A new law went into effect June 1, 2011 to strengthen the authority the Oregon Department of Consumer and Business Services has to enforce laws regarding manufactured home dealers, also known as mobile home dealers.
Visit our page on Oregon Manufactured Structure Dealer Surety Bonds for more information.
The goal behind Senate Bill 85 is to limit the access that those other than customers have to dealers’ surety bond funds. The law also ensures that harmed customers have access to the full bond amount as a means of reparation.
According to the law, the bond will:
“Be conditioned that the dealer will conduct the manufactured structure dealership without fraud or fraudulent representation and without violating any statute or rule relating to manufactured structure dealers, manufactured structure dealerships, transfers of interests in manufactured structures, alteration of manufactured structures or moving manufactured structures.”
A customer may make a claim on the bond to gain financial compensation after suffering loss or damage due to fraud committed by any manufactured home dealers.
Oregon Manufactured Home Dealer Surety Bond Requirements
All businesses that sell a manufactured/mobile home on behalf of another person in Oregon must maintain a valid operating license. This requires them to file a surety bond or a letter of credit with the state.
Limited manufactured structure dealers must post a $15,000 surety bond to obtain their license, while manufactured structure dealers must post a $40,000 surety bond. Both bonds are subject to underwriting consideration, so the best way to determine the price you will pay for your bond is to submit a free online bond quote.
Once applicants have the finalized, original copy of the surety bond in their possession, they will mail it to:
Oregon Department of Consumer & Business Services
Division of Finance & Corporate Securities
P.O. Box 14480
Salem, OR 97309-0405
For questions about the dealer licensing or bond process, applicants can contact the state’s licensing staff at (503) 378-4140 or [email protected].