Texas Manufactured Housing Bond
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How much does a manufactured housing license bond cost in Texas?
The Texas Department of Housing and Community Affairs Division of Manufactured Housing requires manufacturers, retailers, brokers, and installers of manufactured homes to post surety bonds. The required bond amount is based on the type of business the applicant engages in.
Texas $25,000 installer bonds are issued instantly for $500. Retailer, broker, retailer/broker/installer, and manufacturer bonds are subject to underwriting, so the price you’ll pay for your bond depends on a review of your personal credit report, as well as on your required amount of bond coverage.
Why do I need this bond?
By posting a Texas manufactured housing bond, the principal (manufacturer, installer, retailer, broker, or rebuilder) pledges to comply with all terms of the Texas Manufactured Housing Standards Act and all rules and regulations set by the executive director of the Manufactured Housing Division. If the principal fails to conduct business lawfully and ethically, the bond will be used by the state to satisfy claims resulting from any violation by the licensee directly related to the construction, rebuilding, sale, lease-purchase, exchange, brokerage, or installation of a manufactured home.
What’s the fine print?
Manufactured housing bonds in Texas remain in full force and effect until canceled by the surety. The surety must provide written notice of cancellation to the Manufactured Housing Division office in Austin at least 60 days prior to the effective cancellation date.
How to acquire a manufactured housing license in Texas
The following Texas manufactured housing licenses are available:
- manufacturer — a person who constructs or assembles manufactured housing for sale, exchange, or lease purchase in the state
- retailer — a person who (A) is engaged in the business of buying for resale, selling, or exchanging manufactured homes or offering manufactured homes for sale, exchange, or lease-purchase to consumers, including a person who maintains a location for the display of manufactured homes and (B) sells, exchanges, or lease-purchases at least two manufactured homes to consumers in a 12-month period
- broker — a person engaged by one or more other persons to negotiate a bargain or contract for the sale, exchange, or lease-purchase of a manufactured home for which a certificate or document of title has been issued and is outstanding; the term does not include a person who maintains a location for the display of manufactured homes
- installer — a person, including a retailer or manufacturer, who contracts to perform or performs an installation function on manufactured housing
- salesperson — a person who, as an employee or agent of a retailer or broker, sells or lease-purchases or offers to sell or lease-purchase manufactured housing to a consumer for any form of compensation
To become licensed in Texas, applicants must:
- submit a completed license application
- post a surety bond in the proper amount
- provide a copy of Certificate of Attendance from class
- pay license/registration fee
- provide a copy of business name filing or Article of Incorporation
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