Manufactured homes are becoming increasingly popular. As a type of house built from prefabricated parts, they are usually cheaper than building a conventional home and are often sold at discounted prices. Additionally, they offer homeowners a great opportunity to live in a home that suits their lifestyle without having to worry about constant maintenance or repairs.
If you want to make money buying and selling manufactured homes in Illinois, consider getting a Manufactured Home Dealer License. We’ve created an easy-to-follow guide on the licensing process.
To become a licensed dealer of new or used manufactured homes, you’ll have to meet certain requirements. These include completing the license application, having an established place of business, securing a surety bond and paying all the fees.
The first step to obtaining a license is to apply with the Vehicle Services Department Dealer Licensing Section of the Illinois Secretary of State. Complete their application and pay the required fees before submitting it.
Provide the following information on the application:
Along with your application, you must include details on where you conduct your business. If you are leasing a property, you must attach a copy of your lease agreement. This property is where you conduct your dealing in manufactured homes.
Submit certification of approval for registration under the Retailers’ Occupation Tax Act by the Department of Revenue. Dealers who are currently licensed with the Secretary of State and those applying for a renewal of their license are exempt from this requirement.
You must include a $150,000 surety bond or certificate of deposit with your license application. This requirement ensures your customers are protected if you don’t perform your duties as a dealer ethically and honestly.
A claim may be made against your bond and if proven valid, the surety that issued your bond may payout up to the full bond amount to the claimant. As the principal of the bond, it would be your responsibility to make the surety finically whole.
Dealers in business for over ten years may substitute the bond or certificate of deposit requirement by providing a certificate of insurance.
Lastly, you will submit your dealer application and include the license fee. This fee is $1,000 if submitted before the 15th of June. Otherwise, if submitted after this date, the licensing fee is $500. Do note this fee is refundable if your application is denied by the Dealer Licensing Section.
Illinois Dealer Licensing does require dealers of manufactured homes to have an established place of business. This location is to be occupied by the dealer for the purpose of bartering, buying, displaying, exchanging and selling of manufactured homes. If you have concerns about your eligibility to get your license, please contact the Dealer Licensing Section at (217) 782-7817.
The cost of the surety bond, known as the bond premium, is only a small fraction of the bond amount. Rest assured, you don’t need to pay the $150,000 bond amount to get your bond. Typically, surety bond applicants pay around 1% – 5% of the bond amount if approved with good credit. Submit an online application to get a free, no obligation quote for your bond.
It’s your choice on where to secure your surety bond. Applying for your new license is a time-consuming process, but getting your bond doesn’t have to be. At Surety Solutions, A Gallagher Company, we work with leading surety providers to find you the best value for your bond. Complete our quick and easy online application to get your free quote, today.
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Yes, you must be licensed with the Illinois Secretary of State to legally buy and sell manufactured homes. Purchasing a manufactured home is a large investment. The Secretary of State enforces the license requirement to ensure dealers are abiding state rules and run an ethical business. However, if you don’t plan on buying or selling more than two manufactured homes within a twelve-month period, you don’t need a license.
For any licensing questions or assistance with the licensing application, please contact the Dealer Licensing Section by calling (217) 782-7817. If you would like assistance with the required surety bond or general questions about a bond, contact us here or send an email to our bond experts at [email protected].
About Surety Solutions, A Gallagher Company
Surety Solutions makes the process of getting your surety bond quick and easy. We’re committed to uphold our culture of trust, honesty and great customer service.
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Beau is the Marketing Content Developer at Surety Solutions, A Gallagher Company. He creates content about all types of surety bonds, including mortgage, court, lost title, contractor, fidelity, ERISA and many more.
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