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CHAPTER 327B. MANUFACTURED HOME SALES

Table of Sections
SectionHeadnote
327B.01DEFINITIONS.
327B.02WARRANTIES.
327B.03WARRANTIES; DURATION, HONORING.
327B.04MANUFACTURERS AND DEALERS; LICENSES; BONDS.
327B.042327B.042 NOTICE TO COMMISSIONER.
327B.05DENIAL, SUSPENSION AND REVOCATION OF LICENSES.
327B.06DEALER'S RECORDS.
327B.07RESPONSIBILITY OF DEALERS.
327B.08DUTIES.
327B.09PROHIBITIONS.
327B.10327B.10 RULEMAKING AUTHORITY.
327B.11RECOURSE TO THE BOND.
327B.12ADDITIONAL REMEDIES AND ENFORCEMENT.
327B.01 DEFINITIONS.
    Subdivision 1. Terms. As used in sections 327B.01 to 327B.12 the terms defined in this
section have the meanings given them.
    Subd. 2. Affiliate. "Affiliate" of another person means any person directly or indirectly
controlling, controlled by, or under common control with the other person.
    Subd. 3. Broker. "Broker" means any person who:
(a) for another and for commission, fee or other valuable consideration or with the intention
or expectation of receiving the same directly or indirectly lists, sells, exchanges, buys or rents,
manages, or offers or attempts to negotiate a sale, option, exchange, purchase or rental of an
interest in a manufactured home or advertises or holds out as engaged in such activities;
(b) for another and for commission, fee or other valuable consideration or with the intention
or expectation of receiving the same directly or indirectly negotiates or offers or attempts to
negotiate a loan, secured or to be secured by a security interest in or other encumbrance on
a manufactured home; or
(c) engages in the business of charging an advance fee or contracting for collection of a
fee in connection with any contract to undertake to promote the sale of a manufactured home
through its listing in a publication issued primarily for the purpose of promoting the sale of
manufactured homes or real estate.
    Subd. 4. Commissioner. "Commissioner" means the commissioner of labor and industry.
    Subd. 5. Consumer customer. "Consumer customer" means any individual who, primarily
for personal, household or family purposes, buys, sells, or seeks to buy or sell, a manufactured
home from, to or through a dealer or manufacturer.
    Subd. 6. Controlling shareholder. "Controlling shareholder" means a shareholder whose
legal, equitable and beneficial holdings, and whose family's such holdings, in a dealership amount
to more than ten percent of the outstanding shares.
    Subd. 7. Dealer or retailer. "Dealer" or "retailer" means any person who engages in the
business, either exclusively or in addition to any other occupation, of selling or brokering
manufactured homes, new or used, or who offers to sell, solicit, broker or advertise the sale of
manufactured homes, new or used.
    Subd. 8. Express warranty. "Express warranty" means a warranty as defined by section
336.2-313.
    Subd. 9. Implied warranty of fitness for particular purpose. "Implied warranty of fitness
for particular purpose" means a warranty as defined by section 336.2-315.
    Subd. 10. Implied warranty of merchantability. "Implied warranty of merchantability"
means a warranty as defined by section 336.2-314.
    Subd. 10a. Individual. "Individual" means a human being.
    Subd. 11. In park sale. "In park sale" has the meaning specified in section 327C.01,
subdivision 2
.
    Subd. 11a. Licensee. "Licensee" means a person who is licensed as a dealer, limited dealer,
or manufacturer by the Department of Labor and Industry.
    Subd. 11b. Limited dealer or limited retailer. "Limited dealer" or "limited retailer" means
any person who is an owner of a manufactured home park authorized, as principal only, to engage
in the sale, offering for sale, soliciting, or advertising the sale of used manufactured homes
located in the owned manufactured home park, who is the title holder and engages in no more
than ten sales annually.
    Subd. 12. Manufacturer. "Manufacturer" means any person who manufactures, assembles
or produces manufactured homes.
    Subd. 13. Manufactured home. "Manufactured home" means a structure, not affixed to or
part of real estate, transportable in one or more sections, which in the traveling mode, is eight
body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or
more square feet, and which is built on a permanent chassis and designed to be used as a dwelling
with or without a permanent foundation when connected to the required utilities, and includes the
plumbing, heating, air conditioning, and electrical systems contained in it.
    Subd. 14. Manufactured home park. "Manufactured home park" has the meaning specified
in section 327C.01, subdivision 5.
    Subd. 14a. Manufacturing facility. "Manufacturing facility" means the physical site where
a manufacturer engages in the business of manufacture, assembly, or production of manufactured
homes.
    Subd. 15. Net listing agreement. "Net listing agreement" means any agreement by any
dealer to sell, offer for sale, solicit, broker or advertise the sale of a manufactured home on behalf
of any person which provides for the dealer to receive any consideration from any person other
than a commission based on a single percentage of the price at which the home is actually sold.
    Subd. 16. New manufactured home. "New manufactured home" means a manufactured
home which is purchased for the first time other than for purposes of resale.
    Subd. 16a. Owner. "Owner" means any person holding title to a manufactured home park or
manufactured homes.
    Subd. 17. Person. "Person" means any individual, limited liability company, corporation,
firm, partnership, incorporated and unincorporated association, sole proprietorship, joint stock
company, or any other legal or commercial entity.
    Subd. 18. Sale. "Sale" means:
(a) the passing of title from one person to another for consideration; or
(b) any agreement to sell under which possession is delivered to the buyer but title is retained
in the seller; or
(c) any agreement in the form of a bailment or lease of goods if the bailee or lessee agrees to
pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value
of the goods involved and it is agreed that the bailee or lessee will become, or for no other than a
nominal consideration has the option to become, the owner of the goods upon full compliance
with the bailee's or lessee's obligations under the agreement; or
(d) any legally binding executory agreement to make a sale.
    Subd. 19. Salesperson. "Salesperson" means a person who acts on behalf of a dealer in
performing any act which sections 327B.01 to 327B.12 authorize or require to be performed
by a dealer.
    Subd. 20. Trust account. "Trust account" means a demand deposit, share draft or checking
account maintained for the purpose of segregating trust funds from other funds.
    Subd. 21. Trust funds. "Trust funds" means funds received by a broker in a fiduciary capacity
as a part of a manufactured home sale transaction, pending the consummation or termination of a
transaction, and includes all down payments, earnest money deposits, rents for clients, tax and
insurance escrow payments, damage deposits, and any funds received on behalf of any person.
History: 1982 c 526 art 1 s 1; 1983 c 142 s 1,2; 1983 c 216 art 1 s 52,53; 1986 c 444; 2007
c 140 art 4 s 42-50
327B.02 WARRANTIES.
    Subdivision 1. Implied warranties. Every sale of a new manufactured home in this state
is made with an implied warranty that the manufactured home conforms in all material aspects
to applicable federal or state laws and regulations establishing standards of safety or quality,
and with implied warranties of merchantability and fitness for particular purpose as permanent
housing in the climate of this state.
    Subd. 2. Express warranties permitted. This section does not prohibit a manufacturer or
dealer from making express warranties with respect to a manufactured home, but a manufacturer
or dealer may not limit, modify or disclaim the warranties implied by subdivision 1.
    Subd. 3. Limitations void. Any attempt to exclude, limit or modify any rights or remedies
created by the warranties implied by this section is void.
History: 1982 c 526 art 1 s 2
327B.03 WARRANTIES; DURATION, HONORING.
    Subdivision 1. Duration. The warranties implied by section 327B.02 shall run for a period
of one year from the date of delivery of the manufactured home to the consumer customer.
    Subd. 2. Notice and cooperation by buyer. To invoke either a warranty implied by section
327B.02 or an express warranty made by the manufacturer the buyer must notify the dealer and
the manufacturer within a reasonable time after discovering the breach and not later than 90
days after the expiration of the warranty. To invoke an express warranty made by the dealer, the
buyer must notify the dealer within a reasonable time after discovering the breach and not later
than 90 days after the expiration of the warranty. After giving the notice the buyer must allow
reasonable opportunity for the service or repair.
    Subd. 3. Responsibility to honor. The manufacturer and dealer, jointly and severally, shall
service or repair a manufactured home at its site within a reasonable time after receiving written
notice of breach of either a warranty implied by section 327B.02 or an express warranty made
by the manufacturer. The dealer shall service or repair a manufactured home at its site within a
reasonable time after receiving written notice of breach of an express warranty made by the dealer.
History: 1982 c 526 art 1 s 3
327B.04 MANUFACTURERS AND DEALERS; LICENSES; BONDS.
    Subdivision 1. License, bond, and liability insurance required. No person shall act as
a dealer in manufactured homes, new or used, without a license, a surety bond, and liability
insurance as provided in this section. No person shall manufacture manufactured homes without a
license for each manufacturing facility shipping into or located within Minnesota's boundaries,
a surety bond, and liability insurance as provided in this section. The licensing and bonding
requirements of this section do not apply to any bank, savings bank, savings association, or credit
union, chartered by either this state or the federal government, which acts as a dealer only by
repossessing manufactured homes and then offering the homes for resale.
    Subd. 2. Subagency licenses. Any dealer who has a place of business at more than one
location shall designate one location as its principal place of business, one name as its principal
name, and all other established places of business as subagencies. A subagency license shall
be required for each subagency. No dealer shall do business as a dealer under any other name
than the name on its license.
    Subd. 3. License application. Application for a license and its renewal shall be made to
the commissioner, shall be in writing, and duly verified by oath. The applicant shall submit any
information required by the commissioner, upon forms provided by the commissioner for that
purpose, including:
(a) proof of identity;
(b) the name under which the applicant will be licensed and do business in this state;
(c) the applicant's type and place of business;
(d) The name, home and business address of the applicant's directors, officers, limited and
general partners, controlling shareholders and affiliates;
(e) whether the applicant, or any of its directors, officers, limited or general partners,
controlling shareholders or affiliates, has been convicted of a crime within the previous ten years
that either related directly to the business for which the license is sought or involved fraud,
misrepresentation or misuse of funds, or has suffered a judgment in a civil action involving fraud,
misrepresentation, or conversion within the previous five years or has had any government license
or permit suspended or revoked as a result of an action brought by a federal or state governmental
agency in this or any other state within the last five years; and
(f) the applicant's qualifications and business history, including whether the applicant, or
any of its directors, officers, limited or general partners, controlling shareholders or affiliates has
ever been adjudged bankrupt or insolvent, or has any unsatisfied court judgments outstanding
against it or them.
    Subd. 4. License prerequisites. No application shall be granted nor license issued until
the applicant proves to the commissioner that:
    (a) the applicant has a permanent, established place of business at each licensed location. An
"established place of business" means a permanent enclosed building other than a residence, or
a commercial office space, either owned by the applicant or leased by the applicant for a term
of at least one year, located in an area where zoning regulations allow commercial activity, and
where the books, records and files necessary to conduct the business are kept and maintained.
The owner of a licensed manufactured home park who resides in or adjacent to the park may use
the residence as the established place of business required by this subdivision, unless prohibited
by local zoning ordinance.
    If a license is granted, the licensee may use unimproved lots and premises for sale, storage,
and display of manufactured homes, if the licensee first notifies the commissioner in writing;
    (b) if the applicant desires to sell, solicit or advertise the sale of new manufactured homes, it
has a bona fide contract or franchise in effect with a manufacturer or distributor of the new
manufactured home it proposes to deal in;
    (c) the applicant has secured: (1) a surety bond in the amount of $20,000 for the agency
and each subagency location that bears the applicant's name and the name under which the
applicant will be licensed and do business in this state. Each bond is for the protection of
consumer customers, and must be executed by the applicant as principal and issued by a surety
company admitted to do business in this state. Each bond shall be exclusively for the purpose
of reimbursing consumer customers and shall be conditioned upon the faithful compliance by
the applicant with all of the laws and rules of this state pertaining to the applicant's business
as a dealer or manufacturer, including sections 325D.44, 325F.67 and 325F.69, and upon the
applicant's faithful performance of all its legal obligations to consumer customers; and (2) a
certificate of liability insurance in the amount of $1,000,000 that provides coverage for the agency
and each subagency location;
    (d) the applicant has established a trust account as required by section 327B.08, subdivision
3
, unless the applicant states in writing its intention to limit its business to selling, offering for
sale, soliciting or advertising the sale of new manufactured homes; and
    (e) the applicant has provided evidence of having had at least two years' prior experience in
the sale of manufactured homes, working for a licensed dealer.
    Subd. 5. Exemption for real estate brokers and salespeople. Any person licensed as a real
estate broker or salesperson under chapter 82 who brokers the sale of used manufactured homes is
not required to obtain a license or a bond as required by this section, but is subject to all other
provisions of sections 327B.01 to 327B.12. Any real estate broker or salesperson who violates
a provision of sections 327B.06 to 327B.09 in selling or offering for sale a used manufactured
home shall be deemed to have violated a provision of chapter 82.
    Subd. 6. Certificate of license. For each license granted the commissioner shall issue a
certificate which includes the name of the licensee, the name of the surety company and the
amount of the surety bond, and the insurance underwriter and policy number, the names and
addresses of any related principal or subagencies, and a license number.
    Subd. 7. Fees; licenses; when granted. Each application for a license or license renewal
must be accompanied by a fee in an amount established by the commissioner by rule pursuant
to section 327B.10. The fees shall be set in an amount which over the fiscal biennium will
produce revenues approximately equal to the expenses which the commissioner expects to incur
during that fiscal biennium while administering and enforcing sections 327B.01 to 327B.12. The
commissioner shall grant or deny a license application or a renewal application within 60 days
of its filing. If the license is granted, the commissioner shall license the applicant as a dealer
or manufacturer for the remainder of the calendar year. Upon application by the licensee, the
commissioner shall renew the license for a two year period, if:
    (a) the renewal application satisfies the requirements of subdivisions 3 and 4;
    (b) the renewal applicant has made all listings, registrations, notices and reports required by
the commissioner during the preceding year; and
    (c) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to 327B.12 and
all taxes, arrearages, and penalties owed to the state.
    Subd. 8. Limited dealer's license. The commissioner shall issue a limited dealer's license to
an owner of a manufactured home park authorizing the licensee as principal only to engage in the
sale, offering for sale, soliciting, or advertising the sale of used manufactured homes located in
the owned manufactured home park. The licensee must be the title holder of the homes and may
engage in no more than ten sales annually. An owner may, upon payment of the applicable fee
and compliance with this subdivision, obtain a separate license for each owned manufactured
home park and is entitled to sell up to ten homes per license provided that only one limited dealer
license may be issued for each park. The license shall be issued after:
    (1) receipt of an application on forms provided by the commissioner containing the following
information:
    (i) the identity of the applicant;
    (ii) the name under which the applicant will be licensed and do business in this state;
    (iii) the name and address of the owned manufactured home park, including a copy of the
park license, serving as the basis for the issuance of the license;
    (iv) the name, home, and business address of the applicant;
    (v) the name, address, and telephone number of one individual that is designated by the
applicant to receive all communications and cooperate with all inspections and investigations
of the commissioner pertaining to the sale of manufactured homes in the manufactured home
park owned by the applicant;
    (vi) whether the applicant or its designated individual has been convicted of a crime within
the previous ten years that is either related directly to the business for which the license is sought
or involved fraud, misrepresentation or misuse of funds, or has suffered a judgment in a civil
action involving fraud, misrepresentation, or conversion within the previous five years or has
had any government license or permit suspended or revoked as a result of an action brought by a
federal or state governmental agency in this or any other state within the last five years; and
    (vii) the applicant's qualifications and business history, including whether the applicant or
its designated individual has ever been adjudged bankrupt or insolvent, or has any unsatisfied
court judgments outstanding against it or them;
    (2) payment of a $100 annual fee; and
    (3) provision of a surety bond in the amount of $5,000. A separate surety bond must be
provided for each limited license.
    The applicant need not comply with section 327B.04, subdivision 4, paragraph (e). The
holding of a limited dealer's license does not satisfy the requirement contained in section 327B.04,
subdivision 4
, paragraph (e), for the licensee or salespersons with respect to obtaining a dealer
license. The commissioner may, upon application for a renewal of a license, require only a
verification that copies of sales documents have been retained and payment of a $100 renewal
fee. "Sales documents" mean only the safety feature disclosure form defined in section 327C.07,
subdivision 3a
, title of the home, financing agreements, and purchase agreements.
    The license holder shall, upon request of the commissioner, make available for inspection
during business hours sales documents required to be retained under this subdivision.
    Subd. 8a. Service. Service of a document on a limited dealer licensed under this section may
be effected by mail to or by personal service on: (1) the licensee at the licensee's last known
address; or (2) the individual designated by the licensee at that individual's last known address.
History: 1982 c 526 art 1 s 4; 1983 c 142 s 3; 1983 c 216 art 1 s 54; 1986 c 444; 1995 c 202
art 2 s 28; 1997 c 202 art 2 s 44; 1998 c 280 s 1; 2000 c 352 s 1; 2007 c 135 art 8 s 5; 2007
c 140 art 4 s 51-56
327B.042 NOTICE TO COMMISSIONER.
    Subdivision 1. Notification. A person licensed as a dealer, limited dealer, or manufacturer
shall notify the commissioner of the occurrence of any of the events in subdivisions 2 to 5.
    Subd. 2. Change in application information. A licensee shall notify the commissioner
in writing within ten days of the change of any change in information contained in the most
recent license application on file with the commissioner, which shall include any change in
the information pertaining to the individual designated under section 327B.04, subdivision 8,
clause (1), item (vi).
    Subd. 3. Civil judgment. A licensee shall notify the commissioner in writing within ten
days of any decision of a court regarding a proceeding in which the licensee was named as
a defendant, and in which fraud, misrepresentation, or the conversion of funds was found to
have been committed by the licensee.
    Subd. 4. Disciplinary action in another state. A licensee shall notify the commissioner in
writing within ten days of the condition, reprimand, censure, limitation, suspension, or revocation
of any other professional or occupational license, registration, permit, or certificate held by the
licensee in this or any other state, or any other United States jurisdiction.
    Subd. 5. Criminal offense. A licensee shall notify the commissioner in writing within
ten days if the licensee is found guilty of a felony, gross misdemeanor, misdemeanor, or any
comparable offense related to manufactured home sales, improper business practices, fraud,
misrepresentation, misuse of funds, or violation of the consumer laws in this or any other state, or
any other United States jurisdiction.
History: 2007 c 140 art 4 s 57
327B.05 DENIAL, SUSPENSION AND REVOCATION OF LICENSES.
    Subdivision 1. Grounds. In addition to the grounds in section 326B.082, subdivision 11, the
commissioner may by order deny, suspend, limit, place conditions on, or revoke the application or
license of any applicant or licensee or any of its directors, officers, limited or general partners,
controlling shareholders, or affiliates for any of the following grounds:
    (a) has violated any of the provisions of sections 327B.01 to 327B.12 or any rule or order
issued by the commissioner or any prior law providing for the licensing of manufactured home
dealers or manufacturers;
    (b) has had a previous manufacturer or dealer license revoked in this or any other state;
    (c) has engaged in acts or omissions which have been adjudicated or amount to a violation of
any of the provisions of section 325D.44, 325F.67 or 325F.69;
    (d) has sold or brokered the sale of a home containing a material violation of sections 327.31
to 327.35 about which the dealer knew or which should have been obvious to a reasonably
prudent dealer;
    (e) has failed to make or provide all listings, notices and reports required by the
commissioner;
    (f) has failed to pay a civil penalty assessed under subdivision 5 within ten days after the
assessment becomes final;
    (g) has failed to pay to the commissioner or other responsible government agency all taxes,
fees and arrearages due;
    (h) has failed to duly apply for license renewal;
    (i) has violated any applicable manufactured home building or safety code;
    (j) has failed or refused to honor any express or implied warranty as provided in section
327B.03;
    (k) has failed to continuously occupy a permanent, established place of business licensed
under section 327B.04;
    (l) has, without first notifying the commissioner, sold a new and unused manufactured
home other than the make of manufactured home described in a franchise or contract filed with
the application for license or license renewal;
    (m) has wrongfully failed to deliver a certificate of title to a person entitled to it;
    (n) is insolvent or bankrupt;
    (o) holds an impaired or canceled bond;
    (p) has failed to notify the commissioner of bankruptcy proceedings within ten days after a
petition in bankruptcy has been filed by or against the dealer or manufacturer;
    (q) has, within the previous ten years, been convicted of a crime that either related directly to
the business of the dealer or manufacturer or involved fraud, misrepresentation or misuse of funds;
    (r) has suffered a judgment within the previous five years in a civil action involving fraud,
misrepresentation or misuse of funds; or
    (s) has failed to reasonably supervise any employee or agent of the dealer or manufacturer,
resulting in injury or harm to the public.
    The commissioner may establish rules pursuant to section 327B.10 further specifying,
defining or establishing standards of conduct for manufactured home dealers and manufacturers.
    Subd. 2.[Repealed, 2007 c 140 art 13 s 3]
    Subd. 3.[Repealed, 2007 c 140 art 13 s 3]
    Subd. 4.[Repealed, 2007 c 140 art 13 s 3]
    Subd. 5.[Repealed, 2007 c 140 art 13 s 3]
    Subd. 6.[Repealed, 2007 c 140 art 13 s 3]
History: 1982 c 526 art 1 s 5; 1983 c 142 s 4,6; 1983 c 216 art 1 s 55; 1983 c 247 s 133;
1986 c 444; 2007 c 140 art 4 s 58
327B.06 DEALER'S RECORDS.
    Subdivision 1. Retention. A dealer shall retain for three years copies of all listings, deposit
receipts, credit applications, contracts, disclosure forms, canceled checks, trust account records
and other documents reasonably related to carrying on the business of a dealer. The retention
period shall run from the date of the closing of the transaction or from the date of the listing if
the transaction is not consummated.
    Subd. 2. Examination of records. The commissioner may make examinations within or
without this state of each dealer's records at such reasonable time and in such scope as is necessary
to enforce the provisions of sections 327B.01 to 327B.12.
History: 1982 c 526 art 1 s 6
327B.07 RESPONSIBILITY OF DEALERS.
    Subdivision 1. Liability. Each dealer is responsible for the activities of any person employed
by or acting on behalf of that dealer when the activities occur in connection with the sale or
attempted sale of a manufactured home. Each corporation licensed as a dealer is responsible
for the activities of any person employed by or acting on behalf of the corporation when such
activities occur in connection with the sale or attempted sale of a manufactured home.
    Subd. 2. Salespeople. Every dealer shall report in writing to the commissioner the full name,
date of birth, business and home address of every salesperson employed by the dealer. Within
ten days of hiring, firing or otherwise changing the employment status of a salesperson, the
dealer shall notify the commissioner in writing. No salesperson shall work for more than one
dealer during the same time period.
History: 1982 c 526 art 1 s 7; 1983 c 142 s 7
327B.08 DUTIES.
    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
327B.09 PROHIBITIONS.
    Subdivision 1. License required. No person shall engage in the business, either exclusively
or in addition to any other occupation of manufacturing, selling, offering to sell, soliciting
or advertising the sale of manufactured homes, or act as a broker without being licensed as
a manufacturer or a dealer as provided in section 327B.04. Any person who manufactures,
sells, offers to sell, solicits or advertises the sale of manufactured homes, or acts as a broker in
violation of this subdivision shall nevertheless be subject to the duties, prohibitions and penalties
imposed by sections 327B.01 to 327B.12. This chapter does not prohibit either an individual from
reselling, without a license, a manufactured home which is or has been the individual's residence
or any bank, savings bank, savings association, or credit union, chartered by either this state or the
federal government, from reselling, without a license, a repossessed manufactured home.
    Subd. 2. Advertising. No person shall advertise as a manufactured home dealer, or as a
lister, broker or agent for the sale of manufactured homes, without being licensed as a dealer as
provided in section 327B.04.
    Subd. 3. Display of license. No person shall act as a dealer or manufacturer unless the
certificate authorizing that activity is prominently displayed on the business premises covered by
the license. Before moving to a new location from the established place of business occupied
when the license is granted, the licensee must first secure the commissioner's written permission.
To obtain that permission, the licensee must prove that the proposed new premises conform to the
requirements of section 327B.04, subdivision 4.
    Subd. 4. Net listing prohibited. No dealer shall use or offer to use a net listing agreement.
    Subd. 5. Broker or dealer arrangement of financing. A dealer who is acting as a broker
for the sale of a manufactured home and who can arrange financing for the sale may charge a
separate fee for that service, if:
(a) the listing agreement does not require that the seller or buyer use the dealer's services
to arrange financing;
(b) in arranging the financing, the dealer will pay a fee or will guarantee all or part of the
buyer's performance to a third person; and
(c) the listing agreement clearly and conspicuously discloses the amount of the fee, the fact
that the fee is in addition to the dealer's commission and the fact that the seller and buyer are not
required to use the dealer's services to arrange financing.
History: 1982 c 526 art 1 s 9; 1983 c 142 s 9; 1983 c 216 art 1 s 56; 1986 c 444; 1995 c
202 art 2 s 29
327B.10 RULEMAKING AUTHORITY.
    The commissioner may promulgate rules and issue orders reasonably necessary to implement
and administer the provisions of sections 327B.01 to 327B.12. The commissioner shall adopt
rules establishing and approving education programs for manufactured home installers. Each
manufactured home installer must satisfactorily complete the continuing education requirements
established by the commissioner in rule.
History: 1982 c 526 art 1 s 10; 2007 c 140 art 4 s 59
327B.11 RECOURSE TO THE BOND.
    Subdivision 1. Consumer claimants. Any consumer customer sustaining injuries within
the terms of a surety bond issued pursuant to section 327B.04 may proceed against the principal
and surety without making the state a party to the proceedings. Provided, however, that the
aggregate liability of the surety to all persons for all losses or damages shall in no event exceed
the amount of the bond.
    Subd. 2. Payment of claims; notice to commissioner. Before paying any claim against a
surety bond, the surety company must first notify the commissioner in writing of the amount of
the claim, the basis of the claim and the surety company's intention to pay the claim. Unless the
commissioner objects in writing within ten days of receiving the notice, the surety company may
proceed upon its intention. The commissioner's failure to object is not evidence of the validity
of the claim or of the propriety of paying the claim. The commissioner shall object only with
reasonable grounds to believe that paying the claim will reduce the obligation of the bond to an
amount less than the total amount of other outstanding and valid claims against the bond.
    Subd. 3. Application for a referee. Within 15 days of objecting to the payment of a claim,
the commissioner shall apply to the district court for an order:
(a) directing the surety company to pay the full obligation of the bond into court; and
(b) appointing a referee to hear claims against the bond and to propose to the court the proper
distribution of the bond proceeds.
The surety company and the principals on the bond shall be parties to the proceedings.
History: 1982 c 526 art 1 s 11; 1986 c 444
327B.12 ADDITIONAL REMEDIES AND ENFORCEMENT.
    Subdivision 1. Private remedies. Any person injured or threatened with injury by a dealer or
manufacturer's violation of sections 327B.01 to 327B.12 may bring a private action in any court
of competent jurisdiction.
    Subd. 2. Fraud remedies. In addition to the remedies provided in sections 327B.01
to 327B.12, any violation of section 327B.08 or 327B.09 is a violation of section 325F.69,
subdivision 1
and the provisions of section 8.31 shall apply.
History: 1982 c 526 art 1 s 12