Prospectus (offering circular)

A prospectus — sometimes called an offering circular — is a disclosure document that some states require a manufactured home community to deliver to a prospective resident before the tenancy begins.

Its purpose is to put the terms of community living in front of someone before they commit. Where required, a prospectus typically describes the lots and common facilities, the improvements a homeowner must make, how utilities and services are provided, the manner in which the lot rental amount may be increased and the notice that will be given, any user fees, the community rules, and copies of the lease forms as exhibits.

Not every state requires a prospectus, and where one is required it may apply only to communities above a certain size. A prospectus does not promise a price; it discloses the process by which terms like rent are set and changed. It is usually read alongside the lot rental agreement itself.

For a buyer, the prospectus is often the single most useful document to review. This is general information, not legal advice.