Real Estate Broker Requirements to Sell Manufactured Homes

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The Colorado Department of Local Affairs (DOLA) has issued a Memorandum regarding the Requirements to Sell Manufactured Homes, dated November 5, 2020.

This memorandum sets forth guidance and the circumstances under which a licensed real estate broker is allowed to sell a manufactured home. Normally, a person selling a manufactured home is required to be registered as a seller with the Division of Housing. However, Colorado law identifies an exemption to a person who sells a manufactured home in the course of engaging in activities as a licensed real estate broker.

The real estate broker exemption that allows a licensed real estate broker to sell a manufactured home only applies when there is land involved in the sale of the manufactured home and they do not own the land. This includes sales where a lot lease is involved if the broker is negotiating the terms of a separate land lease with the owner of the land where the home already sits or will be installed in the future in addition to selling the manufactured home OR the sale of the manufactured home is in conjunction with the sale of the land.

The memorandum also sets forth the instances when a person or business IS required to be a registered seller of a manufactured home, as well as when no license or registration is required.

Please take the time to review this important Memorandum so that you are compliant as a licensed real estate broker in this type of transaction.


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