Florida Prospectus

[Virgil B. True]

> When a Prospectus is issued to a renter of a lot who owns his own
> manufactured home, is that Prospectus alive for the duration of the lot
„« renters occupancy of the rented lot?

„« Does that Prospectus live on with the home when the home owner sells to a buyer who wishes to continue as a renter in the park, assuming the new buyer is otherwise qualified to live in the park?
>
> Supposing the park is sold to a new owner. The new owner wants to raise
> the rent to a so-called "Standard Rent in a Community," can the new owner
> raise the rent or is he held to the covenants of the Prospectus issued by
> the previous park owner? The Prospectus issued by the previous park owner calls for a CPI rent increase annually, starting in January of each year.

> When the renter who holds the previous park owner's Prospectus sells his
> home to a new park resident, can the new park owner then cancel the
> Prospectus of the seller of the home, or does that Prospectus go with the
„« home?
>
> Your help would be much appreciated.
>

> Thank you,

[Chrissy Jackson]

Technically, yes – the prospectus is issued to the homesite, not the resident. However, most homeowners who sell their home do not have a copy of the original prospectus to give to the new buyer. And, if there have been changes in the prospectus mandated by federal or state law, those changes are incumbent upon the new homeowner. Other changes are usually beneficial to the new homeowner as well. So, even though technically the original prospectus endures, an updated prospectus is generally used and is usually the most beneficial to all parties involved. Once the homeowner (the new buyer) signs for the new prospectus, it then becomes the prospectus of record for that resident relationship.

In the state of Florida, which is the only state that requires a prospectus, the purchaser of a community is bound to the terms of the currently approved prospectus on file with the Department of Business and Professional Regulation (DBPR) in Tallahassee, just as are the residents. All actions by either party must conform to the terms contained within the approved prospectus.

I hope this helps. Remember, I am not an attorney and am not giving legal advice.