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| Minnesota – Manufactured Home Dealer ($20,000) Bond |  |
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Minnesota – Manufactured Home Dealer Subagency ($20,000) Bond
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| Minnesota – Manufactured Home Limited Dealer ($5,000) Bond | |
| Minnesota – Manufactured Home Installer ($2,500) Bond | |
Introduction
A manufactured home in Minnesota is a factory-built dwelling that meets federal construction and safety standards under the HUD Code and is designed for residential use. These homes are transported to a site and installed on a permanent or semi-permanent foundation. The Minnesota Department of Labor and Industry regulates the licensing and bonding of businesses involved in the sale, manufacture, installation, and brokering of manufactured homes to ensure consumer protection and compliance with Minnesota Statutes Chapter 327B.
Explanation: What is a Minnesota Manufactured Home Bond?
A Minnesota Manufactured Home Bond is a type of surety bond required by the Minnesota Department of Labor and Industry for individuals or businesses engaged in the sale, manufacture, or brokering of manufactured homes within the state. This bond ensures that licensed dealers, manufacturers, and brokers comply with state laws and regulations, particularly Minnesota Statutes Chapter 327B.
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Types of Manufactured Home Bonds in Minnesota
In Minnesota, certain types of manufactured home businesses are mandated to obtain surety bonds as part of their licensing requirements. These bonds serve to protect consumers by ensuring that businesses comply with state laws and fulfill their contractual obligations. The primary categories include:
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- Manufactured Home Dealers
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Who Needs It: Individuals or entities engaged in selling new or used manufactured homes.
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Bond Requirement: A surety bond of $20,000 is required.
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Purpose: To ensure dealers adhere to Minnesota laws and regulations, providing financial protection to consumers against fraudulent or unethical practices.
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- Manufactured Home Manufacturers
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Who Needs It: Businesses that produce manufactured homes within or ship them into Minnesota.
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Bond Requirement: A surety bond of $20,000 is required.
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Purpose: To guarantee manufacturers comply with state laws and standards, ensuring the quality and safety of manufactured homes.
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- Manufactured Home Installers
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Who Needs It: Individuals or companies responsible for installing or repairing manufactured homes.
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Bond Requirement: A surety bond of $2,500 is required.
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Purpose: To ensure installers perform installations in compliance with applicable laws and building codes, safeguarding homeowners from substandard work.
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- Manufactured Home Dealer Subagencies
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Who Needs It: Branches or subagencies operating under a primary manufactured home dealer.
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Bond Requirement: A separate surety bond is required; the amount is determined by the Minnesota Department of Labor and Industry.
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Purpose: To ensure subagencies operate in compliance with state regulations, maintaining the integrity of the primary dealer’s operations.
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- Manufactured Home Dealers
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Step-by-Step Process of Getting a Manufactured Home Bond
- Determine License Type
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- Identify whether you are applying as a dealer, manufacturer, installer, or subagency—each has specific bond requirements.
- Verify Bond Amount
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- Check the required bond amount based on your license type (e.g., $20,000 for dealers/manufacturers, $2,500 for installers).
- Choose a Surety Bond Provider
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- Select a licensed surety company authorized to issue bonds in Minnesota.
- Complete the Application
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- Provide business and financial details to the surety provider. Credit checks may be required.
- Pay the Premium
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- Pay the annual bond premium (typically 1%–5% of the bond amount, depending on credit).
- Receive and Submit Bond
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- Receive the signed/sealed bond and submit the original to the Minnesota Department of Labor and Industry with your license application.
Conclusion
The Manufactured Home Bond in Minnesota is a vital requirement for businesses that have a part in the sale, manufacture, or installation of manufactured homes. It ensures compliance with state regulations and provides financial protection for consumers against fraud or misconduct. Securing this bond is essential for maintaining licensure and operating legally within the state.
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Frequently Asked Questions (FAQs)
What happens if my bond is canceled or expires?
If your bond is canceled or lapses, your license may be suspended or revoked unless a new bond is secured and submitted to the Department.
Can I use one bond for multiple locations?
No. If you operate multiple locations under separate licenses, each location must have its own bond, unless otherwise approved by DLI.
What if a claim is made against my bond?
If a valid claim is filed and paid out by the surety, you are financially responsible for reimbursing the surety company. Unresolved claims can affect your ability to get bonded or licensed in the future.
Is a background check required to get bonded?
While the surety company may conduct a credit or background check during underwriting, the Minnesota Department of Labor and Industry also reviews background information as part of the licensing process.
Are there different bond forms for different license types?
Yes. The DLI provides specific bond forms for dealers, manufacturers, installers, and subagencies. Each must be completed according to your license classification.
Does the bond protect the business owner?
No. The bond protects the public and the state, not the business owner. It provides compensation to consumers or the state if the bonded business violates licensing laws or contracts.