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

Brief Summary

Every retail lot in Texas carries its own $50,000 bond, so a second sales location means a second bond, not a bigger one. A surety bond on the Manufactured Housing Division's Form 1025 satisfies the requirement for each lot without parking $50,000 per location in a Texas bank account.

Selling or offering to sell two or more manufactured homes to consumers in a 12 month period requires a Texas retailer's license, and Texas Occupations Code 1201.106 sets the retailer's security at $50,000. TDHCA's stand alone Retailer (R) license is for used homes only. Each retail location needs its own license and its own bond, filed on MHD Form 1025 with the $550 fee.

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

• Register the business name with the county clerk or the Texas Secretary of State before applying for the license or the bond.
• Complete the four hour retailer class, plus the eight hour core class if you were not licensed or registered with the department on September 1, 1987.
• Submit fingerprints and apply within 30 days.
• Get a $50,000 bond on MHD Form 1025 for each retail location.
• File the application, bond, class certificate, business registration, the used homes only statement and the $550 fee with TDHCA.
• Notify the department at least 10 days before a change of ownership or location and file a bond endorsement.

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

Check which retail license you are applying for

TDHCA issues a stand alone Retailer (R) license whose holder may sell used manufactured homes only, and the application must include a statement that the retailer will be selling used homes only. A retailer that buys and sells new homes and installs them applies for the Retailer/Installer license instead. Both carry a $50,000 surety bond on the TDHCA checklists.

The license is triggered by selling or offering to sell two or more manufactured homes to consumers in a 12 month period, under Texas Occupations Code 1201.101(b). A retailer's license is also what allows a person to repair, rebuild or alter a salvaged manufactured home.

One bond per lot

Section 1201.106(a)(2) sets retailer security at $50,000. Section 1201.107 then requires a separate bond for each location where the retailer keeps a place of business, and 1201.101(f-1) says one license cannot cover more than one retail location. Business property that is neither next to a bonded location nor within 300 feet of it needs its own bond, and so does any place where homes are shown to the public or offered for sale to consumers.

Two situations need no bond under 1201.107(c): a home installed on a permanent foundation system and offered for sale as real property, and a temporary location at a bona fide trade show sponsored by a 501(c) nonprofit that is exempt from federal income tax.

Who can claim against it

The bond is payable to the manufactured homeowner consumer claims program, which TDHCA runs to provide a remedy for damages caused by prohibited conduct of a license holder. It stays open to successive claims up to the face value, and if a paid claim reduces it, the retailer has 60 days to restore the full amount.

Filing details

Use MHD Form 1025, the Continuous Manufactured Housing Licensing Surety Bond, from a surety authorized in Texas. The retailer's sales license fee is $550, licenses last two years from issuance, and a bond the surety cancels suspends the license on the cancellation date.

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

• Security of $50,000 per retail location under Texas Occupations Code 1201.106 and 1201.107.
• A surety authorized to do business in Texas.
• Bond written on MHD Form 1025 for use by the TDHCA Manufactured Housing Division.
• For a business entity, a management official who has completed the required education for each retail location it operates.
• Owner credit review by the surety.

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

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