Manufactured homes are usually located in holiday parks and villages. They are often for people over 55 years of age.
A manufactured home is owned by you and then you lease the site on which it sits from the village.
When you purchase a manufactured home with another person, it is important to document how you own it. Purchasing a manufactured home is not like owning real property, where how you have chosen to co-own it is shown on your title deed as either joint tenants or tenants in common.
If you co-own a manufactured home, and it is important to you that you co-own a particular way, i.e. as joint tenants rather than tenants in common, or vice versa, then if your co-ownership is not described adequately on the contract when you purchase the manufactured home, then it would be prudent to have a separate document drawn up. This document can state whether you own the manufactured home as joint tenants or tenants in common and minimises the risk of disputes arising, particularly on death or separation.
Just a reminder about the significance of co-ownership. Where co-ownership is as joint tenants, when you die, the property becomes that of the surviving owner. Where co-ownership is as tenants in common, when you die, your share is distributed in accordance with your Will.
In the absence of an agreement as to how your manufactured home is co-owned, the Conveyancing Act provides ownership is as tenants in common.
The purchase of a manufactured home can be a significant investment ranging anywhere from $200,000 to over $700,000. Therefore, it is important if you purchase a manufactured home with another person, the ownership is clearly stated either on the contract when you purchase the manufactured home or on a separate document.
If this article raises any questions for you, please do not hesitate to contact our office.