Tiny house dealers in Utah need to post a surety bond and become licensed before opening a business. The Department of Occupational and Professional Licensing (DOPL) regulates dealers of tiny houses and issues their licenses.
Tiny house dealers must register with the state under Utah’s factory-built home dealer license, which includes manufactured home dealers as well. Dealers can apply online or submit a manual application. Applications must be accompanied by a $30 nonrefundable fee and a surety bond.
Dealers selling tiny houses must post a $50,000 surety bond when registering with the DOPL. The surety bond guarantees dealers’ compliance with laws set forth in the Building Inspector and Factory Built Housing Licensing Act. Violations of these laws can result in a class A misdemeanor and fines of up to $2,000 per day.
Per the Licensing Act, dealers that sell a tiny house that is not yet real property—that is, a home that has not been placed on property and taxed—must collect a $25 fee from the buyer. The fee must be remitted to a restricted account in the Utah General Fund, called the Factory Built Housing Fees Account. The account will fund further industry education and enforcement of the Licensing Act and the Factory Built Housing and Modular Units Administration Act.