CHAPTER 1201. MANUFACTURED HOUSING - Texas Statutes

OCCUPATIONS CODE

TITLE 7. PRACTICES AND PROFESSIONS RELATED TO REAL PROPERTY AND

HOUSING

SUBTITLE C. REGULATION OF CERTAIN TYPES OF HOUSING AND BUILDINGS

CHAPTER 1201. MANUFACTURED HOUSING

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1201.001. SHORT TITLE. This chapter may be cited as the

Texas Manufactured Housing Standards Act.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.002. LEGISLATIVE FINDINGS AND PURPOSES; LIBERAL

CONSTRUCTION. (a) The legislature finds that:

(1) there is a growing need to provide state residents with

safe, affordable, and well-constructed housing;

(2) manufactured housing has become a primary housing source for

many state residents;

(3) statutes and rules in effect before September 1, 1969, were

inadequate to:

(A) fully protect the consumer; and

(B) prevent certain discrimination in this state regarding

manufactured housing;

(4) the state is responsible for:

(A) protecting state residents who want to purchase manufactured

housing by regulating the construction and installation of

manufactured housing;

(B) providing economic stability to manufactured housing

manufacturers, retailers, installers, and brokers; and

(C) providing fair and effective consumer remedies; and

(5) the expansion of certain regulatory powers is:

(A) necessary to address the problems described by Subdivisions

(1)-(4); and

(B) the most economical and efficient means to address those

problems and serve the public interest.

(b) The purposes of this chapter are to:

(1) encourage the construction of housing for state residents;

and

(2) improve the general welfare and safety of purchasers of

manufactured housing in this state.

(c) This chapter shall be liberally construed to promote its

policies and accomplish its purposes.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.003. DEFINITIONS. In this chapter:

(1) "Advertisement" means a commercial message that promotes the

sale, exchange, or lease-purchase of a manufactured home and that

is presented on radio, television, a public-address system, or

electronic media or appears in a newspaper, a magazine, a flyer,

a catalog, direct mail literature, an inside or outside sign or

window display, point-of-sale literature, a price tag, or other

printed material. The term does not include educational material

or material required by law.

(2) "Affiliate" means a person who is under common control.

(3) "Alteration" means the replacement, addition, modification,

or removal of equipment in a new manufactured home after sale by

a manufacturer to a retailer but before sale and installation by

a retailer to a purchaser in a manner that may affect the home's

construction, fire safety, occupancy, or plumbing, heating, or

electrical system. The term includes the modification of a

manufactured home in a manner that may affect the home's

compliance with the appropriate standards but does not include:

(A) the repair or replacement of a component or appliance that

requires plug-in to an electrical receptacle, if the replaced

item is of the same configuration and rating as the replacement;

or

(B) the addition of an appliance that requires plug-in to an

electrical receptacle and that was not provided with the

manufactured home by the manufacturer, if the rating of the

appliance does not exceed the rating of the receptacle to which

the appliance is connected.

(4) "Attached" in reference to a manufactured home means that

the home has been:

(A) installed in compliance with the rules of the department;

and

(B) connected to a utility, including a utility providing water,

electric, natural gas, propane or butane gas, or wastewater

service.

(5) "Board" means the Manufactured Housing Board within the

Texas Department of Housing and Community Affairs.

(6) "Broker" means a person engaged by one or more other persons

to negotiate or offer to negotiate a bargain or contract for the

sale, exchange, or lease-purchase of a manufactured home for

which a certificate or other document of title has been issued

and is outstanding. The term does not include a person who

maintains a location for the display of manufactured homes.

(7) "Business use" means the use of a manufactured home for a

purpose other than as a permanent or temporary dwelling.

(8) "Consumer" means a person, other than a person licensed

under this chapter, who seeks to acquire or acquires by purchase,

exchange, or lease-purchase a manufactured home.

(9) "Control" means, with respect to another person, the

possession of the power, directly or indirectly, to vote an

interest of 25 percent or more.

(10) "Department" means the Texas Department of Housing and

Community Affairs operating through its manufactured housing

division.

(11) "Director" means the executive director of the manufactured

housing division of the Texas Department of Housing and Community

Affairs.

(12) "HUD-code manufactured home":

(A) means a structure:

(i) constructed on or after June 15, 1976, according to the

rules of the United States Department of Housing and Urban

Development;

(ii) built on a permanent chassis;

(iii) designed for use as a dwelling with or without a permanent

foundation when the structure is connected to the required

utilities;

(iv) transportable in one or more sections; and

(v) in the traveling mode, at least eight body feet in width or

at least 40 body feet in length or, when erected on site, at

least 320 square feet;

(B) includes the plumbing, heating, air conditioning, and

electrical systems of the home; and

(C) does not include a recreational vehicle as defined by 24

C.F.R. Section 3282.8(g).

(13) "Installation" means the temporary or permanent

construction of the foundation system and the placement of a

manufactured home or manufactured home component on the

foundation. The term includes supporting, blocking, leveling,

securing, anchoring, and properly connecting multiple or

expandable sections or components and making minor adjustments.

(14) "Installer" means a person, including a retailer or

manufacturer, who contracts to perform or performs an

installation function on manufactured housing.

(15) "Label" means a device or insignia that is:

(A) issued by the director to indicate compliance with the

standards, rules, and regulations established by the United

States Department of Housing and Urban Development; and

(B) permanently attached to each transportable section of each

HUD-code manufactured home constructed after June 15, 1976, for

sale to a consumer.

(16) "Lease-purchase" means entering into a lease contract for a

manufactured home, in which the lessor retains title, containing

a provision or, in another agreement, conferring on the lessee an

option to purchase a manufactured home.

(17) "License holder" or "licensee" means a person who holds a

department-issued license as a manufacturer, retailer, broker,

rebuilder, salesperson, or installer.

(18) "Manufactured home" or "manufactured housing" means a

HUD-code manufactured home or a mobile home.

(19) "Manufacturer" means a person who constructs or assembles

manufactured housing for sale, exchange, or lease-purchase in

this state.

(20) "Mobile home":

(A) means a structure:

(i) constructed before June 15, 1976;

(ii) built on a permanent chassis;

(iii) designed for use as a dwelling with or without a permanent

foundation when the structure is connected to the required

utilities;

(iv) transportable in one or more sections; and

(v) in the traveling mode, at least eight body feet in width or

at least 40 body feet in length or, when erected on site, at

least 320 square feet; and

(B) includes the plumbing, heating, air conditioning, and

electrical systems of the home.

(21) "New manufactured home" means a manufactured home that is

not a used manufactured home, regardless of its age.

(22) "Person" means an individual or a partnership, company,

corporation, association, or other group, however organized.

(23) "Related person" means a person who directly or indirectly

participates in management or policy decisions.

(24) "Retailer" means a person who:

(A) is engaged in the business of buying for resale, selling, or

exchanging manufactured homes or offering manufactured homes for

sale, exchange, or lease-purchase to consumers, including a

person who maintains a location for the display of manufactured

homes; and

(B) sells, exchanges, or lease-purchases at least two

manufactured homes to consumers in a 12-month period.

(25) "Rules" means the rules of the department.

(26) "Salesperson" means a person who, as an employee or agent

of a retailer or broker, sells or lease-purchases or offers to

sell or lease-purchase manufactured housing to a consumer.

(27) "Salvaged manufactured home" means a manufactured home

determined to be salvaged under Section 1201.461.

(28) "Seal" means a device or insignia issued by the director

that, for title purposes, is to be attached to a used

manufactured home as required by the director.

(29) "Standards code" means the Texas Manufactured Housing

Standards Code.

(30) "Statement of ownership and location" means a statement

issued by the department and setting forth:

(A) the ownership and location of a manufactured home in this

state as provided by Section 1201.205; and

(B) other information required by this chapter.

(31) "Trust fund" means the manufactured homeowners' recovery

trust fund.

(32) "Used manufactured home" means a manufactured home which

has been occupied for any use or for which a statement of

ownership and location has been issued. The term does not

include:

(A) a manufactured home that was used as a sales model at a

licensed retail location; or

(B) a manufactured home that:

(i) was sold as a new manufactured home and installed but never

occupied;

(ii) had a statement of ownership and location; and

(iii) was taken back from the consumer or transferee because of

a first payment default or agreement to rescind or unwind the

transaction.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 338, Sec. 1, eff. June

18, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.251(a), eff.

Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 1, eff. January 1, 2008.

Sec. 1201.004. DEFINITIONS BINDING. The definitions of "mobile

home," "HUD-code manufactured home," and "manufactured housing"

provided by Section 1201.003 are binding as a matter of law on

each person and agency in this state, including a home-rule

municipality or other political subdivision. A mobile home is not

a HUD-code manufactured home and a HUD-code manufactured home is

not a mobile home for any purpose under state law. Those terms

may not be defined in a manner that is not identical to the

definitions provided by Section 1201.003.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.005. CONSUMER WAIVER VOID. A waiver by a consumer of

this chapter is contrary to public policy and void.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.006. APPLICABILITY OF BUSINESS & COMMERCE CODE.

The Business & Commerce Code applies to transactions relating

to manufactured housing except to the extent that it conflicts

with this chapter.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.007. EXCEPTION FOR REAL ESTATE BROKERS AND

SALESPERSONS. This chapter does not:

(1) modify or amend Chapter 1101 or 1102; or

(2) apply to a person who is licensed as a real estate broker or

salesperson under Chapter 1101 and who, as agent of a buyer or

seller, negotiates the sale or lease of a manufactured home and

the real property to which the home is attached if:

(A) the same person is the record owner of both the manufactured

home and the real property; and

(B) the sale or lease occurs in a single real estate

transaction.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.008. REGULATION BY MUNICIPALITY. (a) A municipality

may prohibit the installation of a mobile home for use as a

dwelling in the municipality. The prohibition must be prospective

and may not apply to a mobile home previously legally permitted

by and used as a dwelling in the municipality. If a mobile home

is replaced by a HUD-code manufactured home in the municipality,

the municipality shall grant a permit for use of the manufactured

home as a dwelling in the municipality.

(b) On application, the municipality shall permit the

installation of a HUD-code manufactured home for use as a

dwelling in any area determined appropriate by the municipality,

including a subdivision, planned unit development, single lot,

and rental community or park. An application to install a new

HUD-code manufactured home for use as a dwelling is considered to

be granted unless the municipality in writing denies the

application and states the reason for the denial not later than

the 45th day after the date the application is received.

(c) Subsections (a) and (b) do not affect the validity of an

otherwise valid deed restriction.

(d) Except as approved by the department, a local governmental

unit may not require a permit, a fee, a bond, or insurance for

the transportation and installation of manufactured housing by a

licensed retailer or installer. This subsection does not prohibit

the collection of actual costs incurred by a local governmental

unit that result from the transportation of a manufactured home.

(e) Notwithstanding any zoning or other law, in the event that a

manufactured home occupies a lot in a municipality, the owner of

the manufactured home may remove the manufactured home from its

location and place another manufactured home on the same

property, provided that the replacement is a newer manufactured

home and is at least as large in living space as the prior

manufactured home.

(f) An owner's ability to replace the home as a result of a fire

or natural disaster cannot be restricted. Other than in the case

of a fire or natural disaster, a general-rule or home-rule

municipality by an ordinance or charter may limit the ability of

the owner to replace his home to a single replacement.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 2, eff. January 1, 2008.

Sec. 1201.009. ELECTRONIC MEANS AUTHORIZED. If feasible, any

action required under this chapter may be accomplished by

electronic means.

Added by Acts 2009, 81st Leg., R.S., Ch.

77, Sec. 1, eff. September 1, 2009.

SUBCHAPTER B. DEPARTMENT POWERS AND DUTIES

Sec. 1201.051. ADMINISTRATION AND ENFORCEMENT OF CHAPTER. The

director shall administer and enforce this chapter.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.052. GENERAL RULEMAKING AUTHORITY. (a) The director

shall adopt rules, issue orders, and otherwise act as necessary

to ensure compliance with the purposes of this chapter to

implement and provide for uniform enforcement of this chapter and

the standards code.

(b) To protect the public health, safety, and welfare and to

ensure the availability of low cost manufactured housing for all

consumers, the director shall adopt rules to:

(1) protect the interests of consumers who occupy or want to

purchase or install manufactured housing; and

(2) govern the business conduct of license holders.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.053. RULES RELATING TO COMPLIANCE WITH NATIONAL

STANDARDS FOR MANUFACTURED HOUSING CONSTRUCTION AND SAFETY; STATE

PLAN. (a) The board shall adopt rules and otherwise act as

necessary to:

(1) comply with the National Manufactured Housing Construction

and Safety Standards Act of 1974 (42 U.S.C. Section 5401 et

seq.), including adopting and enforcing rules reasonably required

to implement the notification and correction procedures provided

by 42 U.S.C. Section 5414; and

(2) provide for the effective enforcement of all HUD-code

manufactured housing construction and safety standards in order

to have the state plan authorized by the National Manufactured

Housing Construction and Safety Standards Act of 1974 (42 U.S.C.

Section 5401 et seq.) approved by the secretary of housing and

urban development.

(b) The state plan described by Subsection (a)(2) must provide

for a third-party inspection agency approved by the United States

Department of Housing and Urban Development to act as an in-plant

inspection agency.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 3, eff. January 1, 2008.

Sec. 1201.054. PROCEDURE FOR ADOPTING RULES. (a) Rules must be

adopted in accordance with Chapter 2001, Government Code, and

with this section.

(b) If requested, the board shall, after at least 10 days'

notice, hold a hearing on any rule that it proposes to adopt,

other than a rule that is to be adopted under emergency

rulemaking, in which case only the requirements of Chapter 2001,

Government Code, shall apply.

(c) A rule takes effect on the 30th day after the date of

publication of notice that the rule has been adopted, except that

a rule relating to installation standards may not take effect

earlier than the 60th day after the date of publication of notice

unless the board has determined that an earlier effective date is

required to meet an emergency and the standard was adopted under

the emergency rulemaking provisions of Chapter 2001, Government

Code.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 4, eff. January 1, 2008.

Sec. 1201.055. INSPECTION, REVIEW, AND RELATED FEES. (a) With

guidance from the federal Housing and Community Development Act

of 1974 (42 U.S.C. Section 5301 et seq.) and from the rules and

regulations adopted under the National Manufactured Housing

Construction and Safety Standards Act of 1974 (42 U.S.C. Section

5401 et seq.), the board shall establish fees as follows:

(1) if the department acts as a design approval primary

inspection agency, a schedule of fees for the review of HUD-code

manufactured home blueprints and supporting information, to be

paid by the manufacturer seeking approval of the blueprints and

supporting information;

(2) except as provided by Subsection (e), a fee for the

inspection of each HUD-code manufactured home manufactured or

assembled in this state, to be paid by the manufacturer of the

home;

(3) a fee for the inspection of an alteration made to the

structure or plumbing, heating, or electrical system of a

HUD-code manufactured home, to be charged on an hourly basis and

to be paid by the person making the alteration;

(4) a fee for the inspection of the rebuilding of a salvaged

manufactured home, to be paid by the rebuilder;

(5) a fee for the inspection of a used manufactured home to

determine whether the home is habitable for the issuance of a new

statement of ownership and location; and

(6) a fee for the issuance of a seal for a used mobile or

HUD-code manufactured home.

(b) In addition to the fees imposed under Subsections (a)(2),

(3), and (4), a manufacturer, a person making an alteration, or a

rebuilder, as appropriate, shall be charged for the actual cost

of travel of a department representative to and from:

(1) the manufacturing facility, for an inspection described by

Subsection (a)(2); or

(2) the place of inspection, for an inspection described by

Subsection (a)(3) or (4).

(c) The board shall establish a fee for the inspection of the

installation of a mobile or HUD-code manufactured home, to be

paid by the installer of the home.

(c-1) The department may permit the use of any device or

procedure that has been reviewed and approved by a licensed

engineer provided that such use or procedure complies with any

instructions, conditions, or other requirements specified by that

engineer.

(d) The board shall charge a fee for a consumer complaint home

inspection requested by a manufacturer or retailer under Section

1201.355(b), to be paid by the manufacturer or retailer.

(e) The fee described by Subsection (a)(2) does not apply if an

inspection agency authorized by the United States Department of

Housing and Urban Development, other than the department, acts as

the in-plant inspection agency.

(f) The fee described by Subsection (c) must accompany notice to

the department of the exact location of the mobile or HUD-code

manufactured home. The department shall make an appropriate fee

distribution to a local governmental unit that performs an

inspection under a contract or other official designation if that

unit does not collect a local inspection fee.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 338, Sec. 2, eff. June

18, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 5, eff. January 1, 2008.

Sec. 1201.056. LICENSE FEES. The board shall establish fees for

the issuance and renewal of licenses for:

(1) manufacturers;

(2) retailers;

(3) brokers;

(4) salespersons;

(5) rebuilders; and

(6) installers.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.057. INSTRUCTION FEE. The board shall charge a fee to

each person attending a course of instruction described by

Section 1201.104.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.058. AMOUNT OF FEES. (a) The board shall establish

reasonable fees for all matters under this chapter providing for

fees. If the department's rules provide an option to file a

document electronically, the department may charge a discounted

fee for the electronic filing.

(b) Ten dollars of the fee for each purchase, exchange, or

lease-purchase of a manufactured home shall be deposited to the

credit of the trust fund and used for the protection programs

described by Subchapter I.

(c) All fees established by this chapter or the rules are deemed

to be earned and not subject to refund after receipt by the

department.

(d) Notwithstanding Subsection (c), the director may, in limited

and appropriate circumstances and in accordance with rules

adopted by the board, approve the refund of fees.

(e) If the governor by executive order or proclamation declares

a state of disaster under Chapter 418, Government Code, the

director, in accordance with rules adopted by the board, may

waive the imposition of any fee under this chapter in the

affected area.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 6, eff. January 1, 2008.

Acts 2009, 81st Leg., R.S., Ch.

77, Sec. 2, eff. September 1, 2009.

Sec. 1201.060. VENUE FOR HEARING. A hearing under this chapter

shall be held in Travis County unless all parties agree to

another location.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.061. COOPERATION WITH LOCAL GOVERNMENTAL UNITS. The

department shall cooperate with all local governmental units in

this state.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.062. SEAL PROPERTY OF DEPARTMENT. A seal is the

property of the department.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

SUBCHAPTER C. LICENSING

Sec. 1201.101. LICENSE REQUIRED. (a) A person may not

construct or assemble in this state or ship into this state a new

HUD-code manufactured home unless the person holds, at the time

the home is constructed or assembled, a manufacturer's license.

(b) Except as otherwise provided by this chapter, a person may

not sell, exchange, or lease-purchase or offer to sell, exchange,

or lease-purchase two or more manufactured homes to consumers in

this state in a 12-month period unless the person holds a

retailer's license.

(c) A person may not offer to negotiate or negotiate for others

a bargain or contract for the sale, exchange, or lease-purchase

of two or more manufactured homes to consumers in this state in a

12-month period unless the person holds a broker's license.

(d) A person may not act as an installer in this state unless

the person holds an installer's license.

(e) A person may not repair, rebuild, or otherwise alter a

salvaged manufactured home unless the person holds a rebuilder's

or retailer's license.

(f) A person may not act as a salesperson of manufactured

housing unless the person holds a salesperson's license. A

retailer or broker may not employ or otherwise use the services

of a salesperson who is not licensed. A licensed salesperson may

not participate in a sale of a manufactured home unless the sale

is through the retailer or broker who sponsored the salesperson's

application as required by Section 1201.103(d).

(f-1) A retailer may be licensed to operate at a principal

location and one or more branch locations under a single license;

provided, however, that a separate application must be made for

each branch, and each branch must be separately bonded.

(g) A person may not make an announcement concerning the sale,

exchange, or lease-purchase of, or offer to sell, exchange, or

lease-purchase, a manufactured home to a consumer in this state

through an advertisement unless the person holds a

manufacturer's, retailer's, or broker's license. This subsection

does not apply to:

(1) a person exempt from licensing; or

(2) an advertisement concerning real property on which there is

a manufactured home that has been converted to real property in

accordance with Section 1201.2055.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 338, Sec. 4, eff. June

18, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 1, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 7, eff. January 1, 2008.

Sec. 1201.102. EXCEPTIONS TO LICENSE REQUIREMENT. (a) A

licensed installer may employ unlicensed persons to assist in

performing installation functions provided that the licensed

installer maintains a list of the persons so employed. The

director may issue an order to prohibit a person who is not

licensed as an installer from performing installation functions

under the oversight of a licensed installer.

(b) A licensee may engage another person who is not licensed

under this chapter but possesses another license issued by the

State of Texas to provide goods and services subject to that

other license. Without limiting the generality of the foregoing,

this includes engaging others to install, connect, or otherwise

work on air conditioning, plumbing, and electrical systems.

(c) An individual who holds a retailer's license or broker's

license or who is a related person of such a licensee is not

required to apply for a salesperson's license.

(d) A person who holds a real estate broker's or salesperson's

license under Chapter 1101 may act as a broker or salesperson

under this chapter without holding a license or filing a bond or

other security as required by this chapter if negotiations for

the sale, exchange, or lease-purchase of a manufactured home are

conducted for a consumer for whom the person is also acting as a

real estate broker or salesperson under Chapter 1101 consistent

with Section 1201.007.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.252(a),

eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 8, eff. January 1, 2008.

Sec. 1201.103. LICENSE APPLICATION. (a) An applicant for a

license as a manufacturer, retailer, broker, rebuilder, or

installer must file with the director a license application

containing:

(1) the legal name, address, and telephone number of the

applicant and each person who will be a related person at the

time the requested license is issued;

(2) all trade names, and the names of all other business

organizations, under which the applicant does business subject to

this chapter, the name of each such business organization

registered with the secretary of state, and the address of such

business organization;

(3) the dates on which the applicant became the owner and

operator of the business; and

(4) the location to which the license will apply.

(a-1) All required records of a licensee under Subsection (a)

are to be maintained at the licensee's principal office or such

other location within this state as the licensee may designate.

(b) A license application must be accompanied by:

(1) proof of the security required by this subchapter; and

(2) payment of the fee required for issuance of the license.

(c) If a change occurs in the information filed with the

director under Subsection (a), the applicant shall amend the

application to state the correct information.

(d) An applicant for a salesperson's license must:

(1) file with the director an application that provides any

information the director considers necessary and that is

sponsored by a currently licensed retailer or broker; and

(2) pay the required fee.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 2, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 9, eff. January 1, 2008.

Sec. 1201.104. QUALIFICATIONS FOR LICENSE. (a) Except as

provided by Subsection (e), as a requirement for a

manufacturer's, retailer's, broker's, installer's, salvage

rebuilder's, or salesperson's license, a person who was not

licensed or registered with the department or a predecessor

agency on September 1, 1987, must, not more than 12 months before

applying for the person's first license under this chapter,

attend and successfully complete 20 hours of instruction in the

law, including instruction in consumer protection regulations.

If the applicant is not an individual, the applicant must have at

least one related person who meets this requirement.

(b) Except in the case of an applicant for a salesperson's

license, successful completion of the course of instruction is a

prerequisite to obtaining the license.

(c) An applicant for a salesperson's license may apply for a

license without having completed the course of instruction if the

person successfully completes the course not later than the 90th

day after the date of the person's licensure. If the person

fails to complete such course successfully and in a timely

manner, the person's license is automatically suspended until the

person successfully completes the course.

(d) The course of instruction must be offered at least

quarterly.

(e) The board shall adopt rules relating to course content and

approval.

(f) An applicant for an initial installer's license shall

receive a license on a provisional basis. The person's

provisional status remains in effect until a sufficient number of

installations completed by the person have been inspected by the

department and found not to have any identified material

violations of the department's rules. The board, with the advice

of the advisory committee to be established under Section

1201.251, shall adopt rules to establish what constitutes a

sufficient number of installations under this subsection.

(g) Subsection (a) does not apply to a license holder who

applies:

(1) for a license for an additional business location; or

(2) to renew or reinstate a license.

(h) An examination must be a requirement of successful

completion of any initial required course of instruction under

this section.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 10, eff. January 1, 2008.

Acts 2009, 81st Leg., R.S., Ch.

77, Sec. 3, eff. September 1, 2009.

Sec. 1201.105. SECURITY REQUIRED. (a) The department may not

issue or renew a license unless a bond or other security in a

form prescribed by the director is filed with the department as

provided by this subchapter. The bond or other security is

payable to the trust fund.

(b) If a bond is filed, the bond must be issued by a company

authorized to do business in this state and must conform to

applicable provisions of the Insurance Code. If other security

is filed, that security must be maintained in or by a federally

insured depository institution located in this state.

(c) If the department experiences significant problems in

obtaining timely reimbursements from a surety or the surety has

experienced a deterioration in its financial condition, the board

may direct the director to stop accepting bonds issued by the

surety.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 10, eff. January 1, 2008.

Sec. 1201.106. SECURITY: AMOUNT. (a) An applicant for a

license or a license holder shall file a bond or other security

under Section 1201.105 for the issuance or renewal of a license

in the following amount:

(1) $100,000 for a manufacturer;

(2) $50,000 for a retailer's principal location;

(3) $50,000 for each retailer's branch location;

(4) $50,000 for a rebuilder;

(5) $50,000 for a broker; or

(6) $25,000 for an installer.

(a-1) Notwithstanding the provisions of Subsection (a), the

director may require additional security for the licensing,

renewal, or relicensing of a person who, either directly, as a

related person, or through a related person, has been the subject

of a license revocation, has caused the trust fund to incur

unreimbursed costs or liabilities in excess of available surety

bond coverage, or has failed to pay an administrative penalty

that has been assessed by final order.

(b) To ensure the availability of prompt and satisfactory

warranty service, a manufacturer that does not have a licensed

manufacturing plant or other facility in this state from which

warranty service and repairs can be provided shall file a bond or

other security in the additional amount of $100,000.

(c) The bond or other security is open to successive claims up

to the face value of the bond or other security. The surety is

not liable for successive claims in excess of the face value of

the bond, regardless of the number of years the bond remains in

force.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 3, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 11, eff. January 1, 2008.

Sec. 1201.107. SECURITY: LOCATION. (a) A manufacturer,

retailer, broker, or installer who maintains a place of business

at one or more locations shall file with the department a

separate bond or other security for each location.

(b) Property used for the business that is not contiguous to, or

located within 300 feet of, a bonded location requires a separate

bond. A location at which a manufactured home is shown to the

public or at which the home is offered for sale, exchange, or

lease-purchase by a retailer to consumers requires a bond.

(c) A manufactured home installed on a permanent foundation

system and offered for sale as real property does not require a

bond. A temporary location for a bona fide trade show sponsored

by a nonprofit corporation that qualifies for an exemption from

federal income taxation under Section 501(a), Internal Revenue

Code of 1986, by being listed as an exempt organization under

Section 501(c) of that code does not require a bond.

(d) If a retailer or broker offers for sale or participates in

any way in the sale of a manufactured home at a location other

than an undivided parcel of real property where more than one

manufactured home is located and offered for sale, exchange, or

lease-purchase by a retailer or broker to the public, the

retailer or broker must:

(1) identify the bond on file with the department in conjunction

with that person's license; and

(2) provide contractually in the sales transaction that the

identified bond applies to the sale.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 4, eff. June 18, 2005.

Sec. 1201.108. SECURITY: CHANGE IN OWNERSHIP OR LOCATION. (a)

A new bond is not required for a change in:

(1) ownership of a licensee or a business entity under which a

license holder conducts business; or

(2) location.

(b) A licensee shall notify the department of a change described

by Subsection (a) not later than the 10th day before the date the

change occurs.

(c) After a change described by Subsection (a), the licensee

shall provide to the department a proper endorsement to the

original bond showing that the bond continues to apply to the

license without interruption.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 12, eff. January 1, 2008.

Sec. 1201.109. SECURITY: CANCELLATION OR OTHER IMPAIRMENT. (a)

If a bond required by this subchapter is canceled, the license

for which the security is filed is suspended on the effective

date of cancellation. The surety shall provide written notice to

the director before the 60th day preceding the effective date of

cancellation.

(b) If a surety files for liquidation or reorganization in

bankruptcy or is placed in receivership, the license holder shall

obtain other security not later than the 60th day after the date

that notice of the filing or receivership is received.

(c) If the required face amount of a security is impaired by the

payment of a claim, the license holder shall restore the security

to the required face amount not later than the 60th day after the

date of impairment.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.110. SECURITY: DURATION. The department shall

maintain on file a security other than a bond canceled as

provided by Section 1201.109(a) until the later of:

(1) the second anniversary of the date the manufacturer,

retailer, broker, installer, or rebuilder ceases doing business;

or

(2) the date the director determines that a claim does not exist

against the security.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.111. EXCEPTIONS TO SECURITY AND INSTRUCTION

REQUIREMENTS. (a) Notwithstanding any other provision of this

chapter, a state or national bank, state or federal savings and

loan association, federal savings bank, or state or federal

credit union engaged in the business of selling, exchanging, or

lease-purchasing or offering for sale, exchange, or

lease-purchase manufactured homes that the institution has

acquired through repossession of collateral is not required to

attend a course of instruction or file a bond or other security

to be licensed as a retailer.

(b) A licensed retailer is not required to file a bond or other

security to be licensed as a broker or installer.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.113. CERTIFICATION AND CONTINUING EDUCATION PROGRAMS.

(a) The board shall approve or administer continuing education

programs for licensees under this chapter. A continuing

education program must be at least eight hours long and must

include the current rules of the department and such other

matters as the board may deem relevant.

(b) Completion of an approved or administered continuing

education course described by Subsection (a) is a prerequisite to

renewal of a license.

Text of subsection as amended by Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 13

Without reference to the amendment of this subsection, this

subsection was repealed by Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 73(a)(3), eff. January 1, 2008.

(c) No test shall be given in relation to any continuing

education program.

(d) Repealed by Acts 2007, 80th Leg., R.S., Ch. 863, Sec.

73(a)(3), eff. January 1, 2008.

(e) Repealed by Acts 2007, 80th Leg., R.S., Ch. 863, Sec.

73(a)(3), eff. January 1, 2008.

(f) Repealed by Acts 2007, 80th Leg., R.S., Ch. 863, Sec.

73(a)(3), eff. January 1, 2008.

(g) Repealed by Acts 2007, 80th Leg., R.S., Ch. 863, Sec.

73(a)(3), eff. January 1, 2008.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 338, Sec. 5, eff. Jan.

1, 2004.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 5, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 13, eff. January 1, 2008.

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 73(a)(3), eff. January 1, 2008.

Acts 2009, 81st Leg., R.S., Ch.

77, Sec. 4, eff. September 1, 2009.

Sec. 1201.114. LICENSE EXPIRATION. Any license under this

chapter is valid for two years. A license may be renewed as

provided by the director. A person whose license has been

suspended or revoked or whose license has expired may not engage

in activities that require a license until the license has been

reinstated or renewed.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.254(a),

eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 6, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 14, eff. January 1, 2008.

Acts 2009, 81st Leg., R.S., Ch.

77, Sec. 5, eff. September 1, 2009.

Sec. 1201.115. NOTICE OF LICENSE EXPIRATION. Not later than the

30th day before the date a person's license is scheduled to

expire, the department shall send written notice of the impending

expiration to the person at the person's last known address

according to the records of the department.

Added by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.254(a), eff.

Sept. 1, 2003.

Sec. 1201.116. PROCEDURE FOR LICENSE RENEWAL. (a) The

department shall renew a license if the department receives the

renewal application and payment of the required fee before the

expiration date of the license.

(b) If the department needs additional information for the

renewal application or verification of continuing insurance or

bond coverage, the license holder must provide the requested

information or verification not later than the 20th day after the

date of receipt of notice from the department.

(c) The renewal license expires on the second anniversary of the

date the license was renewed.

(d) A person whose license has been expired for 90 days or less

may renew the license by paying to the department a renewal fee

that is equal to 1-1/2 times the normally required renewal fee.

(e) A person whose license has been expired for more than 90

days but less than one year may renew the license by paying to

the department a renewal fee that is equal to two times the

normally required renewal fee.

(f) A person whose license has been expired for one year or more

may not renew the license. The person may obtain a new license by

complying with the requirements and procedures for obtaining an

original license.

Added by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.254(a), eff.

Sept. 1, 2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

77, Sec. 6, eff. September 1, 2009.

Sec. 1201.117. RENEWAL OF EXPIRED LICENSE BY OUT-OF-STATE

PRACTITIONER. (a) A person who was licensed in this state,

moved to another state, and is currently licensed and has been in

practice in the other state for the two years preceding the date

of application may obtain a new license without fulfilling the

instruction requirements of Section 1201.104(a).

(b) The person must pay to the department a fee that is equal to

two times the normally required renewal fee for the license.

Added by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.254(a), eff.

Sept. 1, 2003.

Sec. 1201.118. RULES RELATING TO CERTAIN PERSONS. The board

shall adopt rules providing for additional review and scrutiny of

any application for an initial or renewal license that involves a

person who has previously:

(1) been found in a final order to have participated in one or

more violations of this chapter that served as grounds for the

suspension or revocation of a license;

(2) been found to have engaged in activity subject to this

chapter without possessing the required license;

(3) caused the trust fund to incur unreimbursed payments or

claims; or

(4) failed to abide by the terms of a final order, including the

payment of any assessed administrative penalties.

Added by Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 15, eff. January 1, 2008.

SUBCHAPTER D. PRACTICE

Sec. 1201.1505. DEPOSIT ON SPECIALLY ORDERED MANUFACTURED HOMES.

A retailer may require a deposit on a specially ordered

manufactured home.

Added by Acts 2003, 78th Leg., ch. 338, Sec. 10, eff. June 18,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 16, eff. January 1, 2008.

Sec. 1201.151. REFUNDS. (a) Except as otherwise provided by

this section, a retailer must refund a consumer's deposit not

later than the 15th day after the date that a written request for

the refund is received from the consumer.

(b) The deposit may be retained only if:

(1) the consumer specially orders from the manufacturer a

manufactured home that is not in the retailer's inventory;

(2) the home conforms to the specifications of the special order

and any representations made to the consumer;

(3) the consumer fails or refuses to accept delivery and

installation of the home by the retailer; and

(4) the consumer was given conspicuous written notice of the

requirements for retaining the deposit.

(c) The retailer may not retain more than five percent of the

estimated cash price of the specially ordered home and must

refund any amount that exceeds five percent.

(d) This section does not apply to:

(1) a deposit held in escrow in a real estate transaction; or

(2) money stated to be a down payment in an executed retail

sales contract.

(e) A deposit becomes a down payment upon execution of a binding

written agreement. Thereafter, if the consumer exercises a right

of rescission, the retailer shall, not later than the 15th day

after the date of the rescission, refund to the consumer all

money and other consideration received from the consumer, without

offset or deduction.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 7, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 17, eff. January 1, 2008.

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 18, eff. January 1, 2008.

Sec. 1201.152. VOIDABLE CONTRACT. (a) If a retailer purchases

a new manufactured home from an unlicensed manufacturer in

violation of Section 1201.505, a consumer's contract with the

retailer for the purchase, exchange, or lease-purchase of the

home is voidable until the second anniversary of the date of

purchase, exchange, or lease-purchase of the home.

(b) If an unlicensed retailer, broker, or installer enters into

a contract with a consumer concerning a manufactured home, the

consumer may void the contract until the second anniversary of

the date of purchase of the home.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.1521. RESCISSION OF CONTRACT FOR SALE, EXCHANGE, OR

LEASE-PURCHASE OF HOME. (a) A person who acquires a

manufactured home from or through a licensee by purchase,

exchange, or lease-purchase may, not later than the third day

after the date the applicable contract is signed, rescind the

contract without penalty or charge.

(b) Subject to rules adopted by the board, a consumer may waive

a right of rescission in the event of a bona fide emergency.

Such rules shall, to the extent practical, be modeled on the

federal rules for the waiver of a right of rescission under 12

C.F.R. Part 226.

Added by Acts 2003, 78th Leg., ch. 338, Sec. 10, eff. June 18,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 19, eff. January 1, 2008.

Sec. 1201.153. FORMALDEHYDE HEALTH NOTICE. (a) A retailer or

manufacturer may not transfer ownership of a HUD-code

manufactured home or otherwise sell, assign, or convey a HUD-code

manufactured home to a consumer unless the retailer or

manufacturer delivers to the consumer a formaldehyde health

notice, subject to the director's rules concerning the notice.

(b) The notice must be delivered before the execution of a

mutually binding sales agreement or retail installment sales

contract.

(c) The notice must:

(1) contain the information required by the United States

Department of Housing and Urban Development; and

(2) be of the type, size, and format required by the director.

(d) A retailer or manufacturer may not vary the content or form

of the notice.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 338, Sec. 6, eff. June

18, 2003.

Sec. 1201.154. SUFFICIENCY OF FORMALDEHYDE HEALTH NOTICE;

RETAILER AND MANUFACTURER COMPLIANCE. (a) The formaldehyde

health notice required by Section 1201.153 is sufficient, as a

matter of law, to advise a consumer of the risks of occupying a

HUD-code manufactured home.

(b) The consumer's written acknowledgement of the receipt of the

notice is conclusive proof of the delivery of the notice and the

posting of the notice in compliance with federal regulations.

(c) A retailer's or manufacturer's compliance with United States

Department of Housing and Urban Development regulations and the

director's rules concerning the notice is conclusive proof that:

(1) the consumer received sufficient notice of the risks of

occupying the home; and

(2) the home is habitable with respect to formaldehyde

emissions.

(d) A retailer's or manufacturer's compliance, from September 1,

1981, to September 1, 1985, with Section 1201.153 and the revised

formaldehyde warning as adopted by the department is conclusive

proof that:

(1) the consumer received sufficient notice of the risks of

occupying the home; and

(2) the home is habitable with respect to formaldehyde

emissions.

(e) A retailer's or manufacturer's knowing and wilful failure to

comply with the regulations and rules described by Subsection (c)

is conclusive proof that:

(1) the retailer or manufacturer breached the duty to notify the

consumer about formaldehyde; and

(2) the home is not habitable.

(f) A retailer's or manufacturer's knowing and wilful failure,

from September 1, 1981, to September 1, 1985, to comply with

Section 1201.153 and the revised formaldehyde warning as adopted

by the department is conclusive proof that:

(1) the retailer or manufacturer breached the duty to notify the

consumer about formaldehyde; and

(2) the home is not habitable.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.155. DISCLAIMER OF IMPLIED WARRANTY. The seller's

proper provision of the warranties and notices as required by

Subchapter H or J is a valid disclaimer of an implied warranty of

fitness for a particular purpose or of merchantability as

described by Chapter 2, Business & Commerce Code.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.156. ADVERTISEMENT AS OFFER. An advertisement

relating to manufactured housing is an offer to sell, exchange,

or lease-purchase manufactured housing to consumers.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.157. RETAILER AS WAREHOUSEMAN. (a) A licensed

retailer is a "warehouseman" as defined by Section 7.102,

Business & Commerce Code, for the storage of manufactured

homes for hire.

(b) The provisions of the Business & Commerce Code relating

to the storage of goods for hire apply to a licensed retailer

acting as a warehouseman.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1201.158. SALESPERSON. A licensed salesperson may work

only for the salesperson's sponsoring retailer or broker.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 20, eff. January 1, 2008.

Sec. 1201.159. BROKER. (a) Except as provided by Section

1201.456, a broker shall ensure that the seller gives the buyer

the applicable disclosures and warranties that the buyer would

have received if the buyer had purchased the manufactured home

through a licensed retailer.

(b) A person is not required to be a broker licensed under this

chapter but may be required to be a real estate broker or

salesperson licensed under Chapter 1101 if:

(1) the manufactured home is attached; and

(2) the home is offered as real property.

(c) A broker shall provide any person who engages the broker's

services with a written disclosure of which interests in the

transaction, if any, the broker represents.

(d) If the seller is required to possess a license by this

chapter, a broker may assist in the sale of a manufactured home

only if that seller has a current license.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 338, Sec. 7, eff. June

18, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 8, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 21, eff. January 1, 2008.

Sec. 1201.161. TRANSPORTATION OF MANUFACTURED HOUSING. (a)

Notwithstanding any other statute or rule or ordinance, a

licensed retailer or licensed installer is not required to obtain

a permit, certificate, or license or pay a fee to transport

manufactured housing to the place of installation except as

required by the Texas Department of Transportation under

Subchapter E, Chapter 623, Transportation Code.

(b) The department shall cooperate with the Texas Department of

Transportation by providing current lists of licensed

manufacturers, retailers, and installers.

(c) The Texas Department of Transportation shall send the

department monthly:

(1) a copy of each permit issued in the preceding month for the

movement of manufactured housing on the highways; or

(2) a list of the permits issued in the preceding month and the

information on the permits.

(d) Unless the information provided for in Subsection (c) is

provided electronically, the department shall pay the reasonable

cost of providing the copies or the list and information under

Subsection (c).

(e) The copies and lists to be provided under this section may

be provided electronically.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 22, eff. January 1, 2008.

Sec. 1201.162. DISCLOSURE BY RETAILER AND LENDER. (a) Before

the completion of a credit application or more than one day

before entering into any agreement for a sale, exchange, or the

exercise of the lease purchase option that will not be financed,

the retailer must provide to the consumer a written disclosure in

the form promulgated by the board. The disclosure shall be in at

least 12-point type and must address matters of concern relating

to costs and obligations that may be associated with home

ownership, matters to be considered in making financing

decisions, related costs that may arise when purchasing a

manufactured home, and such other matters as the board may deem

appropriate to promote informed purchase, financing, and related

decisions regarding the acquisition and ownership of a

manufactured home. The form shall also conspicuously disclose

the consumer's right of rescission.

(b) A federally insured financial institution or lender

approved or authorized by the United States Department of Housing

and Urban Development as a mortgagee with direct endorsement

underwriting authority that fully complies with federal Truth in

Lending disclosures concerning the terms of a manufactured

housing transaction is exempt from the disclosure provisions of

this section.

(c) The right of rescission described in Subsection (a) shall

apply only to the sale transaction between the retailer and the

consumer. Failure by the retailer to comply with the disclosure

provisions of this section does not affect the validity of a

subsequent conveyance or transfer of title of a manufactured home

or otherwise impair a title or lien position of a person other

than the retailer. The consumer shall continue to have the right

of rescission with regard to the retailer until the end of the

third day after the retailer delivers a copy of the disclosure

required by Subsection (a). The consumer's execution of a signed

receipt of a copy of the disclosure required by Subsection (a)

shall constitute conclusive proof of the delivery of the

disclosure. If the consumer grants a person other than the

retailer a lien on the manufactured home, the right of rescission

shall immediately cease on the filing of the lien with the

department.

Added by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.255(a), eff.

Sept. 1, 2003. Amended by Acts 2003, 78th Leg., ch. 338, Sec. 8,

51, eff. June 18, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 23, eff. January 1, 2008.

Sec. 1201.164. ADVANCE COPY OF CONTRACT AND DISCLOSURE

STATEMENTS; OFFER BY RETAILER. (a) In a transaction that is to

be financed and that will not be subject to the federal Real

Estate Settlement Procedures Act of 1974 (Pub. L. No. 93-533) and

its implementing regulations, a retailer shall deliver to a

consumer at least 24 hours before the contract is fully executed

the contract, with all required information included, signed by

the retailer. The delivery of the contract, with all required

information included, signed by the retailer constitutes a firm

offer by the retailer. Except as provided for in Subsection (b),

the consumer may accept the offer not earlier than 24 hours after

the delivery of the contract. If the consumer has not accepted

the offer within 72 hours after the delivery of the contract, the

retailer may withdraw the offer.

(b) The consumer may modify or waive the right to rescind and

the deadlines for disclosures before the execution of the

contract that are provided by Subsection (a) if the consumer

determines that the purchase of the manufactured home is needed

to meet a bona fide personal emergency. If the consumer has a

bona fide personal emergency that necessitates the immediate

purchase of the manufactured home, the consumer shall give the

retailer a dated written statement that describes the emergency,

specifically modifies or waives the notice periods and any right

of rescission, and bears the signature of all of the consumers

entitled to the disclosures and right of rescission. In such

event the retailer shall immediately give the consumer all of the

disclosures required by this code and sell the manufactured home

without the required waiting periods or the right of rescission.

Printed forms for this purpose are prohibited except in a county

that has been declared by the governor to be a major disaster

area. If the governor dec