I noticed that in MHU's P&S no rent or utilities guaranttees

[Curt Smith]

Hi MHP folks. I bought MH Universities 30 day DD kit that comes with a P&S contract. In comparing this contract with ones used by sophisticated multifamily buyers which is my background this is the list of issues I see that are missing from this MHP P&S contract:

- Seller escrow account guaranteeing rents for 12 months. In MF the risk is that the seller loaded up dead beets to get above 80% and they all will disappear or stop paying after closing.

- Seller escrow account guaranteeing park utilities (water pipes, septic systems) for 1 year. Too many stories of post closing park blow ups with known before hand utility problems.

Other issues you as a buyer would like to have some seller assurances that all is as it's being represented.

I'm not saying the Seller should back stop all normal stuff happening. If the park is in good operating order then a seller should not have a problem saying that after some $$ amount of systems failure it's coming out of the purchase price after the fact. In an owner financed situation the cash flow is there to divert to cover the contracted problems.

Feed back?