I was assured the 10 per cent commission charge was to be abolished or reduced. This has not happened - where do I stand?

• Thursday, 3 September 2009
• Kathleen Retourne
• 0 Comments

When I bought my park home two and a half years ago, the owner assured me that the 10 per cent commission was soon to be abolished or reduced. I am due to sell my home and feel we pay quite a substantial ground rent and 10 per cent is a lot of money. If, however, the commission was reduced to five per cent it would not be so bad. Also could you inform me as to what percentage site owners can increase the ground rent by?

Graham advises
Doesn't anybody read the written statement before buying a new mobile home?
The Government has provided through law that 28 days before an agreement to purchase a new park home is made between buyer and park owner, a copy of the completed written statement is given to the buyer. This ‘cooling off' period surely is time enough to read the thing and ask questions and in particular about the commission rates when selling?
The issue of rates and, please note, up to 10 per cent commission, is a festering sore.
If only buyers of new park homes were determined enough to have the commission set at a sum less than 10 per cent and worded in the agreement, there would be far less debate.
While I personally have no view either way, to complain after having agreed to 10 per cent is sour grapes in my view. The lesson is to check all paperwork carefully before you sign up to it, as there may be no second bite of the cherry available. In practice, the option rests with the new home buyer; however many times the home may be sold after the first sale, the same level of commission will apply to future sellers.
I have no idea what the Government is thinking so far as the level of commission is concerned. I suspect that, in with their approach to already poor and deficient legislation, they will leave it alone. In my view, nothing is likely to happen in relation to the commission level being lowered.
You ask ‘...what percentage can site owners increase the ground rent?'. The measure is the Retail Prices Index (RPI) which is published every month. You do not disclose when your review date is so I cannot determine what monthly RPI will likely apply.