Frequently Asked Questions: Licensing
What types of manufactured housing licenses are available?
Visit Industry Information, Assistance and Forms for the following types of license applications:
- Manufacturer - a person who constructs or assembles manufactured housing for sale, exchange, or lease purchase in this state.
- Retailer - a person who: (A) is engaged in the business of buying for resale, selling, or exchanging manufactured homes or offering manufactured homes for sale or exchange to consumers, including a person who maintains a location for the display of manufactured homes; and (B) sells or exchanges at least two manufactured homes to consumers in a 12-month period.
- Broker – a person engaged by one or more other persons to negotiate a bargain or contract for the sale or exchange of a manufactured home for which a certificate or document of title has been issued and is outstanding. The term does not include a person who maintains a location for the display of manufactured homes.
- Installer – a person, including a retailer or manufacturer, who contracts to perform or performs an installation function on manufactured housing.
- Salesperson – a person who, as an employee or agent of a retailer or broker, sells or offers to sell manufactured housing to a consumer for any form of compensation.
Do I need to have a "lot" or maintain an inventory to apply for or maintain a Retailer license?
No, having a lot or maintaining an inventory is not required to apply for a retailer license. However, you must designate a location for the bond to apply and pursuant to section 1201.103(a-1) of the Occupations Code all required records of a licensee are to be maintained at a licensee's principal office or such other location within this state as the licensee may designate.
Do I need to apply for a Salespersons license in addition to a retailer license if I own the company?
No, pursuant to section 1201.102(c) of the Occupations Code an individual that holds a retailer’s license or broker’s license, or is a related person of such a licensee is not required to apply for a salesperson’s license. A “Related Person” means a person who directly participates in management or policy decisions under section 1201.003 of the Occupations Code. The owner of the company with a retailer license would just need to ensure that he was listed on the application for license as a “related person”.
Can a retailer rebuild a salvaged home?
Under section 1201.101(e) of the Occupations Code a person may not repair, rebuild, or otherwise alter a salvaged manufactured home unless the person holds a retailer’s license. A licensed retailer can rebuild a salvaged home as long as they notify the Texas Department of Housing and Community Affairs, Manufactured Housing Division (Department) in writing before rebuilding begins providing all information required under title 10, section 80.36(b) of the Texas Administrative Code.
If a retailer subcontracts the installation of homes sold, does the retailer also have to be licensed as an installer?
A retailer is required to be licensed as an installer IF they sell NEW manufactured homes. On new homes, the retailer is responsible for the installation even if the installation is subcontracted. Pursuant to title 10, section 80.33 of the Texas Administrative Code for used manufactured homes the person contracting with the consumer for the installation of the home is the installer and must warrant the proper installation of the home. If the contracting installer subcontracts with an independent licensed installer, then the subcontractor is jointly and severally liable for that portion of the installation that the subcontractor performed. Only a person licensed as an installer may contract to install, even if they are subcontracting some or all of the work.
Are separate applications required to be completed if applying for a Retailer/Broker/Installer (RBI) or any variation of the Retailer license?
No, a separate application is not required to be completed if applying for a RBI or any variation of the retailer license. The specific type of license being applied for should be indicated on the application for license.
How do I get a license?
All applicants must attend an eight (8) hour Core Licensing Education Class (LEC) on the rules, law and consumer protection regulations and successfully pass an examination prior to issuance of license. Additionally, retailers must attend an additional four (4) hour Retailer Licensing Education Course and successfully pass an examination prior to issuance of license. Installers must attend an additional four (4) hour Installer Licensing Education Course and successfully pass an examination prior to issuance of license. A salesperson may apply for a license without having completed the course of instruction provided that the person successfully completes the Core LEC within 90 days after the date of the applicant’s licensure. The LEC is conducted in Austin every two months. The fee to attend the LEC is $150.00 per person for the Core LEC, $50.00 per person for the Retailer LEC, and $50.00 per person for the Installer LEC. Click on the link for the enrollment form: Education class enrollment form (PDF).
After the licensing class is completed, proof of class completion (copy of the certificate of attendance), a bond, proof insurance, proof of business name filing with the Secretary of States office or local County, and the required fee must be submitted. Once the application is received in our office and is complete, the processing time is 7 working days, not including mail time to and from the department.
Can the class be taken online?
No, under section 1201.104 of the Occupations Code classes must be live. Online or other electronic classes are not permitted.
Does a spouse or friend have to pay to sit in on the class?
Yes. Each person in attendance must pay the required class fee.
Is there a test?
Yes, an examination with a 70% passing score is a requirement for licensure.
How soon do I need to apply for my license once the class has been taken?
Within 12 months before applying for the person’s first license.
What if I'm unable to attend class after I've already registered?
A request to reschedule the class may be sent by mail, email or fax. Any attendance fees submitted will remain on credit.
What should I do if I miss the initial class after applying for a salesperson's license?
Under section 1201.104(c) of the Occupations Code, an applicant for a salesperson's license may apply for a license without having completed the course of instruction provided that the person successfully completes the course offered not later than the 90th day after the date of the person's licensure. If the person fails to complete such course successfully and in a timely manner, the person's license is automatically suspended until the person successfully completes the course.
Can someone else take the place of the person already confirmed to attend the class?
Yes, someone else can take the place of the person pre-registered. This information can be changed by sending a new enrollment form or letter by mail, fax, email or at the time of sign-in.
Will I automatically receive my license once the class has been completed?
No. The license must be applied for separately with a process explained in the Licensing Education Class.
Can a license be applied for online?
No, the license cannot be applied for online. To reduce mail time to and from the department, you might consider sending your application by overnight mail.
Can I pay with a credit card?
No, credit cards are not accepted. All fees must be delivered by mail or in person in the form of a company or business firm check, cashier’s check, or money order.
Can a letter of credit be submitted in lieu of a bond or certificate of deposit?
No, a letter of credit will not be accepted in lieu of a bond or certificate of deposit.
How long does it take to get a license?
Processing time is 7 working days from the date the application is received complete. This does not include mail time to and from the department.
I'm applying for a Retailer/Installer license. Do I need a separate bond for each license type?
No, a separate bond is not required for each license type so long as the license is applied for as a single license; the $50,000 bond is sufficient.
What needs to be done to renew my license?
The Department shall renew a license if the Department receives the renewal application and payment of the annual fee before the expiration date of the license, which is every two years from the date of the initial license. You may renew your license online; however, the Department must have proof that 8 hours of continuing education are completed pursuant to section 1201.113 of the Texas Occupations Code. A new license will not be issued until proof is received that the required continuing education has been completed. Proof may be emailed to firstname.lastname@example.org.
Is it true that a lender can no longer sell directly to a consumer?
Section 1201.460 of the Occupations Code states that a lienholder may sell or exchange a repossessed manufactured home only to or through a licensed retailer unless the home is sold to a purchaser for the purchaser’s business use. Of course if the lender is also licensed as a retailer, they may sell from their bonded location(s).
I will be selling new and used homes but will not be installing the homes using my license. Why do I need to be a licensed installer?
Section 1201.352 of the Occupations Code requires the retailer of a new HUD-code manufactured home to warrant the installation of the home at the initial homesite. Because the retailer is responsible for the installation of new homes, a retailer who sells new homes must meet the requirements of an installer and be licensed as such.
How will the license be sent to me?
Your license will be sent via regular mail unless you provide a pre-paid overnight envelope with your application for license.
Can a copy of the license be faxed to me?
Yes. You may request that a copy of the license be faxed to you, once issued.
I lost my license or didn't receive it. Is there a charge for a reprint?
If you lost your license, a $25 reprint fee will be required. However, if you never received your license, another license may be sent to you at no charge.
As a Salesperson, what do I need to do if I change employers during my active license period?
If you change employers, written notice of the change, with an authorized signature of the Sponsoring Retailer, must be submitted to the department along with a $25 reprint fee.
How do I change my location address?
The change of location will not be effective until the following are received by the department:
- a written notification of the address of the new location;
- an endorsement to the bond reflecting the change of location; and
- the original license.
How do I change my officers/partners?
For a change in ownership of less than fifty
percent (50%) of the licensed entity, no new
license is required provided that the existing bond or
other security continues in effect. However, the current
Articles of Incorporation or Assumed Name Certificate
must accompany a request to reflect such a change.
For a change in ownership of fifty percent (50%) or more, the license holder must file with the department, along with the appropriate fee and Articles of Incorporation or Assumed Name Certificate:
- a license addendum by the purchaser providing information as may be required by the department; and
- certification by the surety that the bond for the licensed business entity continues in effect after the change in ownership; or
- an application for a new license along with a new bond or other security and proof that the education requirements of §1201.113 of the Standards Act, have been met.
My license is expired. Can I still renew or will I need to reapply?
A person whose license has expired may not engage in activities that require a license until the license has been renewed. An expired license may be renewed with a late renewal fee of 1 ½ times the regular renewal amount if past due 1-90 days, and 2 times the regular amount if past due 91-364 days.
There is an error on my license. What do I need to do to get it corrected?
It depends. If the error was made by the department, make a copy of the license for your records and return the original license with a written statement identifying the error. However, if the error was not a department error, proper endorsement from the bonding company, such as a bond rider or change rider, a written statement from the license holder identifying the error, a copy of the official documents, such as the Assumed Name Certificate and/or Articles of Incorporation, evidencing the change (if applicable) and the original license, must be returned for correction with a $25 reprint fee. The correction request will be processed within 7 working days.
How do I change my business name?
Make a copy of the license for your records, and then return the license, a written statement by anyone authorized (authorized persons must be properly listed on the application) to make changes to the license consenting to the name change, and a copy of a bond rider issued by the bond company acknowledging the change. A $25 reprint fee is also required. Processing time is 7 working days not including mail time to and from the department.
How do I change my mailing address?
Fax (512-475-3506) or email the Name and Address Change Request form (https://www.tdhca.state.tx.us/mh/docs/1002-name-address-change.pdf) to the department.
May I use my DBA name (rather than the corporate name) to advertise the homes that I sell?
If you have notified the Department, in writing, of the assumed name and provide us with evidence that you have properly filed to do business under that assumed name, you may conduct business, including the offering of manufactured homes, under that name.