AN ACT Relating to the sale of mobile homes and mobile home parks; and adding a new chapter to Title 64 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. It is the purpose of this chapter to create a right of first refusal for mobile home park tenant organizations in the event of a voluntary sale of a mobile home park, and a right of first refusal for mobile home park owners in the event of a voluntary sale of mobile homes located in their park.

NEW SECTION. Sec. 2. An obligation of good faith is hereby imposed on the parties in the conduct of transactions affected by this chapter. Rights created by this chapter are forfeited by any party failing to act in good faith. Further obligations under this chapter on other parties are also discharged by a failure to act in good faith.

NEW SECTION. Sec. 3. No mobile home park may be sold without at least ninety days notice having been given to any qualified tenant organization of the park being transferred. No mobile home situated in a mobile home park may be sold without at least forty-five days notice having been given to the mobile home park owner.

NEW SECTION. Sec. 4. (1) "Mobile home park" means property as defined in RCW 59.20.030(4).

(2)(a) The terms "sold" or "sale" for the purposes of this chapter shall have their ordinary meaning and shall include: (i) Any conveyance, grant, assignment, quitclaim, or transfer of ownership or title to real property and improvements which comprise the mobile home park, or mobile homes, for a valuable consideration; (ii) any contract for such conveyance, grant, assignment, quitclaim, or transfer; (iii) any lease with an option to purchase such real property and improvements, or mobile home, or any estate or interest therein; or (iv) other contract under which possession of the property is given to the purchaser, or any other person by his direction, where title is retained by the vendor as security for the payment of the purchase price. These terms also include any other transfer of the beneficial or equitable interest in the mobile home park such as a transfer of equity stock or other security evidencing ownership which results in a change in majority interest ownership.

(b) The terms "sale" or "sold" shall not include: (i) A transfer by gift, devise, or inheritance; (ii) a transfer of any leasehold interest other than of the type described in this subsection; (iii) a cancellation or forfeiture of a vendee's interest in a contract for the sale of the mobile home park; (iv) deed in lieu of foreclosure of a mortgage; (v) the assumption by a grantee of the balance owing on an obligation which is secured by a mortgage or deed in lieu of forfeiture of the vendee's interest in a contract of sale where no consideration passes otherwise; (vi) by the partition of property by tenants in common by agreement or as the result of a court decree; (vii) any transfer, conveyance, or assignment of property or interest in property from one spouse to the other in accordance with the terms of a decree of divorce or dissolution or in fulfillment of a property settlement agreement incident thereto; (viii) the assignment or other transfer of a vendor's interest in a contract for the sale of real property, even though accompanied by a conveyance of the vendor's interest in the real property involved; (ix) transfers by appropriation or decree in condemnation proceedings brought by the United States, the state or any political subdivision thereof, or a municipal corporation; (x) a mortgage or other transfer of an interest in real property or mobile home merely to secure a debt, or the assignment thereof; (xi) any transfer or conveyance made pursuant to an order of sale by the court in any mortgage or lien foreclosure proceeding or upon execution of a judgment; (xii) a deed in lieu of foreclosure to satisfy a mortgage; (xiii) a conveyance to the federal housing administration, or veteran's administration by an authorized mortgagee made pursuant to a contract of insurance or guarantee with the federal housing administration and veteran's administration; (xiv) a transfer in compliance with the terms of any lease or contract upon which notice has already been given pursuant to this chapter, or where the lease or contract was entered into prior to the effective date of this section; or (xv) a transfer to a corporation or partnership the majority interest of which is wholly owned by the transferor.

(3) "Notice" means a writing which describes the owner's intent to sell the mobile home park or mobile home to a particular buyer or to place the mobile home park or mobile home on the market through general advertising or listing with a real estate or mobile home broker. This writing must include all material terms including asking price and availability of seller financing and the terms thereof. This writing must be delivered to either all tenants in the mobile home park, or any duly elected officer of the qualified tenant organization.

(4) A "qualified tenant organization" means a formal organization of tenants in the park in question, organized for the purpose of protecting and promoting their rights as tenants. It must have been in existence for at least thirty days prior to the time when the owner is otherwise required to give notice under this chapter. "Existence," for the purposes of this subsection, means at least one meeting has been held following notice and invitation to all tenants in the park, membership has been made available to all tenants with the only requirements for membership being: (a) Payment of reasonable dues; and (b) being a tenant in the park.

NEW SECTION. Sec. 5. If, prior to the expiration of ninety days following notice, a qualified tenant's organization submits an offer to purchase equal to the terms and price set forth in the notice, the seller must either sell the mobile home park according to the terms of the offer to the qualified tenant organization, remove the mobile home park from the market, or have already received a more valuable offer from another buyer unrelated to the seller and have accepted that offer, subject to the requirements of this chapter.

Any sale of a mobile home park within six months of a declaration pursuant to this section that a mobile home park is not for sale shall create a rebuttable presumption that the seller acted in bad faith in removing the mobile home park from the market, and such sale shall be voidable by an action brought by any qualified tenant organization within six months from the date of the contested sale.

NEW SECTION. Sec. 6. If, prior to the expiration of forty-five days following notice, the mobile home park owner submits an offer to purchase equal to the terms set forth in the notice, the mobile home owner shall either sell the mobile home according to the terms of the offer, remove the mobile home from the market, or have already accepted a more valuable offer, subject to the requirements of this chapter.

Any sale of a mobile home within six months of a written declaration that the mobile home is not for sale shall create a rebuttable presumption that the seller acted in bad faith in removing the mobile home from the market, and such sale shall be voidable by an action brought by the mobile home park owner within six months from the date of the contested sale.

NEW SECTION. Sec. 7. Following the expiration of ninety days from the notice given as required by this chapter and the failure of any qualified tenant organization to come forward with an offer which meets the terms set forth in the notice, or absent an agreement for purchase and sale of the mobile home park or other terms, the mobile home park owner may sell to any buyer on any terms.

The mobile home park owner may sell to any buyer on any terms at any time following an authorized notice given to the mobile home park owner by an authorized agent of the qualified tenant organization that they do not intend to submit an offer to purchase the mobile home park.

NEW SECTION. Sec. 8. Following forty-five days from the notice given as required by this chapter and failure of the mobile home park owner to make an offer meeting the terms set forth in the notice, or absent an agreement between the parties for purchase and sale of the mobile home, the mobile home owner may sell to any buyer on any terms.

A mobile home owner may sell to any buyer on any terms at any time following an authorized notice given to the mobile home owner that the mobile home park does not wish to purchase the mobile home.

NEW SECTION. Sec. 9. An owner of a mobile home or mobile home park who has accepted an offer from the mobile home park owner or qualified tenant organization, respectively, may demand reasonable evidence of financial ability to close the sale. This demand may be made at the time of acceptance or any time thereafter. Following demand, the buyer must supply such evidence within twenty days of the demand, or ninety or forty-five days from the notice of intent to sell required by this chapter, whichever is later, in order to preserve any rights the buyer may have under this chapter. "Reasonable evidence" includes, but is not limited to: (1) A written or oral notice from a financial institution that they intend to make a purchase money mortgage loan to the buyer; (2) a statement from a financial institution indicating sufficient cash on account which, together with loan commitments or other resources indicate ability to perform; or (3) possession of or access to other financial resources that would cause a reasonably prudent person and willing seller to believe that the buyer will perform according to the terms of the contract.

NEW SECTION. Sec. 10. Sections 1 through 9 of this act shall constitute a new chapter in Title 64 RCW.