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Beware red flags over manufactured
homes
Dear Steve:
My husband and I are currently looking to purchase a manufactured
home in Arizona. We have located numerous ones that interest us
(right price, right size, etc.), but have noticed that there are
a lot of "NO SPDS" comments on some of the listings. This
means there are no seller disclosures. But before we pay cash for
a property, we undoubtedly are going to have questions. Since we've
never purchased a manufactured home, we are really baffled by this.
In our current home, we disclose literally everything to prospective
buyers. Are the sellers on manufactured homes trying to hide something?
What should we do, as buyers, to protect ourselves from prospective
nightmares? I've tried to locate Internet reports on things to watch
out for, but haven't found anything. Do you have any suggestions?
Aghast in Arizona
Dear Aghast:
Manufactured homes are a little different animal than your conventional
dwelling in more aspects than just their obvious mobility. And yes,
there's not an awful lot of public discourse on the subject, even
on the mighty Internet. So let's get some going here.
But first let's clarify that a manufactured home is
one built entirely in a factory, transported to the site and installed.
It's built under a federal building code administered by the Department
of Housing and Urban Development which regulates design and construction
strength and durability, transportability, fire resistance, energy
efficiency and quality. HUD also sets standards for heating, plumbing,
air conditioning and electrical systems.
The SPDS is short for Seller's Property Disclosure
Statement. It is a form used in assisting sellers to disclose material
facts about a property, which is required by law, even in the case
of manufactured housing, says Scottsdale-based real estate attorney
Irving Hymson of Hymson and Goldstein. But the SPDS form itself
is not required. Sellers can disclose the condition of the home
in other less-constrictive formats, you could say.
However, a "No SPDS" caveat conspicuously
bulleted on sales listings could well be a red flag.
"They're getting that out front, almost as if
to say, 'Don't bother me if you don't want to play by my rules,'"
Hymson explains. While not necessarily an admission there's something
materially wrong with the home, he warns, "It does have that
implication."
It could be simply that the home was a repossession
hauled in from another market and its new owner knows little of
its history. Or perhaps the owner has not made much of an effort
to examine its condition and won't provide any more than a cursory
disclosure. Of course, because of the modular construction of a
manufactured home, usually there are fewer things that can go wrong
with one (for example, serious plumbing and foundation woes). Usually.
But you're right to be cautious here. A few large
sellers of new and used manufactured homes in Arizona have told
me all of their homes come with elaborate SPDS forms that remain
on file after sale.
If you're really drawn by a specific home that's sans
SPDS, you can track its ownership history with a little bit of effort,
says Robert Parks of West Monroe, La.-based Parks Mobile Air, who
is considered an expert witness in the manufactured-housing industry.
"There is a paper trail," he says. "Unless
it was placed on a piece of property and sold as unmovable, its
serial number must be registered with your state's Department of
Motor Vehicles."
Parks says a home inspector can be contracted to examine
a site-installed manufactured home. But if you're buying off a lot,
that's probably not necessary. You can simply look under the front
board at the undercarriage of the home to make sure no physical
damage has occurred in transit, he adds. Aside from apparent exterior
and interior cosmetic conditions, that's the one main area that
needs careful attention.
In the end, the more upfront a seller is about any
product, the more secure any buyer will feel. Good luck.
-- Posted: April 17, 2004
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