Surety Bond Encyclopedia

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

Brief Summary

A stand alone Texas installer posts $25,000, but a dealer that also sets up the homes it sells files under the Retailer/Installer license, and TDHCA's checklist for that license calls for one $50,000 bond. It is the license that covers new homes, so most full service dealers land here. The bond is written on the Manufactured Housing Division's Form 1025.

TDHCA's Retailer/Installer (RI) license lets a business buy and sell new and used manufactured homes and install them. The RI checklist lists a $50,000 surety bond, a $900 fee, fingerprints and a class certificate. Applicants need eight hours of core education plus four hours of retailer and four hours of installer instruction, and the bond is filed with the TDHCA Manufactured Housing Division on MHD Form 1025.

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

Register the business name with the county clerk or the Texas Secretary of State.
Complete the core class plus the four hour retailer and four hour installer courses before applying for the license or the bond.
Submit fingerprints and apply within 30 days.
Obtain the $50,000 bond on MHD Form 1025 for each place of business.
Mail the application, bond, class certificate, business registration and $900 fee to TDHCA, P.O. Box 12489, Austin, TX 78711.
Expect the installer side to remain provisional until inspections show compliance.

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

Why dealers end up on this license

TDHCA says the Retailer/Installer license can buy and sell new and used homes and can install homes. Its stand alone Retailer (R) license is limited to used homes, and its Installer (I) license only installs. TDHCA also notes that manufacturers can sell only to a licensed Retailer/Installer, which points a dealer buying new homes from the factory to the RI license.

The bond amount

Texas Occupations Code 1201.106(a) sets $50,000 for a retailer and $25,000 for an installer. TDHCA's RI checklist lists a single $50,000 surety bond for the joint license, and the Installer (I) checklist lists $25,000 for an installer working alone. The bond is payable to the manufactured homeowner consumer claims program and must come from a surety authorized to do business in Texas. Each place of business needs its own bond under 1201.107.

Education is heavier for RI

Section 1201.104(a-4) requires an applicant for a joint installer and retailer license to complete both the four hour retailer course and the four hour installer course, eight hours of specialized instruction in all. That is on top of the eight hour core class for applicants who were not licensed or registered with the department on September 1, 1987. TDHCA tells applicants not to apply for the license or the bond until the business name is registered and the education class is completed. Under 1201.104(f), an initial installer license is provisional until inspections show the work complies with department rules.

Form, fee, term

The bond goes on MHD Form 1025, the Continuous Manufactured Housing Licensing Surety Bond. The RI fee is $900. Licenses run two years from issuance. If the surety cancels, it must give the director 60 days written notice, and the license is suspended on the cancellation date. Applications go to TDHCA Manufactured Housing Division, P.O. Box 12489, Austin, TX 78711.

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

A single $50,000 surety bond as listed on the TDHCA Retailer/Installer checklist.
A surety authorized to do business in Texas.
MHD Form 1025, payable for use by the TDHCA Manufactured Housing Division.
Eight hours of specialized education under Texas Occupations Code 1201.104(a-4).
Owner credit review by the surety.

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

Do I need a $50,000 retailer bond plus a $25,000 installer bond?

TDHCA's Retailer/Installer checklist lists one $50,000 surety bond for the RI license. The $25,000 figure applies to the stand alone Installer license. Confirm the license type and face amount with the Manufactured Housing Division when you file.

Which license do I need to sell new homes?

TDHCA describes the Retailer/Installer license as able to buy and sell new and used homes and install them. The stand alone Retailer license is limited to used homes.

What education does an RI applicant need?

Section 1201.104(a-4) requires both the four hour retailer course and the four hour installer course, for eight hours of specialized instruction, in addition to the eight hour core class for those not licensed with the department on September 1, 1987.

What is the fee and how long does the license last?

The RI checklist lists a $900 fee. TDHCA licenses are valid for two years from the date of issuance and must be renewed before they expire.

What happens to my license if the bond lapses?

Under 1201.109, a canceled bond suspends the license on the effective date of cancellation. The surety must give the director written notice at least 60 days before cancellation.