If you own a static caravan or lodge, or you’re thinking of buying one, you’ve likely heard the term “site licence agreement”. But what does it actually mean?
In simple terms, a site licence agreement is the contract between you and the park owner, this agreement essentially gives you the right to keep your caravan or lodge on the park. This is often for a fixed number of years.
Site licence agreements set out the rules, responsibilities, and rights of both parties, and it’s crucial to understand what’s included before you sign or renew.
What Does a Site Licence Agreement Typically Cover?
Most agreements will vary slightly depending on the park and how it’s run, but most will include the following key areas:
- Length of Licence
This is how long you’re allowed to keep your unit on the park. It could be year-to-year or a longer-term licence (10–20 years for lodges is common). The agreement should clearly state the start and end dates.
- Pitch Fees and Charges
The site licence agreement will set out exactly what you need to pay, when these payments are due, and how to pay them. These charges will include your annual pitch fees, and sometimes other costs like utilities, local rates, or insurance contributions.
- Your Responsibilities
This part covers what you as the caravan or lodge owner are expected to do. It will often include:
- Keeping your unit in good condition
- Following park rules
- Ensuring you have adequate insurance
- Arranging maintenance when needed
- The Park Owner’s Responsibilities
Responsibilities work both ways and the site licence agreement will detail exactly what the park owners’ responsibilities are! Expect to see elements such as:
- Site maintenance
- Services (e.g. electricity, water, waste)
- A safe environment
- Selling or Transferring Your Caravan
Your agreement may say whether or not you can sell your caravan on-site, and if so, how to go about selling should you decide to. It should also mention commission payable to the park on sales and what approvals are required.
- Usage Terms
Most static caravans are for holiday use only and are not to be used as a place of permanent residence. The agreement will clarify how long you can use the caravan each year and whether there are any closed season restrictions you need to be aware of.
- Ending your Agreement
If you need to end your site licence agreement, the relevant clauses will specify the process, including how the park may also terminate the agreement.
The document will detail the specific circumstances under which action may be taken, such as a breach of terms, non-payment, or closure of the park.
Additionally, it will specify the procedures regarding your caravan upon the expiration of the term.
Why It Matters
A site licence agreement is a significant commitment that impacts your whole park experience. Review it thoroughly, ask questions, and seek independent advice if needed. It’s essential to understand all terms and conditions before signing, as these agreements can affect your rights, responsibilities, and enjoyment within the park. Take time to consider aspects such as fees, rules, renewal processes, and any restrictions that may apply to your use of the site.
Need Help?
If you’re a NACO member, remember that expert support is just a call or click away. Our team can help you review your site licence agreement, clarify your rights and responsibilities, and guide you through any questions or concerns you might have. Whether you’re considering signing a new contract, unsure about certain clauses, or facing a dispute, don’t hesitate to reach out. We’re here to help you make confident, informed decisions.
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