Watch Out for Out-of-State Mobile Home Sellers

If you are interested in purchasing a Mobile Home inand additional deposit funds, into a California escrow
California, be sure the seller has their brokers license inaccount with a licensed escrow practitioner. When
California. The law in California requires that allworking with an internet seller or an out-of-state
manufactured or mobile home salespeople, dealerscompany, a buyer runs the risk of handing their hard
and manufacturers that intend to conduct business inearned money to a company or person that may not
the state of California to have the proper licensebe licensed to handle the funds. There is also the
issued by the California Department of Housing andpossibility that the buyers funds are never deposited
Community Development, or HCD. This law is sotowards the home they believe they are buying (yes,
broad that if a person or company advertises itself inthis does happen). Without an escrow company
the state of California via mailers, telephone marketingensuring the proper deposit of the funds, a buyer may
or any other direct advertising or marketing, and doesnever know whether the manufacturer of their home
not have the proper licensing, that seller is violatingwas actually paid with the money they handed over.
state law. In California, only licensed dealers andThe mobile home buyer may end up with a Limited
salespersons within the state are allowed to advertiseWarranty:
their homes for sale.Manufactured and mobile homes sold in the state of
When a buyer purchases a Manufactured or MobileCalifornia by properly licensed salespersons or
Home from an out-of-state seller or company thatcompanies will always carry more buyer protection
does not have the proper licensing, there are manythan the minimum warranty required by the federal
problems that are likely to occur, aside from thegovernment. The manufacturer’s warranty required
obvious liability issues.in California holds both the dealer and the
The mobile home buyer may not get the home theymanufacturer responsible for any repairs covered
expect:under the warranty and enforcement of the warranty
California law states that all of the amenities andtypically does not require a lawsuit or a lawyer. If a
features of the new manufactured or mobile home bebuyer purchases a manufactured or mobile home
listed either with their prices or with the total purchasefrom an out-of-state dealer or salesperson, California
price. The law also states that this information must becannot enforce the warranty on the mobile home and
provided to the buyer prior to signing the purchaseany enforcement actions must be filed in the state(s)
contract. Purchasing a manufactured or mobile homewhere the dealer and/or manufacturer are located.
from an internet seller may result in the buyer neverIn summary, if you are considering purchasing a
physically seeing the final home order that is sent tomanufactured home in the State of California, it is
the factory for assembly, let alone the final prices.highly advisable to speak with a licensed company that
The mobile home buyer may wind up with a homespecializes in manufactured and mobile homes, such
that the factory never paid for:as a California-licensed Department of Real Estate
California law requires mobile home dealers to depositbroker or salesperson, a California-licensed Escrow
every penny of a buyer´s deposits on the mobileCompany or a California Licensed Manufactured
home being purchases, including initial down paymentHome Dealer.