Real Estate 100 - Chapter 15 - Single Family Homes and Mobile Homes

What is a mobile or manufactured home? Chapter 15

1. A mobile or manufactured home is defined by the California Health and Safety Code as a VEHICLE designed and equipped to contain no more than two dwelling units to be used WITHOUT permanent foundation.

What are the legal requirements related to Mobile Homes? Chapter 15

1. In order to sell or list a mobile home, a real estate licensee must comply with special aspects of the real estate law as follows: A. NEW mobile home cannot be sold by real estate licensees, but only through mobile home dealers licensed by the Department of Housing and Community Development. B. A real estate licensee CAN SELL used mobile homes provided the mobile homes have already been registered with the state and are on a lot or in a mobile home park. C. The mobile home must be capable of being transported over the road, hitch must be attached and the axles must be attached to the frame. D. the licensee is responsible to see that there is proper completion and delivery of the title to the buyer E. Notification of transfer of ownership must be made within 10 days of the sale. F. All fees must be paid to the state within 10 days of the sale date. G. There should be no concealment of material facts or any fraudulent acts committed. H. Mobile homeowners must pay an IN LIEU TAX similar to regular property taxes paid by homeowners. I. If a mobile home was manufactured after June 15, 1976 it must have a Department of Housing and Urban Development (HUD) tag, guaranteeing it's proper construction.

What is a mobile home park? Chapter 15

1. Mobile home parks is defined as any area or tract of land where one or more mobile home LOTS are rented or leased.

Are mobile homes considered personal property? Chapter 15

1. Mobile homes are considered personal property. The method of encumbering the ownership is through a security agreement instead of a Deed of Trust.

How can mobile homes be financed? Chapter 15

1. Mobile homes can be financed through the FHA/VA, CalVET and through conventional home loans, amortized over 15 years and rates on these loans are usually higher than on conventional home loans.

Where can manufactured homes be found? Chapter 15

1. Mobile homes can be found in mobile home parks, and in rural areas and are found on individual lots

What are Modular Homes? Chapter 15

1. Modular Homes is considered to be a factory built home (without wheels) that is intended from the beginning to be placed on a permanent foundation. 2. Are not considered vehicles and them immediately become real estate upon placement. 3. Once placed, all the rules of real property apply to modular homes 4. They are allowed in areas zoned for single family dwellings and complete in the marketplace a with on-site constructed homes. 5. They have a consisted quality guarantee, lower cost per square feet and arrive to the building site 90% finished. 6. Can be placed in subdivisions with private deed restrictions and an owners association for the common area. 7. Entitled to all financing packages that are granted to onsite constructed homes. 8. Real estate licenses ARE NOT allowed to sell new modular units from the factory or off the sales lot. However, once a modular home is set in place, a real estate licensee is allowed to handle the sale of the property. 9. If a real estate licensee wishes to seek new mobile homes or modular homes, the agent must conform to retailer rules that come under the California State Board of Equilization and obtain additional special licenses that apply to mobile/modular homes.

How can one convert a mobile home to real property? Chapter 15

1. One can convert a mobile home to real property by doing the following: A. Must obtain a building permit B. Mobile home must be placed on a permanent foundation. C. Must obtain a certificate of occupancy D. Must have a document stating that the mobile home is attached to a permanent foundation and must be recorded. E. Once all of the requirements are met, the mobile home is considered real property and all the laws of real estate apply.

What are the advantages of Mobile Home ownership? Chapter 15

1. Some advantages of a mobile home ownership are: A. Lower price B. Parks are relatively quiet places to live C. Residents feel secure because there is only one entrance and one exit D. Mobile homes are transportable E. Quality and amenities have approved over time. F. There are better financing options today than before G. Minimal yard maintenance (or none at all)

What are some characteristics of a one story home? Chapter 15

1. Some characteristics of a one story home are: A. Simplest to build and the easiest to maintain B. Disadvantage is that it occupies more land per square foot of living sapace

What are some characteristics of a split level home? Chapter 15

1. Some characteristics of a split level home are: A. Popular in California because of the better utilization of land of varying topography B. Pleasing cosmetic effect C. Disadvantage is more expensive to build

What are some disadvantages of condominium ownership? Chapter 15

1. Some disadvantages of condo ownership are: A. Each owner is responsible for all maintenance problems in his/her own units. B. Owners are required to pay their share of association fees C. Sometimes the developer controls the parking and rec areas D. Owners may live close to others.

What are some disadvantages of mobile home ownership? Chapter 15

1. Some disadvantages of mobile home ownership are: A. Mobile home prices can depreciate rapidly B. Have a lower resale rate than conventional homes. C. Financing terms are not that favorable than on a conventional home. D. When located in a mobile home park, maybe required to buy extras such as hand rails and steps E. There may be city/county restrictions on the placement of mobile homes.

What are some violations of the Business and Professional Code related to the Mobile Homes? Chapter 15

1. Some violations of the Business and Professional Code for mobile homes are: A. Failure to provide for the delivery of the proper certificate of ownership of a mobile home. B. Knowlingly participated in the purchase or sale of a stolen mobile home. C. Submitted a check or money order for the payment of mobile home fees that bounced.

How can tenancy in a mobile park be terminated? Chapter 15

1. Tenancy in a mobile park can be terminated as follows: A. Failure of tenant to comply with local ordinances and state laws and regulations re: Mobile Homes B. Conduct of the tenant on the park premises that annoy other tenants. C. Tenant fails to comply with reasonable rules and regulations D. Nonpayment of rent, utility charges or incidental services charges F. Failure to maintain the mobile home in a reasonable state of repair G. For more information, research the Mobile Home REsidency Law, Civil Code 78 and the Mobile Home Parks Act Sectins 18200 of the California Health and Safety Code

What are the 16 different types of house styles in California -Chaputer 15

1. The 16 different types of house styles in California are: A. New England Colonial - BOXED SHAPED two story house with a CENTER ENTRANCE, WOOD SIDING AND SHUTTERS. B. Georgian Colonial - a BRICK two story house with a CENTER ENTRANCE and a HIP ROOF. C. Southern Colonial - a two story house with PILLARS AND SHUTTERS D. Dutch Colonial - A two story house with a GAMBREL ROOF (2 top pieces and two side pieces on roof) E. California Bungalow - a small one story house with a LOW PITCHED ROOF. F. California Ranch - a one story house with a LOW PITCHED ROOF AND A SPRAWLING FLOOR PLAN. G. Spanish - A house with TILE ROOF AND ARCHES H. Cape Cod - a house with a SECOND STORY ABOVE THE EAVES, A HIGH PITCHED ROOF, WOOD SIDING AND A LARGE CHIMNEY. I. French Provincial - a formal house with a HIGH PITCHED SLATE HIP ROOF, a STONE OR BRICK EXTERIOR AND SHUTTERS. J. Victorian - a house with ORNATE GABLES K. English Elizabethan - A house with a HIGH PITCHED SLATE ROOF, ROUGH HALF TIMBERS AND A PLASTER EXTERIOR L. Monterey - a two story house WITH A FRONT BALCONY M. French Norman - a house with a TOWER as the main entrance and a STEEP ROOF. N. English Tutor - A house with a HIGH PITCHED SLATE ROOF, A CATHEDRAL LIKE ENTRANCE AND A MASONRY EXTERIOR O. Mediterranean or Italian - a house with a TITLE ROOF, STUCCO EXTERIOR, ROUNDED DECORATIVE WORK ABOVE THE WINDOWS. P. Contemporary - a house of modern design

What are the advantages of Condominium ownership? Chapter 15

1. The advantages of Condo ownership are many: A. Owners can sell their units as they would a regular home. B. Insurance companies offers special packages for condo ownership C. Combines the benefits of owning a home with the advantages of apartment living D. Receives the same income tax benefits of homeowners E. Owners build equity with each payment F. Little or no yard work G. Common areas are part of the ownership and can include game rooms, swimming pools, tennis courts and putting greeens. H. Some protection under the law with regards to certain infractions of by laws and regulations of the governing owners association.

What are the levels of a house from the ground up? Chapter 15

1. The levels of a house from the ground up are: A. The footing - concrete support for the foundation B. Foundation walls are poured. C. From this Sills which support the floor joists, are positioned to start the support system for the upper structure. D. Subfloor is laid with the finished flooring attached to it. E. The sole plate attaches to the subfloor and creates the base from which the exterior and interior walls will be build. F. Studs (2x4) are vertical members that create support and structure for the walls. G. The top plates are attached to the top of the studs to create the ceiling and roof support H. Headers are beams used above doors and windows to spread the weight and supports and are used above doors and windows to support the openings. I. Roof joists are then set on the walls. Usually a center bearing wall, especially in older homes, supports the roof joist and cannot be removed without support being added. J. The roof decking is added on top of the roof joist and the roofing materials - shingles or tiles are attached to the decking. K. Gutters are typically added to move water away from the structure.

What are the major roof styles in California? Chapter 15

1. The major roof styles in California are: A. Gable Roof - sloping sides B. Victorian Roof -four sided gables (dormer's) C. Hip roof - all sides slope to eaves D. Shed roof - flat top E. Gambrel Roof - found on barns and Dutch colonial homes F. Gable roof with shed dormers G. Pyramid roof - all sides slope from one point (no ridge lines) H. Mansard Roof - French style

What are the advantages of buying and the disadvantages of renting? Chapter 15

1. There are advantages of buying and disadvantages of renting. They are: A. Buying a home is an investment in the future. Renting you only have rent receipts and you own nothing. B. With a home, you can deduct your property taxes and interest payments from personal income before against federal or state income taxes C. With a home, you have pride of ownership and security. When renting, you may not know when the rent will go up and how much? D. A home is usually larger than an apartment. You have more freedom of movement in a home than an apartment E. In a home, you have fewer restrictions and can have pets if you like, although in renting there may be restrictions as to the type/size of the pet you can have. F. Homeowners are seen as being more secure credit risks than renters.

What are five major factors that determine investment potential? Chapter 15

1. There are five major factors that determine investment potential. They are: A. Risk - possibility that you will lose all or part of your initial investment. Second homes are considered a greater risk and so there are higher interest rates. B. Liquidity - Check out the resale values of the homes in the area. C. Management - who will oversee the investment if not close to home? D. Tax aspects - what is the impact regarding taxes on this investment? If this second home is sold for a gain, homeowners are not allowed to use the $250,000 and $500,000 income tax exclusions. E. Appreciation - what are the prospects of this happening with regards to appreciation/depreciation of the property?

What are vacation/second homes? Chapter 15

1. Vacation or second homes typically include a cabin in the mountains, a cottage by a lake, a house near the beach, a chalet or a home in a desert resort area.

What are some characteristics of a two story home? Chapter 15

1.. Some characteristics of a two story home are: A. Lower cost per square foot because of a single foundation and roof support two floor of living areas. B. Disadvantage is that you have to climb stairs to reach the second floor C. Disadvantage is the difficulty of reach exterior portions for repair and maintenance.

What are some basic items to check when buying a condo? Chapter 15

A. If it is new building, check on the reputation of the builder. If an existing building, check with the neighbors or homeowner association regarding complaints regarding construction. B. Read all legal documents carefully including the financial documents, CC&Rs and governing documents from the association. C. Know how much the association fees are. When were they last raised and are there any pending lawsuits D. What is included in the fees, what are any restrictions on sale or lease, how many units are tenant occupied E. Are there any warranties on equipment and how long F. What is the reserve fund and for unsold units, who pays for the maintenance fees? G. What experience does the real estate agent have regarding the sale and financing of the condo?

What are the three most common home construction styles? Chapter 15`

A. One story B. Split level C. Two story

What questions should be asked regarding a second home? Chapter 15

A. Questions you should ask on a second home include : A. Can I tolerate close neighbors or do I want privacy B. Do I want a place close to everyday conveniences or out of sight, out of mind C. Can I afford the area or should I go in with a partner D. What is the resale potential

Is a mobile home park considered a subdivision? Chapter 15

. 1. A mobile home park is considered a subdivision if the park has five or more lots for sale or lease and is subject to the subdivision laws.

Where does the jurisdiction of the Mobile Home Park lie? Chapter 15

.1. The jurisdiction of the mobile home park is within the jurisdiction of the State Department of Housing and Community Development.

What is a condominium? Chapter 15

1. A condominium is a system of individual fee ownership of a unit in a complex that can be for any use, combined with ownership on common with the other owners of common area of the structure and the land.

Under what circumstances can a mobile home be taxed as real property? Chapter 15.

1. A mobile home can be taxed under certain circumstances if they were purchased after July 1, 1980 if they are attached to a permanent foundation.

What is the difference between a trailer and a mobile - manufactured Home? Chapter 15

1. The difference between a trailer and a mobile home is that TRAILERS usually provide temporary housing only while a MOBILE HOME is a permanent living unit.

What are the four basic types of mobile homes? Chapter 15.

A. The four basic types of mobile homes are: 1. Single, 8 foot and 10 foot wide units 2. Single, 12 foot wide units 3. Multiple wide, double wide or triple wide units 4. Quads. Four units together

What are the advantages of renting and disadvantages of buying? Chapter 15

A. There are advantages of renting and disadvantages of buyer as such: A. To rent, a small outlay is required for first/last months rent and a security deposit. Purchasing a home is a major outlay of 5-20% of the price. B. Less risk in renting because your initial outlay is limited. In purchasing, there is a greater risk of losing some or all of it if the property values decline. C. In renting, in the short run you know what your costs are. In purchasing, taxes and maintenance costs increase over time. D. In renting, if the neighborhood declines, you can move away. In purchasing, you have less mobility due to the mortgage payment. E. In renting, you can take money that would be saved for a down payment for a house and invest it in a savings account or stocks and bonds. In purchasing your money is tied up in your home and you have less liquidity if you need funds right away. F. In renting, you don't have much maintenance other than keeping the place clean. In purchasing you have to worry about maintenance and upkeep of the property.