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Mobile Home Park Home Owners Allegiance

A entered into or renewed on and after January 1, 2006, shall not include a clause, rule, regulation, or any other provision that grants to management the right of first refusal to purchase a homeowner’s mobilehome that is in the park and offered for sale to a third party pursuant to Article 7 (commencing with Section 798.70). This section does not preclude a separate agreement for separate consideration granting the park owner or management a right of first refusal to purchase the homeowner’s mobilehome that is in the park and offered for sale.

(Added by Stats. 2005, Chap. 35 (SB 237, Migden), eff. 1/1/2006)

§798.8 – Definition of Rental Agreement

‘Rental agreement’ is an agreement between the management and the homeowner establishing the terms and conditions of a park tenancy. A lease is a rental agreement.

(Amended by Stats. 1982, Chap. 1397 (AB 2429, Cortese), eff. 1/1/1983)

Note the phrase shall not include a clause…. Within the Sierra Corporate Management long-term lease agreement may be a regarding an Addendum for free rent which is prefaced with an asterisk (*). That Addendum clause leads to a separate page titled Lease Addendum which contains the Park Owner Right of First Refusal to Purchase Home. This would appear to be in violation of Civil Code §798.19.5?

Define: Clause

A particular and separate article such as an addendum, disposition and/or provision which makes up part of a deed, written agreement, lease agreement, rental agreement, and/or other written contract or will.

A statement within a lease or rental agreement that a particular thing must happen or be done, especially before another can happen or be done.

A contract clause is a specific provision or section within a written contract. Each clause in a contract addresses a specific aspect related to the overall subject matter of the agreement. Contract clauses are aimed at clearly defining the duties, rights and privileges that each party has under the contract terms.

  1. 2020 California Mobilehome Residency Law
    File Type: PDF, Pages: 136, Size: 3.9MB
  2. 2012 Ley de Residencia de Casas Móviles
    Tipo de Archivo: PDF, Páginas: 103, El Tamaño: 716KB
  3. 2019 Las Preguntas Más Frecuentes
    Tipo de Archivo: PDF, Páginas: 26, El Tamaño: 1.1MB

California MRL Online MRL FAQs

Laws (California Health and Safety Code)

Regulations (Title 25)

Did you purchase a park owned or affiliate owned mobile home in a KSFG/SCM mobile home park? Were you offered a space rent special if you signed a long-term lease agreement? Does your long-term lease agreement contain a lease term section referencing an *Addendum: Resident shall receive free rent…? See example below.

Twenty-Five (25) Year Option

(3) The beginning monthly rent shall be $0,000.00, which shall remain in effect until the first anniversary date (or rent adjustment date) which is Month Date of each calendar year. Each anniversary date, then current monthly rent shall be adjusted based upon 100% of the annual increase in the Consumer Price Index (CPI) for the County area (1982-1984 = 100), utilizing the "All Urban Consumers" index as of the most recent month available at the time of the giving notice of the increase to Tenant. In no event shall the annual increase in the rent be less than six percent per month of the then last charged monthly rent. In the event that the CPI index is discontinued or revised, another governmental index then in existence shall be selected by Owner and used to obtain substantially the same result as if the CPI index had not been discontinued or revised. *Addendum: Resident shall receive free rent (M/D/YY-M/D/YY). Space rent for the first year shall be $0,000.00 (M/D/YY-M/D/YY). All subsequent annual rent increases shall remain as indicated herein. Addendum rent is only valid for original tenant and is not transferable/assignable to assignees/future residents.
Sierra Corporate Management Long-Term Lease Agreement

Sierra Corporate Management Lease Term Addendum Clause

Does your Sierra Corporate Management Lease Agreement have a one (1) page Addendum attached? Does it read something like this?

Park owner agrees to the discounted space rent listed on page 4 of this lease agreement; in exchange, tenant agrees to the following:

  1. Tenant grants the park owner a right of first refusal to purchase Tenant's mobilehome. If Tenant receives a bona fide offer to purchase the mobilehome, a copy of the offer (including all terms and conditions whether written or oral) shall be submitted to park owner who shall have five (5) business days to meet and agree to its terms. Tenant shall inform the third party offeror of this Agreement when its offer is made. The park owner may agree to buy the mobilehome on the offeror's terms by sending (or delivering) written notice within such five (5) days period.

  2. If the park owner does not send notice of acceptance, tenant is free to sell the mobilehome to offeror. But in such case: if there are any modifications or changes to the contract with offeror; if offeror fails to buy the mobilehome; or, if title is not transferred, then tenant will repeat the foregoing procedure to give the park owner the right to meet the agreement as modified or changed, as well as the terms of all subsequent offers.

Sierra Corporate Management LEASE ADDENDUM

From our perspective, when you purchase a park owned or affiliate owned mobile home with or without a space rent special in a KSFG/SCM mobile home park, your purchase price, the amount you pay, is basically a non-refundable deposit. You are now a mobile home renter, you really don't own your mobile home after you've signed the plethora of Sierra Corporate Management documents. Your personal property (mobile home), and possibly your chattel mortgage, may now be by KSFG/SCM.

Encumbrance means a lien or claim on property. It is a burden or claim over a property that is binding on the property. An encumbrance can affect the clarity of a good title, or diminish the value of property. However, it will not prevent transfer of title.


An encumbrance is a right to, interest in, or legal liability on real property that does not prohibit passing title to the property but that diminishes its value.[1] Encumbrances can be classified in several ways. They may be financial (ex: liens) or non-financial (ex: easements, private restrictions). Alternatively, they may be divided into those that affect title (ex: lien, legal or equitable charge) or those that affect the use or physical condition of the encumbered property (ex: restrictions, easements, encroachments).[2] Encumbrances include security interests, liens, servitudes (e.g. easements, wayleaves, real covenants, profits a prendre), leases, restrictions, encroachments, and air and subsurface rights. Also, those considered as potentially making the title defeasible are encumbrances, e.g. charging orders, building orders and structure alteration. Encumbrance: charge upon or claim against land arising out of private grant or a contract.
Wikipedia – Encumbrance

Some of you reading this probably don't have the Title for your mobile home? It may still be in the previous owner's name or it may be in the KSFG DBA name of Two Palms Real Estate or Tri Palms Ventures.

If you have not received the Title to your mobile home within twenty (20) days after purchase, contact the State Department of Housing and Community Development’s (HCD) Registration and Titling Division at 800-952-8356 for immediate assistance.

Find out more about who your mobile home is registered to. Do you know what your HCD Decal Number is/was?

Search Your HCD Decal Here

Sin Título de tu Casa Móvil? Póngase en contacto con el Departamento de la División de Vivienda y (HCD) de Registro de Desarrollo Comunitario y Titulación de Estado al 800-952-8356 para obtener asistencia inmediata.


No Title for Your Mobile Home? If you have not received your Title within twenty (20) days after purchase, contact the State Department of Housing and Community Development’s (HCD) Registration and Titling Division at 800-952-8356 for immediate assistance.

Although leases are in theory negotiated, in fact, mobilehome owners have little or no bargaining power to have the right of first refusal taken out of the lease. Because mobilehomes are not truly mobile, a mobilehome owner is often forced to accept the lease on whatever terms proposed by the park owner. Because of the mobilehome owner's lack of leverage to keep a right of first refusal out of a rental agreement, supporters contend this bill would even the playing field and ensure that any rights of first refusals are truly negotiated.
Senate Judiciary Committee – SB 237 – Hearing Date: April 12, 2005

This bill would prohibit any mobilehome park rental agreement entered into after January 1, 2006, from including a term granting the park owner a right of first refusal should the mobilehome owner decide to sell his or her mobilehome.

The Senate Select Committee on Mobile and Manufactured Homes estimates that as many as one third of the nearly 5,000 mobilehome parks in California include a clause in their rental agreements granting the park a right of first refusal. These rights of first refusal require a mobilehome owner, upon receipt of a legitimate offer to purchase the mobilehome from a third party, to submit a written copy of the offer, including all terms, to the mobilehome park. The park then has a specified amount of time to meet the offer. In the examples of leases containing rights of first refusal provided by the author, this time frame varied from two to ten days. If the park chooses not to meet the offer, then the mobilehome owner is free to accept the offer of the third party, if the third party is still interested. If the sale to the third party is not accomplished, the mobilehome owner must repeat this process for each offer received. If the park meets the offer, then the mobilehome owner must sell his or her mobilehome to the park owner.

Existing law does not prevent a mobilehome park rental agreement from granting a right of first refusal to the park if mobilehome owner attempts to sell the mobilehome to a third party.

This bill would prohibit, after January 1, 2006, a mobilehome park rental agreement from including a right of first refusal as a term of a rental agreement between a mobilehome owner and the park management.

  1. Need for the bill

    The author and supporters assert that rights of first refusal may be abused in various ways by unscrupulous mobilehome parks. At the Senate Select Committee on Mobile and Manufactured Homes' Mobilehome Park Management Problems hearing in October 2004, mobilehome owners identified this involuntary surrender of control over their own property as a major problem.

    Prospective buyers may be deterred because of the delay inherent in the park's right of first refusal, which can range up to 10 days. This delay, particularly if the park owner decides not to exercise its right, is inconvenient for both buyer and seller and can also cause a reduction in the value of the mobilehome by creating uncertainty in a prospective buyer. Additionally, while the potential buyer is negotiating sales terms with the mobilehome owner, the buyer is also attempting to secure a lease from the park. Park management can abuse this process by offering unfavorable lease terms, making the mobilehome less attractive and possibly drive down the price when there is a desperate seller. The park owner may then exercise its right of first refusal to purchase the mobilehome at the reduced price.

    Supporters also contend that park owners have a strong interest in incorporating rights of first refusal into their leases as a guaranteed way of purchasing the mobilehomes in the park. Park management, if it owns the mobilehome, is exempt from certain burdens of the Mobilehome Residency Law, such as rent control. The park owner may also replace a mobilehome with a newer home which can be offered at a higher rent. Additionally, if a park owner owns most of the mobilehomes in the park and is renting fewer than two spaces, the owner may close the park and put it to another use, eliminating a key source of affordable housing in this state.

    Although leases are in theory negotiated, in fact, mobilehome owners have little or no bargaining power to have the right of first refusal taken out of the lease. Because mobilehomes are not truly mobile, a mobilehome owner is often forced to accept the lease on whatever terms proposed by the park owner. Because of the mobilehome owner's lack of leverage to keep a right of first refusal out of a rental agreement, supporters contend this bill would even the playing field and ensure that any rights of first refusals are truly negotiated.

  2. WMA concerns

    Western Manufactured Housing Communities Association (WMA) has suggested amendments to the bill to alleviate its concerns that this bill takes away property rights of park owners. WMA contends that a right of first refusal is a valuable property right which should not be given away without some form of consideration and suggests adding language to this effect. However, the aim of this bill is actually in harmony with WMA's stated concerns. This bill is attempting to prevent a right of first refusal from being given away without consideration or negotiation. The language of the bill does not prevent a park and mobilehome owner from voluntarily negotiating and entering into a separate agreement providing the park owner with a right of first refusal. This bill simply prohibits a rental agreement from containing a term granting the park owner a right of first refusal. Any suggested language explicitly reserving the right to enter into a separate agreement for a right of first refusal would be superfluous.

  3. AB 197 (Umberg) may be distinguishable on policy grounds

    AB 197 (Umberg) proposes to grant a conditional right of first refusal to the mobilehome owners and tenants should a park owner desire to sell the park to a third party. WMA contends that AB 197 is inconsistent with this bill because AB 197 is granting a statutory right of first refusal to tenants and mobilehome owners, while this bill is prohibiting a right of first refusal in mobilehome park owners. However, that assertion is not persuasive upon analysis.

    The conditional right of first refusal in AB 197 arises in situations where there is a strong public interest in maintaining affordable housing by converting the park to resident ownership and preventing the risk of a mobilehome park from being put to another use. Specifically, AB 197 only applies when 30 percent of the spaces in the park are occupied by low-income residents and the residents have formed a non-profit corporation representing two-thirds of the mobilehome owners in the park. No similar interest is served by granting parkowners a right of first refusal to purchase a park tenant's home.

    Secondly, in this bill, the Legislature is being asked to utilize its police powers to deter abusive practices by some unscrupulous mobilehome park owners who refuse to offer prospective buyers a reasonable lease, thus deterring sales outright or depressing the market price at the very least, and who then take over any proposed sale at a depressed price rather than buying it in an arms-length transaction. AB 197, in contrast, seeks to enable a qualified park tenant association to buy a mobilehome park that its owner has voluntarily put up for sale and to purchase it at the price that the owner-seller has freely negotiated with a third party. The two measures are not peas of the same pod. AB 197 is pending a hearing by the Assembly Committee on Housing and Community Development.

  4. Suggested clarifying amendment

    The Committee understands that it is the intent of the author that this bill apply not only to new rental agreements entered into after January 1, 2006, but also to renewed rental agreements. To accomplish this, the following language is suggested: Page 1, line 3, after into insert: "or renewed".
    Senate Judiciary Committee – SB 237