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 5061 - Escrow Instructions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
From the information provided by the dealer, the escrow
						agent shall prepare escrow instructions and any amendments thereto for signing
						by both the dealer and purchaser. These escrow instructions may be signed in
						counterpart. Both the dealer and the purchaser shall receive copies of the
						signed escrow instructions and any mutually agreed amendments, with the
						originals or executed copies maintained by the escrow agent. The escrow
						instructions shall contain, but are not limited to, the following:
(a) The names and addresses of both the
					 dealer and the purchaser.
(b) The
					 names and addresses of the registered owner(s), legal owner of, flooring
					 lender, and any junior lienholder(s), of the MH-Unit.
(c) The name, address and telephone number of
					 the escrow agent.
(d) A description
					 of the MH-Unit sold to the purchaser by the dealer which shall include, but not
					 be limited to: the manufacturer name; model name, if available; size (excluding
					 any hitch or towbar); model year, and a statement that prior to the close of
					 escrow, the dealer shall provide the serial numbers of the MH-Unit and the
					 control number(s) of either the California Department of Housing and Community
					 Development insignia(s) or the federal label(s) affixed to the MH-Unit, which
					 indicate compliance with applicable standards, in order to complete the
					 description of the MH-Unit.
(e)
					 Identification of the amounts paid or to be paid as a deposit, downpayment
					 and/or balance due prior to closing, total price of the MH-Unit and all
					 accessories or services to be provided by the dealer as part of the sale, and
					 any taxes, service fees, charges or other fees. The amounts disclosed by the
					 dealer shall be consistent with the amounts set forth in the purchase document
					 and receipt for deposit.
(f) A
					 general description of and designation of the cash value of each accessory and
					 any installation thereof included in the purchase.
NOTE: This requirement does not apply when the
						accessories have been installed prior to the preparation of purchase
						documents.
(g) The specific
					 address or location where the purchaser will accept delivery of the MH-Unit or
					 any accessory thereto included in the purchase price. If the sale is subject to
					 Section 18035.26 of the Health and Safety Code, the delivery address in the
					 escrow instructions shall be the same as the delivery address or location in
					 the Declaration of Delivery Sale document and the purchase agreement.
(h) A statement of the conditions under which
					 the purchaser will receive delivery of the MH-Unit and any accessory
					 thereto.
(i) A statement that prior
					 to the close of escrow, the dealer shall secure and deliver into escrow signed
					 and acknowledged release(s) of any rights, title or interest in the MH-Unit
					 being purchased, executed by the registered owner(s), legal owner, flooring
					 lender and any junior lienholder(s). Any such release shall be conditioned upon
					 the receipt of disbursement by the party executing the release directly from
					 the escrow account of the amount set forth in such release. If the purchaser(s)
					 is/are assuming an indebtedness as evidenced by an existing lien, the dealer
					 shall deliver into escrow documents executed by the legal owner and/or junior
					 lienholder(s) consenting to the assumption by the buyer.
(j) A statement that prior to the close of
					 escrow, the dealer shall secure and deliver into escrow a signed and
					 acknowledged release of any rights, title or interest in the MH-Unit or
					 personal real property being sold or traded in as payment toward the MH-Unit
					 being purchased, from the registered owner(s), legal owner and any junior
					 lienholder(s). Any such release shall be conditioned upon the receipt of
					 disbursement directly from the escrow account of the amount set forth in such
					 release. If the dealer is assuming an existing lien, he or she shall deliver
					 into escrow documents executed by the legal owner and/or junior lienholder(s)
					 consenting to the assumption by the dealer.
(k) A statement that prior to the close of
					 escrow, when the MH-Unit is located in a mobilehome park at the time of sale
					 and is to remain in the park, a statement signed by the purchaser shall be
					 delivered into escrow, indicating that the purchaser has read the rules and
					 regulations of the park, and entered into the park's rental agreement. A copy
					 of a fully executed rental agreement signed by the purchaser may be substituted
					 for the purchaser's agreement.
(l)
					 When the MH-Unit being either purchased or traded in as payment toward the
					 MH-Unit being purchased is subject to local property taxation, the escrow
					 instructions may provide for the proration of said taxes.
(m) Any documentation required for
					 disbursement pursuant to Section 5062 of this subchapter.
(n) In the event a purchaser intends to
					 arrange for third party financing without the assistance of the dealer, a
					 statement that escrow shall terminate 30 calendar days from the date escrow was
					 opened, and that all cash or cash equivalent, less escrow fees, will be
					 returned to the purchaser, unless the purchaser delivers into escrow written
					 confirmation from a lender that financing has been approved.
(o) In the event of a conditional purchase
					 document, a statement that if the contract is not executed by the date escrow
					 is to close, escrow shall terminate and all cash or cash equivalent paid to the
					 dealer be returned to the purchaser.
(p) The date agreed upon, in writing, by the
					 purchaser and dealer that escrow is to close.
1.
						Certificate of Compliance, including amendment transmitted to OAL 11-3-82 and
						filed 12-15-82 (Register 82, No. 51).
2. Amendment of subsections
						(d), (i), (n) filed 2-1-84; effective upon filing pursuant to Government Code
						Section 11346.2(d) (Register 84, No. 5).
3. Change without
						regulatory effect amending subsection (g) and NOTE filed 7-6-2007 pursuant to
						section 100, title 1, California Code of Regulations (Register 2007, No.
						27).
4. Amendment of section 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, 18035.26,
						  18035.5 and 18036, Health and Safety
						  Code.