S T A T E O F N E W Y O R K
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6836
2017-2018 Regular Sessions
I N A S S E M B L Y
March 21, 2017
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Introduced by M. of A. JENNE -- read once and referred to the Committee
on Housing
AN ACT to amend the real property law, in relation to the resale of
manufactured and mobile homes through a lease with the option to
purchase
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The real property law is amended by adding a new section
233-b to read as follows:
§ 233-B. RESALE OF MANUFACTURED AND MOBILE HOMES THROUGH A LEASE WITH
THE OPTION TO PURCHASE CONTRACT. 1. DEFINITIONS. FOR THE PURPOSES OF
THIS SECTION:
(A) "LEASE WITH THE OPTION TO PURCHASE CONTRACT" SHALL MEAN A LEGALLY
BINDING AGREEMENT, ENTERED INTO THIS STATE, FOR THE RESALE OF A MANUFAC-
TURED OR MOBILE HOME, PURSUANT TO WHICH THE TRANSFER OF TITLE OR PROOF
OF OWNERSHIP, WHICHEVER THE CASE MAY BE, FROM THE SELLER TO THE BUYER IS
SUBJECT TO THE COMPLETION OF ALL CONTINGENCIES INCLUDED AND AGREED UPON
BY ALL PARTIES TO THE AGREEMENT.
(B) "MANUFACTURED HOME" SHALL MEAN A STRUCTURE, TRANSPORTABLE IN ONE
OR MORE SECTIONS, WHICH, IN THE TRAVELING MODE, IS EIGHT BODY FEET OR
MORE IN WIDTH OR FORTY BODY FEET OR MORE IN LENGTH, OR, WHEN ERECTED ON
SITE, IS THREE HUNDRED TWENTY OR MORE SQUARE FEET, AND WHICH IS BUILD ON
A PERMANENT CHASSIS AND DESIGNED TO BE USED AS A DWELLING WITH OR WITH-
OUT A PERMANENT FOUNDATION WHEN CONNECTED TO THE REQUIRED UTILITIES, AND
INCLUDES THE PLUMBING, HEATING, AIR-CONDITIONING, AND ELECTRICAL SYSTEMS
CONTAINED THEREIN.
(C) "MOBILE HOME" SHALL MEAN A MOVEABLE OR PORTABLE UNIT, MANUFACTURED
PRIOR TO JANUARY FIRST, NINETEEN HUNDRED SEVENTY-SIX, DESIGNED AND
CONSTRUCTED TO BE TOWED ON ITS OWN CHASSIS, COMPRISED OF FRAME AND
WHEELS, CONNECTED TO UTILITIES, AND DESIGNED AND CONSTRUCTED WITHOUT A
PERMANENT FOUNDATION FOR YEAR-ROUND LIVING. A UNIT MAY CONTAIN PARTS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10306-01-7
A. 6836 2
THAT MAY BE FOLDED, COLLAPSED OR TELESCOPED WHEN BEING TOWED AND
EXPANDED LATER TO PROVIDE ADDITIONAL CUBIC CAPACITY AS WELL AS TWO OR
MORE SEPARATELY TOWABLE COMPONENTS DESIGNED TO BE JOINED INTO ONE INTE-
GRAL UNIT CAPABLE OF BEING AGAIN SEPARATED INTO THE COMPONENTS FOR
REPEATED TOWING. "MOBILE HOME" SHALL ALSO MEAN UNITS DESIGNED TO BE USED
EXCLUSIVELY FOR RESIDENTIAL PURPOSES, EXCLUDING TRAVEL TRAILERS.
(D) "BUYER" SHALL MEAN ANY PERSON WHO PURCHASES A MANUFACTURED OR
MOBILE HOME SUBJECT TO A LEASE WITH AN OPTION TO PURCHASE CONTRACT FROM
A SELLER.
(E) "SELLER" SHALL MEAN ANY PERSON, CORPORATION, ASSOCIATION, OR ANY
OTHER LEGAL ENTITY WHO SELLS A MANUFACTURED OR MOBILE HOME SUBJECT TO A
LEASE WITH AN OPTION TO PURCHASE CONTRACT.
2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A LEASE WITH THE OPTION
TO PURCHASE CONTRACT MUST BE IN WRITING AND SHALL APPLY TO THE RESALE OF
MANUFACTURED OR MOBILE HOMES. THE LEASE WITH THE OPTION TO PURCHASE
CONTRACT MUST BE SIGNED BY ALL PARTIES TO THE TRANSACTION AND CONTAIN
ALL THE TERMS TO WHICH THEY HAVE AGREED, INCLUDING A DESIGNATION AS TO
WHETHER THE BUYER OR THE SELLER SHALL BE RESPONSIBLE FOR THE PAYMENT OF
ANY UTILITIES, MANUFACTURED HOME PARK RENT, FEES, DUES, OR ANY OTHER
ANTICIPATED COST APPLICABLE TO THE MANUFACTURED OR MOBILE HOME.
3. (A) AT LEAST FIVE BUSINESS DAYS PRIOR TO THE EXECUTION OF THE LEASE
WITH THE OPTION TO PURCHASE CONTRACT, THE SELLER SHALL, AT HIS OR HER
EXPENSE:
(1) PERFORM A CERTIFIED SEARCH THROUGH THE UNIFORM COMMERCIAL
CODE/LIEN SEARCH FROM THE NEW YORK STATE DEPARTMENT OF STATE;
(2) PERFORM A RECORDS SEARCH FROM THE COUNTY CLERK OF THE COUNTY WHERE
THE MANUFACTURED OR MOBILE HOME IS LOCATED;
(3) PERFORM A RECORDS SEARCH FROM THE COUNTY CLERK OF THE COUNTY WHERE
THE SELLER RESIDES, IF DIFFERENT FROM THE COUNTY WHERE THE MANUFACTURED
OR MOBILE HOME IS LOCATED; AND
(4) RECEIVE COPIES OF THE RESULTS OF THE SEARCHES REQUIRED UNDER PARA-
GRAPHS ONE, TWO, AND THREE OF THIS SUBDIVISION;
(B) PROVIDE A COPY TO THE BUYER, EITHER BY CERTIFIED MAIL OR IN
PERSON, OF EACH OF THE SEARCHES REQUIRED UNDER SUBPARAGRAPH ONE OF PARA-
GRAPH (A) OF THIS SUBDIVISION; AND
(C) DISCHARGE ANY LIEN OR ANY SECURITY INTEREST ENCUMBERING THE MANU-
FACTURED OR MOBILE HOME, IF ANY EXIST.
4. IN THE EVENT THAT THE MANUFACTURED OR MOBILE HOME IS LOCATED IN A
MANUFACTURED HOME PARK, AS DEFINED IN PARAGRAPH THREE OF SUBDIVISION A
OF SECTION TWO HUNDRED THIRTY-THREE OF THIS ARTICLE, THE EXECUTION OF
THE LEASE WITH THE OPTION TO PURCHASE CONTRACT IS CONTINGENT ON THE
MANUFACTURED HOME PARK OWNER'S OR OPERATOR'S APPROVAL OF THE BUYER AS A
MANUFACTURED HOME PARK TENANT UPON EXECUTION OF THE LEASE AND THROUGHOUT
THE BUYER'S TENANCY IN SUCH MANUFACTURED HOME PARK; PROVIDED, HOWEVER,
THAT NOTHING IN THIS SUBDIVISION SHALL LIMIT THE RIGHTS OF THE MANUFAC-
TURED HOME PARK OWNER OR OPERATOR TO EVICT A MANUFACTURED HOME PARK
TENANT PURSUANT TO SUBDIVISION B OF SECTION TWO HUNDRED THIRTY-THREE OF
THIS ARTICLE.
5. UPON SIGNING OF THE LEASE WITH THE OPTION TO PURCHASE CONTRACT BY
ALL PARTIES INVOLVED, THE SELLER SHALL PROVIDE THE BUYER WITH A COPY OF
THE SIGNED LEASE WITH THE OPTION TO PURCHASE CONTRACT.
6. WITHIN THIRTY DAYS OF THE EXECUTION OF THE LEASE WITH THE OPTION TO
PURCHASE CONTRACT, THE SELLER SHALL:
(A) RECORD SUCH LEASE WITH THE OPTION TO PURCHASE CONTRACT WITH THE
COUNTY WHERE THE MANUFACTURED OR MOBILE HOME IS LOCATED AND THE COUNTY
WHERE THE BUYER RESIDES; AND
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(B) DELIVER TO THE BUYER A RECEIPT OF THE RECORDED TRANSACTION OR
TRANSACTIONS VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED.
7. THE REQUIREMENTS OF SUBDIVISION THREE OF THIS SECTION SHALL BE
WRITTEN OR PRINTED CLEARLY AND CONSPICUOUSLY IN THE LEASE WITH THE
OPTION TO PURCHASE CONTRACT.
8. UPON FULFILLMENT OF ALL CONTINGENCIES INCLUDED IN THE LEASE WITH
THE OPTION TO PURCHASE CONTRACT, THE SELLER SHALL GIVE THE BUYER THE
CERTIFICATE OF TITLE OR PROOF OF OWNERSHIP OF THE MANUFACTURED OR MOBILE
HOME, WHICHEVER THE CASE MAY BE. FOR THE PURPOSES OF THIS SUBDIVISION,
"PROOF OF OWNERSHIP" CAN BE ANY WRITTEN DOCUMENT, SIGNED AND DATED BY
THE SELLER AND THE BUYER, INDICATING THE TRANSFER OF POSSESSION OF THE
MOBILE OR MANUFACTURED HOME FROM THE SELLER TO THE BUYER. "PROOF OF
OWNERSHIP" CAN ALSO INCLUDE THE LEASE WITH THE OPTION TO PURCHASE
CONTRACT, PROVIDED THAT THE BUYER HAS SUCCESSFULLY COMPLETED ALL CONTIN-
GENCIES REQUIRED IN THE LEASE WITH THE OPTION TO PURCHASE CONTRACT.
9. THE FOLLOWING PROVISIONS SHALL APPLY TO AND BE INCLUDED IN EVERY
LEASE WITH THE OPTION TO PURCHASE CONTRACT:
(A) THE FULL NAME, THE PLACE OF RESIDENCE, AND POST OFFICE ADDRESS OF
ALL PARTIES TO THE LEASE WITH THE OPTION TO PURCHASE CONTRACT;
(B) THE DATE WHEN SIGNED BY THE BUYER;
(C) A DESCRIPTION OF THE MANUFACTURED OR MOBILE HOME COVERED BY THE
LEASE WITH THE OPTION TO PURCHASE CONTRACT, WHICH SHALL INCLUDE THE
SIZE, YEAR, AND SERIAL NUMBER OF THE MOBILE OR MANUFACTURED HOME OR THE
MOBILE OR MANUFACTURED HOME'S CERTIFICATION LABEL ISSUED BY THE UNITED
STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. THE DESCRIPTION
SHALL ALSO INCLUDE A LIST OF ALL FIXTURES, SUCH AS THOSE FOR HEATING,
PLUMBING, AND LIGHTING, AS WELL AS ANY APPLIANCES THAT ARE CURRENTLY
INSTALLED IN THE MOBILE OR MANUFACTURED HOME;
(D) INFORMATION ON WHETHER ANY FEES OR PUBLIC CHARGES ARE DELINQUENT
OR HAVE BEEN LEVIED AGAINST THE MANUFACTURED OR MOBILE HOME, INCLUDING
ANY THAT MAY HAVE BEEN IMPOSED BY OR OWED TO THE MANUFACTURED HOME PARK
OWNER;
(E) A PROVISION THAT THE BUYER HAS THE RIGHT TO ACCELERATE ANY
PAYMENTS;
(F) WHETHER THE SELLER HAS RECEIVED WRITTEN NOTICE FROM ANY STATE OR
LOCAL GOVERNMENT ENTITY REQUIRING ANY REPAIRS OR IMPROVEMENTS TO BE MADE
TO THE MANUFACTURED OR MOBILE HOME SUBJECT TO THE LEASE WITH THE OPTION
TO PURCHASE CONTRACT;
(G) THE FOLLOWING NOTICE: "NOTICE TO THE BUYER: (1) DO NOT SIGN THIS
LEASE WITH THE OPTION TO PURCHASE CONTRACT BEFORE YOU READ IT OR IF IT
CONTAINS ANY BLANK SPACES. (2) YOU ARE ENTITLED TO A COMPLETELY FILLED
IN COPY OF THIS LEASE WITH THE OPTION TO PURCHASE CONTRACT WHEN YOU SIGN
IT. (3) UNDER THE LAW, YOU HAVE THE RIGHT TO PAY OFF IN ADVANCE THE FULL
AMOUNT DUE."
10. THE LEASE WITH THE OPTION TO PURCHASE CONTRACT SHALL ALSO CONTAIN
IN SIMPLE TABULAR FORM, THE FOLLOWING SEPARATE PARAGRAPHS IN THE FOLLOW-
ING ORDER:
(A) THE CASH PRICE OF THE MANUFACTURED OR MOBILE HOME SUBJECT TO THE
LEASE WITH THE OPTION TO PURCHASE CONTRACT;
(B) ANY CHARGE OR FEE THAT IS INCLUDED IN THE LEASE WITH THE OPTION TO
PURCHASE CONTRACT SEPARATE FROM THE CASH PRICE;
(C) THE SUM OF PARAGRAPHS (A) AND (B);
(D) THE AMOUNT OF ANY DOWN PAYMENT MADE BY OR ON BEHALF OF THE BUYER;
(E) THE PRINCIPAL BALANCE OWED, WHICH IS THE SUM OF PARAGRAPH (C) LESS
PARAGRAPH (D); AND
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(F) THE AMOUNT AND SCHEDULE OF EACH PAYMENT AND THE TOTAL NUMBER OF
ALL PERIODIC PAYMENTS.
11. NO SELLER SHALL:
(A) PLACE OR HOLD ANY MORTGAGE ON ANY MANUFACTURED OR MOBILE HOME SOLD
UNDER A LEASE WITH THE OPTION TO PURCHASE CONTRACT; OR
(B) CAUSE ANY INSURANCE COVERAGE ON THE MANUFACTURED OR MOBILE HOME TO
LAPSE OR END FOR THE DURATION OF THE LEASE WITH THE OPTION TO PURCHASE
CONTRACT.
12. FAILURE OF THE SELLER TO COMPLY WITH THIS SECTION SHALL GIVE THE
BUYER THE UNCONDITIONAL RIGHT TO CANCEL THE LEASE WITH THE OPTION TO
PURCHASE CONTRACT AND RECEIVE IMMEDIATE REFUND OF ALL PAYMENTS AND
DEPOSITS MADE ON ACCOUNT OF OR IN CONTEMPLATION OF THE LEASE WITH THE
OPTION TO PURCHASE CONTRACT.
§ 2. This act shall take effect immediately.