Cal. Civ. Code § 38-12-1402
Mobile home rent-to-own contracts - requirements - terms - termination.
Operative Text
(1) A rent-to-own contract must be in writing and signed by the purchaser and the seller of the mobile home. A rent-to-own contract that is not in writing or that is not signed by both the purchaser and the seller is not enforceable by either party. (2) A rent-to-own contract must be in either English or both English and Spanish, as requested by the purchaser. (3) Before entering into a rent-to-own contract, the seller of the mobile home must provide the purchaser with the following: (a) Proof of the seller's ownership of the mobile home, including a copy of the seller's valid certificate of title to the mobile home and a disclosure of any liens placed on the home, including a copy of any liens, if available; and (b) A disclosure that the purchaser has the right to have the mobile home professionally appraised at the buyer's expense and that the seller shall make reasonable efforts to make the mobile home available for appraisal. (4) A rent-to-own contract must contain the following information: (a) The manufacturer of the mobile home and the date of manufacture; (b) The vehicle identification number or other identifying number of the mobile home; (c) The mobile home park and the lot number within the mobile home park on which the mobile home is located; (d) A list of fixtures that are included in or excluded from the purchase of the mobile home; (e) A list of improvements to the mobile home that are included in or excluded from the purchase; (f) The term of the rent-to-own contract; (g) The total purchase price of the mobile home; (h) The number of purchase payments that the purchaser must make under the rent-to-own contract and the amount of each payment; (i) The fee, if any, that the purchaser must pay as consideration for the rent-to-own option. If an option fee is required, the amount of the fee shall not exceed the cost to transfer the title of the mobile home in the county in which the mobile home is located; and (j) A separate term listing the amount of rent to be paid each month for the mobile home that is in addition to the purchase payment. (5) Before entering into a rent-to-own contract, the purchaser has the right to inspect the mobile home and to have the mobile home professionally inspected at the purchaser's expense. The purchaser also has the right to have the mobile home professionally appraised at the purchaser's expense. The seller shall make reasonable efforts to make the mobile home available for inspection or appraisal. (6) At any time during the term of the rent-to-own contract, the purchaser may pay additional amounts towards the balance owed on the total purchase price of the mobile home, including paying the balance in full, without incurring any penalty. (7) (a) The purchaser in any rent-to-own contract has the right to terminate the contract before the end of the term of the contract. To exercise the right to terminate the contract, the purchaser must give the seller at least thirty days' written notice of the purchaser's intent to terminate the rent-to-own contract. At the conclusion of the thirty days' notice to terminate, the seller must return to the purchaser all purchase payments made by the purchaser reduced by any then-owed rent under the contract. (b) If the purchaser of the mobile home terminates the rent-to-own contract, the termination shall not affect any mobile home lease agreed on by the purchaser and the seller of the mobile home. Any mobile home lease remains in full force and effect and may only be terminated pursuant to applicable landlord-tenant law. (8) (a) The seller of a mobile home may terminate a rent-to-own contract only for one of the following reasons: (I) The purchaser of the mobile home failed to timely make a purchase payment under the rent-to-own contract, the seller has given the purchaser written notice of the failure to pay, and the purchaser has not cured the payment deficit within thirty days of receiving written notice; or (II) The purchaser committed an action related to the mobile home purchaser's mobile home lease that led to a valid and executed writ of restitution. (b) If the seller of a mobile home terminates a rent-to-own contract pursuant to this subsection (8), the seller shall return to the purchaser all purchase payments made by the purchaser no later than ten calendar days after the rent-to-own contract terminates. If the purchaser owes any rent to the seller, the seller may reduce the returned purchase payment by the amount of rent the purchaser owes to the seller. (c) If the seller of a mobile home cannot comply with the rent-to-own contract because the mobile home becomes encumbered as a result of legal actions taken against the seller, then the seller shall provide the purchaser with proof of the encumbrance and shall return to the purchaser all purchase payments made by the purchaser within ten calendar days of the date that the seller knew or reasonably should have known that it would not be possible to comply with the rent-to-own contract. (d) If the seller of a mobile home cannot comply with the rent-to-own contract because the mobile home park in which the mobile home is located is condemned or changes use pursuant to section 38-12-203 (1)(d), the seller shall return to the purchaser all purchase payments made by the purchaser within ten days of the purchaser receiving written notice of the condemnation or change in use pursuant to section 38-12-203 (1)(d). If the seller is the landlord of the mobile home park and cannot comply with the rent-to-own contract because the mobile home park in which the mobile home is located is condemned or changes use pursuant to section 38-12-203 (1)(d), the seller shall also pay the purchaser reasonable relocation expenses pursuant to section 38-12-203.5 (2)(b)(I).
Colorado Revised Statute § 38-12-1402 establishes the legal framework for mobile home rent-to-own contracts in Colorado. Such contracts must be written, signed by both parties, and offered in English or bilingual English-Spanish at the purchaser's request. The law specifies what disclosures sellers must make before signing, what information the contract itself must contain, and the conditions under which either party may terminate the agreement — including rules governing the return of purchase payments in each termination scenario.
Plain English — not legal advice.
Under Colo. Rev. Stat. § 38-12-1402, sellers of mobile homes under rent-to-own arrangements generally ensure that every contract is in writing, signed by both parties, and contains all required disclosures and terms — including proof of ownership, lien disclosures, vehicle identification, purchase price, payment schedule, and a separate rent line item. Compliant sellers provide the purchaser with a written disclosure of the right to inspect and appraise the home before signing, and they make the home reasonably available for those purposes. When a contract ends — whether by purchaser termination, seller termination, encumbrance, or park condemnation — sellers are generally expected to return purchase payments within the timeframes the statute specifies, net of any legitimately owed rent.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Colo. Rev. Stat. § 38-12-1402 gives mobile home purchasers under rent-to-own contracts a set of enforceable rights, including the right to receive key disclosures before signing, to inspect and appraise the home at their own expense, and to make extra payments toward the purchase price at any time without penalty. Purchasers also have the right to terminate the contract early by giving at least 30 days' written notice, after which the seller must return all purchase payments minus any rent then owed. If a seller fails to honor these obligations — such as refusing to return purchase payments on time — purchasers may wish to consult a tenant-rights organization, a housing legal aid provider, or explore remedies available through Colorado courts.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 16, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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