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ARIZONA HOUSE OF REPRESENTATIVESFifty-fifth Legislature First Regular Session |
House: COM DPA 10-0-0-0 | 3rd Read 60-0-0-0Senate: COM DP 9-0-0-0 | 3rd Read 29-0-1-0 |
HB 2446: escrow accounts; manufactured homes; requirements
Sponsor: Representative Dunn, LD 13
Transmitted to the Governor
Overview
Establishes trust and escrow requirements for dealers that are also owners of mobile home parks within a separate section of statute.
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. Moves the requirements for dealers who are also owners of a mobile home park to sell a manufactured home, mobile home or factory-built building designed for use as a residential dwelling from statute relating to a specified exemption into a separate section of statute. (Sec. 1,2)
2. Includes the following additional requirements for dealers who are also owners of a mobile home park to sell a manufactured home, mobile home or factory-built building designed for use as a residential dwelling:
a) Increases, from at least $100,000 to at least $150,000, the dealer bond amount;
b) Requires the dealer to maintain a licensee’s trust account or open an escrow account with an independent financial institution or escrow agent;
c) Directs the dealer to deposit all earnest monies received in the trust or escrow account;
d) Requires the Department to conduct an audit of each dealer's trust or escrow account at least once every two years;
e) 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
f) Instructs the dealer 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 dealer. (Sec. 2)
3. Includes criteria for deeming a financial institution or escrow agent as independent. (Sec. 2)
4. Makes technical changes. (Sec. 1, 3, 4)
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8. HB 2446
9. Initials PRB Page 0 Transmitted
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