Limited dealer licensing

Manufactured Structures Bulletin

To:

New Manufacturer

From:

Stephen P. Hernick
Assistant Director

Date:

June 21, 2000

Subject:

Limited Dealer Licensing

Minnesota Statute 327B, "Manufactured Home Sales", has had an addition and change to section 327B.04, subdivision 8. Minnesota has established a "Limited Dealer License", for manufactured home parks. In accordance with 327B.04, subd. 8, a manufactured home park that has obtained a Limited Dealer License, may sell no more than ten used manufactured homes, located in the manufactured home park and the homes must be titled to the licensee.

This letter shall serve as notice to all licensed and bonded manufacturers, selling new manufactured homes to dealers in Minnesota that:

1.	A "Licensed Dealer License", does not allow the "Limited Dealer" to sell new manufactured homes in Minnesota.
2.	A "Licensed Manufactured Home Dealer", may sell new manufactured homes in Minnesota if they have notified this division, on their application, of the intent to sell new manufactured homes and have provided the Department of Labor and Industry, Building Codes and Standards with a bona fide contract or franchise agreement in effect with the new manufactured home manufacturer.
3.	As per Minnesota Statutes 327B.02 and 327B.03, the manufacturer and dealer are jointly and severally required to honor the warranties. If the manufacturer of manufactured homes sells new manufactured homes to a "Licensed Manufactured Home Dealer", (that has not notified this Department of Labor and Industry, Building Codes and Standards on its application and has not provided a bona fide contract or franchise agreement), the manufacturer would be responsible for all service/warranty work.

Prior to issuing a bona fide contract or franchise agreement the manufacturer should verify that the "Licensed Manufactured Home Dealer" application allows for the sale of new manufactured homes. The manufacturer shall not issue bona fide contracts or franchise agreements to "Limited Dealer" in Minnesota. Please contact DLI Licensing verify license information for "Licensed Manufactured Home Dealers".

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