Subdivision 1. Disclosure required.
Prior to the consummation of the sale of any
manufactured home where a dealer acts as a broker, the dealer shall disclose in writing to all
parties to the transaction all charges, payments, commissions and other fees paid or payable in
connection with the transaction. Any commission charged by the dealer shall be expressed both
as a dollar amount and as a percentage of the sales price. If the home being sold is located in a
manufactured home park, prior to the buyer's signing of the purchase agreement the dealer shall
disclose in writing to the buyer the state law concerning the in park sale of manufactured homes.
This subdivision does not require any dealer to disclose any consideration received (1) for having
acted as an insurance agent, as defined in section
60A.02, subdivision 7
, in connection with the
transaction, or (2) in return for the dealer having agreed to any contingent liability in connection
with the financing of the sale. The commissioner may prescribe a form to be used to comply with
this subdivision and may require all dealers to use that form.
Subd. 2. Presence of parties at closing.
A dealer shall not prohibit, prevent or restrain
any party to the brokered sale of a manufactured home from being present at the closing. If a
dealer at a closing purports to have authority to act for one of the parties who is not present, the
dealer shall exhibit the document granting that authority and shall give a copy of that document
to the other parties.
Subd. 3. Trust account required.
Each dealer who acts as a broker shall maintain a trust
account. A trust account shall not be an interest bearing account except by agreement of the
parties and subject to rules of the commissioner.
Subd. 4. Segregation of funds.
A dealer shall deposit all trust funds received in a trust
account. A dealer shall not commingle personal funds or other funds with the funds in a trust
account, except that a dealer may deposit and maintain a sum from personal funds not to exceed
$100 in a trust account, which sum shall be specifically identified and used to pay service charges
relating to the trust account.
Subd. 5. Trust information required.
At the time of application for a license or renewal of
license, each dealer who acts or intends to act as a broker shall tell the commissioner the name of
the financial institutions and the trust account identification numbers used to comply with the
provisions of this section. A dealer shall immediately report to the commissioner any change of
trust account status including changes in financial institutions, account identification numbers, or
additional accounts in the same or another financial institution. No dealer may close an existing
trust account without giving ten days' written notice to the commissioner.
History: 1982 c 526 art 1 s 8; 1986 c 444