Surety Bond Encyclopedia

Mobile Home Dealer ($25,000) Bond - Statewide in Florida

Brief Summary

A Florida mobile home dealer with four or fewer supplemental licenses posts $25,000. Going past four supplemental licenses moves you to $50,000, so check your location count before you order. This bond is written on the FLHSMV mobile home dealer form 86018, and it also works if you sell recreational vehicles, since a combined dealer posts the same bond as a mobile home only dealer.

Section 320.77(16), Florida Statutes, requires a mobile home dealer to provide a $25,000 surety bond, cash bond or irrevocable letter of credit to the Department of Highway Safety and Motor Vehicles before licensure if the dealer holds four or fewer supplemental licenses. More than four supplemental licenses raises the requirement to $50,000. The bond protects retail customers who suffer a loss from a contract breach or a violation of Chapter 319 or 320.

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How to Apply for a Mobile Home Dealer ($25,000) Bond:

Count your supplemental licenses. Four or fewer means $25,000, more than four means $50,000.
Attend an approved dealer training and information seminar within the 6 months before applying.
Obtain the bond on FLHSMV form 86018, or a letter of credit on form 86058.
Submit the application, bond, supporting documents and the $300 initial fee to the FLHSMV regional office responsible for the dealership.
Deliver a new bond or continuation certificate at the start of each license period.

Detailed Information About the Florida Mobile Home Dealer ($25,000) Bond:

Count your supplemental licenses first

Florida sets this bond by the number of supplemental licenses a dealer holds, not by sales volume. Under section 320.77(16), a single dealer with four or fewer supplemental licenses provides $25,000. A dealer with more than four supplemental licenses provides $50,000. Supplemental licenses cover additional locations under identical ownership and cost $50 each. A dealer who sells both mobile homes and recreational vehicles posts the same bond as a dealer who sells mobile homes only.

Bond, cash or letter of credit

The statute accepts a surety bond, a cash bond or an irrevocable letter of credit, in a form approved by the department. FLHSMV prescribes form 86018 for the mobile home dealer surety bond and form 86058 for a letter of credit in its place. The bond runs to the department in favor of any retail customer who suffers a loss because the dealer failed to honor a written contract for the sale, exchange or improvement of a mobile home, or violated Chapter 319 or Chapter 320 in running the business. The surety's aggregate liability in any one license year cannot exceed the bond amount.

Training before the application

Each initial application must include verification that, within the preceding 6 months, the applicant or a designated employee attended a training and information seminar conducted by the department or an approved provider. The seminar is a separate requirement and does not replace the bond.

Fees, term and renewal

The initial license fee is $300. An initial applicant can take a two year license by paying $300 for the first year and $100 for the second. Renewal is $100 for one year or $200 for two. Licenses run one or two years beginning October 1. A new bond or a proper continuation certificate must be delivered to the department at the beginning of each license period.

Who is not a dealer

Banks, credit unions and finance companies that acquire mobile homes as an incident to their regular business are excluded, as are mobile home rental and leasing companies that sell mobile homes to licensed dealers.

Eligibility and Requirements for a Florida Mobile Home Dealer ($25,000) Bond:

Bond running to FLHSMV in favor of retail customers.
Amount fixed by supplemental license count, not sales volume.
Cash bond or irrevocable letter of credit accepted in place of a surety bond.
Same bond applies to dealers selling both mobile homes and recreational vehicles.
$50 fee for each supplemental license at an additional location with identical ownership.

Florida Mobile Home Dealer ($25,000) Bond FAQs:

We are opening another lot. Does the bond amount change?

It can. Once you hold more than four supplemental licenses, section 320.77(16) requires $50,000 instead of $25,000. Talk to the surety about raising the bond when you apply for the supplemental license that takes you past four.

We sell RVs as well. Do we need two bonds?

No. Section 320.77(16) says a person who deals in both mobile homes and recreational vehicles provides the same surety bond required of dealers who deal in mobile homes only.

Can I post cash instead of buying a bond?

Yes. The statute allows a cash bond or an irrevocable letter of credit. FLHSMV uses form 86058 for a mobile home dealer letter of credit.

Who can make a claim on the bond?

A retail customer who suffers a loss because the dealer broke a written contract for the sale, exchange or improvement of a mobile home, or violated Chapter 319 or 320. Total surety liability in one license year is capped at the bond amount.

When does the license expire?

Licenses are issued for one or two years beginning October 1. Renewal costs $100 for one year or $200 for two, and a new bond or continuation certificate is due at the start of each period.