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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11122
Experience:  30 years as a practising solicitor.
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Selling holiday lodge

Resolved Question:

We own a holiday lodge on a site, where the owner says we have to give him 15% (+vat) of our selling price. Must we do it? Can we sell our lodge by auction?

Submitted: 3 years ago.
Category: Scots Law
Expert:  JGM replied 3 years ago.
Thank you for your question.

I know quite a bit about this aspect of the law acting for a number of clients who own lodges, caravans and other temporary accommodation in Scotland.

The basic law is that when you sell your lodge you are not selling the ground it's built on. You are selling the actual lodge and often it's contents, but the lease of the pitch has to be assigned from you to the new owner of the lodge with the consent of the site owner.

The amount that can be chargd as a commission by the site owner is restricted by statute but is generally specified in a contract that you enter into with the site owner when you bought the lodge. Can you please look out the contract and tell me what is says?
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Expert:  JGM replied 3 years ago.
Sorry, I meant to say above, the owner of the ground can charge only up to 10% with no VAT under the legislation.
Customer: replied 3 years ago.

Thank you very much for this very useful information. The contract we have is very basic and doesn't say anything about if we resell, and nothing about his charges. Thank you again.

Expert:  JGM replied 3 years ago.
No problem. Don't forget to leave positive feedback on the system so that I am credited for my time. And you can ask any follow up question you may have.
Customer: replied 3 years ago.

Thanks again, since there is nothing in our document when we bought about % due to him when we sell. Can we sell privately and give him nothing??

Expert:  JGM replied 3 years ago.
No, you could gift the home to someone in your family and give him nothing but if you sell his commission is laid down by statute.

See online paragraph 8 of Schedule 1 Part 1 of the Mobile Homes Act 1983. Note that assumes that the park is an all year round park with protected status. If it is otherwise then the basic law of contract applies and if your contract does not provide for a sale commission then a sales commission cannot be charged.
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