What happens to a Minnesota resident's sale right if the park is closing?

Residents get an opportunity to purchase the park. Under §327C.095, before selling a park to a buyer who intends to close or convert it, the owner must give residents a 45-day notice, and 'a representative acting on behalf of residents' has 'the right to make an offer to meet the cash price and ... terms and conditions' and to buy the park to keep it as a community.

Selling a mobile home in Minnesota

Q: Does a Minnesota resident have the right to sell the home in the park?

Yes. Under Minn. Stat. §327C.07, subd. 1, 'a resident has the right to sell a home through an in park sale,' and the park 'may not charge a fee for allowing the resident to exercise this right, except ... a fee of up to $25 for processing a prospective buyer's tenancy application.' The park can't require the resident to use the park as broker. This is general information, not advice about a specific sale — consider consulting a licensed attorney in Minnesota.

Q: Can a Minnesota park reject the buyer?

Only on disclosed, reasonable, uniform criteria. Under §327C.07, subd. 2, a park may not deny a buyer approval unless it has 'specified in writing the procedures and criteria,' those criteria 'are reasonable and applied uniformly,' it uses no 'stricter standards than ... for evaluating other prospective residents,' and 'within 14 days of receiving a completed application' it decides or gives a written explanation for any delay, with written reasons for any denial.

Minnesota's Chapter 327C strongly protects a resident's right to sell a manufactured home in place, limits the fees and conditions a park can impose, and gives residents a chance to buy the park if it is being sold for closure. The information below describes how the law generally works; anyone selling should consider consulting a licensed attorney in Minnesota.

What the statute says

The core right is Minn. Stat. §327C.07, subd. 1: "a resident has the right to sell a home through an in park sale," and the park "may not charge a fee for allowing the resident to exercise this right, except to charge a fee of up to $25 for processing a prospective buyer's tenancy application." The park "may not require a resident to use the park owner's services as a broker" and "may not give preferential treatment" to buyers whose sale it is brokering.

The sale is subject to the park's approval of the buyer, but subd. 2 sharply limits that: the park may not deny approval unless it has "specified in writing the procedures and criteria," they "are reasonable and applied uniformly," it uses no "stricter standards than it uses for evaluating other prospective residents," and "within 14 days of receiving a completed application form, the park owner makes a decision or gives the prospective buyer and the seller a written explanation." Before approving, the park may inspect for compliance with preexisting maintenance rules but "may not charge any fee for this inspection" (subd. 4), and a home offered for sale "may remain vacant for 90 days" (subd. 5). If the park is being sold for closure, §327C.095 gives residents a 45-day notice and a representative "the right to make an offer to meet the cash price" and buy the park.

How it works in general

A Minnesota resident may sell the home where it sits. The only fee the park can charge is up to $25 to process the buyer's tenancy application, and the park can't force the seller to use it as broker or favor its own listings. The park does approve the buyer as a new resident, but only against written, reasonable, uniformly applied criteria, with a decision (or written explanation) due within 14 days and written reasons for any denial. The home can sit vacant for 90 days while it's for sale, and pre-sale inspections for existing maintenance rules are free. If the whole park is being sold for closure or conversion, residents collectively get a chance to match the offer and buy the park.

Common scenarios

General examples Minnesota park residents commonly encounter:

A park charges a big fee to allow a sale. Only a $25 buyer-application processing fee is allowed (§327C.07, subd. 1).
A park sits on the buyer's application. A decision or written explanation is due within 14 days (§327C.07, subd. 2).
The park is being sold to be closed. Residents get a 45-day notice and a right to make a matching offer (§327C.095).

Other authorities that may apply

Chapter 327C protects the in-park sale, limits fees and buyer-approval criteria, and gives residents the park-purchase opportunity. A sale contract not made contingent on the park's approval is voidable by the buyer, and failing to disclose that contingency violates Minn. Stat. §325F.69 (§327C.07, subd. 6). Ownership of the home transfers by the state certificate of title — and the title can't transfer until property taxes are paid (see the Minnesota title guide). The seller must also give the buyer the required written safety disclosure (§327C.02, subd. 5).