California Code of Regulations › Title 25 - Housing and Community Development › Division 1 - Housing and Community Development › Chapter 4 - Manufactured Housing Sales, Occupational Licensing and Education › Subchapter 1 - Sales and Occupational Licensing › Article 6 - Purchase Documents and Escrow › Section 5060 - Escrow Required

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Concurrent with a dealer's receipt of any cash or cash equivalent from a
					 purchaser at any time prior to delivery of a new or used MH-Unit subject to
					 registration, the dealer shall execute a mutually-endorsed receipt for deposit
					 and purchase document. Within five (5) working days of receipt of deposit, the
					 dealer must establish with an escrow agent an escrow account into which all
					 cash or cash equivalents shall be deposited. The escrow shall not be
					 established with an escrow agent or agency in which the dealer has more than
					 five (5) percent ownership interest.
(b) Upon the purchaser's signing of the
					 receipt for deposit and purchase document, the dealer shall provide the
					 purchaser with a copy of each document, which must be
					 mutually-endorsed.
(c) Upon
					 establishment of the escrow account, the dealer shall provide the escrow agent,
					 in writing, with the information required for the preparation of escrow
					 instructions.
(d) These regulations
					 do not imply, nor shall they be interpreted to require, that a recorded
					 certificate of title or junior lienholder registration card(s) be delivered to
					 the purchaser through escrow as a condition of escrow. These regulations shall,
					 however, provide that a release of any prior rights, title, or interest in a
					 MH-Unit being purchased or traded in as payment toward the MH-Unit being
					 purchased, held by the registered owner(s), legal owner, flooring lender shown
					 on or in possession of a manufacturer's certificate of origin and junior
					 lienholder(s) be obtained as a condition of escrow. In the event that the
					 dealer owns the MH-Unit and it has no liens, the dealer shall deliver into
					 escrow either the certificate(s) of title or the manufacturer's certificate of
					 origin, whichever is available.
(e)
					 If the sale is subject to Section 18035.26 of the Health and Safety Code, the
					 escrow agent must be in receipt of the signed Declaration of Delivery Sale
					 document prior to preparing escrow instructions. The date the Declaration was
					 received by the escrow agent shall precede the date of preparation of escrow
					 instructions.
1.
						Certificate of Compliance including amendment transmitted to OAL 11-3-82 filed
						12-15-82 (Register 82, No. 51).
2. Amendment of subsection (d) filed
						2-1-84; effective upon filing pursuant to Government Code Section 11346.2(d)
						(Register 84, No. 5).
3. Change without regulatory effect adding
						subsection (e) and amending NOTE filed 7-6-2007 pursuant to section 100, title
						1, California Code of Regulations (Register 2007, No. 27).
4.
						Amendment of subsections (a) and (d) and NOTE filed 1-29-2010; operative
						1-29-2010 pursuant to Government Code section 11343.4 (Register 2010, No.
						5).
Note: Authority cited: Section 18015, Health and Safety
						  Code. Reference: Sections 18007, 18008, 18008.7, 18035, 18035.1 and 18035.26,
						  Health and Safety Code.