Navigating the sale or purchase of manufactured homes in B.C.

The process of selling a manufactured home in B.C., particularly within the confines of a manufactured home park, means lots of regulations and requirements.

As the market for affordable housing options continues to grow, understanding these requirements is crucial for both sellers and prospective buyers.

Firstly, all manufactured homes in B.C. must comply with stringent safety standards. According to the regulations, specifically section 32 of the Manufactured Home Act, a manufactured home manufactured after May 15, 1992, cannot be sold unless it bears a valid certification label from the Canadian Standards Association (CSA) or a Silver Label issued by Technical Safety BC.

Those labels confirm the home meets electrical safety standards, which are non-negotiable in the sale process. If a home lacks those labels due to loss or removal, the seller must arrange for a licensed electrical contractor to inspect the home, followed by a certification check by Technical Safety BC to affix a new label. That ensures the home is safe for habitation, a critical step before listing it for sale.

Remember, it is not optional. So, for example, the CSA label was accidentally removed during a renovation. If it is not there, you must have the home re-certified. If there were changes made to the electrical without a proper permit—like adding a hot tub or air conditioner—the home must be re-certified.

I have encountered this. It is not necessarily a big deal, it just needs to be addressed right away. If electrical work was properly permitted and the permits were properly closed, new certification is not necessarily required. A call to BC Technical Safety can provide information about permits that have been pulled and then closed.

Ownership of manufactured homes in B.C. is registered with the Manufactured Home Registry, unlike traditional homes, which are registered with Land Title and Survey Authority. There will be a decal—often on or around the electrical panel–that has the registry number.

If that label cannot be located, you need to call Manufactured Homes Registry and request a new one . It takes about a month for it to arrive. Without that label, transferring ownership can be challenging.

When selling, updating this registry is mandatory. Sellers must ensure the transfer of ownership is officially recorded. That is typically done by a notary or a lawyer during conveyancing, who then registers the change.

Living in a manufactured home park means the home is often on leased land. Sellers must be aware of the park's rules regarding the sale, signage and consent for the sale from the park owner. Decisions about consent must align with the Manufactured Home Park Tenancy Act, ensuring they are not arbitrary or without just cause.

If the lease or pad rental agreement is to be assigned, it is important the new owner reviews the lease agreement to understand terms like “pad rental fees,” rules about pets, the maximum number of occupants, modifications to the home and possibly more.

The assignment of the lease to the new owner requires the park owner's consent and, if not provided within a specified timeframe, it is considered granted under current B.C. law.

Sellers and buyers alike are advised to seek legal advice and work with real estate professionals. Those experts can navigate the legalities, including ensuring all modifications or upgrades to the home comply with certification and safety standards. They can also assist with transferring ownership and dealing with the Manufactured Home Registry or addressing disputes over lease assignments.

Also, there is all the paperwork involved in both the listing/marketing of a home and dealing with offers, both on the selling and buying side. The purchase or sale of a manufactured home in a park can be complicated.

Understanding the current market trends for manufactured homes in B.C. can significantly impact the sale process. With the ongoing housing crisis, these homes are increasingly seen as viable, affordable living options. However, parks can also under scrutiny for potential redevelopment, so buyer beware.

For anyone contemplating the purchase of a manufactured home in a park, it is important to remember only 12 month’s notice is required that the park will be redeveloped and the home will need to be moved or that the owner will be compensated and they will need to find a new place to live.

In practice, the actual time from knowing a park may be developed and when people need to leave is usually longer, however the rules say 12 months. Also, the rules that protect manufactured homes in parks do not necessarily apply in parks that are located on Indigenous land. The rules in these parks can vary widely so always find out where you stand in that situation before purchasing.

Selling a manufactured home within a park involves more than just finding a buyer. It requires ensuring the home meets safety standards, navigating the legalities of ownership transfer, understanding and adhering to park-specific rules and being transparent about financial obligations.

To find out more about the Manufactured Home Park Tenancy Act, visit Manufactured Home Park Tenancy Regulation or do an Internet search.

If you have suggestions for other real estate-related articles, please email me at [email protected].

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.