Bulletin: MD2024001

Dear Associates:

On October 1, 2023, a law went into effect regarding the sale of a Manufactured Housing Community. When an owner of a manufactured housing community accepts an offer to purchase the community, the purchaser is required to file an affidavit in the land records of the county where the property is located.

A Manufactured Housing Community is defined as any property leased or held out for lease to two or more owners of manufactured homes for residential use.

Community owner means the owner of the Manufactured Housing Community/Park.

MD Code, Real Property, § 8A-1803

Affidavit

(a) If a community owner receives an offer to purchase the community, acceptance of that offer shall be conditioned on the purchaser filing an affidavit, recorded in the land records in the county in which the property is located, affirming that:

(1) The purchaser will allow continued use of the land as a manufactured housing community for 5 years after the date the purchase is finalized; and

(2) Rent for a lot on the property will not increase by more than 10% per year for the first 3 years after the date the purchase is finalized.

Failure to file affidavit

(b) If the purchaser fails to file an affidavit in accordance with subsection (a) of this section, acceptance by the community owner of the offer to purchase the community shall be conditioned on the community owner:

(1) Providing notice of the terms of the offer or the contract that the community owner has conditionally accepted to:

(i) Each homeowner in the manufactured housing community;
(ii) The Department of Housing and Community Development; and
(iii) The appropriate housing agency; and

(2) Providing the homeowners with the opportunity to purchase the manufactured housing community in accordance with § 8A-1804 of this subtitle. 

Requirements for notice

(c) The notice required under subsection (b) of this section shall:

(1) Be posted in a public area of the manufactured housing community;
(2) Be sent by registered or certified mail to the homeowners organization; and
(3) Include the following information:

(i) The price and material terms and conditions of the offer that the community owner has conditionally accepted for the sale of the manufactured housing community with copies of any documents evidencing the price and terms and conditions;

(ii) A statement indicating that the homeowners, through a homeowners organization, may purchase the manufactured housing community by submitting an offer within 60 days of the mailing date of the notice, containing substantially similar material terms to the offer that the community owner has conditionally accepted; and

(iii) The list of organizations and county housing agencies required under § 8A-1804(g) of this subtitle.

Price and terms and conditions

(d) The price and terms and conditions stated in the notice to the homeowners must be universal and applicable to all potential buyers and may not be specific to the homeowners or their assignee.

Information to prospective purchasers

(e) Within 10 days after the date on which the community owner provides notice required under this section, the community owner shall make available to the homeowners organization the same information that the community owner provided or would have provided to other prospective purchasers.

Liability

(f) The community owner is not liable to any party to a real estate transaction for a violation of this section.

MD Code, Real Property, § 8A-1802: Exemptions:

(b) This subtitle does not apply to the potential sale of a manufactured housing community if:

(1) A mortgagee, grantee, or other secured party has foreclosed on the manufactured housing community and the mortgagee, grantee, or secured party is selling the manufactured housing community:

(i) At a foreclosure sale; or

(ii) After purchasing the manufactured housing community at a foreclosure sale;

(2) The community owner is selling the manufactured housing community to:

(i) A family member of the community owner; or

(ii) A trust whose beneficiaries are family members of the community owner;

(3) The community owner is a partnership, limited liability company, or similar business entity and the sale is to one or more of the partners or members of the business entity;

(4) The conveyance of an interest in the manufactured housing community is incidental to the financing of the manufactured housing community;

(5) The sale of the manufactured housing community is between joint tenants or tenants in common;

(6) The sale of the manufactured housing community is a result of the exercise of the power of eminent domain;

(7) The sale of the manufactured housing community involves a merger, recapitalization, or similar transaction where:

(i) At least one community owner prior to the transaction remains a community owner after the transaction; and

(ii) The community owner files an affidavit, recorded in the land records in the county in which the property is located, affirming that the community owner will allow continued use of the land as a manufactured housing community for at least 6 months after the date the transaction is finalized; or

(8) The sale of the manufactured housing community involves:

(i) A like-kind exchange; or

(ii) A sale of more than one home in the community to a single purchaser.

Title Commitments. All Title Commitments issued in connection with the sale of a Manufactured Housing Community/Park in Maryland must contain a requirement substantively similar to the following:

The Company requires an affidavit from purchaser to be filed among the Land Records of ___________________ County, Maryland stating:

(1) The purchaser will allow continued use of the Land as a manufactured housing community for 5 years after the date the purchase is finalized; and (2) The rent for a lot on the property will not increase by more than 10% per year for the first 3 years after the date the purchase is finalized.

All Purchaser Affidavits must be reviewed by your Stewart Title Guaranty Company (STGC) underwriter.

If a Purchaser Affidavit will not be filed with closing, please contact your STGC underwriter for further direction.

If you have a transaction involving the sale of a Manufactured Home Community/Park and have any questions relating to this bulletin, please contact your STGC underwriter.

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