§ 6249. Sale of abandoned manufactured home
(a) A park owner may commence an action, which shall be entitled: In re: Abandoned Manufactured Home of (name of owner), in the Civil Division of the Superior Court to obtain an order to sell the abandoned manufactured home by filing a verified complaint that includes all the following information:
(1) the name of the park owner and name and location of the manufactured home park;
(2) the name and last known mailing address of the owner of the manufactured home;
(3) the name and the last known mailing address of the last resident of the manufactured home;
(4) a description of the manufactured home, including make, model, and serial number, if available; its location; and the amount of any security deposit held by the park owner;
(5) the names and addresses of creditors, holders of housing subsidy covenants, or others having an interest in the manufactured home based on liens or notices of record in the town offices of the town in which the manufactured home is located or the Office of the Secretary of State;
(6) the facts supporting the claim that the manufactured home has been abandoned;
(7) the name of a person disinterested in the manufactured home or manufactured home park who is able to sell the manufactured home at a public auction; and
(8) a statement of the amount of rent and other charges due or that will become due to the park owner.
(b) A park owner may request an order approving transfer of a manufactured home that is unfit for human habitation to the park owner without a public sale by filing a verified complaint containing the information required in subsection (a) of this section and the facts supporting the claim that the manufactured home is unfit for human habitation.
(c) When a verified complaint is filed under this section, the clerk of the Superior Court shall set a hearing on the complaint before a Superior judge. The hearing shall be held at least 15 days but no later than 30 days after the filing of the complaint.
(d) Within five days after filing the verified complaint, the park owner shall post a copy of the verified complaint and order for hearing on the manufactured home and send a copy of the verified complaint and order for hearing, by certified mail, return receipt requested, to the manufactured home owner’s last known mailing address; to the last resident of the manufactured home at the resident’s last known mailing address; to each person identified in the verified complaint; and to the town clerk of the town in which the manufactured home is located.
(e) The park owner shall publish the verified complaint and order for hearing in a newspaper of general circulation in the town where the manufactured home is located. The notice shall be published no later than five calendar days before the date of hearing.
(f) If prior to or at the hearing any lien holder certifies to the court that the lien holder has paid to the park owner all lot rent due the park owner, and will commence or has commenced proceedings to enforce the lien and will continue to pay rent during the proceedings under this section, the court shall, upon confirmation of the representations of the lien holder, stay the action under this section pending completion of the lien holder’s action.
(g) At the hearing, the park owner shall prove ownership of the manufactured home park; ownership of the manufactured home; abandonment of the manufactured home; the amount of rent and other charges due the park owner; the amount of town taxes, penalties, and interest owed; and the amount of attorney’s fees claimed. The park owner shall also prove compliance with the notice requirements of subsections (d) and (e) of this section.
(h) If the court finds that the park owner has complied with subsection (g) of this section, the court shall enter an order approving the sale of the manufactured home at a public auction to be held within 15 days of the date of the order. The manufactured home park owner shall send the order by first-class mail to the manufactured home owner and all lien holders of record. The order shall require all the following:
(1) That the sale shall be conducted by the person identified in the verified complaint or some other person approved by the court.
(2) That notice of the sale be published in a newspaper of general circulation in the town where the manufactured home is located and sent by first-class mail to the manufactured home owner, the manufactured home park owner, and all lien holders of record. The notice of sale shall be published no later than five calendar days before the date of sale.
(3) That the terms of sale provide for conveyance of the manufactured home, together with any security deposit held by the park owner, by uniform manufactured home bill of sale executed on behalf of the manufactured home owner pursuant to the order of the court by the person authorized by the court, in “as is” condition, free and clear of all liens and other encumbrances of record.
(4) A minimum bid established by the court sufficient to cover the total costs listed in subdivisions (7)(A)-(D) of this subsection. The manufactured home shall be sold to the highest bidder over the minimum bid set by the court.
(5) The successful bidder shall make full payment at the auction if the bid does not exceed $2,000.00. If the bid exceeds $2,000.00, the successful bidder shall provide a nonrefundable deposit at the time of the auction of at least $2,000.00 or 25 percent of the bid, whichever is greater, and shall make full payment within three working days after the auction.
(6) A successful bidder, if other than the park owner, shall remove the manufactured home from the park within five working days after the auction unless the park owner permits removal of the manufactured home at a later date.
(7) The person who conducted the public sale shall report to the court the results of the sale, the proposed distribution of the proceeds of the sale, and the bank in which any excess proceeds are deposited and shall send a copy of the report to the manufactured home owner, the park owner, and all lien holders of record by certified mail, return receipt requested, within three working days after the sale. Anyone claiming impropriety in the conduct of the sale may file an objection with the court within seven days after the sale. The filing of an objection shall not invalidate the sale or delay transfer of ownership of the abandoned manufactured home. If an objection is filed and if the court finds impropriety in the conduct of the sale, the court may order distribution of the proceeds of the sale as is fair, taking into account the impropriety. If no objection is filed with the court, on the eighth day after the sale, the proceeds shall be distributed as follows:
(A) to the person conducting the sale for costs of the sale;
(B) to the park owner for court costs, publication and mailing costs, and attorney’s fees incurred in connection with the action, in an amount approved by the court;
(C) to the park owner for rent and other charges in an amount approved by the court;
(D) to the town for taxes, penalties, and interest owed in an amount approved by the court; and
(E) the balance to a bank account in the name of the manufactured home park owner as trustee, for the benefit of the manufactured home owner and lien holders of record, to be distributed pursuant to further order of the court.
(i) If a park owner requests an order approving transfer of a manufactured home to the park owner without a public sale, the court shall approve that order if it finds that the park owner has complied with subsection (g) of this section and has proved that the manufactured home is unfit for human habitation. In determining whether a manufactured home is unfit for human habitation, the court shall consider whether the manufactured home:
(1) contains functioning appliances and plumbing fixtures;
(2) contains safe and functioning electrical fixtures and wiring;
(3) contains a safe and functioning heating system;
(4) contains a weather-tight exterior closure;
(5) is structurally sound;
(6) is reasonably free of trash, debris, filth, and pests.
(j) A court order issued pursuant to subsection (i) of this section shall be effective upon issuance and provide for conveyance of the manufactured home and any security deposit held by the park owner by uniform manufactured home bill of sale executed on behalf of the manufactured home owner in “as is” condition, free and clear of all liens and other encumbrances of record. (Added 1993, No. 141 (Adj. Sess.), § 14, eff. May 6, 1994; amended 2001, No. 101 (Adj. Sess.), §§ 1, 2, eff. May 12, 2002; 2011, No. 137 (Adj. Sess.), § 3, eff. May 14, 2012.)