Surety Bond Encyclopedia

Manufactured Home Contractor ($5,000) Bond - Statewide in South Carolina

Brief Summary

The $5,000 contractor bond is a small number, but the Manufactured Housing Board is strict about the paperwork behind it. It wants an original on the board's form with a visible seal and a power of attorney attached, and it wants coverage that reaches all the way to June 30, 2028. Getting the bond right the first time keeps a renewal or new license from stalling at the board.

South Carolina Code 40-29-230 requires every manufactured home contractor, installer and repairer to furnish a $5,000 corporate surety bond or other approved security, payable to the South Carolina Manufactured Housing Board, for the license term. The current term runs July 1, 2026 through June 30, 2028, and the bond or continuation certificate must cover that whole period before the board will process the license.

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How to Apply for a Manufactured Home Contractor ($5,000) Bond:

Confirm the work you do fits the 40-29-20 contractor definition and that no exclusion applies to you.
Request the Manufactured Housing Board's surety bond form and give it to your surety.
Complete the bond application with your surety.
Return an original bond with the surety's and principal's signatures, a visible company seal and the power of attorney attached. DocuSign signatures are not accepted.
File the bond with the license application and the $100 contractor, repairer and installer application fee.
At each renewal, deliver a continuation certificate showing coverage through the full license term.

Detailed Information About the South Carolina Manufactured Home Contractor ($5,000) Bond:

The bond has to match the license cycle

All manufactured housing licenses in South Carolina expire June 30 of each even numbered year. The board's renewal page says a surety bond continuation certificate must reflect coverage for the full 2026 to 2028 term, July 1, 2026 through June 30, 2028. The no penalty renewal deadline was June 30, 2026. Licensees can still renew with a late penalty of $25 per month through December 31, 2026. After that, they must reapply as new applicants and pass the required examinations.

Who counts as a manufactured home contractor

Section 40-29-20 defines the license as covering a person or entity who, for valuable consideration, installs, modifies, alters or repairs the structural, mechanical or electrical systems of a manufactured home. The definition leaves out an employee of a licensed manufactured home retail dealer and a person licensed by the board or by the South Carolina Contractor's Licensing Board to perform a particular function.

What a claim looks like

The bond is payable to the board, and claims can be started only through the board's complaint process. It indemnifies consumers for losses from a violation of Chapter 29 or a board regulation, a broken written warranty, fraud, misrepresentation, or failure to transfer good legal title. Recovery is for actual damages and does not include attorney's fees or punitive damages.

The amount can go up

If a licensee violates the law or fails to meet financial responsibility standards, the board can order a larger bond, with an increase of up to $10,000 for contractors, installers and repairers. After a year of compliance the board may lower it again, but never below $5,000.

It stays on file after you close

The board will not release the bond until every claim and complaint is resolved or until three years after the licensee stops doing business in South Carolina, whichever is later.

Eligibility and Requirements for a South Carolina Manufactured Home Contractor ($5,000) Bond:

Obligee: South Carolina Manufactured Housing Board.
$5,000 corporate surety bond or other security in the form the board prescribes.
Coverage for the entire license term, currently July 1, 2026 through June 30, 2028.
Bond liability attaches to the bond in effect when a violation occurred.
Bond held by the board for three years after you cease doing business in South Carolina, or until all claims are resolved if later.

South Carolina Manufactured Home Contractor ($5,000) Bond FAQs:

My bond renews every year. Is that good enough?

The board's renewal page requires a continuation certificate that shows coverage for the full term, July 1, 2026 through June 30, 2028. A certificate that stops short of that date will not satisfy it.

I missed the June 30, 2026 renewal deadline. What now?

The license has lapsed, but you can still renew with a late penalty of $25 per month through December 31, 2026. After that date you must apply as a new applicant and pass the required examinations.

I already hold a license from the Contractor's Licensing Board. Do I need this one?

Section 40-29-20 excludes a person licensed by the South Carolina Contractor's Licensing Board to perform a particular function from the manufactured home contractor definition. Check with the Manufactured Housing Board that your existing license covers the specific work you do on manufactured homes.

Can a homeowner sue the bond directly?

No. Section 40-29-230 says claims may be initiated only through the board's complaint process, and recovery is limited to actual damages.

Can the board make me post more than $5,000?

Yes. After a violation or a failure to meet financial responsibility standards, the board can raise the bond by up to $10,000. After a year of compliance it may reduce it, but not below $5,000.