Question. As a park, we would like to purchase new manufactured homes to fill vacant lots. We would purchase them from the manufacturer, set them up, and probably list them through a real estate agent for the marketing. We would not handle the financing, especially under the complicated Dodd-Frank stuff, which would require the prospective purchaser to seek their own means of coming up with the funds to make the purchase. We would not "carry the paper." We assume that the real estate people are either MLO's themselves, or can point a prospective purchaser into the direction of a MLO. At this point, we believe that we have the financial portion on our side figured out, but run into a couple of legal questions that you may be able to help us with.
Today, I contacted the Oregon Division of Finance & Corporate Securities asking what type of Manufactured Structures Dealer ("MSD") license we would need to purchase new homes from a dealer and resell them within our park. He explained that the Limited MSD license would suffice. I told him that I had read that the limited MSD license authorized the selling of no more than 10 pre-owned manufactured structures during a calendar year, and that my understanding is only abandoned structures and dwellings purchased by the licensee and sited at the licensee's park at the time of sale fit under the LMSD license. I asked him if the sale of the structure "sited in the park" meant that when the park owner re-sold the unit the home was required to be sited in the park, or when the park owner purchased the home from the manufacturer the home needed to be already within the park. He told me that that was a good question that no one had asked before but still felt that a LMSD license would be okay.
Upon further checking I see that a MSD (not a Limited MSD) allows a business holding that license to sell new and used manufactured structures. Our questions are as follows:
ۢ What type of a Manufactured Structure License would we need to sell new homes that we have purchased from a dealership or manufacturer?
ۢ Can we as park even hold a MSD License?
ۢ Would our idea of placing the marketing of the home into the hands of a real estate agent release us from having to become or hire an independent MLO?