DEPARTMENT OF LABOR & ECONOMIC GROWTH  
DIRECTOR'S OFFICE  
MANUFACTURED HOUSING  
(By authority conferred on the director of the department of labor & economic growth  
by 1987 PA 96, MCL 125.2301 and Executive Reorganization Orders No.1996-2,  
2003-1, and 2006-2, MCL 445.2001, 445.2011, and 445.1981)  
PART 1. GENERAL PROVISIONS  
R 125.1101 Definitions.  
Rule 101. (1) As used in these rules:  
(a) "Accessory" means anything which is joined to a home, which renders it more  
complete, which accompanies it, which is connected to it, or which performs a  
function incident to the safety or convenience, or both, of the occupant, such as an  
attached or detached carport or garage, steps, or decks.  
An accessory shall be constructed pursuant to the standards set forth in the provisions  
of R 408.30101 to R 408.30121 of the Michigan Administrative Code.  
(b) "Act" means 1987 PA 96, MCL 125.2301 to 125.2350 and known as the  
mobile home commission act.  
(c) "Advertising" means the publication of, or causing to be published, by any  
means of communication, all material that is prepared for public distribution and  
consumption, including any sign used by a licensee. A licensee shall use the name  
under which it's doing business in all advertisements. The term does not include  
applications for licensing or stockholder communications, such as any of the following:  
(i) Annual reports.  
(ii) Interim financial reports.  
(iii) Proxy materials.  
(iv) Registration statements.  
(v) Securities.  
(vi) Business or financial prospectuses.  
(d) "Certificate of manufactured home ownership" means a document which is  
issued by the department or its authorized representative and which establishes  
lawful transfer and ownership of a home.  
(e) "Closing" means the procedure in which final documents are executed.  
(f) "Commission" means the manufactured housing commission.  
(g) "Common sidewalk" means a sidewalk in a community that is intended for the  
common use of all residents in the community.  
(h) "Community" means both a "mobile home park" and a "seasonal mobile  
home park" as defined in the act.  
(i) "Consumer" means a retail purchaser.  
(j) "Consumer deposit" means all payments of cash or by personal check, money  
order, certified or cashier's check, credit card or similar instrument, or other collateral or  
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security paid to a retailer prior to closing by the consumer for the right to purchase a  
home subject to return upon cancellation of the purchase agreement.  
(k) "Department" means the Michigan department of labor & economic growth.  
(l) "Director" means the director of the Michigan department of labor & economic  
growth.  
(m) "Final documents" include termination statements, or releases of lien, purchase  
agreements, installment loan contracts, manufacturer's invoices, closing statements,  
shipping records, delivery receipts, and escrow disbursement documents.  
(n) "Home" has the same meaning as "manufactured home," which has the same  
meaning as "mobile home" as defined in the act. A new home is a home for which a  
certificate of manufactured home ownership should have been issued under the act.  
(o) "Homeowner" means the person or persons listed on the certificate of  
manufactured home ownership and on the security agreement, if one exists, for the home.  
(p) "Home site" means the entire area that is designated to be used for a specific  
home.  
(q) "Individual sidewalk" means a private sidewalk which extends from the  
common sidewalk, driveway, or internal road to the home site and which is intended  
for the use of the home site resident.  
(r) "Installer and servicer" has the same meaning as "installer and repairer" as  
defined in the act.  
(s) "Internal road" means a road which is contained within the boundaries of a  
community and which is under the care, custody, and control of the community.  
(t) "Location" means a staffed sales office that lists or sells, or lists and sells, new  
or pre-owned homes.  
(u) "Manufactured housing commission" has the same meaning as "commission" as  
defined in the act.  
(v) "Operator" means an individual 18 years of age or older who is an officer of  
a corporation, a manager or member, if member managed, of a limited liability  
company, a general partner, a copartner, or a sole proprietor.  
(w) "Optional improvement" means an amenity in new community construction or  
existing licensed community expansion that is not required under the community  
construction rules contained in these rules.  
(x) "Payments" does not include payments collected by a retailer on behalf of either  
a lender, in order for financing to be approved, or a state or local governmental  
agency, in order to apply for permits, and forwarded by the retailer to the lender or  
governmental agency.  
(y) "Permanent foundation" means a base upon which a home is placed that is not  
subject to excessive movement caused by changes in weather or home weight  
distribution.  
(z) "Purchase agreement," for the purpose of records maintained under these  
rules, means an express written agreement in which a person agrees to buy, and another  
person agrees to sell, a home and includes specific home identification information,  
which shall include all of the following information:  
(i) Year of manufacture or year on previous certificate of manufactured home  
ownership.  
(ii) Serial number if available.  
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(iii) Name of manufacturer.  
(iv) Model name or number.  
(v) The agreed to price of the home.  
(vi) Each buyer-selected option and accessory.  
(vii) Other costs to the buyer, such as taxes and certificate of manufactured  
home ownership fees.  
(aa) "Purchaser" means a retail purchaser.  
(bb) "Retailer" has the same meaning as "mobile home dealer" as defined in the act.  
A community that rents or leases homes within the community is not required to be  
licensed as a retailer, but shall comply with the retailer business practices rules. A  
lender that only sells homes it has repossessed is not required to be licensed as a retailer.  
A community that only sells homes that have been abandoned or for which a title has  
been transferred without consideration or in lieu of rent owed is not required to be  
licensed as a retailer.  
(cc) "Rubbish" means not putrescible solid wastes, except ashes, consisting of  
either combustible or noncombustible wastes, such as paper, cardboard, metal  
containers, yard clippings, wood, glass, bedding, crockery, demolished building  
materials, or litter of any kind that may be a detriment to the public health and safety.  
(dd) "Seasonal community" has the same meaning as "seasonal mobile home  
park" as defined in the act.  
(ee) "Successor" means a person who obtains all of the assets and liabilities of  
a former owner.  
(ff) "Terminate" means ceasing activities authorized under the terms and powers  
of a license specified in the act.  
(gg) "Year of manufacture" means the calendar year in which a home is  
manufactured.  
(2) Terms defined in the act have the same meanings when used in these rules.  
History: 1979 AC; 1980 AACS; 1982 AACS; 1984 AACS; 1985 AACS; 1991 AACS; 1998  
AACS; 2003 AACS; 2008 AACS.  
R 125.1102 Adoption by reference  
Rule 102. The following standards are referenced in these rules and are adopted by  
reference in this rule:  
(a) The standards of the United States department of housing and urban  
development, 24 C.F.R. part 1700 to 1799, revised April 1, 2006, and parts 3280 and  
3282, revised April 1, 2006, under the national manufactured housing construction and  
safety standards act of 1974, as amended, 42 U.S.C. §601 to §628. Copies of the  
adopted standards may be obtained from the Superintendent of Documents,  
United States Government Printing Office, Washington, D.C., 20204, at no cost.  
Copies may also be obtained from, or are available for inspection at, the Department of  
Labor & Economic Growth, Bureau of Construction Codes, 2501 Woodlake Circle,  
Okemos, Michigan 48864, at no cost.  
(b) Part 3282 of the manufactured home procedural and enforcement  
regulations, revised April 1, 2006, promulgated under the national manufactured  
housing construction and safety standards act of 1974 is adopted by reference in these  
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rules and is available for inspection at the Michigan Department of Labor & Economic  
Growth, Bureau of Construction Codes, 2501 Woodlake Circle, Okemos, Michigan  
48864, or from the Superintendent of Documents. P.O. Box 371954, Pittsburgh, PA  
15250-7954, at a cost as of the time of adoption of these amendatory rules of $15.00.  
(c) ASTM standard C 90-99, printed June 1999, is adopted by reference in these  
rules and is available for inspection at the Michigan Department of Labor & Economic  
Growth, Bureau of Construction Codes, 2501 Woodlake Circle, Okemos, Michigan  
48864, or from the American Society for Testing and Materials, 100 Barr Harbor  
Drive, West Conshohocken, PA 19428-2959, at a cost as of the time of adoption of these  
amendatory rules of $29.00.  
(d) The United States department of housing and urban development standards  
entitled "Manufactured Home Construction and Safety Standards," revised April 1,  
2006, are adopted by reference in these rules. Copies of the standards may be  
obtained at no cost from the Superintendent of Documents, United States  
Government Printing Office, Washington, DC 20402, or from the Department of Labor &  
Economic Growth, Bureau of Construction Codes, P.O. Box 30254, Lansing, Michigan  
48909.  
(e) The American Society for Testing and Materials (ASTM) specification F1487-  
05, August 15, 2005, edition, is adopted by reference in these rules and is available for  
inspection at the Michigan Department of Labor & Economic Growth, Bureau of  
Construction Codes, 2501 Woodlake Circle, Okemos, Michigan, 48864. A copy of this  
specification may be purchased or inspected from the American Society for Testing and  
Materials, 100 Barr Harbor, West Conshohocken, PA 19428-2959, at a cost as of the  
time of adoption of these amendatory rules of $52.00.  
(f) The 2003 edition, international fire code, appendix D, figure D103.1 dealing  
with dead end fire apparatus access roads, is adopted by reference in these rules. The  
code is available for inspection at the Michigan Department of Labor & Economic  
Growth, Bureau of Construction Codes, 2501 Woodlake Circle, Okemos, Michigan,  
48864. The code may be purchased from the International Code Council, 500  
New Jersey Avenue, N.W., 6th Floor, Washington, D.C. 20001, at a cost as of the  
time of adoption of these amendatory rules of $74.00.  
(g) The guide for design of pavement structures, March 1993 printing and the  
March 1, 1998 supplement as published by the American association of state highway  
and transportation officials (AASHTO), is adopted by reference in these rules and is  
available for inspection at the Michigan Department of Labor & Economic Growth,  
Bureau of Construction Codes, 2501 Woodlake Circle, Okemos, Michigan 48864, or  
from the American Association of State Highway & Transportation Officials, 444  
North Capitol Street N.W., Suite 249, Washington, DC 20001, at a cost as of the  
time of adoption of these amendatory rules of $150.00.  
(h) The requirements of American water works association standards C700-02,  
effective January 1, 2003, entitled "Cold Water Meters - Displacement Type" (the  
cost at the time of adoption of these rules is $54.00); C708-05, effective June 1,  
2005, entitled "Cold Water Meters - Multijet Type" (the cost at the time of adoption of  
these rules is $37.00); and C710-02, effective January 1, 2003, entitled "Cold Water  
Meters - Displacement Type Plastic Main Case" (the cost at the time of adoption of  
these rules is $37.00). These standards are adopted in these rules by reference and  
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are available for inspection at the Michigan Department of Labor & Economic  
Growth, Bureau of Construction Codes, 2501 Woodlake Circle, Okemos, Michigan  
48864, or from the American Water Works Association, 6666 West Quincy Avenue,  
Denver, Colorado 80235.  
History: 2008 AACS.  
R 125.1103 Rescinded.  
History: 1985 AACS; 1998 AACS.  
R 125.1105 Commission; voting.  
Rule 105. Each member of the commission shall have 1 vote.  
History: 1979 AC; 1998 AACS.  
R 125.1106 Commission; conflict of interest.  
Rule 106. A commissioner or commission committee member shall not  
participate in a decision or discussion leading to a decision relating to a business entity  
in which the commissioner or commission committee member has a financial or personal  
interest. However, a commissioner or commission committee member may be present  
in the meeting room during the discussion and decision.  
History: 2003 AACS.  
R 125.1110 Commission; meeting; quorum; agenda.  
Rule 110.(1) A quorum shall be required to conduct commission business.  
(2) The chairperson and the executive director of the commission shall determine  
the meeting agenda. A member may place an item on the tentative agenda 14 days  
before the scheduled meeting date.  
(3) A meeting shall be called by the chairperson. Except in emergency  
circumstances, the call for a meeting, specifying the time and place of the meeting, shall  
be personally communicated or mailed to each member of the commission not less  
than 7 days before the date of the meeting.  
(4) The vice-chairperson shall fulfill the duties of the chairperson if the chairperson  
is absent.  
(5) The chairperson shall appoint committees of the commission, subject to  
commission approval.  
(6) A meeting of the commission or a committee shall be conducted under  
Robert’s Rules of Order.  
History: 1979 AC; 1991 AACS; 1998 AACS.  
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R 125.1115 Commission; meeting; public participation.  
Rule 115. Testimony or comments, or both, presented by a member of the public  
during a commission meeting shall be limited to 10 minutes for an individual  
representing an organization and limited to 6 minutes for an individual not  
representing an organization. The individual presiding over the meeting may grant 10  
additional minutes to anyone. Additional comments may be submitted to the  
commission in writing.  
History: 1979 AC; 1998 AACS.  
R 125.1120 Proposed higher standard; filing; approval and disapproval;  
adoption by ordinance.  
Rule 120. (1) Under the act, local governments proposing a higher standard  
than specified in these rules shall, after public hearing, file the proposed standard with  
the department for the commission's review and approval.  
(2) The filing shall be in letter form and shall contain, but not be limited to, all  
of the following information:  
(a) The current specific standard for which a higher standard is being proposed.  
(b) The proposed higher standard.  
(c) A statement or statements setting forth the reasons for a standard that is  
higher than the existing standard.  
(d) A statement or statements that the proposed higher standard is not designed to  
generally exclude homes or persons who engage in any aspect pertaining to the  
business of homes.  
(e) A statement or statements comparing the proposed higher standard with the  
standard applicable to other types of housing. The standard applicable to other types of  
housing shall be submitted with the statement or statements.  
(f) Any other information and data that provides justification for the proposed  
higher standard.  
(3) The commission shall approve or disapprove the proposed higher standard  
within 60 days after the standard is filed with the commission and shall notify the local  
government, in writing, of its decision. If the commission denies the request, then the  
local government is entitled to a hearing before the commission or its designated  
representative under 1969 PA 306, MCL 24.271 to 24.328.  
(4) If the commission does not approve or disapprove the proposed higher  
standard within 60 days after the standard is filed with the commission at the  
department, then the standard shall be considered approved unless the local  
government has granted the commission additional time to consider the proposal.  
(5) After receipt of approval, or if the 60 days or extended time limit has lapsed,  
the local government may adopt the standard by ordinance.  
History: 1979 AC; 1980 ACS; 1998 AACS; 2003 AACS; 2008 MR 11, Eff. Sept. 2, 2008.  
R 125.1125 Proposed higher standard; intent to deny; order.  
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Rule 125. (1) The commission may deny a proposed higher standard by local  
government under the provisions of the act. The department shall notify the local  
government by certified mail or personal delivery of the preliminary order of intent to  
deny. The preliminary order of intent to deny constitutes notification within the 60-day  
time limit, and extension if any, under the act.  
(2) The preliminary order of intent to deny shall automatically be final 15 days  
after the date of receipt of the order by a local government, unless the local government  
requests, in writing, a hearing before the commission or its designated representative  
under the provisions of 1969 PA 306, MCL 24.271 to 24.328.  
History: 1979 AC; 1991 AACS; 1998 AACS; 2003 AACS; 2008 MR 11, Eff. Sept. 2, 2008.  
R 125.1130 Aggrieved persons; hearing.  
Rule 130. A person who is aggrieved by a decision of a local government shall be  
given an opportunity for a hearing under the act, provided that a written request is  
received by the department not more than 60 days from the date a decision is rendered  
by the local government.  
History: 1979 AC; 1980 AACS; 1985 AACS; 1991 AACS; 1998 AACS; 2003 AACS; 2008  
AACS.  
R 125.1135 Rescinded.  
History: 1979 AC; 1998 AACS.  
R 125.1140 Rescinded.  
History: 1979 AC; 1980 AACS; 1998 AACS.  
R 125.1145 Rescinded.  
History: 1979 AC; 1998 AACS.  
R 125.1150 Rescinded.  
History: 1979 AC; 1991 AACS; 1998 AACS.  
R 125.1155 Rescinded.  
History: 1979 AC; 1998 AACS.  
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R 125.1160 Rescinded.  
History: 1979 AC; 1980 AACS; 1998 AACS.  
R 125.1165 Rescinded.  
History: 1979 AC; 1998 AACS.  
R 125.1170 Rescinded.  
History: 1979 AC; 1998 AACS.  
R 125.1175 Declaratory rulings.  
Rule 175. The commission and the department, at the request of an interested  
person, may issue a declaratory ruling in accordance with the department of labor  
and economic growth declaratory ruling procedures prescribed in R 338.81.  
R 125.1185 Home Construction Standards.  
Rule 185. (1) All new homes sold within Michigan shall comply with the  
construction standards promulgated by the United States department of housing and  
urban development, 24 C.F.R. part 1700 to 1799, and parts 3280 and 3282, under the  
national manufactured housing construction and safety standards act of 1974, as  
amended, 42 U.S.C. §601 to §628. The standards are adopted by reference in R  
125.1102 of these rules.  
(2) All new or pre-owned United States department of  
housing and urban development-approved homes brought into or sold within the state  
of Michigan shall be in compliance with the requirements for the appropriate roof load.  
All homes sited on July 16, 1998 may be sold on the home site.  
(3) The dividing line between the south roof load zone (20 pounds per square  
foot) and the middle roof load zone (30 pounds per square foot) shall be the centerline of  
highway M-55 west from Tawas City to the intersection of highway M-115 and then  
northwest along the centerline of M-115 to Frankfort. The beginning and end of the  
dividing line shall be at waters' edge.  
History: 1979 AC; 1998 AACS; 2001 AACS; 2008 AACS.  
R 125.1185 Home Construction Standards.  
Rule 185. (1) All new homes sold within Michigan shall comply with the  
construction standards promulgated by the United States department of housing and  
urban development, 24 C.F.R. part 1700 to 1799, and parts 3280 and 3282, under the  
national manufactured housing construction and safety standards act of 1974, as  
amended, 42 U.S.C. §601 to §628. The standards are adopted by reference in R  
125.1102 of these rules.  
(2) All new or pre-owned United States department of  
housing and urban development-approved homes brought into or sold within the state  
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of Michigan shall be in compliance with the requirements for the appropriate roof load.  
All homes sited on July 16, 1998 may be sold on the home site.  
(3) The dividing line between the south roof load zone (20 pounds per square  
foot) and the middle roof load zone (30 pounds per square foot) shall be the centerline of  
highway M-55 west from Tawas City to the intersection of highway M-115 and then  
northwest along the centerline of M-115 to Frankfort. The beginning and end of the  
dividing line shall be at waters' edge.  
History: 1982 AACS; 1991 AACS; 1998 AACS; 2003 AACS; 2008 MR 11, Eff. Sept. 2, 2008.  
R 125.1190 Inspections.  
Rule 190. (1) The department, or its authorized representative, shall not conduct an  
inspection under the act or these rules without upon arrival, identifying itself to the  
developer, owner, operator, or authorized representative of the home business to be  
inspected. An inspection which is an audit shall not be conducted without first mailing a  
written notice to the developer, owner, or operator of the home business at least 10 days  
before the audit, unless the developer, owner, or operator waives the notice  
requirement in writing. "Inspection," for the purpose of this rule, means, but is not  
limited to, drive-throughs, walk-throughs, compliance inspections, or any other means  
from which visual or oral information would be obtained pertaining to the management  
or operation, or both, or any other aspect of the home business in which the person  
being inspected is engaged.  
(2) This rule does not apply to investigations conducted under section 36(1)(a) of  
the act.  
History: 1979 AC; 1998 AACS.  
R 125.1191 Rescinded.  
History: 1980 AACS; 1998 AACS.  
R 125.1192 Posting of complaint notice.  
Rule 192. A licensee shall post, in a conspicuous place, the following  
statement for resolving complaints:  
"Under the Mobile Home Commission Act you have the right to file a  
complaint that pertains to violations of that act or rules published under the act. Before  
a complaint can be filed under the act or rules, you must notify the manufactured home  
manufacturer, community, retailer, or installer  
and servicer in writing that a problem exists. If a reasonable response is not  
received within 10 business days of receipt of your complaint, you may file a complaint  
with the Michigan Department of Labor & Economic Growth, Bureau of Construction  
Codes, Office of Local Government and Consumer Services, P.O. Box 30254,  
Lansing, Michigan 48909. Please note that only complaints about violations of the  
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mobile home commission act or rules can be accepted by the Department. Examples of  
complaints may regard any of the following:  
1. Purchase of manufactured homes, goods, or services and applicable  
warranties.  
2. Lease or rental agreements.  
3. Manufactured home communities.  
4. Metering of utilities.  
5. Manufactured home installation and service.  
Complaints pertaining to manufactured home community rent costs do not fall under  
the authority of the act."  
History: 1980 AACS; 1991 AACS; 1998 AACS; 2003 AACS; 2008 MR 11, Eff. Sept. 2, 2008.  
R 125.1192a Complaint Process  
Rule 192a. (1) The complainant shall send an alleged complaint to the  
respondent in writing of the alleged violation, giving the respondent 10 business days  
to respond.  
(2) A person may file a complaint with the department, on a form prescribed  
by the department, pertaining to a violation of the act and rules.  
(3) The department shall send the complaint to the respondent if the department  
determines there is a potential violation of the act or rules.  
(4) The respondent shall respond to the complaint in writing to the department  
within 10 business days after receipt from the department or attempted delivery of the  
complaint.  
(5) If the respondent does not respond to the complaint in writing within 10  
business days after receipt, the department shall send the complaint to the alleged  
respondent a second time.  
(6) The respondent shall respond to the complaint in writing to the department  
within 5 business days after receipt from the department under subrule (5) of this rule.  
(7) If the respondent does not respond to the complaint under subrule (6) of this  
rule, then the department shall send an order to answer via certified mail to the  
respondent directing a response.  
(8) Under subrule (7) of this rule, the respondent shall respond to the order to  
answer within 10 business days after receipt from the department or attempted delivery  
of the complaint.  
(9) If the respondent does not respond to the order to answer under subrule (8)  
of this rule, then the department shall initiate administrative action against the  
respondent.  
(10) If the respondent responds to the complaint or order to answer, the  
department shall send the response to the complainant.  
(11) The complainant shall respond to the response in writing to the department  
within 10 business days after receipt.  
(12) If the complainant does not respond to the response within 10 business  
days after its receipt, or notifies the department in writing that the response is  
satisfactory, then the department shall close the complaint file.  
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(13) If the complainant notifies the department in writing that the response is  
not satisfactory, then the department shall determine whether the respondent has violated  
the act or these rules.  
(14) If the department determines that the respondent has not violated the act or  
rules, then the department shall notify the complainant and the respondent in writing  
and shall close the complaint file.  
(15) If the department determines that the respondent has violated the act or rules,  
then the department shall notify the complainant and the respondent in writing of the  
required remedial action and the deadline by which the remedial action shall be  
completed.  
(16) When the remedial action is complete, the respondent shall notify the  
department in writing and provide documentation that the remedial action is complete.  
(17) If the department is satisfied that the remedial action is complete, then the  
department shall notify the respondent and complainant of this determination and  
then shall close the file.  
History: 2003 MR 14, Eff. Aug. 1, 2003.  
R 125.1193 Rescinded.  
History: 1980 AACS; 1998 AACS.  
R 125.1194 Rescinded.  
History: 1980 AACS; 1998 AACS.  
R 125.1195 Rescinded.  
History: 1979 AC; 1985 AACS; 1991 AACS; 1998 AACS.  
R 125.1197 Rescinded.  
History: 1980 AACS; 1998 AACS.  
R 125.1200 Rescinded.  
History: 1979 AC; 1980 AACS; 1998 AACS.  
R 125.1200a Rescinded.  
History: 1979 AC; 1998 AACS.  
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R 125.1200b Rescinded.  
History: 1991 AACS; 1998 AACS.  
R 125.1200c Rescinded.  
History: 1991 AACS; 1998 AACS.  
PART 2. LICENSING  
R 125.1201 Rescinded.  
History: 1979 AC; 1998 AACS; 2003 AACS.  
R 125.1202 Application; truthful completion.  
Rule 202. An applicant for a license under the act shall complete the application  
truthfully and shall not misrepresent any material fact on the application.  
History: 1979 AC; 1998 AACS.  
R 125.1202a Rescinded.  
History: 1998 AACS; 2003 AACS.  
R 125.1202b Disclosure.  
Rule 202b. Under the act, if filing an application under the act or these rules, all  
general partners or copartners in a partnership; officers of a corporation; managers or  
members, if member managed of a limited liability company; or sole proprietors shall  
provide all of the following information:  
(a) A conviction or administrative or civil judgment rendered against them within  
10 years before the date of the application in connection with any aspect of the  
business of homes, which includes, but is not limited to, sales, brokering, installation,  
servicing, financing, and insuring homes or any aspect of community ownership,  
management, operation, development, or construction.  
(b) A conviction or administrative or civil judgment rendered against them within  
10 years before the date of application in connection with a violation of a statute  
regulating the offering of securities or franchises or regulating builders, real estate  
brokers, or real estate agents or a violation of 1972 PA 286, MCL 565.801 to  
565.835.  
(c) Information necessary to conduct a criminal record check on a form provided  
by the department.  
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History: 1998 AACS; 2003 AACS; 2008 AACS.  
R 125.1202c Operator.  
Rule 202c. On the application for licensure, a person shall identify an operator,  
who shall sign the application and be directly responsible for the operation of the  
licensee.  
History: 2003 AACS.  
R 125.1203 Rescinded.  
History: 1979 AC; 1980 AACS; 2003 AACS.  
R 125.1204 Applications; changes.  
Rule 204. An applicant shall file a change to a licensing application with the  
department within 30 days after the change is made.  
History: 1979 AC; 1998 AACS; 2003 AACS.  
R 125.1204a Additional licenses; filing of information.  
Rule 204a. If a person holds a license issued under the act and subsequently  
applies for an additional license issued under the act, then the applicant need file only that  
information not on file with the department in addition to the appropriate application and  
fee.  
History: 1998 AACS.  
R 125.1205 Rescinded.  
History: 1979 AC; 1991 AACS; 1998 AACS.  
R 125.1206 Rescinded.  
History: 1979 AC; 1980 AACS.  
R 125.1207 Rescinded.  
History: 1979 AC; 1985 AACS; 1998 AACS.  
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R 125.1207a Rescinded.  
History: 1991 AACS; 1998 AACS.  
R 125.1208 Rescinded.  
History: 1979 AC; 1998 AACS.  
R 125.1209 License issuance licensee's true and assumed names required to  
appear on license; duplicate license.  
Rule 209. A license may be issued to a person who meets the requirements of the  
act and these rules. The licensee's true name and assumed name shall appear on the  
license.  
History: 1979 AC; 1998 AACS; 2003 AACS.  
R 125.1210 Rescinded.  
History: 1979 AC; 1998 AACS; 2003 AACS.  
R 125.1211 Rescinded.  
History: 1979 AC; 1998 AACS; 2003 AACS.  
R 125.1211a Use of similar names on license prohibited; exception.  
Rule 211a. A new licensee may not conduct business under a name which is so  
similar to the name under which an existing licensee is conducting business that it  
would be confusing to the public. This rule does not apply to an existing licensee that  
receives a new license of the same type or adds another location to its license.  
History: 1998 AACS; 2003 AACS.  
R 125.1211b License display.  
Rule 211b. A license issued under the act and these rules shall be  
conspicuously displayed at the location shown on the license.  
History: 1998 AACS.  
R 125.1212 License; request for renewal; fee.  
Rule 212. An application for license renewal shall be on a form provided by the  
department and shall be accompanied by the fee prescribed by the act.  
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History: 1979 AC; 1980 AACS; 1998 AACS; 2003 AACS; 2008 MR 11, Eff. Sept.  
2, 2008.  
R 125.1213 Temporary original license.  
Rule 213. The department may authorize or issue temporary original licenses as  
evidence of proper licensing. The department shall prescribe the information that the  
license shall contain.  
History: 1979 AC; 1998 AACS.  
R 125.1213a License; failure to renew; expiration.  
Rule 213a (1) If a licensee fails to file a license renewal application with the  
department before October 1, then the license held shall expire in compliance with the  
act.  
(2) An initial or renewal license under the act shall be issued for 3 years.  
Licenses shall expire on October 1 of the current licensing cycle.  
History: 1998 AACS; 2003 AACS; 2008 AACS.  
R 125.1214 Operation after expiration of license.  
Rule 214. A licensee may continue to operate as previously licensed using only its  
expired wall license as evidence of proper licensing if its completed application for  
renewal, with proper fee, has been received by the department before October 1 of the  
current licensing cycle.  
History: 1979 AC; 1998 AACS; 2008 AACS.  
R 125.1214a Disposal of interest in home business; notice.  
Rule 214a. A licensee shall notify the department, in writing, within 10 days after  
having sold, transferred, given away, or otherwise disposed of a home business. The  
notice shall include the name, address, and telephone number of the new owner of the  
home business.  
History: 1998 AACS.  
R 125.1214b Employment of operator of licensee whose license is suspended or  
revoked prohibited.  
Rule 214b. A licensee shall not employ an individual who was an operator of a  
licensee whose license has been suspended or revoked under the act during the time of  
suspension or revocation.  
History: 1998 AACS.  
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R 125.1214c Return of suspended or revoked license.  
Rule 214c. The holder of a license or licenses issued under the act shall return the  
license or licenses to the department within 5 days of notification of suspension or  
revocation. Return shall be made either personally, for which receipt shall be obtained,  
or by certified mail.  
History: 1998 AACS; 2003 AACS.  
R 125.1214d Local government; licensing.  
Rule 214d. A local government shall not require a person licensed under the act to  
obtain a local license or to register its license unless the requirement is established by  
ordinance and the ordinance is approved by the commission under the provisions of the  
act.  
History: 1998 AACS; 2003 AACS; 2008 AACS.  
R 125.1214e Original license required to engage in retail sale of homes.  
Rule 214e. An applicant shall submit a completed licensing application to the  
department on a form prescribed by the department before the date on which the  
applicant intends to be a retailer.  
History: 1998 AACS; 2003 AACS.  
R 125.1214f Surety bonds; cancellation.  
Rule 214f. (1) A surety bond of $10,000.00 or a deposit of $10,000.00 in cash or  
securities, made payable to the "State of Michigan," on a form prescribed by the  
department, is required for each retailer location, up to a maximum surety bond or deposit  
of $100,000.00 for all locations of the same retailer.  
(2) If a surety bond is not in effect, then the retailer shall stop all sales activity.  
History: 1998 AACS; 2003 AACS; 2008 AACS.  
R 125.1214g Retailer's license; license amendments; application for  
amendments.  
Rule 214g. (1) An applicant shall obtain a license for each location from which the  
applicant proposes to operate by filing the completed application form prescribed by the  
department.  
(2) Separate applications shall be filed for each sales location.  
History: 1998 AACS; 2003 AACS.  
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R 125.1214h Temporary retailer location.  
Rule 214h. (1) A retailer shall notify the department in writing of a temporary  
sales location such as a shopping center, public show, or other similar limited-term  
general public event for home exhibition and sales.  
(2) The exhibition and sales shall not exceed 20 calendar days at any one time and  
shall not exceed a total of 60 calendar days within a 12-month period.  
(3) The notice shall include the name of the event, address, and inclusive dates for  
the exhibition and sales.  
History: 1998 AACS; 2003 AACS.  
R 125.1214i Installer and servicer; licensing required.  
Rule 214i. (1) An applicant shall submit a completed licensing application  
to the department on a form prescribed by the department before the date on which the  
applicant intends to be an installer and servicer.  
(2) A person who, for compensation installs or disassembles the installation  
of homes, including their nonpermanently affixed steps, skirting, and anchoring  
systems, or who services homes, for which service another Michigan license is not  
required, shall be licensed as an installer and servicer.  
(3) Before applying for an original or renewal installer and servicer license, the  
operator shall complete 12 hours of department-approved installation programs  
throughout the current licensing cycle.  
History: 1998 AACS; 2003 AACS; 2008 AACS.  
R 125.1214j Rescinded.  
History: 1998 AACS; 2003 AACS.  
R 125.1214k Community license application.  
Rule 214k. (1) If a licensing application is for a new community or an expansion  
to an existing community, then the applicant shall submit a completed application  
to the department on a form prescribed by the department.  
(2) If a licensing application is for a community that is or was licensed to another  
person, then the applicant shall submit a completed application to the department on a  
form prescribed by the department not more than 30 days after the date the community  
is conveyed by deed or land contract.  
(3) After conveyance, the applicant is responsible for operation of the community.  
History: 1998 AACS; 2003 AACS.  
R 125.1214l Rescinded.  
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History: 1998 AACS; 2003 AACS; rescinded 2008 AACS.  
R 125.1214m Rescinded.  
History: 1998 AACS; 2003 AACS.  
R 125.1214n New community and additional home sites license; application;  
issuance; conditions.  
Rule 214n. (1) Except as provided in subrule (2) of this rule, before the department  
issues an initial license for a new community or adds additional home sites to the  
community's existing license, all of the following shall be certified to be complete under  
the provisions of the act:  
(a) Internal roads servicing the completed home sites. The owner may construct the  
final lift of the road in the next construction season if a bond covering the cost of  
constructing the final lift is delivered to the department before licensure. The bond  
shall be made payable to the "State of Michigan."  
(b) Home site individual sidewalk.  
(c) Common sidewalks, if provided, servicing the completed home sites.  
(d) Parking servicing the home site.  
(e) Patios, if provided.  
(f) Permanent foundations.  
(g) Internal road lighting servicing the completed home sites.  
(h) At a minimum, the stabilization of the soil on the completed home sites to  
prevent, as much as possible, erosion and soil runoff.  
(2) Upon approval by the department, all of the following may be constructed  
after licensing of a home site for the purpose of customizing the home site to a specific  
home:  
(a) The home site individual sidewalk.  
(b) Parking on the home site.  
(c) Patio, if provided.  
(d) Light fixture, if on the home site.  
(e) Permanent foundation.  
(3) The applicant shall file all of the following documents with the license  
application for a new community or additional home sites:  
(a) An affidavit signed by the community owner or operator and an engineer or  
architect stating that the construction was completed according to the approved plans  
and specifications under the provisions of the act. If the community owner or operator  
elects to complete the home site under the provisions of subrule (2) of this rule, then  
the affidavit shall specifically state that the home site construction shall be completed  
before the home is occupied and shall be completed according to the approved  
plans and  
specifications. The affidavit shall cite the specific home sites to be licensed by  
home site number.  
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(b) Certification of the community sewer system by home site number under the  
provisions of R 325.3391.  
(c) Certification of the community-owned electrical system by home site number  
under the provisions of R 325.3391.  
(4) Before the department may issue a license, the department shall receive  
certification of the home sites by the Michigan department of environmental quality  
and the Michigan department of labor and economic growth under the provisions of  
the act.  
(5) It is a violation of this rule and the act if any home that is placed on a home site  
is occupied by residents before the home site is licensed. In a licensed community, each  
home site that has a home occupied by residents shall be licensed whether or not it is  
being offered to the public.  
History: 1998 AACS; 2003 AACS; 2008 AACS.  
R 125.1215 Rescinded.  
History: 1979 AC; 1980 AACS.  
R 125.1216 Rescinded.  
History: 1979 AC; 1984 AACS; 1985 AACS; 1991 AACS; 1999 AACS.  
R 125.1217 Rescinded.  
History: 1979 AC; 1980 AACS; 1984 AACS; 1991 AACS; 1999 AACS.  
R 125.1218 Rescinded.  
History: 1979 AC; 1980 AACS; 1983 AACS; 1991 AACS; 1999 AACS.  
R 125.1218a Rescinded.  
History: 1979 AC; 1991 AACS; 1999 AACS.  
R 125.1219 Rescinded.  
History: 1979 AC; 1999 AACS.  
R 125.1220 Rescinded.  
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History: 1979 AC; 1999 AACS.  
R 125.1221 Rescinded.  
History: 1979 AC; 1999 AACS.  
R 125.1222 Rescinded.  
History: 1979 AC; 1991 AACS; 1999 AACS.  
R 125.1223 Rescinded.  
History: 1954 ACS 96, Eff. July 12, 1978; 1979 AC; rescinded 1999 MR 11, Eff. Nov. 17, 1999.  
R 125.1224 Rescinded.  
History: 1979 AC; 1980 AACS; 1985 AACS; 1999 AACS.  
R 125.1224a Rescinded.  
History: 1982 AACS; 1984 AACS; 1999 AACS.  
R 125.1224b Rescinded.  
History: 1982 AACS; 1999 AACS.  
R 125.1225 Rescinded.  
History: 1979 AC; 1985 AACS; 1999 AACS.  
R 125.1225a Rescinded.  
History: 1983 AACS; 1984 AACS.  
R 125.1226 Rescinded.  
History: 1979 AC; 1980 AACS; 1985 AACS; 1991 AACS; 1999 AACS.  
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R 125.1227 Rescinded.  
History: 1979 AC; 1999 AACS.  
R 125.1227a Rescinded.  
History: 1980 AACS; 1985 AACS; 1999 AACS.  
R 125.1228 Rescinded.  
History: 1979 AC; 1985 AACS; 1999 AACS.  
R 125.1229 Rescinded.  
History: 1980 AACS; 1985 AACS; 1999 AACS.  
R 125.1230 Rescinded.  
History: 1980 AACS; 1985 AACS; 1999 AACS.  
R 125.1231 Rescinded.  
History: 1985 AACS; 1999 AACS.  
R 125.1232 Rescinded.  
History: 1985 AACS; 1999 AACS.  
PART 3. FEES  
R 125.1301 Rescinded.  
History: Rescinded 1954 ACS 100, Eff. Sept. 5, 1979.  
R 125.1302 Certificate of manufactured home ownership; application; fees.  
Rule 302. (1) An application for a certificate of manufactured home ownership  
and the appropriate fee shall be filed on a form prescribed by the department with the  
department or its authorized representative within 30 days after the closing of the sale  
transaction. In addition, a late fee of $15.00 shall be charged if the application is filed  
after the 30-day limit. The payment of a late fee does not preclude administrative action  
being taken against the purchaser or the purchaser's authorized representative.  
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History: 1980 AACS; 1990 AACS; 1998 AACS; 2003 AACS.  
R 125.1303 Certificate of title; cancellation; fees.  
Rule 303. An affidavit required under the act, executed for the purpose of canceling  
a certificate of title shall be filed with the department with a fee of $90.00.  
History: 2003 AACS; 2008 AACS.  
R 125.1305 Community license; renewal.  
Rule 305. (1) Each applicant for a community license or for a license renewal  
shall make application for the license or the license renewal on a form provided by the  
department. Except for a seasonal community, the nonrefundable fee for the 3-year  
license is $225.00, plus an additional $3.00 for each home site in excess of 25 home  
sites in the community. For a seasonal community, the nonrefundable fee for the 3-  
year license is $120.00, plus an additional $1.50 for each home site in excess of 25 home  
sites in the community.  
(2) The fee shall be submitted with the application to the department.  
History: 1979 AC; 1982 AACS; 1998 AACS; 2008 MR 11, Sept. 2, 2008.  
R 125.1310 Rescinded.  
History: 1979 AC; 1982 AACS; 1998 AACS; 2003 AACS.  
R 125.1315 Community construction and conversion fees.  
Rule 315. (1) The following nonrefundable fees shall accompany the  
documents submitted under R 125.1905 for new community construction or for  
expansion of an existing licensed community:  
(a) Application for plans approval and a permit to construct.....$185.00 plus an  
additional $4.00 for each home site over 25 home sites, to a maximum of $1,000.00.  
(b) Application for an extension of a permit to construct ....$185.00.  
(2) A nonrefundable fee of $505.00, plus an additional $4.00 for each home  
condominium home site over 25 home sites, that is to be constructed, shall accompany  
the documents that are submitted for the construction of a new home condominium or  
the expansion of an existing home condominium.  
(3) For an existing community that converts to a home condominium with an  
increase in the number of home sites within the community, the accompanying  
nonrefundable fee shall be $505.00, plus an additional $4.00 for each  
condominium home site over 25 home sites, to a maximum of $1,480.00.  
home  
(4) A nonrefundable fee of $50.00 shall accompany an application for a permit to  
construct that is submitted under the provisions of R 125.1950.  
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History: 1979 AC; 1980 AACS; 1982 AACS; 1991 AACS; 1998 AACS.  
R 125.1320 Rescinded.  
History: 1979 AC; 1998 AACS; 2003 AACS.  
PART 4. RETAILER BUSINESS PRACTICES  
R 125.1401 Advertising; prohibited activities.  
Rule 401. A retailer, in connection with the sale of homes, equipment, or  
accessories, shall not, directly or indirectly, engage in any of the following  
activities:  
(a) Advertise a home for sale if the name of the retailer does not appear in the  
advertisement. A home committed by a home owner to a retailer for sale may be  
advertised if the offer visibly states that the home is "offered on consignment."  
(b) Advertise a home and falsely offer any year of manufacture, make, type,  
model, serial number, fixed location, price, equipment, or terms or make a claim or  
condition to the sale of a home that is not truthful.  
(c) Advertise the phrase "close out," "final clearance," or "going out of business" or  
similar phrases in connection with home sales unless the phrase is true. A retailer who is  
going out of business shall comply with the provisions of 1961 PA 39, MCL 442.211  
which includes regulation of the sales activities of businesses that are going out of  
business.  
(d) Advertise the term "authorized retailer" if the retailer is not a manufacturer's  
authorized retailer or advertise as a franchised retailer if the retailer is not a registered  
franchised retailer under 1974 PA 269, MCL 445.1501.  
(e) Advertise a home by making inaccurate, misleading, or false comparisons  
with competitors' services, prices, products, quality, or business methods.  
(f) Use a picture or photograph of a home in advertising if the picture or photograph  
does not represent a home of the same year of manufacture, make, and model and does  
not contain all the standard equipment of the model that is actually being offered for  
sale at the price quoted in the advertisement.  
(g) Advertise a home for sale in a manner that conveys or creates an erroneous  
impression as to which home is being offered at the advertised price.  
(h) Advertise the statement "write your own deal" or "name your own price" or  
similar statements, unless the statements are true and a buyer can, in fact, negotiate his  
or her own price.  
(i) Advertise the phrase "at cost," "below cost," "below wholesale," "below  
invoice," "above cost," "above wholesale," or "above invoice" or similar phrases,  
unless the phrases are true. As used in this subsection, "cost" means the actual price  
paid by a retailer to a manufacturer for a specific home as that price appears on the  
retailer invoice received from the manufacturer.  
(j) Advertise a specified trade-in amount or range of amounts for a pre-owned  
home without offering the advertised trade-in amount or range of amounts regardless of  
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the condition of the pre-owned home when presented to the retailer for trade-in by a  
prospective customer, unless the statement  
"subject to condition appraisal" is contained in the advertisement.  
(k) Advertise that "no retailer has lower prices," "the retailer is never undersold," or  
statements of similar meaning, unless the statements are true.  
(l) Advertise in a manner that is false or misleading as to what a new home  
guarantee, warranty, or protection includes.  
(m) Advertise the phrase "manufacturer's warranty," unless referring to a new  
home covered by a bona fide written manufacturer's warranty.  
(n) Advertise equipment, accessories, or other merchandise as "free" if the cost, or  
any part of the cost, is included in the quoted price of the home.  
(o) Advertise the phrase "no credit rejected" or "we finance everyone" or similar  
phrases, unless the phrases are true.  
(p) Advertise the offering of a rebate or referral bonus unless true.  
(q) Advertise a home as new, unless it has never been occupied. (r) Advertise,  
or infer by advertising, that a home is "repossessed," unless it is true.  
(s) Advertise in any manner which infers that a purchaser will be  
receiving benefits of an existing loan on a home if the benefits do not exist.  
(t) Advertise pre-owned homes as carrying an unused portion of the original  
manufacturer's warranty, unless this is true.  
(u) Advertise the terms of financing a home, unless the advertisement is in  
compliance with all of the requirements of the federal truth in lending act, 15 U.S.C.  
§601 et seq., and the accompanying regulation Z, 12 C.F.R.part 226 et seq.  
(v) Advertise under any other name than that which appears on the retailer license.  
(w) Advertise for the buying of a home without the telephone number and the name  
of the retailer.  
History: 1979 AC; 1998 AACS; 2003 AACS; 2008 AACS.  
R 125.1402 Accounts and records; record of homes bought, sold, or exchanged;  
content; application for certificate of manufactured home ownership; purchase  
agreement; retention of additional records; consumer deposit records; accounts  
and records inspection; bond, cash, or security deposit records.  
Rule 402. (1) In addition to accounts and records that are required by local  
ordinances, by other laws, or as prescribed elsewhere in these rules, a retailer shall  
maintain a record of all homes bought, sold, or exchanged for 4 years. The record shall  
include all of the following entries:  
(a) The date each home is taken into inventory.  
(b) The name and address of the person from whom the home was obtained.  
(c) The purchase or stock number of the home.  
(d) The identification number of the home.  
(e) The manufacturer's trade name.  
(f) The year of manufacture and model name or number of the home.  
(g) The dates bought, sold, and exchanged.  
(h) The name and address of the purchaser.  
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(2) If a retailer is selling or brokering the home, except to another retailer that  
will be holding the home for resale, the retailer or its authorized representative shall  
prepare and file an application for a certificate of manufactured home ownership,  
which shall include any lien held against the home. If a retailer is selling or brokering the  
sale of a home that it was holding for resale, except to another retailer that will be  
holding the home for resale, it shall also file the application for a certificate of  
manufactured home ownership. The application shall be on a form prescribed by the  
department.  
(3) All sales of a home shall be executed by purchase agreement.  
(4) A retailer shall retain all of the following documents for 4 years:  
(a) A copy of the manufacturer's invoice for each new home.  
(b) A copy of each purchase agreement, as defined in these rules, with any  
attachments needed to complete the purchase agreement for each home bought, sold,  
and exchanged.  
(c) The retailer's copy of the validated application for a certificate of manufactured  
home ownership.  
(d) Service records for each home sold. If the home is pre-owned, all records that  
the retailer may have knowledge of shall be retained.  
(e) A list of all options purchased with a specific home, unless otherwise contained  
in the purchase agreement.  
(f) A copy of the retail installment sales agreement for all retailer-arranged  
financing.  
(5) A retailer that maintains an escrow account shall maintain a separate record of  
consumer deposits at its principal place of business for 4 years. The records shall consist  
of all of the following:  
(a) A record that shows the chronological sequence in which consumer deposits  
are received and disbursed.  
(b) For consumer deposits received, the record shall include all of the following  
information:  
(i) The date of receipt.  
(ii) The name of the individual who is giving the consumer deposit.  
(iii) The name of the individual receiving the consumer deposit.  
(iv) The amount.  
(c) If the consumer deposit is in the form of collateral or security other than cash or  
a cash negotiable instrument, then the record shall specifically identify the collateral or  
security, and the cash value shall be the same as contained in the purchase agreement.  
(d) For disbursements, the record shall include all of the following information:  
(i) The date.  
(ii) The payee.  
(iii) The check number.  
(iv) The amount.  
(e) A running balance shall be shown after each entry of receipt and  
disbursement.  
(6) A retailer who maintains a bond, cash, or security deposits in place of an  
escrow account shall maintain a record for 4 years consisting of the following:  
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(a) For consumer deposits received, the record shall include all of the following  
information:  
(i) The date of receipt.  
(ii) The name of the individual who is giving the consumer deposit.  
(iii) The name of the individual receiving the consumer deposit.  
(iv) The amount.  
(b) If the consumer deposit is collateral or security other than cash or a cash  
negotiable instrument, then the record shall specifically identify the collateral or  
security, and the cash value shall be the same as contained in the purchase agreement.  
(c) For disbursements, the record shall include all of the following information:  
(i) The date.  
(ii) The payee.  
(iii) The check number.  
(iv) The amount.  
(7) The retail installment contract shall disclose all arrangements made between  
the retailer and the consumer regarding the consumer deposit, such as any of the  
following:  
(a) Trade-ins.  
(b) Rebates.  
(c) Promissory notes.  
(d) Cash.  
History: 1979 AC; 1991 AACS; 1998 AACS; 2003 AACS.  
R 125.1403 Consumer deposits; providing consumer with executed purchase  
agreement; recording amount of consumer deposit; refunds; notice to consumer of  
intent to cancel purchase agreement; accepting deposits and agreements in name of  
retailer; escrow accounts; alternative to escrow account; notice of refund on  
purchase agreement.  
Rule 403. (1) Before receiving a consumer deposit, a retailer shall give the  
consumer an executed purchase agreement.  
(2) Unless the retailer has a consumer deposit bond or cash or security deposits  
under subrule (9) of this rule, a consumer deposit shall be placed in an escrow account  
and remain there until the closing. After the closing, the retailer may transfer the deposit  
to a general account.  
(3) A retailer shall record the exact amount of the consumer deposit on each  
request for financing that is sent to a lending institution.  
(4) A retailer shall refund to a consumer the total amount of a consumer deposit on  
the purchase of a home not more than 15 banking days after a request for financing  
has been rejected by the lending institution or if the consumer cancels the purchase  
agreement before the binding date under subrule  
(13) of this rule. The consumer shall notify the retailer, in writing, of his or her  
intent to cancel the purchase agreement. The notification shall be delivered to the  
retailer by certified mail postmarked before the close of the business day on the binding  
date to be eligible for return of the consumer deposit. A retailer has no obligation  
to refund the consumer deposit if the consumer cancels the purchase agreement of a  
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new or pre-owned home after the binding date. As used in this subrule, "binding date"  
means either 7 days after the date that a purchaser of a home receives a legible copy of  
the executed purchase agreement or the time at which the purchase agreement is  
executed if an application for certificate of manufactured home ownership is executed  
within 7 days.  
(5) An employee who accepts consumer deposits and purchase agreements in the  
name of a retailer is authorized by the retailer to accept the deposits.  
(6) As a condition of licensing, a retailer shall establish an escrow account, post  
a consumer deposit bond, or deposit cash or other securities in compliance with the  
provisions of the act for the protection of consumer deposits received by the retailer.  
(7) If a retailer establishes an escrow account, the retailer shall place all consumer  
cash deposits or similar negotiable instruments of the consumer's deposit in the  
escrow account by the end of the second banking day following receipt. Escrow accounts  
shall be maintained as checking accounts.  
(8) A retailer may maintain an escrow account at each location where it maintains  
records. A retailer may maintain not more than $500.00 of its own funds in each deposit  
escrow account to cover bank service charges and to avoid the account being closed or  
overdrawn if there are no other funds in  
the account. The funds shall be accounted for in a bookkeeping system as  
prescribed in these rules.  
(9) In place of an escrow account, a retailer may maintain, for each location, a  
consumer deposit bond or cash or security deposits in an amount equal to the highest  
monthly receipts of consumer cash deposits and cash value of other security recorded  
over the previous 3 years. If the highest monthly receipts formula is used to determine  
the amount of the bond or deposit, then the amount of the bond or deposit shall be  
adjusted to reflect the previous 3 years' experience before a license is renewed. If at any  
time the consumer deposits received exceed the amount of the bond or deposit  
established under the formula, then the retailer shall immediately increase the amount of  
the bond or deposit or escrow the excess amount.  
(10) If a retailer posts a bond or deposits cash or other securities, then the retailer  
who files an initial application shall maintain the bond, cash, or other securities at a  
minimum of $10,000.00 per location until sufficient data is available to comply with the  
formula. If the retailer has more than 1 location, then the required bonds or deposits may  
be combined into 1 bond or deposit.  
(11) All bonds shall be made payable to the "State of Michigan" on a form  
prescribed by the department and shall accompany an application for a retailer's  
license. All cash or security deposits shall be deposited with the State of Michigan  
upon application for a retailer's license. If the application is for a renewal license  
only, and if a copy of the bond is on file and the bond is continuous or if the cash or  
securities are on deposit, then this subrule shall not apply.  
(12) If a retailer establishes an escrow account, then the retailer shall file, with the  
department, on a form prescribed by the department, an affidavit attesting to the fact  
that account has been established. The affidavit shall be filed as an enclosure to the  
retailer license application.  
(13) The front of each purchase agreement shall contain the following  
statement in not less than 8-point, boldfaced, all caps type:  
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"Seven days after the purchaser receives a legible copy of the executed purchase  
agreement, or if any time within the 7 days an application for a certificate of  
manufactured home ownership is fully executed, the sale is final and the retailer is not  
obligated to refund the consumer deposit if the purchaser subsequently cancels the  
agreement. If the purchaser elects to cancel the purchase agreement within the 7 day  
limit and an application for a certificate of manufactured home ownership has not been  
fully executed, the purchaser shall notify the retailer in writing by certified mail  
postmarked before the end of the seventh day to be eligible for full refund of the  
consumer deposit."  
History: 1979 AC; 1998 AACS; 2003 AACS; 2008 AACS.  
R 125.1404 Prohibited business practices.  
Rule 404. (1) In addition to other laws and rules promulgated for the purpose of  
regulating business practices, a retailer shall not engage in any of the following  
practices:  
(a) Without the express written consent of the purchaser, alter or substitute a  
home purchased from inventory for which a purchase agreement has been executed by all  
parties to the transaction. The purchaser's consent shall become an attachment to the  
purchase agreement.  
(b) Without the express written consent of the purchaser, alter, substitute, or  
remove a part, option, accessory, or item of standard equipment of a home  
purchased from inventory for which a purchase agreement has been executed by all  
parties to the transaction. The purchaser's consent shall become an attachment to the  
purchase agreement.  
(c) Without the express written consent of the purchaser, alter, or substitute a  
part or entry of, a purchase or financing agreement after the agreement has been  
executed by all parties to the transaction. The purchaser's consent shall become an  
attachment to the purchase or financing agreement.  
(2) A retailer shall comply with the provisions of 1976 PA 331 MCL 445.901 et  
seq.  
History: 1979 AC; 1980 AACS; 1998 AACS; 2003 AACS.  
R 125.1405 Retail installment sales agreements; retailer-obtained financing or  
insurance; payment of floor plan lender; pay off of loan.  
Rule 405. (1) A retail installment sales agreement utilized by a retailer shall  
conform to the federal consumer credit protection act, Public Law 90-321, 15 U.S.C.  
§1601 et seq., and to 1966 PA 224, MCL 445.851 et seq.  
(2) A retailer shall not require retailer-obtained financing or insurance of a home as  
a condition of sale.  
(3) A retailer shall pay its floor plan lender for a home within 15 days after the  
retailer receives payment for the home from a purchaser or a purchaser's lender.  
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(4) A retailer shall pay off a loan on a home within 15 days after taking the home in  
trade or receiving payment for the home unless the requirement is waived by the  
homeowner, borrower, and the lender holding the loan on the home.  
History: 1954 ACS 96, Eff. July 26, 1978; 1979 AC; 1998 MR 7, Eff. July  
16, 1998; 2003 MR 14, Eff. Aug. 1, 2003.  
R 125.1406 Rescinded.  
History: 1979 AC; 1980 AACS.  
R 125.1407 Retailer termination.  
Rule 407. (1) Immediately upon determining to terminate, a retailer shall do all of  
the following:  
(a) By certified mail, notify the department of its proposed termination:  
(b) By certified mail, notify each purchaser of a new or pre-owned home who  
within 1 year before the proposed termination date, purchased a home from the retailer  
that the retailer shall be terminated. The notification shall clearly state the  
responsibilities for future service and repair under guarantees and warranties,  
financial claims, and all other retailer claims and obligations previously issued under  
the purchase agreement.  
(2) A terminated retailer shall retain all accounts and records prescribed by these  
rules for 4 years after the date of retailer termination.  
(3) If required, a retailer who terminates shall surrender all accounts and records  
to the department.  
(4) The person from whom records are requested shall provide the records to the  
department not later than 15 days after the date the person receives written notice of the  
request, unless advised otherwise by the department.  
(5) A retailer that is terminating shall post a sign which states that the retailer is  
terminating.  
History: 1979 AC; 1998 AACS; 2003 AACS.  
R 125.1408 Warranties and service.  
Rule 408. (1) A manufacturer shall warrant that a new home is free from failures  
to conform, as defined in Part 3282 - manufactured home procedural and enforcement  
regulations, promulgated under the national manufactured housing construction and  
safety standards act of 1974, and was delivered to the retailer in that condition. The  
standard is adopted by reference in R 125.1102 of these rules.  
(2) A retailer shall warrant that a new home is free from failures to conform, as  
defined in Part 3282 - manufactured home procedural and enforcement regulations  
promulgated under the national manufactured housing construction and safety standards  
act of 1974, as referenced in subrule (1) of this rule, which occurred after the  
manufacturer delivered the home to the retailer but before home installation begins.  
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(3) A manufacturer and retailer shall warrant that they shall take appropriate  
corrective action at the site of the home for breach of their respective warranty  
obligations that become evident within 1 year from the later of the date of the  
completed installation or purchase of the home.However, the purchaser must give  
written notice to the manufacturer or retailer not later than 1 year and 10 days after  
the date of completed installation or purchase.  
(4) The warranty shall include the appliances situated in the home, unless the  
appliances are covered by a warranty from the appliance manufacturer that equals or  
exceeds the warranty provided in subrules (1), (2), and (3) of this rule.  
History: 1979 AC; 1998 AACS; 2003 AACS; 2008 AACS.  
R 125.1409 Retailer acting as broker; responsibilities.  
Rule 409. (1) A retailer acting as a broker who obtains a home listing shall give a  
true copy of the listing agreement to the listing homeowner. A listing agreement shall be  
completed by the retailer acting as a broker before it is signed by the listing  
homeowner.  
(2) A listing agreement shall set forth an expiration date. A listing  
agreement shall not contain a provision requiring the listing homeowner to notify  
the retailer acting as a broker of the listing homeowner's intention to cancel the listing  
on or after the expiration date.  
(3) A retailer acting as a broker shall deliver to an offeror a signed copy of the  
offer to purchase immediately after it is signed by the offeror.Upon receipt of the written  
offer to purchase, a retailer acting as a broker shall promptly deliver the written offer to  
purchase to the seller. Upon obtaining a proper acceptance of the offer to purchase that  
is signed by the seller, the retailer acting as a broker shall promptly deliver true copies of  
the acceptance to the purchaser and the seller. A retailer acting as a broker shall  
certify, in writing, that all conditions of the home transaction are included in the offer to  
purchase.  
(4) A retailer acting as a broker who is involved in the consummation of a home  
transaction shall furnish the buyer and seller with a complete and detailed closing  
statement which is signed by the retailer acting as a broker and which shows all receipts  
and disbursements of the transaction.  
(5) A retailer acting as a broker shall not close a home transaction contrary to  
the terms or conditions of the offer to purchase, unless the written amendments are  
approved and signed by the purchaser and the seller.  
(6) A person seeking an exclusion to the definition and rules of a retailer shall  
show proof of the exclusion.  
(7) In addition to accounts and records prescribed by these rules, a retailer  
acting as a broker shall retain copies of all of the following for a period of 4 years:  
(a) Listing agreements.  
(b) Offers to purchase.  
(c) Validated receipts for applications for a certificate of manufactured home  
ownership.  
(d) Closing statements.  
(e) Leasing agreements.  
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(f) Consumer deposit accounts and records.  
History: 1979 AC; 1998 AACS; 2003 AACS.  
R 125.1410 Retailer; place of business.  
Rule 410. A retailer shall maintain a physical location in Michigan from which it  
conducts business. A post office box, secretarial service, telephone answering  
service, or similar entity does not constitute a physical location.  
History: 1979 AC; 1980 AACS; 1991 AACS; 1998 AACS; 2003 AACS.  
R 125.1411 Retailer or agent; prohibited activities.  
Rule 411. (1) A retailer or agent of a retailer shall not do any of the following:  
(a) Aid or abet an unlicensed person to evade the provisions of the act or these  
rules.  
(b) Knowingly combine or conspire with, or be acting as an agent, partner, or  
associate for, an unlicensed person.  
(c) Allow one's license to be used by an unlicensed person.  
(d) Be acting as or be an apparent licensed retailer for an undisclosed person or  
persons who do or will control or direct, or who may have the right to control or direct,  
directly or indirectly, the business operations or performance, or both, of the licensee.  
(e) Buy or acquire, directly or indirectly, an interest in a home that is listed with the  
retailer, unless the true position of the retailer or agent is clearly made known in writing,  
to the listing owner.  
(f) Acquire, directly or indirectly, an option to purchase a particular home, unless  
the true position of the retailer or agent is clearly known through a written notice to  
the homeowner of the particular home who requested the services of the retailer or  
agent to transact the brokering of the particular home.  
(g) When buying or acquiring an interest in a home, directly or indirectly,  
charge or accept from the seller, directly or indirectly, a commission, fee, or other  
valuable consideration as a result of the sale of the home in the transaction without  
receiving the seller's previous written consent to the specified consideration, given after  
the notice provided in subdivision (f) of this subrule.  
(h) Enter into a net listing agreement with a homeowner or seller in which the  
retailer receives, as its payment, all monies in excess of the minimum sales price agreed  
upon by the retailer and the seller.  
(2) Upon a request by the department, a retailer shall present proof of compliance  
with this rule.  
(3) A retailer shall not purchase or otherwise acquire a home from a person  
unless the certificate of manufactured home ownership for the home is conveyed to the  
retailer by the current homeowner or homeowners, their legal heirs, or their designated  
agent.  
(4) A retailer shall not enter into a listing agreement with any person other than  
the person or persons indicated on the certificate of manufactured home ownership, their  
legal heirs, or their designated agent.  
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History: 1979 AC; 1998 AACS; 2003 AACS.  
R 125.1412 Rescinded.  
History: 1979 AC; 1980 AACS.  
R 125.1413 "Other transfer" explained.  
Rule 413. "Other transfer," as used in section 30c(3)(b) of the act, includes the  
following transfer: If a homeowner dies owning 1 or more homes that have a total value  
of not more than $10,000.00 and does not leave other property that requires the  
procurement of letters administration or letters testamentary under section 114 of 1978  
PA 642, MCL 700.14 then the surviving husband or wife or heir in the order named in  
section 115 of 1978 PA 642, MCL 700.15 may apply for a certificate of manufactured  
home ownership. Before applying, the surviving husband or wife or heir shall provide  
the department proper proof of the death of the homeowner. The surviving husband or  
wife or heir shall also attach an affidavit to the proof of death that sets forth the fact that  
the prospective applicant is the surviving husband or wife or heir. Upon proper petition,  
the department shall furnish the applicant with a certificate of manufactured home  
ownership.  
History: 1979 AC; 1991 AACS; 1998 AACS; 2003 AACS.  
R 125.1414 Business practices; retailers acting as brokers; standard of  
conduct.  
Rule 414. The standard of conduct with respect to the business practices of a retailer  
acting as a broker shall conform to that of a fiduciary to the seller of the home.  
History: 1991 AACS; 1998 AACS.  
R 125.1415 Retailer; disclosures in purchase and listing agreements.  
Rule 415. A retailer shall do both of the following:  
(a) Disclose in the listing agreement that the home offered is located on a home site  
in a community and, if required, that the seller has obtained approval for the sale of  
the home on the hom