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OCCUPATIONAL LICENSING - REGULATIONS
to the benefits, advantages, and/or disadvantages to the owner or seller.
(g) Knowingly underestimate the probable closing costs in a transaction in a communication to the prospective
purchaser or seller of a MH-Unit or commercial modular in order to induce that person to make or to accept an offer to
purchase the MH-Unit or commercial modular.
(h) Fail to explain to the parties or prospective parties to a transaction the meaning and probable significance of a
contingency in an offer or contract that the licensee knows or reasonably believes may affect the closing date of the
transaction, or the timing of the vacating of the MH-Unit or commercial modular by the seller or its occupancy by the
purchaser.
(i) Knowingly make a false or misleading representation to the seller or purchaser of a MH-Unit or commercial
modular as to the form, amount and/or treatment of a deposit toward purchase.
(j) Refund all or part of an offeror's purchase money deposit in a MH-Unit or commercial modular sales transaction
after the registered owner has accepted the offer to purchase, unless the licensee has the express permission of the
registered owner to make the refund.
(k) Fail to disclose the registered owner of a MH-Unit or commercial modular the nature and extent of any direct or
indirect ownership interest or security interest that the licensee expects to acquire as a result of the sale. The
prospective purchase of the MH-Unit or commercial modular by a person related to the licensee by blood or marriage,
by an entity in which the licensee has an ownership interest, or by any other person with whom the licensee occupies a
special relationship shall be disclosed.
(l) Represent, without a reasonable basis, the nature and/or condition of the interior or exterior features or
accessories of a MH-Unit or commercial modular when soliciting an offer.
(m) Represent, without a reasonable basis, in the case of the MH-Unit located in a mobilehome park, any
characteristics of the mobilehome park or its operation, when soliciting an offer.
(n) Fail to respond to reasonable inquiries of a seller as to the status or extent of efforts to market the
MH-Unit or commercial modular listed exclusively with the licensee.
(o) Fail to disclose to a potential purchaser when discussing the purchase of a MH-Unit or commercial modular, the
existence of any direct or indirect ownership interest or security interest of the licensee in the
MH-Unit or commercial modular.
(p) Fail to disclose to a prospective purchaser of a used MH-Unit that it may become subject to the age limitations as
specified in Section 798.73 of the Civil Code within three (3) years from the date of sale to the prospective purchaser.
Article 6. Purchase Documents and Escrow
§ 5060. Escrow Required
(a) Concurrent with a dealer's receipt of any cash or cash equivalent from a purchaser at any time prior to delivery of
a new or used MH-Unit subject to registration, the dealer shall execute a mutually-endorsed receipt for deposit and
purchase document. Within five (5) working days of receipt of deposit, the dealer must establish with an escrow agent
an escrow account into which all cash or cash equivalents shall be deposited. The escrow shall not be established with
an escrow agent or agency in which the dealer has more than five (5) percent ownership interest.
(b) Upon the purchaser's signing of the receipt for deposit and purchase document, the dealer shall provide the
purchaser with a copy of each document, which must be mutually-endorsed.
(c) Upon establishment of the escrow account, the dealer shall provide the escrow agent, in writing, with the
information required for the preparation of escrow instructions.
(d) These regulations do not imply, nor shall they be interpreted to require, that a recorded certificate of title or junior
lienholder registration card(s) be delivered to the purchaser through escrow as a condition of escrow. These regulations
shall, however, provide that a release of any prior rights, title, or interest in a MH-Unit being purchased or traded in as
payment toward the MH-Unit being purchased, held by the registered owner(s), legal owner, flooring lender shown on or
in possession of a manufacturer's certificate of origin and junior lienholder(s) be obtained as a condition of escrow. In
the event that the dealer owns the MH-Unit and it has no liens, the dealer shall deliver into escrow either the
certificate(s) of title or the manufacturer's certificate of origin, whichever is available.
(e) If the sale is subject to Section 18035.26 of the Health and Safety Code, the escrow agent must be in receipt of
the signed Declaration of Delivery Sale document prior to preparing escrow instructions. The date the Declaration was
received by the escrow agent shall precede the date of preparation of escrow instructions.
§ 5061. Escrow Instructions
From the information provided by the dealer, the escrow agent shall prepare escrow instructions and any
amendments thereto for signing by both the dealer and purchaser. These escrow instructions may be signed in
counterpart. Both the dealer and the purchaser shall receive copies of the signed escrow instructions and any mutually
agreed amendments, with the originals or executed copies maintained by the escrow agent. The escrow instructions
shall contain, but are not limited to, the following:
(a) The names and addresses of both the dealer and the purchaser.
(b) The names and addresses of the registered owner(s), legal owner of, flooring lender, and any junior lienholder(s),
of the MH-Unit.
(c) The name, address and telephone number of the escrow agent.
(d) A description of the MH-Unit sold to the purchaser by the dealer which shall include, but not be limited to: the
manufacturer name; model name, if available; size (excluding any hitch or towbar); model year, and a statement that
prior to the close of escrow, the dealer shall provide the serial numbers of the MH-Unit and the control number(s) of
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