WARNING BULLETIN No. 42.
TOO GOOD TO BE TRUE????
Desperate times call for desperate measures, a very recent report by the RICS confirms estate agents on average are selling less than 5 homes a month - worse than in the recession of the early 90’s. One observer claimed the situation they could not sustain their number of branch offices.
With the park home industry discriminating as it does against the younger first time buyers, their reliance on those having to sell traditional housing to fund the purchase of their product has led to almost zero movement of park homes. Taking the situation a stage further, this has a knock on effect upon sales staff. Temptation to ‘gloss over’ certain unpalatable of the tenure agreements and their implications are something needs to guard against at any time, but in these desperate times, the risks are likely to be much greater.
Take the national and regional shows and open days. They’re designed to SELL, and for you to buy. Dubious sales patter is one thing, but when this is coupled with the total lack of any supporting evidence, either from a legal aspect or through in house literature, then alarm bells should start to ring loudly.
Over a decade ago, when the annual park homes show was held alongside Newbury Racecourse, there became two centres for gambling! I well recall three years’ running approaching every stand and asking the same question: ‘can you show me a copy of your agreement’ : quickly adding that I didn’t want to take it away, just glance through it. Not even one solitary copy was available! At this years’ (2008 ) show at Stoneleigh, the practice continued, our research proved! With very much worse content than ever before, thanks to those who demanded it, and a sheepish government department who waived it through regardless, it is hardly surprising it has never seen the light of day at these venues. And how easy was it to find the cherished creation of the two trade organisations in 1998, the Park Homes Charter? This contains such ‘gems’ as forbidding residents to affix a sheet of paper onto their own window pane larger than A4, with the words ‘For Sale’ upon it, and that lorries carrying Gas bottles are deemed “too heavy” for their members’ park roads; a real sales aid that. Will this industry never learn to be open and honest?
But when sales staff get involved in incorrectly interpreting the law to their advantage, or deliberately lie, how is the unsuspecting would-be purchaser to know the difference? The average family solicitor, whilst at home with his ‘bread and butter’ tasks would generally be out of his depth here. Worse still, we have learnt of cases where a solicitor unfamiliar with the legislation, takes on such tasks, therefore indirectly charges his client extra for learning something about the subject. But when faced with the court room drama is not anywhere near the opposing sides expertise - or should that read cunning?
Remember, if something sounds to good to be true, it probably is. That sales person’s job is at stake. They need your purchase to pay their bills. Think. It could be you in trouble too if you make the wrong choice by believing what may have been untrue. And remember, that advice holds true when selling your home.
Compiled for PHRAA by Colin Packman. President PHRAA. Published January 2009.