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?
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:
- The home is attached to the real property.
- The same person is the record owner of both the manufactured home and the real property.
- 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.
“You”, meaning the brokerage that holds your license. This could be problematic for those large brokerages with sponsored agents throughout the state.
I appreciate that Texas Real Estate has raised this subject; however, I feel that this description minimizes the requirements of the TDHCA. I am a TREC broker as well as a TDHCA broker. This type of transaction, although looking alot like a traditional home transaction (if the land was owned by the homeowner) is very different. This transaction requires different lenders, different contracts, different disclosure requirements, different inspectors (or inspectors specifically trained for manufactured homes – particularly with regards to foundation & wind zone requirements) and does not close with Title companies. Insurance requirements are different, lending requirements are different.… Read more »
As a fellow Texas Real Estate Broker, I absolutely agree with you. I know enough to know they are completely different animals, but not the specifics as you mentioned (rightfully so). I’d like to connect if you’re near the Houston-Galveston region.
Hi Kristen, I’m in the DFW area…
Nicholas, I appreciate your clarification of this topic. I’ve been licensed by TREC for over 37 years, and I also served as the Presiding Officer for the Manufactured Housing Division of TDHCA for over 15 years. When I first started serving @ TDHCA-MH, this topic was discussed, and thoroughly vetted by both agencies and allied participants. The concerns you raise are valid. The current laws allow TREC licensees to participate in a personal property transaction. TREC regulations require competence in any transaction involving one of their licensees, whether it is manufactured housing, residential, commercial, farm and ranch, etc. The requirements… Read more »
Thanks Michael…clarification to my statement – “because they are unlicensed (and possibly) incompetent” – I recognize that TREC realtors (I’m one of them! 🙂 ) have the capacity to learn and understand the various differences in the transaction – I clearly stated “possibly” incompetent (for this type of transaction alone) – not trying to broad brush all TREC realtors and/or all types of transactions. [I was unaware that this subject is covered in the TAHS affordable housing course.] There are other requirements to become a TDHCA broker as well – must be bonded; must carry E&O insurance; continuing education, etc..… Read more »
The proper term is “TREC licensees”, not “TREC realtors” or “TDHCA realtors”. Texas REALTORS is a separate entity from TREC and TDHCA. I fully understand the differences in the licensing requirements. Some education providers for the TDHCA classes have also applied to TREC for CE credit. While I was at TDHCA, we worked diligently to upgrade the education requirements while making the courses more readily available statewide. This provided greater access to TREC licensees who wanted additional training. It is important to note that there are special considerations, reporting, and disclosures for transactions involving a manufactured home, whether they are… Read more »
What you say makes sense.