Ohio
has strong laws that protect people who buy manufactured or
mobile homes.
 A
customer who purchases any mobile home or manufactured home
in Ohio is protected by several strong laws.
The Consumer Sales Practices Act makes it illegal
for any seller or manufacturer to do anything that is unfair
or deceptive or unconscionable to a consumer. In addition,
there are specific laws that can govern advertising practices,
deposits on sales, the sales process, repairs and warranties.
Federal laws exist that set industry standards for construction
and safety. Also, when the seller arranges for the financing
for you, other consumer protection laws can apply to protect
you.
Consumer Protections In the Areas
of Construction and Warranties.
The National Manufacturer Home Construction and Safety Standards
Act of 1974 established standards covering equipment and installations
in the design, construction, fire safety, plumbing, heat producing,
and electrical systems of mobile homes. These standards, and
more, may be found at the government's web site by clicking
here.
In addition, most manufacturers offer a warranty that covers
performance of the structure and factory installed items such
as plumbing, heating, and electrical systems.
Federal law protections for consumers
in the financing of mobile homes.
Under the Federal Truth in Lending Act, credit terms must
be disclosed to the consumer prior to purchase. In addition,
the consumer may have the right to rescind a transaction resulting
in a lien on the manufactured home, other than a lien to finance
its purchase. Under certain circumstances, federal law may
preempt state law and impose certain requirements on lenders.
These include:
- The creditor must give the consumer a refund
of the unearned finance charge if the debt is prepaid.
- Prepayment penalties are not allowed, and
the right to prepay the indebtedness must be clearly disclosed.
- Notice of default in a specified form must
be sent to the debtor 30 days before repossession, foreclosure,
or acceleration.
When does a mobile home become real
property?
Generally, real property is land, and anything that is built
on the land. A mobile home is considered real property when
the owner:
- Surrenders the title to the Clerk of Courts
in the court in which the title was issued,
- Attaches the home to a permanent foundation
on land owned by the home owner, and
- Connects the home to appropriate facilities.
Any secured party, such as a bank to whom the
consumer is making payments on a loan used to purchase the
mobile home, must permit the change of status and execute
a mortgage prior to the home owner surrendering title.
However, only those mobile homes manufactured
after January 1, 1995, and at least 22 feet wide, may become
permanently situated and, thus, become real property.
If you need help, contact
an attorney.
For more information call 1-888-331-6422.
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