Against K&S Companies
     Lawsuits Against Mobile Home Park DBAs
   • 2. Lawsuits Against K&S Residents
     Mobile Home Park Resident Evictions
   • 3. Victims of Kort & Scott
     Evictimized by Sierra Corporate Management
4. Sales
   • 1. Mobile Homes for Sale (Retailers)
   • 2. Mobile Homes for Sale (Table All)
   • 3. Mobile Homes for Sale (Same Space Turnover)
   • 4. Notice of Public Sale (Auctions)
   • 5. Interference with MH Sales
   • 6. Occupational Licensing Violations
   • 7. All KSFG Mobile Home Retailers

Mobile Home Sales – Unlawful Practices

Wed, May 1, 2019 – The MHPHOA have reviewed and vetted over one-thousand-seven-hundred (1,700+) Mobile Home for Sale listings in mobile home parks owned by Kort & Scott Financial Group and managed by Sierra Corporate Management. Based on our research, this represents an estimated thirty percent (30%) of the 5,850+ mobile home spaces in thirty-nine (39) mobile home parks (that we are aware of) currently or previously owned by Kort & Scott Financial Group in California.

The process of researching mobile home sales is a time consuming process. In many instances, important information lawfully required by California Health and Safety Codes commencing with Section 18045, is absent from online mobile home for sale advertisements including but not limited to;

1. Mobile Home Manufacturer Name
2. Manufacturer Model
3. Manufacturer Serial Number(s) and/or HCD Decal Number
4. Park Space/Lot Number
5. Space Rent
6. Utilities as Additional Costs
7. Property Taxes as Additional Costs
8. Total Costs to Buyer

Realtors vs. Mobile Home Retailers, Dealers, Salespeople

A large percentage of mobile homes sold in Kort & Scott owned mobile home parks are handled via individuals who have obtained an Occupational License (OL) issued by the California Department of Housing and Community Development (HCD). These individuals are referred to as Salespeople (SP) and represent a business entity who has a Dealers License (DL) also referred to as a Retailer.

These are not Realtors licensed by the California Bureau of Real Estate (CalBRE) although some mobile home Retailers may have Real Estate Licenses in addition to their Occupational Licenses from the HCD.

Dealers and Salespeople selling mobile homes must adhere to the California Health and Safety Codes (HSC) that govern individuals/entities operating with Occupational Licenses issued and overseen by the HCD.

CHAPTER 7. Occupational Licenses

• Health and Safety Code – HSC
  • DIVISION 13. HOUSING [17000 - 19997]
    (Division 13 enacted by Stats. 1939, Ch. 60.)
    • PART 2. MANUFACTURED HOUSING [18000 - 18153]
      (Heading of Part 2 amended by Stats. 2007, Ch. 540, Sec. 2.)
      • CHAPTER 7. Occupational Licenses [18045 - 18066.5]
        (Chapter 7 added by Stats. 1981, Ch. 975, Sec. 3.)
• ARTICLE 3. Infractions and Penalties [18058 - 18066.5]
  (Article 3 added by Stats. 1981, Ch. 975, Sec. 3.)

HSC 18059

With respect to taxation, fees, title, and registration, it is unlawful to do any of the following:

1. Use a false or fictitious name, knowingly make any false statement, or knowingly conceal any material fact in any application for title or registration of a manufactured home, mobilehome, or commercial coach, or otherwise commit a fraud in that application.
2. Fail to deliver to a transferee lawfully entitled thereto a properly endorsed title or registration.
3. Violate any of the terms or provisions of Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code or rules and regulations adopted pursuant thereto or adopted pursuant to Section 18015 of this part.

(Amended by Stats. 1983, Ch. 1076, Sec. 40.)

HSC 18059.5

With respect to escrows and sales practices, it is unlawful to do any of the following:

1. Violate any of the terms or provisions of Chapter 5 (commencing with Section 18035), relating to purchase documents, receipts for deposit, escrow, and sales practices, or any rule, regulation, or order issued by the department pursuant thereto.
2. Intentionally withhold or provide false information to an escrow company or to any person or firm holding or acquiring an ownership or security interest in the manufactured home or mobilehome being sold or purchased.

(Amended by Stats. 1984, Ch. 1342, Sec. 11. Effective September 26, 1984. Operative January 1, 1985, by Sec. 39 of Ch. 1342.)

HSC 18060.5

With respect to business practices, it is unlawful to do any of the following:

1. Knowingly purchase, sell, or otherwise acquire or dispose of a stolen manufactured home, mobilehome, or commercial modular.
2. Violate any of the terms or provisions of regulations promulgated under the authority of Section 18015.
3. Cause the state or any person to suffer any loss or damage by reason of any fraud or deceit practiced on them or fraudulent representations made to any person in the sale or purchase of a manufactured home, mobilehome, or commercial modular or parts or accessories thereof.
4. Violate any of the terms and conditions of Chapter 3 (commencing with Section 1797) of Title 1.7 of Part 4 of Division 3 of the Civil Code.
5. Move a manufactured home, mobilehome, or commercial modular subject to registration pursuant to this part from a mobilehome park or other site of installation to another location, without obtaining from the legal owner, written consent for the move as prescribed in Section 18099.5.
6. Include as an added cost to the selling price of a manufactured home, mobilehome, or commercial modular, an amount for licensing or transfer of title of the manufactured home, mobilehome, or commercial modular, which amount is not due to the state unless, prior to the sale, the amount has been paid by a dealer to the state in order to avoid penalties that would have accrued because of late payment of those fees. However, a dealer may collect from the second purchaser of a manufactured home, mobilehome, or commercial modular, a prorated fee based upon the number of months remaining in the registration year for that manufactured home, mobilehome, or commercial modular, if the manufactured home, mobilehome, or commercial modular was previously sold by the dealer and the sale was subsequently rescinded and all the fees that were paid, as required by this part and Chapter 2 (commencing with Section 10751) of Division 2 of the Revenue and Taxation Code, were returned to the first purchaser of the manufactured home, mobilehome, or commercial modular.
7. Participate in the sale of a manufactured home, mobilehome, or commercial modular reported to the department pursuant to this part without making the return and payment of any sales tax due and required by Section 6451 of the Revenue and Taxation Code.
8. Fail to exercise reasonable supervision over the activities of employees who negotiate or promote the sale of manufactured homes, mobilehomes, or commercial modulars.
9. Display for sale, offer for sale, or sell, a manufactured home, mobilehome, or commercial modular, representing that manufactured home, mobilehome, or commercial modular to be of a year model different from the year model designated at the time of manufacture or first assembly as a completed manufactured home, mobilehome, or commercial modular.
10. Directly or indirectly authorize or advise another licensee to change the year model of a manufactured home, mobilehome, or commercial modular in the inventory of the other licensee.
11. Fail, at the time that the seller enters into a net listing agreement, to disclose in writing as part of the listing agreement in 12-point boldface type all of the following:
    1. That a buyer’s offer may be in excess of the amount that the seller has agreed to accept as a purchase price in the listing agreement.
    2. That the dealer may retain any amount in excess of the amount the seller has agreed to as the purchase price in the listing agreement as the dealer’s compensation or commission.
    3. That additional costs or payments involved in the sales transaction may be deducted or made from the amount the seller has agreed to accept as the purchase price in the listing agreement by the close of escrow.
12. Fail, within three days after the date a buyer’s written offer to purchase a mobilehome or manufactured home that is not a new mobilehome or manufactured home is accepted, but no less than 48 hours prior to the close of escrow or transfer of title to the mobilehome or manufactured home from the seller to the buyer, to disclose to the seller in a document, signed or initialed by the seller and the dealer, that is an addendum to the disclosure required in subdivision (k), the exact amount of the buyer’s offer and the specific amounts of any commission. The dealer shall submit a copy of the disclosure required by subdivision (k) and this subdivision into escrow and maintain, at the dealer’s place of business, a copy of that disclosure for three years from the date of sale. The escrow agent shall ensure that the disclosure deposited into escrow is executed and complete. However, nothing in this subdivision shall be construed to require the escrow agent to be responsible for determining the accuracy of any of the statements in that disclosure.

(Amended by Stats. 2004, Ch. 567, Sec. 4. Effective January 1, 2005.)

HSC 18061

With respect to advertising, it is unlawful:

1. To make or disseminate or cause to be made or disseminated before the public in this state, in any newspaper or other publication, or any advertising device, or by public outcry or proclamation, or by any other manner or means whatsoever, any statement which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading, or to so make or disseminate or cause to be so disseminated any statement as part of a plan or scheme with the intent not to sell any manufactured home, mobilehome, or commercial coach or service so advertised at the price therein, or as so advertised.
2. To advertise or offer for sale or exchange in any manner, any manufactured home, mobilehome, or commercial coach not actually for sale at the premises of the dealer or available to the dealer through a listing agreement executed by the seller or from a manufacturer or distributor at the time of the advertisement or offer. However, this subdivision does not apply to advertising or offering for sale or exchange any used manufactured home, used mobilehome, or used commercial coach where the advertising or offering for sale is not contrary to any terms of a contract between the seller of the manufactured home, mobilehome, or commercial coach and the owner of the mobilehome park, and which manufactured home, mobilehome, or commercial coach is either in place on a lot rented or leased for human habitation within an established mobilehome park, or is otherwise located, pursuant to a local zoning ordinance or permit, on a lot where its presence has been authorized or its continued presence and use would be authorized for a total and uninterrupted period of at least one year.
3. To fail, within 48 hours, in writing, to withdraw any advertisement of a manufactured home, mobilehome, or commercial coach that has been sold or withdrawn from sale.
4. To advertise or represent a manufactured home, mobilehome, or commercial coach as a new manufactured home, mobilehome, or commercial coach if the manufactured home, mobilehome, or commercial coach has been previously installed as a model without also advertising that it was a model.
5. To advertise or otherwise represent, or knowingly to allow to be advertised or represented on his or her behalf, or at his or her established place of business, that no downpayment is required in connection with the sale of a manufactured home, mobilehome, or commercial coach when a downpayment is in fact required and the buyer is advised or induced to finance the downpayment by a loan in addition to any other loan financing the remainder of the purchase price of the manufactured home, mobilehome, or commercial coach.

(Amended by Stats. 1984, Ch. 1342, Sec. 14. Effective September 26, 1984. Operative January 1, 1985, by Sec. 39 of Ch. 1342.)

HSC 18062

It is unlawful for a dealer to do any of the following:

1. Enter into a listing agreement that does not include a specified date upon which the agreement is to terminate.
2. Claim or take any secret or undisclosed amount of compensation, commission, fee, or profit prior to, or at the time that a contractual agreement is signed whereby all parties involved, after negotiation, have come to terms. However, this section shall not be construed to require the disclosure of any exclusive financial arrangements agreed upon between the dealer and any financial institution with regard to financial arrangements applicable solely to them.
3. Exercise any provision which allows the dealer an option to purchase the manufactured home, mobilehome, or commercial coach that is the subject of an agreement whereby a consumer authorizes or employs the dealer to arrange for its sale, purchase, or exchange, unless the dealer has, prior to exercising the option, revealed in writing to the consumer the full amount of the dealer’s profit in exercising the option and obtained the written consent of the consumer approving the amount of the profit.
4. Fail to disclose any liens or encumbrances of which the dealer had knowledge on a manufactured home, mobilehome, or commercial coach.

(Amended by Stats. 1984, Ch. 1528, Sec. 11. Effective September 30, 1984.)

HSC 18062.2

It is also unlawful for a dealer to do any of the following:

1. Engage in the business for which the dealer is licensed without at all times maintaining an established place of business.
2. Employ any person as a salesperson who is not licensed pursuant to this part, or whose license or 90-day certificate is not displayed on the premises of the dealer as provided in Section 18063.
3. Permit the use of the dealer’s license, supplies, or books by any other person for the purpose of permitting that person to engage in the sale of manufactured homes, mobilehomes, or commercial modulars, or to permit the use of the dealer’s license, supplies, or books to operate a secondary location to be used by any other person, if the licensee has no financial or equitable interest or investment in the manufactured homes, mobilehomes, or commercial modulars sold by, or the business of, or secondary location used by, the person, or has no such interest or investment other than commissions, compensations, fees, or any other thing of value received for the use of the dealer’s license, supplies, or books to engage in the sale of manufactured homes, mobilehomes, or commercial modulars.
4. Advertise any specific manufactured home, mobilehome, or commercial modular for sale without identifying the manufactured home, mobilehome, or commercial modular by its serial number or by the number on its federal label or insignia of approval issued by the department.
5. Advertise the total price of a manufactured home, mobilehome, or commercial modular without including all costs to the purchaser at the time of delivery at the dealer’s premises, except sales tax, title and registration fees, finance charges, and any dealer documentary preparation charge. The dealer documentary preparation charge shall not exceed twenty dollars ($20).
6. Exclude from the advertisement of a manufactured home, mobilehome, or commercial modular for sale information to the effect that there will be added to the advertised total price at the time of sale, charges for sales tax, title and registration fees, escrow fees, and any dealer documentary preparation charge.
7. Represent the dealer documentary preparation charge as a governmental fee.
8. Refuse to sell the manufactured home, mobilehome, or commercial modular to any person at the advertised total price for that manufactured home, mobilehome, or commercial modular, exclusive of sales tax, title fee, finance charges, and dealer documentary preparation charge, which charge shall not exceed twenty dollars ($20), while it remains unsold, unless the advertisement states the advertised total price is good only for a specified time and that time has elapsed.
9. Not post the salesperson’s license in a place conspicuous to the public on the premises where they are actually engaged in the selling of manufactured homes, mobilehomes, and commercial modulars for the employing dealer. The license shall be displayed continuously during their employment. If a salesperson’s employment is terminated, the dealer shall return the license to the salesperson.
10. Offer for sale, rent, or lease within this state a new manufactured home, mobilehome, or commercial modular whose manufacturer is not licensed under this part.
11. To violate Section 798.71 or 798.74 of the Civil Code, or both.
12. When the dealer is an owner or manager, or an agent of the owner or manager, of a mobilehome park and serves as the dealer for a manufactured home or mobilehome to be installed or sold in the park, to knowingly violate Section 798.72, 798.73, 798.73.5, 798.75.5, or 798.83 of the Civil Code.

(Amended by Stats. 2004, Ch. 567, Sec. 6. Effective January 1, 2005.)

HSC 18063

It is unlawful for a salesperson to do any of the following:

1. At the time of employment, not deliver to his or her employing dealer his or her salesperson’s license or 90-day certificate.
2. Fail to report in writing to the department every change of residence within five days of the change.
3. Act or attempt to act as a salesperson while not employed by a dealer. For purposes of this subdivision, “employment by a dealer” means employment reported to the department pursuant to subdivision (c) of Section 18060.
4. To violate Section 798.71 or 798.74 of the Civil Code, or both.
5. When the salesperson is an owner or manager, or an agent of the owner or manager, of a mobilehome park and serves as the salesperson for a manufactured home or mobilehome to be installed or sold in the park, to knowingly violate Section 798.72, 798.73, 798.73.5, 798.75.5, or 798.83 of the Civil Code.

(Amended by Stats. 2004, Ch. 567, Sec. 7. Effective January 1, 2005.)

HSC 18066.5

If a purchaser of a manufactured home, mobilehome, or commercial coach pays to the dealer an amount for transfer of title of the manufactured home, mobilehome, or commercial coach, which amount is in excess of the actual fees due for the transfer, or which amount is in excess of the amount which has been paid, prior to the sale, by the dealer to the state in order to avoid penalties that would have accrued because of late payment of the fees, the dealer shall return the excess amount to the purchaser, whether or not the purchaser requests the return of the excess amount.

(Amended by Stats. 1983, Ch. 1076, Sec. 45.)

Chapter 1. Definitions

• Health and Safety Code – HSC
  • DIVISION 13. HOUSING [17000 - 19997]
    (Division 13 enacted by Stats. 1939, Ch. 60.)
    • PART 2. MANUFACTURED HOUSING [18000 - 18153]
      (Heading of Part 2 amended by Stats. 2007, Ch. 540, Sec. 2.)
• CHAPTER 1. Definitions [18000 - 18014.5]
  (Chapter 1 added by Stats. 1981, Ch. 975, Sec. 3.)

Occupational Licensing Program Laws and Regulations

Law

The law establishing the Department's Occupational Licensing Program and related enforcement activities is contained in the California Health and Safety Code, Division 13, Part 2, commencing with Section 18045.

Regulations

Regulations created and enforced by the Department to implement, interpret, and clarify the law are contained in the California Code of Regulations, Title 25, Division 1, Chapter 4, commencing with Section 5000.

Application and Scope

The occupational licensing requirements of the Health and Safety Code and Department regulations apply to all manufacturers, distributors, dealers, and salespersons who manufacture and sell or lease new or used manufactured homes, mobilehomes, or commercial coaches within California. The Department is solely responsible for these duties and carries them out exclusively. Local governments become involved only when a district attorney prosecutes a violator of the Health and Safety Code or California Code of Regulations, and these cases are generally based on information provided by the Department.

Stop Unlawful Sales Practices

Unlicensed Activity Complaints

Published: Thu, Jan 28, 2016 – What you are seeing in the image below are thousands of documents titled "Investigative Report" which are from the California Department of Housing and Community Development (HCD) filed against Kort & Scott Financial Group DBAs. This information is available through a Public Information Request which we have filed for all of the KSFG parks that we are aware of in the State of California.

Complaint Types

1. Non Receipt of Title
2. Non Transfer of Title
3. Unlicensed Activity
4. Substandard Housing
5. Unlawful Use
6. Misrepresentation
7. Illegal Advertising
8. Breach of Contract

Tri Palms Ventures

Mobile Home for Sale Sold
Tustin Village Mobile Home Park

102 South Portola Lane, Tustin, CA 92780

Mobile Home for Sale Sold
Tustin Village Mobile Home Park

112 South Portola Lane, Tustin, CA 92780

Mobile Home for Sale Sold
Tustin Village Mobile Home Park

110 Balboa Lane, Tustin, CA 92780

Scheduled for Demolition
Tustin Village Mobile Home Park

These two (2) mobile homes (109 South Portola Lane, 108 South Colombo Lane) were scheduled for demolition at another mobile home park, brought into Tustin Village Mobile Home Park in direct violation of the Park Rules and Regulations, installed backwards, rehabbed on site, and resold to uninformed families.

Mobile Home for Sale Sold
109 South Portola Lane, Tustin, CA 92780

Mobile Home for Sale Sold
108 South Colombo Lane, Tustin, CA 92780

Mobile Home for Sale Sold
Knolls Lodge Mobile Home Park

Mon, Jun 13, 2016 – This park/affiliate owned mobile home was being offered for $750.

23701 South Western Avenue #13, Torrance, CA 90501

Executive Mobile Homes

Thu, Jan 26, 2017 – Examples of willful violations of California Health and Safety Code (HSC) 18062.2.

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