What is a Mobile Home Dealer Bond?
A mobile home dealer bond is a form of a license bond, required for individuals and companies that work as dealers of manufactured homes. As part of the process of obtaining a mobile home dealer license, a mobile home dealer bond works to protect the state licensing authority as well as the general public when interacting with a mobile home dealer. If a dealer does not abide by state rules and regulations, a claim can be made against the mobile home dealer bond to cover financial damages.
As with other surety and license bonds, a mobile home dealer bond is a contract between three parties. The obligee is the state licensing agency requiring the bond to be in place. The principal is the mobile home dealer purchasing the bond, and the surety is the company providing the bond to the principal. When a claim is made against a mobile home dealer bond, the surety pays for the losses and then requires repayment from the mobile home dealer.
What Does a Mobile Home Dealer Bond Cost?
A mobile home dealer bond requirement may vary from one state to the next, meaning the total amount of a bond that must be in place ranges significantly. However, mobile home dealers do not have to pay the entire amount of the bond requested. Mobile home dealer bond pricing is calculated as a percentage of the bond amount, often ranging from 1 to 3%.
The percentage rate you pay for a mobile home dealer bond depends on your credit history as well as the finances of the business and experience in the industry. When credit is a problem, you can still obtain a mobile home dealer bond. However, the percentage rate charged as your bond premium will be higher than for dealers with strong credit and business financials.
How Do I Get a Mobile Home Dealer Bond?
If you’re going through the licensing process for becoming a mobile home dealer, you need to start your mobile home dealer bond application as well. The process is easy, beginning with a request for a bond quote via a short online form.