Manufactured Housing RETAILER / BROKER ($50,000) Bond - Statewide in Texas

Brief Summary

The combined Retailer/Broker license lets one Texas business sell its own used inventory and also broker homes for buyers and sellers, and TDHCA's checklist for it calls for one $50,000 surety bond. The bond goes on the Manufactured Housing Division's Form 1025 and replaces a $50,000 cash deposit you would otherwise hold in a Texas bank.

TDHCA issues a combined Retailer/Broker (RB) license for businesses that sell used manufactured homes and also broker homes for a buyer or seller. The RB checklist lists a $50,000 surety bond, a $900 fee and a statement that the retailer will sell used homes only. The bond is filed with the TDHCA Manufactured Housing Division on MHD Form 1025 and the license runs two years.

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How to Apply for a Manufactured Housing RETAILER / BROKER ($50,000) Bond:

• Register the business name with the county clerk or the Texas Secretary of State, and finish the education class, before applying for the license or the bond.
• Submit fingerprints and file within 30 days.
• Obtain the $50,000 bond on MHD Form 1025 naming the license type as shown on the application.
• Include the statement that the retailer will be selling used homes only.
• Mail the application, bond, class certificate, business registration and $900 fee to the TDHCA Manufactured Housing Division.
• Write the bond disclosure into every brokered sales contract covered by 1201.107(d).

Detailed Information About the Texas Manufactured Housing RETAILER / BROKER ($50,000) Bond:

What the RB license allows

The Manufactured Housing Division describes the Retailer/Broker license as one that can sell used manufactured homes only and broker homes for a buyer or seller. The application must include a statement that the retailer will be selling used homes only. Texas Occupations Code 1201.101 requires a retailer's license to sell, and a broker's license to negotiate, the sale or exchange of two or more homes to consumers in a 12 month period. The RB license puts both activities under one license.

The bond

Section 1201.106(a) sets $50,000 for a retailer and $50,000 for a broker. TDHCA's RB checklist lists a single $50,000 surety bond for the combined license. The bond is payable to the manufactured homeowner consumer claims program, must come from a surety authorized to do business in Texas, and is written on MHD Form 1025, the Continuous Manufactured Housing Licensing Surety Bond.

The director can require additional security under 1201.106(a-1) for an applicant tied to a past license revocation, unreimbursed claims program costs, or an unpaid administrative penalty.

Brokered sales off the lot

When an RB licensee takes part in a sale anywhere other than a parcel where more than one home is offered to the public, 1201.107(d) requires identifying the bond on file with the department and stating in the sales contract that the bond applies to that sale. Each place of business still needs its own bond under 1201.107.

Fee and renewal

The RB fee on the TDHCA checklist is $900. Licenses are valid for two years from issuance, and the renewal application, continuing education proof and fee must arrive before expiration. The surety must give the director at least 60 days written notice before cancelling, and the license is suspended on the date a cancellation takes effect.

Eligibility and Requirements for a Texas Manufactured Housing RETAILER / BROKER ($50,000) Bond:

• A single $50,000 surety bond as listed on the TDHCA Retailer/Broker checklist.
• A surety company authorized to do business in Texas.
• MHD Form 1025, payable for use by the TDHCA Manufactured Housing Division.
• A separate bond for each place of business under 1201.107.
• Credit review of the owners by the surety.

Texas Manufactured Housing RETAILER / BROKER ($50,000) Bond FAQs:

Official and Additional Resources for the Texas Manufactured Housing RETAILER / BROKER ($50,000) Bond: