Section 305.323. Manufactured home dealer.

 

(1)   General. Under s. 101.951 (1) , Stats., no person may engage in the business of selling manufactured homes to a consumer or to the retail market unless the person holds a license issued by the department as a licensed manufactured home dealer. A branch license shall also be obtained for each branch operated by the licensed manufactured home dealer to sell homes.

(2)   Application for license. A person applying for a manufactured home dealer license shall submit all of the following:

(a) An application in accordance with s. SPS 305.01 .

(b) An application fee and a license fee in accordance with s. SPS 305.02 , Table 305.02.

(c) A license fee for each branch in accordance with s. SPS 305.02 , Table 305.02.

(d) One of the following forms of security:

1. `Surety bond.' A surety bond shall be filed on form SBD-10679 and issued by a bonding company licensed by this state. The surety bond shall be payable for the benefit of any person sustaining a loss because of an act of the licensee constituting grounds for the suspension or revocation of a license under s. 101.951 (6) , Stats.

2. `Financial statement.' A financial statement shall be filed on form SBD-10678 or the equivalent in accordance with generally accepted accounting principles and be dated not more than 90 days prior to the date of application. A small business, as defined in s. 227.114 (1) , Stats., that does no interim financial reporting may submit a financial statement from the close of the business's most recent fiscal year. Financial statements anticipating some future event shall not be accepted.

(3)   Qualifications.

(a) Minimum net worth or bond. The minimum level of net worth or surety bond of an applicant shall be determined in accordance with Table 305.323-1 for a non-broker or Table 305.323-2 for a broker. The department shall deny the license of any applicant who fails to meet the net worth or surety bond criteria specified in the tables. - See PDF for table - See PDF for table

(b) Person applying. The person applying for a manufactured home dealer license shall be the owner of the business, a partner in the business applying on behalf of a partnership, or the chairperson of the board or chief executive officer applying on behalf of the corporation.

(4)   Responsibilities. A person who holds a manufactured home dealer license shall post the license at the main business office and shall comply with the trade practices, facilities and records requirements specified in subs. (5) to (9) .

(5)   Advertising and sales representations.

(a) Truthful . The use of false, deceptive or misleading advertising or representations by any licensee to induce the purchase of a manufactured home is prohibited.

(b) Factual . Any licensee, making a statement of fact to the public in an advertisement, written statement or representation concerning the manufactured home offered for sale, the services provided or any other aspects of business operation, shall, upon request of the department, furnish evidence of the validity and accuracy of the statement of fact at the time it was made.

(c) Disclosures required when advertising price . When the price of a manufactured home is advertised by a licensee, the advertised price shall include all charges that shall be paid by the retail purchaser to acquire ownership of the advertised home with the exception of sales tax, title registration fees, government required permits, and charges from lenders or other entities.

(d) Name . Advertisements for manufactured home sales shall include the licensed business name.

(e) New or used . When advertising a manufactured home, a licensee shall state the model year of the home or whether the home is a new manufactured home or a used manufactured home. If the manufactured homes in an advertisement are either all new or all used, one reference in the advertisement designating that they are new or used is sufficient.

(f) Expiration terms of sales or promotions . Whenever a sale or promotion offering gifts, merchandise, equipment, accessories, service, discounts, price reductions or cash is advertised, the advertisement shall specifically disclose the expiration terms or date of the sale or promotion.

(g) Relocations . Whenever a licensee advertises a manufactured home on a rental lot site that may have to be moved as a condition of the sale, that fact shall be stated in the advertisement.

(6)   Purchase contract.

(a) Usage .

1. A licensee shall furnish retail purchasers with a manufactured home purchase contract that clearly states that the retail purchaser is making an offer to purchase a manufactured home. An exact copy of the purchase contract shall be provided to the retail purchaser at the time the retail purchaser signs the offer and again after the offer is accepted by the manufactured home dealer if accepted at a different time than accepted by the retail purchaser. Any changes in the purchase contract after signing by the retail purchaser or subsequent to acceptance by the manufactured home dealer shall be initialed by all the parties on all copies.

2. A manufactured home purchase contract shall be executed whenever the licensee accepts a down payment, deposit, or title for a trade-in unit from a prospective retail purchaser.

(b) Contract requirements. A manufactured home purchase contract shall be completed on form SBD-10807.

(c) Termination of offer to purchase .

1. Unless otherwise specified in the contract, the offer to purchase is automatically voided if the licensee fails to accept or reject the offer by the close of the manufactured home dealer's next business day.

2. The licensee shall not sell the manufactured home to any other person until the offer is rejected by the licensee or the offer is voided in accordance with this subsection, or the retail purchaser cancels the contract in accordance with par. (d) .

3. Any down payment, deposit or title shall be returned to the prospective retail purchaser within 2 working hours of the time the offer to purchase is rejected by the licensee. If the prospective retail purchaser is not present or available during the 2 hour period, those items shall be returned in person or mailed by the close of the manufactured home dealer's next business day.

(d) Cancellation of agreements .

1. The purchase contract shall clearly state that cancellation of a manufactured home contract within one business day of acceptance by a manufactured home dealer may subject the retail purchaser to a penalty of up to 1% of the cash price of the manufactured home and that cancellation after the close of the next business day may subject the retail purchaser to a penalty not to exceed the penalty amount specified in the contract. Modification of the purchase contract shall not extend the cancellation period. Documented proof of notification of cancellation is required regardless of the method of notification.

2. The title and any down payment or deposit which is not retained by the manufactured home dealer as a penalty in accordance with subd. 1. shall be returned to the retail purchaser by the close of the manufactured home dealer's next business day following receipt of the retail purchaser's notice of cancellation.

3. Whenever a manufactured home is sold away from the licensed place of business, the manufactured home dealer shall furnish the customer with a written notice of the 3-day consumer cancellation rights in accordance with s. 423.202 , Stats.

(e) Price changes . Any increase in price to a retail purchaser after the manufactured home dealer has accepted an offer is prohibited except when the price increase is due to any of the following:

1. The addition of new equipment required by local, state or federal law.

2. Local, state or federal tax changes.

3. The reappraisal of a trade-in unit that has suffered damage or is missing furnishings, appliances or accessories that were part of the trade-in unit at the time the purchase contract was executed. Reappraisal by the licensee shall be limited to an amount equal to the retail repair costs of the damage incurred, or to the value of furnishings, appliances or accessories removed.

(f) Contract notice. The purchase contract shall include information regarding possible price increases due to any of the items in par. (e) 1. to 3.

(g) Warranties. Warranties and disclosures shall be provided in accordance with s. 101.953 , Stats.

(h) Name of prior owner . The purchase contract shall include the name and address of the current titled owner if the manufactured home is consigned to or listed by the licensee. The name and address of the previous owner shall be kept on file at the manufactured home dealer's main business office if the manufactured home is owned and offered for sale by the licensee.

(i) On-site sales . If the manufactured home is displayed for sale on a rental lot site or if a licensee represents that a manufactured home may occupy a site in a specified manufactured home community, the manufactured home dealer shall do all of the following:

1. Clearly state on the purchase contract whether or not the manufactured home may have to be moved from the site.

2. Clearly state on the purchase contract that the contract is voidable by the retail purchaser if the retail purchaser is rejected by, or the purchaser's manufactured home is not permitted in, the manufactured home community.

3. If the manufactured home may remain on site, inform the prospective retail purchaser in writing prior to the execution of the contract that a copy of the current manufactured home community lease and rules may be obtained from the current manufactured home owner or manufactured home community operator.

(j) Service fees . A licensee shall not assess a retail purchaser an additional service charge or fee for completing any sales-related home inspection forms that are required by law or rule.

(k) Waiver . The use of a manufactured home purchase contract that requires the retail purchaser to waive any claims the retail purchaser may have for breach of contract by the licensee is prohibited.

(7)   Consignment and listing agreements.

(a) Usage and contents .

1. Form SBD-10808 shall be used whenever a manufactured home dealer lists or offers to sell a used manufactured home on consignment.

2. Form SBD-10807 shall be used whenever a manufactured home dealer sells a listed or consigned used manufactured home.

(b) On-site sales on rental sites . Manufactured homes selling agreements for units offered for sale on-site on rental sites shall comply with sub. (6) (i) .

(c) Net sales prohibited . Licensees shall not obtain, negotiate, or attempt to negotiate any manufactured home selling agreement providing for a stipulated net price to the owner with the excess over the stipulated net price to be received by the licensee as commission.

(8)   Disclosure of the conditions of the manufactured home.

(a) Model year designation . Changing the model year of a manufactured home is prohibited. If no model year is designated, the year of manufacture applies.

(b) New manufactured home disclosure . The licensee shall, on the face of the new manufactured home purchase contract, disclose all manufactured home dealer installed options or accessories and whether or not the options or accessories are warranted.

(c) Used manufactured home general condition disclosure .

1. Before the execution of a purchase contract for a used manufactured home owned by a licensee, the licensee shall inform a prospective retail purchaser of all significant structural or mechanical defects or damage on form SBD-10809. If the licensee is unable to determine whether specific damage or defects exist, that fact shall be noted on the disclosure form. Disclosure of information shall include that which the licensee discovers as a result of a reasonably competent and diligent inspection which shall consist of, but is not limited to, a walk-around and interior inspection, an under-home inspection, roof inspection and inspection of the appliances. A reasonably competent and diligent inspection is not required to cover every possible technical detail. The licensee is not required to dismantle any part of the manufactured home during the inspection process.

2. The seller of a listed or consigned used manufactured home shall provide a completed form SBD-10809 to the licensee. The licensee shall provide the completed disclosure statement to the prospective retail purchaser.

3. Unless otherwise agreed to in the purchase contract, the inspection disclosures shall not create any warranties, expressed or implied, or affect warranty coverage provided for in the purchase contract.

(9)   Facilities and records.

(a) Business facilities . Manufactured home dealers shall provide and maintain business facilities that comply with all of the following:

1. A main business office that maintains books, records and files necessary to conduct business. The required business office may be established within a residence if the office is accessible to an outside entrance and is used primarily for conducting the manufactured home business.

2. A display lot within the same block or directly across the street from the main business office, if a display lot is provided.

3. A repair shop, or a service agreement with a nearby repair shop, where there are repair tools, repair equipment and personnel to perform the services provided for in a warranty applicable to a manufactured home sold by the manufactured home dealer. Any service agreement shall be on form SBD-10685.

(b) Relocation . A main business office may not be relocated without notice to the department.

(c) Sign . Manufactured home dealers who carry and display inventory shall provide an exterior business sign in compliance with s. 100.18 (5) , Stats.

(d) Temporary sales locations .

1. Manufactured home dealers shall be permitted to display and sell manufactured homes at a temporary site other than the licensed place of business.

2. A temporary sales location may not be used for longer than 30 days.

3. A consigned, listed or model manufactured home shall not be considered a temporary sales location.

(e) Records kept . The books, records and files required to be kept and maintained at the main business office by a manufactured home dealer shall include all of the following:

1. A written verification that the manufactured home dealer has in place a dealership arrangement or an established relationship with a manufacturer to sell and advertise the manufacturer's new manufactured homes.

2. The title or other evidence of ownership for each used manufactured home owned and offered for sale and the manufacturer's statement of origin information for each new manufactured home owned and offered for sale. The manufactured home dealer shall also have a factory invoice, a completed manufactured home dealer reassignment form or a purchase contract evidencing trade-in or purchase when a manufacturer or lending institution is holding the title or manufacturer's statement of origin of the manufactured home.

3. A written selling agreement between the owner and the manufactured home dealer for each manufactured home owned by an individual and offered for sale or listed by the manufactured home dealer.

4. The original or a copy of all manufactured home purchase contracts, purchase orders and invoices. The records shall also include a copy of form SBD-10687 as additional evidence of the sale as well as information regarding collection of sales tax and Wisconsin title and registration fees, if applicable.

5. A record of every manufactured home bought, sold, exchanged, consigned, or listed that includes the following information: date acquired, acquired from name and address, new or used, year, model and identification number, date sold or disposed of, disposed of or sold to name and address.

(f) Maintenance of records. The records under par. (e) shall be maintained for 5 years. The records shall be open to inspection and copying by the department during reasonable business hours.

(10)   Renewal.

(a)

1. A person may renew his or her manufactured home dealer license.

2. A manufactured home dealer license shall be renewed in accordance with s. SPS 305.07 .

(b) The renewal of a license as a manufactured home dealer shall be contingent upon the applicant providing the information required under sub. (2) (d) .

CR 04-134 : cr. Register June 2005 No. 594 , eff. 7-1-05; CR 06-031 : am. (1) Register October 2006 No. 610 , eff. 11-1-06; CR 06-071 : r. and recr. (6) (f), am. (6) (h) Register November 2006 No. 611 , eff. 12-1-06; CR 11-020 : am. (6) (e) (intro.), (i) (intro.), (7) (b), renum. (6) (e) 4., (f) to (g) to be (6) (f), (g) to (k), Register December 2011 No. 672 , eff. 1-1-12; correction in (2) (a), (b), (c), (3) (a), (10) (a) 2. made under s. 13.92 (4) (b) 7. , Stats., Register December 2011 No. 672 .

Note

See Department of Agricultural, Trade and Consumer Protection rules under section ATCP 125.02 regarding tie-in sales; separate or discriminatory charges. Microsoft Windows NT 6.1.7601 Service Pack 1 See appendix for a reprint of section 101.953 , Stats. Microsoft Windows NT 6.1.7601 Service Pack 1 There may be zoning, building code and permit requirements relating to business locations that are enforced by local municipalities. Microsoft Windows NT 6.1.7601 Service Pack 1