Legal FAQs for REALTORS® — Licensing
Manufactured Housing

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Legal disclaimer

Other important considerations (updated Jan. 1, 2002)

The Texas Manufactured Housing Standards Act prohibits the negotiation of a sale, exchange, or lease-purchase of a manufactured home to a consumer unless the appropriate seal or label is affixed to the home. In addition, a person who sells, exchanges, or lease-purchases a used manufactured home must provide a written warranty that the manufacture home is habitable.


Who regulates the sale of manufactured housing in Texas? (updated Jan. 1, 2002)

The Texas Department of Housing and Community Affairs (TDHCA) is charged with enforcing the Texas Manufactured Housing Standards Act (Art. 5221f, Texas Revised Civil Statutes). The act provides that a person may not offer to sell, exchange, or lease-purchase a manufactured home without being a duly registered manufacturer, retailer, or manufactured-housing broker. The act makes an exception for owners who do not sell more than one manufactured home within any consecutive 12-month period, as well as an exception for real estate on which a manufactured home has been permanently attached and affixed.


I'm a licensed real estate sales agent, and I'm working with a client who wants to sell his manufactured home. Do I need to be licensed by the Texas Department of Housing and Community Affairs as a manufactured-housing broker to negotiate the sale of my client's property? (Updated Nov. 20, 2015)

Whether you need to be licensed as a manufactured-housing broker by the TDHCA depends on the property and your recent transactions.

You can take part in the transaction without becoming licensed as a manufactured-housing broker if three criteria are met: 

1. the home is attached to the real property,
2. the same person is the record owner of both the manufactured home and the real property, and
3. the sale or lease occurs in a single real estate transaction.

There's also an exemption to the licensing requirement if those elements don't apply and you haven't negotiated any manufactured-housing transactions in the past 12 months.

However, if the above elements don't apply and you have negotiated any similar transactions in the past 12 months, you would be considered to be acting as a manufactured-housing broker by negotiating this sale and must be licensed by the TDHCA to comply with state law.


What must be done to cancel title? (updated Jan. 1, 2002)

An owner must complete many steps to surrender title to a manufactured home. Check with TDHCA to learn more (800/500-7074).


What is a duly registered manufacturer, retailer, or broker? (updated Jan. 1, 2002)

The Manufactured Housing Standards Act specifies three categories for persons in the business of selling manufactured housing: 1. A manufacturer "constructs or assembles manufactured housing for sale, exchange, or lease-purchase." [Sec. 3(3)] 2. A retailer is "engaged in the business of buying for resale, selling, or exchanging manufactured homes or offering such for sale, exchange, or lease-purchase to consumers." [Sec. 3(2)] A person is not a retailer unless he sells, exchanges, or lease-purchases two or more manufactured homes to consumers in any consecutive 12-month period. A person who maintains a location for the display of manufactured homes is considered a retailer. 3. A manufactured-housing broker is "engaged by one or more other persons to negotiate or offer to negotiate bargains or contracts for the sale, exchange, or lease-purchase of a manufactured home." [Sec. 3(6)] The act clarifies, however, that the term manufactured-housing broker does not apply if the manufactured home is "affixed to a permanent foundation, the manufacturer's certificate or the document of title is canceled, and the home is offered as real estate." In those instances, the provisions of the Real Estate License Act apply.


Legal Disclaimer: The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on TexasRealEstate.com. Any legal or other information found here, on TexasRealEstate.com, or at other sites to which we link, should be verified before it is relied upon.

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