Mobile and Manufactured Home Sales Restrictions Easing

You may have seen them on the MLS, but did you know that you cannot legally sell a mobile home located in a mobile home park in Arizona?

Under current state law, a real estate agent or broker is prohibited from selling a new mobile or manufactured home in a mobile home park without a separate broker or dealer license from the Arizona Department of Housing (ADH) Manufactured Housing Division.

So, why are you seeing listings for mobile homes in mobile home parks in the MLS? Simply put, the demand exists, but the supply of who can sell has diminished.

In Arizona, there are very few ADH-licensed, manufactured homes dealers remaining. Consequently, if an owner of a manufactured or mobile home wanted to sell, they would find that the process often results in a deeply discounted sale price.

In other states where REALTORS® are able to sell manufactured or mobile homes, these homes receive more exposure and ultimately a higher selling price.

At the REALTOR® Caucus in September 2016, the issue of selling manufactured and mobile homes in mobile home parks was brought forward and ultimately placed on the Arizona REALTORS® 2017 legislative agenda. Recognizing the need for this legislation, Representative Jeff Weninger introduced HB 2072: manufactured homes; real estate transactions where it easily sailed through the legislative process.

On March 21, 2017, Governor Doug Ducey signed HB 2072 into law. The bill will become effective 90-days after the legislative session adjourns Sine Die.

The bill as passed-into-law does the following:

  • Allows a real estate broker and/or sales person to act on behalf of a licensed manufactured housing dealer in the sale of mobile homes and new or used manufactured homes located in a mobile home park, if the licensed dealer (through the Arizona Department of Housing) submits the required fees and paperwork
  • Allows a real estate broker and/or sales person to act on behalf of a private party in the sale of mobile homes or used manufactured homes located in mobile home parks, if the broker and/or sales person remains in compliance with the Arizona Department of Real Estate requirements.
Related article: Sale of Manufactured & Mobile Homes By Real Estate Brokers

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