Cause 1: Consumers have difficulty making informed choices when entering a residential park
Site agreements establish how much site rent a home owner will pay, and the ways site rent can increase. Site agreements are signed prior to entering the residential park, and it is critical that consumers have made an informed choice based on clear and transparent information and an understanding of how it will apply to their financial and other circumstances.
Despite precontractual disclosure requirements, it is often only after moving into the park that some home owners become aware of the consequences of their decision. The residential park model, the Act, and site agreements are complex; and choices are often based on the appeal of the lifestyle offered in a park.
Many home owners buy into residential parks without legal advice, and those that receive legal advice may not receive expert advice that is tailored to their circumstances.
These issues can result in consumers entering site agreements which become unaffordable for home owners over time.
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