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ARIZONA HOUSE OF REPRESENTATIVESFifty-fifth Legislature First Regular Session |
House: COM DPA 10-0-0-0 |
HB 2446: escrow accounts; manufactured homes; requirements
Sponsor: Representative Dunn, LD 13
Caucus & COW
Overview
Adds criteria for an owner of a mobile home park, who is a dealer, to be exempt from certain escrow account requirements.
History
A dealer is a person who sells, exchanges, buys, offers or attempts to negotiate or acts as an agent for the sale or exchange of factory-built buildings, manufactured homes or mobile homes (A.R.S. § 41-4001).
Statute requires a dealer to establish an independent escrow account with an independent financial institution or escrow agent for transactions involving: 1) a new manufactured home; 2) a new factory-built building designed for use as a residential dwelling; or 3) a manufactured home, mobile home or factory-built building designed for use as a residential dwelling that is previously owned and that has a purchase price of $50,000 or more.
A dealer who sells a manufactured home, mobile home or factory-built building designed for residential use and that has a purchase price of less than $50,000 must maintain a licensee's trust account or open an escrow account. The purchaser of a mobile home, used manufactured home or used factory-built building designed for residential use may request that the dealer establish an independent escrow account.
The owner of a mobile home park who also owns a licensed dealership may sell a new manufactured home or a new factory-built building designed for residential use as a licensee is exempt from the requirement of establishing an escrow account provided:
1) The home will be sited in a mobile home park that is owned by the park owner;
2) At the time of sale, the park owner can prove through documentation to the Arizona Department of Housing (Department) that the park owner either holds the license, owns a majority interest in the license or is controlled by an entity with controlling interest in the license; and
3) At the time of sale, the dealership has posted a dealer bond in the amount of at least $100,000 with the Department (A.R.S. § 41-4030).
Provisions
1. Increases, from at least $100,000 to at least $150,000, the dealer bond amount required for the escrow account exemption. (Sec.1)
2. Includes the following criteria as a qualifier for the escrow account exemption for owners of mobile home parks who are also dealers or own dealerships:
a) Requires the dealer to maintain a licensee’s trust account or open an escrow account when selling a new manufactured home or factory-build building that is designed for residential dwelling and has a purchase price of less $150,000, or a previously owned manufactured home, mobile home or factory-built building that has a purchase price of less than $100,000;
b) Directs the licensee to deposit all earnest monies received in the trust or escrow account;
c) Requires the Department to conduct an audit of each dealer's trust or escrow account at least once every two years;
d) Allow the purchaser of the manufactured home, mobile home or factory-built building designed for residential use to make a written request that the dealer establish an independent escrow account; and
e) Requires the licensee to disclose to the purchaser, in writing and before or at the time the purchaser signs the purchase contract, that the purchaser may request in writing the use of an independent escrow account and that the transaction be handled through a trust account controlled by the licensee. (Sec. 1)
3. Allows an owner of a mobile home park, who is a dealer, to be exempt from the requirement relating to maintaining a trust account or escrow account for transactions involving purchase prices of less than $50,000 provided certain criteria are met. (Sec. 1)
4. Makes technical changes. (Sec. 1)
Amendments
Committee on Commerce
1. Moves the trust and escrow requirements for dealers who are also owners of mobile park homes into a separate section of law.
2. Removes the exemption provided for dealer who are also owners of a mobile home park relating to establishing an escrow account for purchase prices in excess of $50,000.
3. Includes criteria for deeming a financial institution or escrow agent as independent.
4. Makes conforming changes.
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8. HB 2446
9. Initials PRB Page 0 Caucus & COW
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