What is a Manufactured Housing Broker or Retailer Bond?
The Texas Department of Housing and Community Affairs (TDHCA) regulates the manufactured housing profession in the state.
TDHCA requires all manufactured housing brokers and retailers to receive sufficient bonding. Obtaining a license to sell manufactured homes or participate in the market as a broker between buyers and sellers remains contingent on this bond.
Bonds also help protect your clients and can act as a powerful marketing boost, given the dependability they signal to your clients.
How Do Manufactured Housing Broker or Retailer Bonds Work?
TDHCA requires brokers and retailers to go through the bonding process to ensure that any violations of ethics or regulations will result in compensation for the affected party.
Both brokers and retailers must obtain a $50,000 bond.
In this case, the obligee would receive payment for successful claims against the bond. The surety company would then satisfy this payment and pursue the principal for repayment.
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TMD Surety Bonds can help you determine which type and amount of bonding makes sense for your manufactured housing business.
The $50,000 bond requirement imposed by the TDHCA on brokers and retailers does not mean that these businesses must hold $50,000 in cash.
Instead, brokers and retailers will pay an annual fee, usually just a few percentage points of the $50,000 amount.
The cost of the bond starts at $500 however the exact cost depends on the broker’s personal credit score and history of ethical violations.
The $50,000 bond requirement imposed by the TDHCA on brokers and retailers does not mean that these businesses must hold $50,000 in cash.
Instead, brokers and retailers will pay an annual fee, usually just a few percentage points of the $50,000 amount.
The cost of the bond starts at $500 however the exact cost depends on the broker’s personal credit score and history of ethical violations.
The Texas Manufactured Housing Association (TMHA) monitors the market for manufactured housing in the state.
According to TMHA, retail sales continue to grow in the state of Texas. Both singles and multis saw growth in 2022 over 2021, particularly for November 2022 sales.
Used sales of single manufactured homes also grew in 2022 over 2021 in the month of November.
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Frequently Asked Questions
There are hundreds of different bonds for all kinds of purposes—but regardless the industry or project—they all operate essentially the same way. A surety bond guarantees that you will operate professionally and if you break the rules, a claim can be made on your bond which you’re responsible to pay.
It’s a guarantee that you will complete the work and fulfill your contractual obligations. Think of it as insurance for the public, not your business.
The entity requiring the bond (the obligee) will determine whether a bond is required. Bond requirements vary greatly by your occupation and location. However, fidelity bonds are insurance and are usually optional to obtain.
For most bonds, you can get instantly approved and print bonds at your home or office. However, we do not offer instant approvals for a select number of bonds, as the underwriting process generally involves a more extensive review of the applicant.
It’s a legally binding contract that you must sign to obtain a surety bond. The agreement guarantees that if you cause bond claims you will pay them in full.
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The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!