Common Misunderstanding On Commission
The Government review of the Mobile Homes Act is scheduled for 2017 and is sure to be pivotal for all involved in the industry.
The review will look at the entire park homes industry with a stated intention to include input from national resident groups and industry trade bodies.
A key contentious issue will be the current commission on sales. “Park home owners continue to lobby hard to abolish or reduce the park owner’s 10 per cent commission on sales, which could have a serious financial impact on many park owners if implemented,” says John Clement, Partner and Head of Litigation and Dispute Resolution at Turbervilles Solicitors.
“The reduction in income would inevitably lead to many parks struggling financially, with some possibly even going under.”
“There is a common misunderstanding about the purpose of this commission, which many (mistakenly) consider to be similar to an estate agent’s commission.
“However, the commission actually helps to keep pitch fees low when compared with comparable rents – if the industry were to explain it as a ‘deferred pitch fee’, this might lead to a greater understanding and acceptance of the charge.”