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Phil Querin Q&A: Applicant Buys Home, Qualifies for Residency, Disappears Without Signing Rental Agreement

Phil Querin

Question: We have an applicant who was pre-approved for residency, then purchased a home but did not show up to sign the rental agreement or moving into the home. We learned the reason for not showing up was that he had been recently arrested for multiple counts of identity theft and is also being investigated for drug activity.

Answer:  My answer requires that I make some assumptions:

  • When you say “pre-approved” I will assume he has not received a final approval;
  • I will assume that somewhere in your application paperwork it states that the landlord-tenant relationship does not commence until the rental or lease agreement is signed.
  • I will assume that management did not say or do anything to cause the applicant to believe he could purchase the home before final approval.
  • Accordingly, I will assume that the person is NOT legally a tenant in your community.

 

ORS 90.303(3)(Evaluation of Applicant)[1]provides that when evaluating the applicant, the landlord may consider criminal conviction and charging history if the conviction or pending charge is for conduct that is

     (a) A drug-related crime; 

     (b) A person crime; 

     (c) A sex offense; 

     (d) A crime involving financial fraud, including identity theft and forgery; or 

(e) Any other crime if the conduct for which the applicant was convicted or     charged is of a nature that would adversely affect: 

  (A) Property of the landlord or a tenant; or 

(B) The health, safety or right to peaceful enjoyment of the premises of residents, the landlord or the landlord’s agent.  (Emphasis added.)

 

So, under the facts of your question (subject to my assumptions), you are within your rights to decline the applicantat the present time.[2]  Since he is not legally a “tenant” under ORS Chapter 90, the landlord tenant law would not apply, so I would notsuggest proceeding under the abandonment statute, ORS 90.675(Disposition of Manufactured Dwelling). 

 

There is no “limit” on how long an approved applicant has to sign the rental agreement in ORS. But there is nothing preventing you from inserting this requirement in your application paperwork.[3]

 

So that he could recoup the cost of the home, I would try to reach out to him and propose, subject to a carefully drafted agreement, that he could sell the home to an approved tenant. Have him enter into a storage agreement with monthly payments, but no occupancy.  

 

While technically you would not be subject to the park-sale statute, ORS 90.680(Sale of Dwelling), you could use it for guidance when screening other applicants for tenancy.

 

[1]This statute was amended in the 2019 Legislative Session by Senate Bill 971, but the changes do not affect my answer.

[2]Although I don’t think it likely, assuming the pending charges were quickly dropped (and ignoring the drug activity investigation), if there was nothing more on the applicant’s criminal record, the issue of whether you must accept him is slightly different. ORS 90.303(2)(Evaluation of Applicant) provides that a landlord may notconsider a previous arrest if it did not result in a conviction.

[3]Note to self:Perhaps MHCO should consider a clause in its applications stating that any approvals given are subject to any material changes to tenant’s qualifications that occur after submitting the application and before taking occupancy.

MHCO Legislative Summary: Payment to Residents When Parks Close; Notices Upon Transfer; and Manufactured Dwelling Cooperatives

Phil Querin

Notice to Office of Manufactured Dwelling Park Community Relations. In addition to providing the notice as required by ORS 90.842[1] (Notice of sale of manufactured dwelling park), HB 2008 provides that upon sale of a manufactured dwelling park, or upon any sale, transfer, exchange or other conveyance of a manufactured dwelling park described in ORS 90.848 (Exceptions to requirements for sale or transfer of manufactured dwelling park), the owner must give notice of the conveyance to the Office of Manufactured Dwelling Park Community Relations stating:

 

  • The number of vacant spaces and homes in the manufactured dwelling park;
  • If applicable, the final sale price of the manufactured dwelling park (emphasis mine);
  • The date the conveyance became final; and
  • The name, address and telephone number of the new owner.

 

 

Comment: There are several transfers under ORS 90.848 to which disclosure of the "final sale price may not be applicable. For example: A gift; a transfer by a corporation to an affiliate; the liquidation of a partnership to its partners or limited liability company to its members; the conveyance of a trust deed to a lender as security for a loan; a conveyance resulting from the foreclosure of a mortgage or deed of trust; a transfer between joint tenants or tenants in common owning a park.

 

Manufactured Dwelling Cooperatives. HB 2008 also amends ORS 62.809 (Requirements for membership in cooperative), a statute I have little familiarity with.

A person may become a member of a manufactured dwelling park nonprofit cooperative if the person: (a) Is a natural person; (b) Owns a manufactured dwelling that is, or is to be, located in a manufactured dwelling park of the cooperative and occupied by the person; (c) Pays the membership fee required by the cooperative; and (d) Meets any additional membership qualifications established in the articles of incorporation or bylaws of the cooperative.

 

Membership in a manufactured dwelling park nonprofit cooperative entitles the member to rent space for a dwelling in the park and to occupy the manufactured dwelling. The total number of memberships available for issuance by the cooperative may not exceed the number of dwelling spaces in the park. Cooperatives issue one membership for each manufactured dwelling that is, or is to be, located in the park of the cooperative and occupied by an owner. A person may not own more than one membership in the same cooperative. Members may sell or redeem their membership in the cooperative, so long as it is for the price the member paid for the membership.

 

 

This legislation proves that if title to a manufactured dwelling located in the park of a cooperative is transferred to a lienholder, and a buyer of the dwelling from the lienholder or a person that acquired title from the lienholder does not become a member of the cooperative within 12 months after title is transferred to the lienholder, the owner of the manufactured dwelling must remove it from the park.

 

 

Under HB 2008, an owner of a manufactured dwelling is not required to remove the manufactured dwelling described above if the cooperative agrees with the owner in writing to: (a) Waive or extend the deadline by which the buyer or subsequent buyer must remove the manufactured dwelling; or (b) Store the manufactured dwelling on the space for a specified period of time.

 

 

The existing park-cooperative law allows for lienholders and a cooperative to enter into storage agreements for up to 12 months, under similar provisions as found in the current park abandonment law. (See, ORS 90.675(20)) HB 2008 now provides that the lienholder and cooperative may agree in writing to extend the term of the agreement beyond 12 months.

 

 

Effective Date. The Effective Date of HB 2008 is June 6, 2017. As for the increase in payments for manufactured homes, the new law will apply to park closures for which notice was given on or after the Effective Date. The amendments to the park-cooperative laws will apply to transfers of title and termination of memberships that occur on or after the Effective Date.

 

[1] Currently, the notice must include the following information: (a) That the owner is considering selling the park; (b) That the tenants, through a tenants committee, have an opportunity to compete to purchase the park; (c) That in order to compete to purchase the park, within 10 days after delivery of the notice, the tenants must form or identify a single tenants committee for the purpose of purchasing the park and notify the owner in writing of: (i) The tenants' interest in competing to purchase the park; and (ii) The name and contact information of the representative of the tenants committee with whom the owner may communicate about the purchase.

Bill Miner: Question and Answers When Selling a Community In Oregon (First of Two Parts)

MHCO

A: HB 4038, which has not yet been codified, requires an owner to give written notice of the owner's interest in selling the park before the

owner markets the park for sale or when the owner receives an offer to purchase that the owner intends to consider, whichever occurs

first. If possible, I advise my clients to send the notice before entering into a listing agreement but definitely before actively listing the property.


Q: Does the notice need to be sent to each tenant individually versus all tenants (e.g. "Dear Mr. Johnson" vs. "Dear Tenant")?


A: The plain language of the law states "all tenants," but the 2014 Summary of Legislation states that the purpose of the bill is to require park owners to notify "individual park residents" if the owner is interested in selling the park. Because it appears that the original intent was to notify each individual, the safer course is to send the notice to each tenant individually.


If a tenants committee has been formed, and the purpose of the committee is (in part) to purchase the park, and you have met with the committee in the previous 12 months, you can send a notice to the tenants' committee in lieu of all tenants. Also note that you must send a copy of the notice to the Office of Manufactured Dwelling Park Community Relations of the Housing and Community Services Department (say that 5 times fast).


Q: What does the notice have to include?


A: (1) The owner is selling the park; (2) The tenants, through a tenants committee, have an opportunity to purchase the park; (3) In order to compete to purchase the park, within 10 days after delivery of the notice, the tenants must form (or identify) a single tenants committee for the purpose of purchasing the park and notify the owner in writing of: (a) the tenants' interest in competing to purchase the park; and (b) the name and contact information of the representative of the tenants committee with whom the owner may communicate about the purchase; (4) The representative of the tenants committee may request financial information described in section 2(2) of the act within the 10 day period; and (5) information about purchasing a park is available from the Office of Manufactured Dwelling Park Community Relations of the Housing and Community Services Department.


Q: Does 10 days really mean 10 days?


A: The law discusses "delivery of the notice." I advise my clients that all notices should be sent by first class mail and 3 days should be allowed for mailing just as if you were sending a 30 day notice or a 72 hour notice. Certificates of Mailing (Not certified mail!!) for each notice are strongly encouraged. By way of example, if you send the notice on June 1, then the "10 days" would run on June 13.


Q: What do the tenants have to do after I send them the notice?


A: If the tenants are interested in competing to purchase the park, within the 10 days, the tenants must notify the owner in writing of their interest in competing to purchase the park, the formation or identification of a single tenants committee formed for the purpose of purchasing the park and the name and contact information of the representative of the tenants committee with whom the owner may communicate about the purchase.


Q: Do I have to give the tenants my tax returns?


A: No. But, during the 10 days of delivery of the notice, and in order to perform a due diligence evaluation of the opportunity to compete to purchase, your tenants may request specific financial information which may include: the asking price, if any (this provision contemplates that you may not yet know your asking price when you send your notice); the total income collected from the park and related profit centers, including storage and laundry, in the 12-month period immediately before delivery of the notice; the cost of all utilities for the park that were paid by the owner in the 12-month period immediately before delivery of the notice; the annual cost of all insurance policies paid by the owner as shown by the most recent premium; the number of homes in the park owned by the owner; and the number of vacant spaces and homes in the park. Please note that I have seen requests that ask for additional information; providing information outside of what is outlined above is discretionary.

Bill Miner is currently Partner in Charge of the Portland office of Davis Wright Tremaine. DWT is a full service law firm with 500 attorneys on both coasts and in Shanghai, China. The Portland office consists of approximately 80 attorneys and over 80 staff. He works with clients to resolve their legal problems through pre-litigation counseling, litigation, and mediation. He tries cases in state and federal courts and through private arbitration. His experience includes defending and prosecuting business torts; breach of contract claims; disputes between and among members of limited liability companies; residential and commercial real estate matters, including landlord-tenant, title, lien, and timber trespass disputes; and probate and trust cases. He is a frequent and popular speaker at MHCO seminars and conferences. You can reach Bill at: http://www.dwt.com/people/WilliamDMiner/


Bill Miner | Davis Wright Tremaine LLP1300 SW Fifth Avenue, Suite 2300 | Portland, OR 97201Tel: (503) 778-5477 | Fax: (503) 778-5299 Email: billminer@dwt.com | Website: www.dwt.comAnchorage | Bellevue | Los Angeles | New York | Portland | San Francisco | Seattle | Shanghai | Washington, D.C.

Phil Querin Q&A - A Potpourri of Topics - Tips and Traps

Phil Querin

Evictions.


Most evictions are either for failure to pay rent or violation of rules. An eviction (formally known as a "forcible entry and detainer" or "FED") is an expedited legal procedure designed to allow landlords to obtain possession of their property through the court system. Oregon does not require that landlords obtain an attorney in order to file an FED. The necessary summons and complaint can be obtained from the courthouse and they can be filed and served quickly. This has its advantages and disadvantages: It is good insofar as it keeps the cost of the process down, but it is bad if the owner or manager fails to strictly follow all of the legal procedures required by the statutes. Accordingly, for the inexperienced manager or new owner, it is strongly, recommended that guidance first be sought, either through the MHCO, from an experienced attorney, or by consulting with a knowledgeable community management company.


Since the FED process is designed to be a "summary" or quick proceeding, the law imposes upon those seeking its assistance, i.e. owners and managers, the duty to strictly comply with all of the requirements set out in the statutes. This means, for instance, that the written notice that must precede the filing of the complaint (e.g the 72-hour nonpayment of rent notice or the 30-day notice of termination for cause) must be properly filled out to the letter. Since the notice is required to be attached to the FED complaint, and thereby becomes a part of it, if it is defective in any respect, the Court can unilaterally dismiss it - thus forcing the landlord or manager to start all over again. It is for this reason that before actually filing the summons and complaint which starts the FED court process, the plaintiff should closely review the notice to make sure it complies with the law.


Leases & Rental Agreements.


As a result of MHCO's efforts in the recent Legislative Session, landlords will be able to use leases for two year terms or more. At the end of the term, the tenant must either agree to a new updated lease as well as rules and regulations. Briefly, the process is as follows: Not more than 60 days prior to the termination of the lease, the landlord must provide the tenant with a copy of the new proposed lease and rules. Thereafter, the tenant has 30 days within which to either agree to the new terms or to vacate and remove the home. If the tenant declines to sign and elects to vacate, he/she can try to re-sell the home in the park for up to 12 months, so long as storage fees are paid.


The one limitation on landlords - and not an unreasonable one - is that the new lease agreement or rules that the tenant may be asked to sign must be the substantially the same as those the landlord is currently offering others who are seeking to rent a space in the community.


One caveat for landlords: If they fail to offer the new rules and lease agreement to the tenant on or before 60 days prior to expiration of the current term, the lease turns into a month-to-month tenancy.


Thus, the use of leases under the new law will now permit landlords to unilaterally update their rental agreements and rules. We'll be talking about this in depth at the Annual Convention.


Day Care Facilities.


Frequently, community managers are confronted with tenants who seek to open day care businesses in their home. There are multiple issues involved here. First, is it a violation of the existing zoning laws to use the home for a commercial business? Secondly, will it impact the landlord's insurance rates? Lastly, what about increased traffic and risk of accidents? All of these issues militate against permitting tenants to open such enterprises.


Landlords should review their rules and regulations to make sure they have adequate limitations on day care businesses. If they do not, consideration should be given to updating the rules to make the appropriate amendments. However, for those landlords or managers whose rules do not address the issue, how is one to proceed? Oregon law provides that violation of the law constitutes a breach for which a curable 30-day notice of termination may be given. Accordingly, the landlord or manager should first check the zoning law. If it is a residential neighborhood, there may be zoning restrictions on such business enterprises. Also, even if there is not current restriction, there is nothing illegal about instituting a restriction of day care facilities immediately. Oregon law permits such rules, even if they make a material modification to the landlord-tenant relationship, so long as they are passed by the tenants in a legally adopted rule change (i.e. 51% or more do not object.)

Working with Residents' in Disaster Preparedness

MHCO

Generally speaking, this committee should consist of :

 

  • Chairperson
  • Training Coordinator
  • Communications Coordinator
  • Emergency supplies manager
  • Residents with knowledge or experience in financial, insurance and legal issues

 

 

Depending on the size of your community, you may also want to appoint Block Captains, who will be responsible for maintaining data on their assigned neighborhoods and also be on call to warn residents in their area about an approaching emergency. If your community has a large number of pets, you may want to include someone on the committee to focus on animals.

 

 

There Are Two Major Roles For The Committee:

 

 

  • Educating and training all residents about emergencies
  • Actually coping with an emergency

 

 

As a manager or owner of a manufactured home community, provide the committee with excellent materials to use in doing their work, starting with this series of articles.

 

 

Committee Responsibilities:

 

 

The chairman should plan and hold regular meetings of the committee to review the work that is being done. He or she should be an active participant in other activities and lead by example. In case of an actual emergency, the chairman and the community manager will be the center of operations and communications. The chairman can assign duties to committee members, such as maintaining a list of community members with special needs or residents with special skills or expertise.

 

The training coordinator should be responsible for planning and holding actual evacuation or other types of disaster drills, depending on what potential problems face your community. For example, if the community has a central shelter that resients can use in case of a tornado, you should have a "mock" emergency alert once or twice a year. Encourage everyone to participate. This will improve their own safety, and it will also help you find out if there are any flaws in the plan, such as an area whose residents cannot reach the shelter quickly or a breakdown in the system used to alert residents.

 

These drills should also include practice with the notification system. Audio alarm systems should be tested regularly, and back-up systems should be practiced. For example, if a phone chain is being used, it should be tried out at least twice a year, to see how long it takes everyone in the community to be notified and to make sure that phone numbers are current.

 

 

Similarly, with a door-to-door system, practices will help determine how long it takes to notify everyone, so that adjustments can be made. In either system, make plans that would allow for some residents not being in the community when notification is needed. For example, are some homes occupied for only part of the year? Would some residents be at work when you need to notify them?

 

 

The communications specialist is responsible for community education. Regular communication with residents through a newsletter or other publication is a good idea. In addition to letting residents know about the community's disaster plan, encourage families to develop their own disaster plans. Although not required by law, disaster plans should be provided to new residents as part of the move-in processing.

 

 

The emergency supplies person will work with the community management to establish a storage area for a supply of food, water, medical supplies, communications equipment and other items that would be needed in case a disaster strikes the community, and help cannot reach you right away.

 

 

The emergency supplies should be kept in an area that is unlikely to be damaged by any type of disaster. The managers should check these supplies regularly to make sure that they are usable and up-to-date. As part of their individual family disaster plan, residents should maintain their own emergency supplies, and a way to carry the supplies (a duffel bag or suitcase) in case an evacuation is required.

 

 

 

Oregon Legislative Update - The Home Stretch - SB 277A and HB 2008A Head to Governor - Latest on Rent Control!

 We are in the home stretch of the 2017 Oregon Legislative Session. The target adjournment date is June 23rd, the constitutional deadline for adjournment is July 10th. The actual date will fall somewhere between the two - most likely in late June. Significant budget, tax, transportation issues still need to be haggled over as the legislative session draws to a close.

Nearly all legislative proposals MHCO has been tracking (mostly opposed) have died in committee.

Click Here or at the top of this article  "MHCO Legislative Update"  for links to bill drafts and the status of all bills actively tracked by MHCO.

Two significant legislative proposals addressing manufactured home communities are on their way to the Governor's desk for signature. Here is a summary of these two bills:

SB 277A - This is the landlord tenant coalition bill that was negotiated over several months and addresses changes to disrepair and deterioration. The bill provides clear definitions of disrepair and deterioration as well as making it clear that cosmetic or aesthetic concerns are not disrepair or deterioration. The 30 day cure period is extended to 60 days. The bill also clarifies the responsibility of new residents who purchase an existing manufactured home in the community for repairs including cosmetic or aesthetic concerns as long as those concerns are included in the community rules and the community owner gives written notice to a prospective purchaser before he or she becomes a new resident.

HB 2008A - this bill caused a great deal of anxiety for community owners when it was introduced in January. The original bill contained nearly every legislative concept that MHCO has been fighting against for the past 20 years. MHCO negotiated with John VanLandingham (Lane County Law Center) and Representatives Marsh, Fahey and the House Speaker to reach a compromise that removed nearly all of HB 2008 and replaced it with three issues.

The first issue increases the amount homeowners are compensated when a community CLOSES from $5,000 (single wide), $7,000 (double wide), $9,000 (triple wide) to $6,000 (single wide), $8,000 (double wide), $10,000 (triple wide) and tied future increases in compensation to CPI.

The second issue in the compromise addressed resident-owned communities. USDA Rural Development would like to pilot their 502 1% loan program in resident-owned cooperatives, however, they won't if there are restrictions requiring a lien holder to remove an abandoned or foreclosed MH after 12 months. The compromise will give resident-owned cooperatives the flexibility to negotiate storage terms with lien holders that are beneficial to the cooperative. This, in turn, will allow the cooperative to attract lenders who offer extremely affordable loan products to manufactured homeowners in cooperatives who wish to replace older or unsafe homes with new, energy-efficient ones.

The third issue, when a community sells the new community owner will need to report to the state - the number of vacant spaces and homes in the manufactured dwelling park; the final sale price of the community; the date the conveyance became final; and the name, address and telephone number of the new owner.

Finally, the other issue of great concern to all landlords is RENT CONTROL. HB 2004A (the rent control bill) is in the Senate. In March the HB 2004A passed out of the Oregon House and has had a public hearing in the Senate. Final action on the bill (work session) is scheduled for the end of May. There is no indication what the Senate will do, but a number of Democratic Senators have expressed opposition. At this time all eyes are on the Senate - we should have a good idea later next week on what direction the Senate will take on rent control and the elimination of 'no cause' eviction. We will keep you posted on any developments - all should be revealed within the next two weeks.

MHCO Legal Counsel Phil Querin will do a complete analysis and provide practical advice for all MHCO members (managers and community owners) on these new laws later this summer. In addition all necessary changes to MHCO Forms will be made as well.

 

If you have any questions or concerns please feel free to contact the MHCO office at 503-391-4496.  

Application Process (Part 5 of 6) Statement of Policy - Resident Files

Statement of PolicyAll Oregon manufactured home communities renting space for manufactured dwellings have been required to provide prospective and existing tenants with a Statement of Policy. The applicants must receive their Statement of Policy before signing the rental agreement. While a Statement of Policy is not technically a contract, it is an important document. A tenant or rental applicant who makes their decisions or changes their position in reliance upon the policies set forth in the statement may be entitled to hold the landlord to those written policies. As proof of delivery of the Statement of Policy to tenants or applicants, it is advised to get a signed receipt.A landlord who intentionally and deliberately fails to provide a Statement of Policy as required by ORS 90.510, or delivers a legally defective one, may be subject to a lawsuit. All of the items that must be addressed in the Statement of Policy are found in ORS 90.510. The Statement of Policy is required to include the following information in summary form:(a) The location and approximate size of the space to be rented.(b) The federal fair housing age classification and present zoning that affect the use of the rented space.(c) The facility policy regarding rent adjustment and a rent history for the space to be rented. The rent history must, at a minimum, show the rent amounts on January 1 of each of the five preceding calendar years or during the length of the landlord's ownership, leasing or subleasing of the facility, whichever period is shorter.(d) All personal property, services and facilities to be provided by the landlord.(e) All installation charges imposed by the landlord and installation fees imposed by government agencies.(f) The facility policy regarding rental agreement termination including but not limited to closure of the facility.(g) The facility policy regarding facility sale.(h) The facility policy regarding informal dispute resolution.(i) Utilities and services available, the person furnishing them and the person responsible for payment.(j) If a tenants' association exists for the facility, a one-page summary about the tenants' association that shall be provided to the landlord by the tenants' association and shall be attached to the statement of policy.(k) Any facility policy regarding the removal of a manufactured dwelling, including a statement that removal may impact the market value of a dwelling.Resident FilesBefore any tenant moves into your community the tenant's file should contain the following information:1. Completed Application2. Signed Rental Agreement. (Resident is to receive a copy)3. Signed Rules and Regulations (Resident is to receive a copy) 4. Signed Statement of Policy including Rent History Addendum. (Tenant is to have received a copy of the Statement of Policy prior to signing rental agreement.)5. Copy of Homeowner's insurance policy with community named as an interested party (for the purpose of being notified of cancellation of insurance. (This is for pets only.)6. Credit check results7. Rental check results8. Criminal check results9. Application screening fee receipt10. Pet Agreement - Identify type of pet, name, size. You might consider taking a picture of the pet to include in your file in case you need to identify the pet in the future. Resident must sign the pet agreement. (Resident is to receive a copy)11. Proof of Age if 55 and older community (photo ID, driver's license)12. RV Storage Agreement. Identify type of RV (i.e. boat, camper, trailer, etc.) and include license number and description of recreational vehicle. (Resident is to receive a copy)13. Any and all notices/correspondence between landlord/manager and resident

Mobile Homes and Recreational Vehicles: Title Issues

Bill Dahlin

It is fairly common in litigation or disputes involving mobile home tenancies for title to a home to change hands, whether pursuant to a "warehouse lien" authorized by statute after an unlawful detainer (evictions) judgment is obtained against a defaulting tenant, or by reason of a settlement between the parties or a surrender of a home to the park by heirs of a deceased tenant. A park should always ensure that title is properly transferred from a current or former owner to the park pursuant to all applicable laws (e.g., Department of Housing and Community Development requirements in California). Failing to do so runs the risk of problems occurring later. For example, if the park places a new tenant in the newly purchased home, thinking that the park owns the unit but later finds out that it does not have title to the unit significant legal issues can arise. For example, would the park have authority or standing to evict without title? In a scenario where a home has not been transferred properly the park can ordinarily obtain good title by way of an Abandonment Petition (in California at least) if the home is unoccupied. However, by placing a tenant in a recently purchased home, the park could be denied this avenue of transferring title and may have to pay to relocate the new resident. In addition, there is no guarantee that the tenant will cooperate. At the very least a tenant will be very unhappy. Following through and making sure that the park has proper title can save this and other unforeseen headaches. Indeed, as just noted, an eviction might be impaired without proper title documents.

Mobile home residents are often unaware (or uncaring) of the legal problems they can cause a park owner by selling their mobile home without notifying or getting the approval of the park (as most parks require). Such individuals are also likely to fail to transfer title properly. When the new owner defaults on payment of the rent, the failure to transfer title properly can cause an eviction nightmare for the park. One example is having an individual, whose identity is wholly unknown to the park, insert himself or herself as a defendant in an unlawful detainer or (eviction) case even after the case is essentially completed and lockout is scheduled. This individual can claim that he or she is the owner of the mobile home (though not on title) and that park management knew or should have known that he or she was living there and that he or she should have been served with the notice to pay rent or quit. This happens notwithstanding that all legal documents were served on the unit itself, some addressed to "all occupants." If a judge allows this new "stranger" into the eviction lawsuit, further legal fees will be expended to resolve the situation.

Many parks have recreational vehicles (and other "motor vehicles" including boats and dune buggies) in addition to mobile homes, either as residences, for short term stays, or for long term storage. Parks should require and obtain all title and registration information before such vehicles are allowed to stay in the park. Some of these vehicles, for one reason or another, will be abandoned in the park. The law usually does not allow the park to simply discard these vehicles when they are thought to be abandoned. Obtaining court authority or other legal authority to discard or sell abandoned vehicles usually requires pieces of information about them such as the make, model, vehicle identification number and registered owner that are not readily apparent by physical inspection. Getting this kind of information up front can save all sorts of time and expense down the line, including trips to the Department of Motor Vehicles to obtain information. The sooner the park can rid itself of abandoned vehicles, the sooner the park can get back to the business of renting that space in exchange for rent.

The above situations illustrate just a few of the benefits of paying attention to the issue of title and registration. Park owners may not want to be in the business of concerning themselves with title to personal property within the park, but paying attention to title issues can save the park considerable time (and legal fees) in the future.

Bill Dahlin is a partner with the Southern California law firm of Hart King and a leader in the firm's Manufactured Housing Industry Practice Group. He can be reached at (714) 432-8700, (714) 619-7084 (direct dial) or bdahlin@hartkinglaw.com. This article is for general information purposes and is not intended to be and should not be taken as legal advice for any reader.

Phil Querin: Q&A: Death of a Tenant While Temporary Occupant Residing in Premises

Phil Querin

Answer: All good questions. Here is what ORS 90.275 says about temporary occupant agreements:

  • To create a temporary occupancy, the landlord, tenant and proposed temporary occupant must enter into a written temporary occupancy agreement (See, MHCO Form No ___.)
  • The temporary occupant:
    • Is not a tenant entitled to occupy the dwelling unit to the exclusion of others; and
    • Does not have the rights of a tenant.
  • The temporary occupancy agreement may be terminated by:
    • The tenant without cause at any time; and
    • The landlord - but only for a cause that is a material violation of the temporary occupancy agreement.
  • The temporary occupant does not have a right to cure a for-cause violation issued from the landlord.
  • Before entering into a temporary occupancy agreement, a landlord may screen the proposed temporary occupant for issues regarding conduct or for a criminal record.
    • However, the landlord may not screen the proposed temporary occupant for credit history or income level.
  • A temporary occupancy agreement:
    • May provide that the temporary occupant is required to comply with any applicable rules for the premises; and
    • May have a specific ending date.
  • The landlord, tenant and temporary occupant may extend or renew a temporary occupancy agreement or may enter into a new temporary occupancy agreement.
  • A landlord or tenant is not required to give the temporary occupant written notice of the termination of a temporary occupancy agreement.
  • The temporary occupant shall promptly vacate the dwelling unit if a landlord terminates a temporary occupancy agreement for material violation of the temporary occupancy agreement or if the temporary occupancy agreement ends by its terms.
  • Except as provided in ORS 90.449 (Landlord discrimination against victim), the landlord may terminate the tenancy of the tenant as provided under ORS 90.392 (Termination of rental agreement by landlord for cause) or 90.630 (Termination by landlord) if the temporary occupant fails to promptly vacate the dwelling unit or if the tenant materially violates the temporary occupancy agreement.
  • A temporary occupant shall be treated as a squatter if the temporary occupant continues to occupy the dwelling unit after a tenancy has ended or after the tenant revokes permission for the occupancy by terminating the temporary occupancy agreement.
  • A landlord may not enter into a temporary occupancy agreement for the purpose of evading landlord responsibilities under ORS Chapter 90 or to diminish the rights of an applicant or tenant under this chapter.
  • A tenant under a rental agreement may not be turned into a temporary occupant in the tenants own dwelling unit.
  • A tenancy may not consist solely of a temporary occupancy - each tenancy must have at least one tenant.

So, to answer your question based upon the above rules, once the tenant passed away, the temporary occupant's right of occupancy ended, and it cannot be renewed, since there is no "tenant" to also reside there. Temporary occupants cannot occupy the premises alone. Here's my thinking:


  • The temporary occupancy law does not contemplate that the person residing at the premises will be paying rent. That is why landlords may not pre-qualify temporary occupants based upon their financial capacity. If that was the intent in this case, you should have had the person apply for tenancy and become a co-tenant.
  • Accordingly, you should not accept rent from the temporary occupant.
  • You should try to find out who the next of kin are and learn what they intend to do with the home;
  • It's possible, perhaps that if the estate wants to sell the home (which they have a right to do) the temporary occupant can purchase it and apply for tenancy (he/she should not complete any purchase until they qualify for tenancy).
  • Otherwise, if the temporary occupant can make arrangements to vacate within a reasonable time (e.g. a couple of weeks) you can agree to this, perhaps in a short written agreement, but it should not accompany the payment of rent;
  • Technically, the space was rented out until the end of the month, so not accepting rent for a few days into the following month should not be a hardship to you. Moreover under the abandonment statutes, once you issue a 45-day abandonment letter to the proper parties representing the estate, it is responsible for payment of the storage fee (which may not exceed current rent) going forward until removal or resale during the ensuing twelve months. See ORS 90.675(20).

Phil Querin Q&A: Dealer Purchases Home But Resident Has Not Paid Rent for Several Months

Phil Querin

Answer: Landlords should become intimately familiar with ORS 90.680, and then make sure their rules and rental agreements conform to what is allowed. Set forth below is a summary of those portions of the statute that address your questions:


  • If the prospective purchaser of a manufactured dwelling or floating home desires to leave the dwelling or home on the rented space and become a tenant, the landlord may require the following:
    • That a tenant give not more than 10 days' notice in writing prior to the sale of the dwelling or home on a rented space;
    • That prior to the sale, the prospective purchaser submit to the landlord a complete and accurate written application for occupancy of the dwelling or home as a tenant after the sale is finalized;
    • That a prospective purchaser may not occupy the dwelling or home until after the prospective purchaser is accepted by the landlord as a tenant;
    • That a tenant give notice to any lienholder, prospective purchaser or person licensed to sell dwellings or homes of the requirements of the resale requirements [Emphasis mine - PCQ];
    • If the sale is not by a lienholder, that the prospective purchaser pay in full all rents, fees, deposits or charges owed by the tenant prior to the landlord's acceptance of the prospective purchaser as a tenant [Emphasis mine];
  • If the landlord's rules and/or rental agreement requires prospective purchasers to submit an application for occupancy as a tenant, at the time that the landlord gives the prospective purchaser an application the landlord shall also give the prospective purchaser copies of the statement of policy, the rental agreement and the facility rules and regulations, including any conditions imposed on a subsequent sale[1];
  • The following conditions apply if a landlord receives an application for tenancy from a prospective purchaser:
    • The landlord shall accept or reject the prospective purchaser's application within seven days following the day the landlord receives a complete and accurate written application[2];
    • An application is not complete until the prospective purchaser pays any required applicant screening charge and provides the landlord with all information and documentation, including any financial data and references, required by the landlord;
  • The landlord may not unreasonably reject a prospective purchaser as a tenant. Reasonable cause for rejection includes, but is not limited to:
    • Failure of the prospective purchaser to meet the landlord's conditions for approval;
    • Failure of the prospective purchaser's references to respond to the landlord's timely request for verification within the time allowed for acceptance or rejection;
    • In most cases, the landlord must furnish to the seller and purchaser a written statement of the reasons for any rejection[3];
  • The landlord may give the tenant selling the home a notice to repair the home [e.g. for damage or deterioration] under ORS 90.632. The landlord may also give any prospective purchaser a copy of that notice.
    • The landlord may require as a condition of tenancy that a prospective purchaser who desires to leave the dwelling or home on the rented space and become a tenant must comply with the repair notice within the allowed period under ORS 90.632.
    • If the tenancy has been terminated for failure to timely complete the repairs under ORS 90.632, a prospective purchaser does not have a right to leave the dwelling or home on the rented space and become a tenant.

Obviously, the statute was drafted with tenant/purchasers in mind. However, as long as the home remains on the space, the landlord has complete control over the situation. In your case, I suspect the delinquent tenant made no effort to notify the landlord of his planned sale to the dealer. However, that does not prevent him from imposing these requirements on the dealer if he wants to put a tenant in the park.


Going forward, it might be advisable for all landlords who have faced this situation before, to prepare a summary of requirements to give dealers when they purchase homes from tenants already sited in the park. They may want to expressly address this in their rules, so tenants cannot say they didn'tknow. The written summary to dealers should clearly state that if a departing tenant owes monies to the landlord, repayment will be required before occupancy of the home will be permitted by a new resident. [A more difficult question that is not addressed by the statute, ORS 90.680, is whether the landlord may prevent the dealer from removing the home without paying the past due sums. I suspect the answer may be "Yes" a landlord may do so, but it would require my examination of the statutory storage or retaining lien rights, which is beyond the scope of this question. - PCQ]

[1] The terms of the statement of policy, rental agreement and rules and regulations need not be the same as those in the selling tenant's statement, rental agreement and rules and regulations.

[2] The landlord and the prospective purchaser may agree to a longer time period beyond seven day for the landlord to evaluate the prospective purchaser's application or to allow the prospective purchaser to address any failure to meet the landlord's screening or admission criteria. If a tenant has not previously given the landlord the required advance 10 days' notice, the period provided for the landlord to accept or reject a complete and accurate written application is extended to 10 days.

[3] If a rejection is based upon a consumer report (as defined in 15 U.S.C. 1681a) for purposes of the federal Fair Credit Reporting Act, the landlord may not disclose the contents of the report to anyone other than the purchaser. In such cases, the landlord is to disclose to the seller in writing that the rejection is based upon information contained in a consumer report and that the landlord may not disclose the information contained in the report.