park homes policy forum
contracts
A park home written statement is a vital legal document, mandatory under the Mobile Homes Act, outlining rights, responsibilities, pitch fees, and site rules. Site owners must provide this document at least 28 days before a purchase is finalised.
Key advice includes thoroughly reviewing express/implied terms, verifying all verbal promises are written down, and checking site rules before signing.
Essential Advice and Components:
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28-Day Rule: You are entitled to receive the document 28 days before committing to purchase, allowing time for legal review.. NEVER accept any excuse or delaying tactic that may be engaged by a site owner . If they wont provide you with a copy of the documents you1ll be expected to sign WALK AWAY
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Key Contents:
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Pitch Fees & Review: Details of the amount, payment schedule, and annual review date.
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Site Rules: Rules on age, pets, and parking, which should be consistent with those lodged with the local authority.
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Maintenance: Responsibilities for infrastructure, such as road, utility, and sewage maintenance.
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Length of Agreement: Details on the security of tenure and the site owner's legal interest.
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Verification: Ensure all verbal agreements are included in the final written document before signing.
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Legal Advice: It is highly advisable to have a solicitor or lawyer specializing in park homes review the statement to avoid future disputes.
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Pre-owned vs. New: If buying a pre-owned home, you take on the existing agreement, but a new owner should still receive the document to understand their legal standing.
*ALWAYS instruct an independent solicitor familiar with Park Home law.
For further detailed information, you may refer to the government fact sheet on buying a park home.
IMPLIED TERMS v EXPRESS TERMS
WHAT EVERY PARK HOME OWNER SHOULD KNOW.
Posted by Tony Turner
THE FOLLOWING hopes to summarise the implications surrounding the use by some park owners in imposing their own service charges. What is posted below should not be taken as legal advice as I`m not legally qualified, nor am I insured to provide it. Moreover the purpose of this forum is to provide a platform enabling the exchanging of information between Park Home owners, whilst tackling common issues and disputes and revealing the tricks that can be played when people are not aware of their rights and obligations. What follows is not comprehensive - but offers what is hopefully more than a glimpse into what can count when there`s a dispute about the terms set out in the Mobile Homes Act. For further clarifications, you may need independent legal advice but I beleive the basics as as set out below
CONTRACT TERMS
Contract terms ( in this case the written Statement ) generally fall into two categories: express terms and implied terms. Understanding the distinction between these is essential for anyone entering into agreements, as both types can significantly impact your rights and obligations.
EXPRESS TERMS are provisions explicitly agreed upon and usually deliberately included in the contract to represent the clear intentions of the contracting parties. Terms in a document that has been signed are almost always binding, regardless of whether the signing party has read or understood them (subject to misrepresentation or fraud).
IMPLIED TERMS are provisions that haven’t been explicitly stated but are nevertheless incorporated into the contract. These terms fill gaps in the express agreement and can come from various sources. Implied terms generally fall into three categories:
1. Those Implied by Law
These are terms that legislation or common law automatically insert into certain types of contracts. For example:The mobile Homes Act implies terms about the park owners maintenance obligations of common areas and in the supplies of essential utilities. These terms exist regardless of whether the parties are aware of them and typically cannot be contracted out of
2. Terms Implied by Custom or Trade Usage
These are terms that are so standard within a particular industry, trade or market that they’re assumed to apply unless expressly excluded.
3. Terms Implied by Fact
These are terms that courts may add to give the contract “business efficacy” or because they’re so obvious they go without saying. Courts apply tests such as:
The “business efficacy” test: Is the term necessary to make the contract work?
The “officious bystander” test: If a bystander had suggested the term during negotiations, would the parties have obviously agreed “of course”?
For a term to be implied by fact, it must be reasonable, equitable, necessary for the contract’s effectiveness, obvious, and capable of clear expression.
Whether or not they`re seen as obvious is subject to interpretation and Courts and Tribunals may agree or disagree . A good example of this, is when I argued at the Upper Tribunal, that the provision by a site owner upon request ( in that case Wyldecrest ) of residents statements of accounts where variable payments are made and sometimes taken when not lawfully due should be implied – albeit denied in the written determination.
THE INTERACTION BETWEEN EXPRESS & IMPLIED TERMS
These follow several key principles:
Hierarchy of Application
Express terms generally take precedence over implied terms. If the parties have explicitly agreed to something, courts will not typically imply contradictory terms. HOWEVER,, certain implied terms (particularly those implied by statute ( such as those set out in the Mobile Homes Act ) cannot be excluded and will override conflicting express terms.The implied terms playing a crucial role , even in detailed contracts. Implied terms can provide context for interpreting ambiguous express terms. Courts may look to industry standards or common sense to determine how particular express provisions should be understood.
The Parol Evidence Rule
The parol evidence rule affects how courts interpret written contracts. In essence, once parties have reduced their agreement to a complete written document, evidence of prior negotiations or verbal agreements cannot be admitted to contradict, vary, or add to the written terms.
However, this rule has many exceptions, including:
Evidence to resolve ambiguities in the written terms
Evidence of subsequent variations
Evidence of a collateral contract
Evidence of misrepresentation, mistake, or undue influence
In property agreements often involve implied terms regarding:Landlord’s repair obligations – occupiers responsibilities and quiet enjoyment of the property.
Exclusion Clauses and their Limitations
Contracts often include clauses attempting to exclude or limit liability for breach of express or implied terms. However, these clauses face significant legal restrictions:n For example, the Consumer Rights Act 2015 (CRA): requires consumer contract terms to be fair. Unfair terms are not binding on consumers. The CRA also prevents businesses from excluding or restricting certain statutory rights in consumer contracts.
I hope the above is of some help to some readers.