§ 41-4030.01 — Trust and escrow requirements for dealers that are also owners of mobile home parks; rules

Arizona § 41-4030.01

• Jurisdiction: Arizona
• Title 41: Arizona Revised Statutes
• Ch. 37: HOUSING
• Art. 4: Office of Administration

Text

A. The owner of a mobile home park that also is or that owns a dealership licensed pursuant to this article to sell units may sell a manufactured home, mobile home or a factory-built building designed for use as a residential dwelling as a licensee if all of the following apply:

1. The home will be sited in a mobile home park that is owned by the park owner.

2. At the time of the sale, the park owner has on file at the department the name and address of all mobile home parks owned by the park owner, the name, address and license number of the licensed dealership and documentation showing to the satisfaction of the department that the park owner either holds the license, owns a majority interest in the license or is controlled by an entity that holds a controlling interest in the license.

3. At the time of the sale, the licensed dealership has posted with the department a dealer bond in an amount of at least $150,000 in a form satisfactory to the department covering sales by parks sharing common control.

4. At the time of the sale, the dealer shall either maintain a licensee's trust account or open an escrow account with an independent financial institution or escrow agent located in this state. The licensee shall deposit all earnest monies received for the sale of manufactured homes, mobile homes or factory-built buildings designed for use as residential dwellings in the trust or escrow account. The department shall conduct an audit of each dealer's trust or escrow account, including any transactions with an independent escrow account, at least once every two years. The purchaser of the manufactured home, mobile home or factory-built building designed for use as a residential dwelling may make a written request that the dealer establish an independent escrow account and if such a request is received by the dealer no later than the time the purchase contract is signed and the seller consents, the dealer shall comply with the request. A licensee that handles a transaction under this paragraph shall 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 will otherwise be handled through a trust account controlled by the licensee.

B. For the purposes of this section, a financial institution or escrow agent is independent if the individual or entity is not controlled by the licensee, a family member of the licensee or a business affiliated with the licensee and the licensee, family member or business affiliate does not have a majority interest in the financial institution or escrow agent.