State Codes and Statutes

Statutes > California > Hsc > 18035-18039.5

HEALTH AND SAFETY CODE
SECTION 18035-18039.5



18035.  (a) (1) For every transaction by or through a dealer to sell
or lease with the option to buy a new or used manufactured home or
mobilehome subject to registration under this part, the dealer shall
execute in writing and obtain the buyer's signature on a purchase
order, conditional sale contract, or other document evidencing the
purchase contemporaneous with, or prior to, the receipt of any cash
or cash equivalent from the buyer, shall establish an escrow account
with an escrow agent, and shall cause to be deposited into that
escrow account any cash or cash equivalent received at any time prior
to the close of escrow as a deposit, downpayment, or whole or
partial payment for the manufactured home or mobilehome or accessory
thereto. Checks, money orders, or similar payments toward the
purchase shall be made payable only to the escrow agent.
   (2) The downpayment, or whole or partial payment, shall include an
amount designated as a deposit, which may be less than, or equal to,
the total amount placed in escrow, and shall be subject to
subdivision (f). The parties shall provide for escrow instructions
that identify the fixed amounts of the deposit, downpayment, and
balance due prior to closing consistent with the amounts set forth in
the purchase documents and receipt for deposit if one is required by
Section 18035.1. The deposits shall be made by the dealer within
five working days of receipt, one of which shall be the day of
receipt.
   (3) For purposes of this section, "cash equivalent" means any
property, other than cash. If an item of cash equivalent is, due to
its size, incapable of physical delivery to the escrowholder, the
property may be held by the dealer for the purchaser until close of
escrow and, if the property has been registered with the department
or the Department of Motor Vehicles, its registration certificate
and, if available, its certificate of title shall be delivered to the
escrowholder.
   (b) For every transaction by or through a dealer to sell or lease
with the option to buy a new manufactured home or mobilehome subject
to registration under this part, the escrow instructions shall
provide all of the following:
   (1) That the original manufacturer's certificate of origin be
placed in escrow.
   (2) (A) That, in the alternative, either of the following shall
occur:
   (i) The lien of any inventory creditor on the manufactured home or
mobilehome shall be satisfied by payment from the escrow account.
   (ii) The inventory creditor shall consent in writing to other than
full payment.
   (B) For purposes of this paragraph, "inventory creditor" includes
any person who is identified as a creditor on the manufacturer's
certificate of origin or any person who places the original
certificate of origin in escrow and claims in writing to the escrow
agent to have a purchase money security interest in the manufactured
home or mobilehome, as contemplated by Section 9103 of the Commercial
Code.
   (3) That the escrow agent shall obtain from the manufacturer a
true and correct facsimile of the copy of the certificate of origin
retained by the manufacturer pursuant to Section 18093.
   (c) For every transaction by or through a dealer to sell or lease
with the option to buy a used manufactured home or mobilehome subject
to registration under this part, the escrow instructions shall
provide:
   (1) That the current registration card, all copies of the
registration cards held by junior lienholders, and the certificate of
title be placed in escrow.
   (2) That, in the alternative, either of the following shall occur:
   (A) (i) The registered owner shall acknowledge in writing the
amount of the commission to be received by the dealer for the sale of
the manufactured home or mobilehome, and (ii) the registered owner
shall release all of its ownership interests in the manufactured home
or mobilehome either contemporaneously upon the payment of a
specified amount from the escrow account or at the close of the
escrow where the buyer has executed a security agreement approved by
the registered owner covering the unpaid balance of the purchase
price.
   (B) (i) The dealer shall declare in writing that the manufactured
home or mobilehome is its inventory, (ii) the registered owner shall
acknowledge in writing that the purchase price relating to the sale
of the manufactured home or mobilehome to the dealer for resale has
been paid in full by the dealer, (iii) the current certificate of
title shall be appropriately executed by the registered owner to
reflect the release of all of its ownership interests, and (iv) the
dealer shall release all of its ownership interests in the
manufactured home or mobilehome either contemporaneously upon the
payment of a specified amount from the escrow account or at the close
of escrow where the buyer has executed a security agreement approved
by the dealer covering the unpaid balance of the purchase price.
   (3) That, in the alternative, the legal owner and each junior
lienholder, respectively, shall do either of the following:
   (A) Release his or her security interest or transfer its security
interest to a designated third party contemporaneously upon the
payment of a specified amount from the escrow account.
   (B) Advise the escrow agent in writing that the new buyer or the
buyer's stated designee shall be approved as the new registered owner
upon the execution by the buyer of a formal assumption of the
indebtedness secured by his or her lien approved by the creditor at
or before the close of escrow.
   (d) For every transaction by or through a dealer to sell or lease
with the option to buy a used manufactured home or mobilehome subject
to registration under this part:
   (1) The dealer shall present the buyer's offer to purchase the
manufactured home or mobilehome to the seller in written form signed
by the buyer. The seller, upon accepting the offer to purchase, shall
sign and date the form. Copies of the fully executed form shall be
presented to both the buyer and seller, with the original copy
retained by the dealer. Any portion of the form that reflects the
commission charged by the dealer to the seller need not be disclosed
to the buyer.
   (2) The escrow agent, upon receipt of notification from the dealer
that the seller has accepted the buyer's offer to purchase and
receipt of mutually endorsed escrow instructions, shall, within three
working days, prepare a notice of escrow opening on the form
prescribed by the department and forward the completed form to the
department with appropriate fees. If the escrow is canceled for any
reason before closing, the escrow agent shall prepare a notice of
escrow cancellation on the form prescribed by the department and
forward the completed form to the department.
   (3) (A) The escrow agent shall forward to the legal owner and each
junior lienholder at their addresses shown on the current
registration card a written demand for a lien status report, as
contemplated by Section 18035.5, and a written demand for either an
executed statement of conditional lien release or an executed
statement of anticipated formal assumption, and shall enclose blank
copies of a statement of conditional lien release and a statement of
anticipated formal assumption on forms prescribed by the department.
The statement of conditional lien release shall include, among other
things, both of the following:
   (i) A statement of the dollar amount or other conditions required
by the creditor in order to release or transfer its lien.
   (ii) The creditor's release or transfer of the lien in the
manufactured home or mobilehome contingent upon the satisfaction of
those conditions.
   (B) The statement of anticipated formal assumption shall include,
among other things, both of the following:
   (i) A statement of the creditor's belief that the buyer will
formally assume the indebtedness secured by its lien pursuant to
terms and conditions which are acceptable to the creditor at or
before the close of escrow.
   (ii) The creditor's approval of the buyer or his or her designee
as the registered owner upon the execution of the formal assumption.
   (4) Within five days of the receipt of the written demand and
documents required by paragraph (3), the legal owner or junior
lienholder shall complete and execute either the statement of
conditional lien release or, if the creditor has elected to consent
to a formal assumption requested by a qualified buyer, the statement
of anticipated formal assumption, as appropriate, and prepare the
lien status report and forward the documents to the escrow agent by
first-class mail. If the creditor is the legal owner, the certificate
of title in an unexecuted form shall accompany the documents. If the
creditor is a junior lienholder, the creditor's copy of the current
registration card in an unexecuted form shall accompany the
documents.
   (5) If either of the following events occurs, any statement of
conditional lien release or statement of anticipated formal
assumption executed by the creditor shall become inoperative, and the
escrow agent shall thereupon return the form and the certificate of
title or the copy of the current registration card, as appropriate,
to the creditor by first-class mail:
   (A) The conditions required in order for the creditor to release
or transfer his or her lien are not satisfied before the end of the
escrow period agreed upon in writing between the buyer and the seller
or, if applicable, before the end of any extended escrow period as
permitted by subdivision (g).
   (B) The registered owner advises the creditor not to accept any
satisfaction of his or her lien or not to permit any formal
assumption of the indebtedness and the creditor or registered owner
advises the escrow agent in writing accordingly.
   (6) If a creditor willfully fails to comply with the requirements
of paragraph (4) within 21 days of the receipt of the written demand
and documents required by paragraph (3), the creditor shall forfeit
to the escrow agent three hundred dollars ($300), except where the
creditor has reasonable cause for noncompliance. The three hundred
dollars ($300) shall be credited to the seller, unless otherwise
provided in the escrow instructions. Any penalty paid by a creditor
under this paragraph shall preclude any civil liability for
noncompliance with Section 18035.5 relating to the same act or
omission.
   (e) For every transaction by or through a dealer to sell or lease
with the option to buy a new or used manufactured home or mobilehome,
the escrow instructions shall specify one of the following:
   (1) Upon the buyer receiving delivery of an installed manufactured
home or mobilehome on the site and the manufactured home or
mobilehome passing inspection pursuant to Section 18613 or after the
manufactured home or mobilehome has been delivered to the location
specified in the escrow instructions when the installation is to be
performed by the buyer, all funds in the escrow account, other than
escrow fees and amounts for accessories not yet delivered, shall be
disbursed. If mutually agreed upon between buyer and dealer, the
escrow instructions may specify that funds be disbursed to a
government agency for the payment of fees and permits required as a
precondition for an installation acceptance or certificate of
occupancy, and the information that may be acceptable to the escrow
agent.
   (2) Upon the buyer receiving delivery of an installed manufactured
home or mobilehome not subject to the provisions of Section 18613
with delivery requirements as mutually agreed to and set forth in the
sales documents, all funds in the escrow account, other than escrow
fees, shall be disbursed.
   (f) Upon receiving written notice from a party to the escrow of a
dispute, the escrow agent shall inform the party of his or her right
to hold funds in escrow by submitting a written request to hold funds
in escrow. Upon receipt by the escrow agent of a party's written
request to hold funds in escrow, all funds denoted as deposit shall
be held in escrow until a release is signed by the disputing party,
or pursuant to new written escrow instructions signed by the parties
involved, or pursuant to a final order for payment or division by a
court of competent jurisdiction. Any other funds, other than escrow
fees, shall be returned to the buyer or any person, other than the
dealer or seller, as appropriate. At the opening of escrow, the
escrow agent shall give notice of the right to request that funds be
held in escrow pursuant to this subdivision.
   (g) Escrow shall be for a period of time mutually agreed upon, in
writing, by the buyer and the seller. However, the parties may, by
mutual consent, extend the time, in writing, with notice to the
escrow agent.
   (h) No dealer or seller shall establish with an escrow agent any
escrow account in an escrow company in which the dealer or seller has
more than a 5-percent ownership interest.
   (i) The escrow instructions may provide for the proration of any
local property tax due or to become due on the manufactured home or
mobilehome, and if the tax, or the license fee imposed pursuant to
Section 18115, or the registration fee imposed pursuant to Section
18114, is delinquent, the instructions may provide for the payment of
the taxes or fees, or both, and any applicable penalties.
   (j) For every transaction by or through a dealer to sell or lease
with the option to buy a new or used manufactured home or mobilehome
that is subject to inspection pursuant to Section 18613, and for
which it is stated, on the face of the document certifying or
approving occupancy or installation, that the issuance of the
document is conditioned upon the payment of a fee, charge,
dedication, or other requirement levied pursuant to Section 53080 of
the Government Code, the escrow instructions shall provide that the
payment of that fee, charge, dedication, or other requirement be made
to the appropriate school district upon the close of escrow.
   (k) No agreement shall contain any provision by which the buyer
waives his or her rights under this section, and any waiver shall be
deemed contrary to public policy and shall be void and unenforceable.
   (l) If a portion of the amount in the escrow is for accessories,
then that portion of the amount shall not be released until the
accessories are actually installed.
   (m) Upon opening escrow on a used manufactured home or mobilehome
which is subject to local property taxation, and subject to
registration under this part, the escrow officer may forward to the
tax collector of the county in which the used manufactured home or
mobilehome is located, a written demand for a tax clearance
certificate, if no liability exists, or a conditional tax clearance
certificate if a tax liability exists, to be provided on a form
prescribed by the office of the Controller. The conditional tax
clearance certificate shall state the amount of the tax liability
due, if any, and the final date that amount may be paid out of the
proceeds of escrow before a further tax liability may be incurred.
   (1) Within five working days of receipt of the written demand for
a conditional tax clearance certificate or a tax clearance
certificate, the county tax collector shall forward the conditional
tax clearance certificate or a tax clearance certificate showing no
tax liability exists to the requesting escrow officer. In the event
the tax clearance certificate's or conditional tax clearance
certificate's final due date expires within 30 days of date of
issuance, an additional conditional tax clearance certificate or a
tax clearance certificate shall be completed which has a final due
date of at least 30 days beyond the date of issuance.
   (2) If the tax collector on which the written demand for a tax
clearance certificate or a conditional tax clearance certificate was
made fails to comply with that demand within 30 days from the date
the demand was mailed, the escrow officer may close the escrow and
submit a statement of facts certifying that the written demand was
made on the tax collector and the tax collector failed to comply with
that written demand within 30 days. This statement of facts may be
accepted by the department in lieu of a conditional tax clearance
certificate or a tax clearance certificate, as prescribed by
subdivision (a) of Section 18092.7, and the transfer of ownership may
be completed.
   (3) The escrow officer may satisfy the terms of the conditional
tax clearance certificate by paying the amount of tax liability shown
on the form by the tax collector out of the proceeds of escrow on or
before the date indicated on the form and by certifying in the space
provided on the form that all terms and conditions of the
conditional tax clearance certificate have been complied with.
   (n) This section creates a civil cause of action against a buyer
or dealer or other seller who violates this section, and upon
prevailing, the plaintiff in the action shall be awarded actual
damages, plus an amount not in excess of two thousand dollars
($2,000). In addition, attorney's fees and court costs shall also be
awarded a plaintiff who prevails in the action.




18035.1.  (a) As a part of the documents executed for every
transaction by or through a dealer to sell or lease with the option
to buy a new or used manufactured home or mobilehome, the dealer and
purchaser shall sign a receipt for deposit, a copy of which shall be
provided to the purchaser and a copy shall be retained by the dealer
for not less than three years. It shall state at least the following
in type not less than 6-point type size:
   (1) A statement that the purchaser shall receive a copy of the
purchase contract and receipt for deposit.
   (2) A statement that all portions of the purchase documents and
receipt for deposit shall be completed prior to obtaining the
purchaser's signature.
   (3) A statement of the specific amounts of the deposit,
downpayment, or other category of funds required to be placed in
escrow prior to closing, and a warning that the deposit may be
withheld in escrow in case of a dispute between the purchaser and the
dealer.
   (4) A statement that the amounts of the deposit and downpayment
shall be agreed upon by the purchaser and dealer and shall have been
entered on the purchase documents and receipt of deposit prior to the
purchaser's signing.
   (5) Sections 18035, 18035.1, and 18035.3 of this code and Section
1797.3 of the Civil Code reprinted in their entirety.
   (6) A statement that any oral promises or commitments that have
been made are not binding unless they appear in writing on the
purchase documents.
   (7) A warning that a warranty document complying with Section
1797.3 of the Civil Code shall be provided to the purchaser of a new
manufactured home or mobilehome immediately after signing the
purchase documents.
   (8) A statement that the terms and duration of any other warranty,
not required by law, offered by the dealer shall be in writing.
   (9) A statement that, if the purchaser has any complaints with
respect to sales practices, delivery, warranty, or other matters
related to the manufactured home or mobilehome, he or she may seek
administrative relief from the department or legal relief in a court
of competent jurisdiction.
   (10) A statement that the sale will not be complete until the
escrow for the sale closes.
   (b) For the sale of a manufactured home or mobilehome not subject
to registration by the department, the dealer shall provide a
statement of fact, in type not less than 6-point type size,
containing the information specified in paragraphs (6), (7), (8),
(9), and (10) of subdivision (a) as part of the purchase documents.
   (c) Where the sale of a new or used manufactured home or
mobilehome subject to registration under this part does not involve a
dealer, the department, by regulation, may require the seller and
buyer to execute a receipt for deposit containing whatever
information of the nature described in this section, the department
deems appropriate.


18035.2.  (a) For every sale by a dealer of a new or used
manufactured home or mobilehome to be installed on a foundation
system pursuant to subdivision (a) of Section 18551, the dealer shall
execute in writing and obtain the buyer's signature on a purchase
order, conditional sale contract, or other document evidencing the
purchase, and provide a statement of fact complying with subdivision
(b) of Section 18035.1, contemporaneous with or prior to the receipt
of any cash or cash equivalent from the buyer and shall establish an
escrow account with an escrow agent. The escrow shall not be subject
to Section 18035. The parties shall provide for escrow instructions
that identify the fixed amounts of the deposit and balances due prior
to closing, consistent with the amounts set forth in the document
evidencing the purchase and related services. Escrow disbursements
and closing shall be consistent with the mutually agreed terms and
conditions of the documents evidencing the purchase and related
services. Disbursements of funds from escrow prior to delivery and
installation of the unit, any accessory structures, and related
services shall only be as mutually agreed upon in writing by the
dealer and buyer.
   (b) For every sale by a dealer of a new manufactured home or
mobilehome installed or to be installed on a foundation system
pursuant to subdivision (a) of Section 18551, the escrow instructions
shall provide all of the following:
   (1) That the original manufacturer's certificate of origin be
placed in escrow.
   (2) That, in the alternative:
   (A) The lien of any inventory creditor on the manufactured home or
mobilehome shall be satisfied by payment from the escrow account.
   (B) That the inventory creditor shall consent in writing to other
than full payment.
   For purposes of this paragraph, "inventory creditor" includes any
person who is identified as a creditor on the manufacturer's
certificate of origin or any person who places the original
certificate of origin in escrow and claims in writing to the escrow
agent to have a purchase money security interest in the manufactured
home or mobilehome as contemplated by Section 9103 of the Commercial
Code.
   (3) That the escrow agent shall obtain from the manufacturer a
true and correct facsimile of the copy of the certificate of origin
retained by the manufacturer pursuant to Section 18093.
   (c) For every sale by a dealer of a new or used manufactured home
or mobilehome that is subject to inspection pursuant to subdivision
(a) of Section 18551, and for which it is stated, on the face of the
document certifying or approving occupancy, that the issuance of the
document is conditioned upon the payment of a fee, charge,
dedication, or other requirement levied pursuant to Section 17620 of
the Education Code, the escrow instructions shall provide that the
payment of that fee, charge, dedication, or other requirement be made
to the appropriate school district upon the close of escrow.




18035.25.  Notwithstanding any other provision of this part to the
contrary, it is a ground for disciplinary action, and not a criminal
offense, for a dealer to fail to correct, or cause to be corrected,
any defects in the installation of a manufactured home or mobilehome
performed by a licensed contractor whom the dealer had certified to
the purchaser as the installation contractor pursuant to subdivision
(c) of Section 7027 of the Business and Professions Code. Any
accusation filed against a licensee for a violation of this section
shall be filed within three years after the occurrence of the act or
omission alleged as the ground for disciplinary action.



18035.26.  (a) Notwithstanding any other provision of law, the
requirements of this section apply only to the sale of a new or used
manufactured home or multiunit manufactured housing or used
mobilehome sold by a dealer and to be installed by the buyer on a
foundation system pursuant to subdivision (a) of Section 18551.
   (b) The sale shall be deemed complete at the close of escrow.
Escrow shall be deemed closed when all of the following have been
completed:
   (1) The following document is executed:

                           Declaration of Delivery Sale
   The undersigned purchaser hereby declares that he/she is agreeing
to a delivery sale wherein he/she intends to actually and physically
install the subject home described below, or accept responsibility
for engaging the services of a licensed contractor to perform that
installation. Additionally, the purchaser hereby declares that he/she
understands that most manufacturers' warranties do not cover defects
caused by improper site preparation or installation. The purchaser
takes full responsibility for the proper storage, including blocking
of the home and protection from the elements, prior to the completion
of the installation.
   It is strongly recommended that, before entering into this
agreement, the purchaser has ensured that the home described below
will be installed pursuant to subdivision (a) of Section 18551 of the
Health and Safety Code (see reverse side) and the manufacturer's
installation instructions. Additionally, the purchaser should make
certain that he/she can meet all permit and fee requirements,
including school development fees, most of which may be financed, for
the installation of the subject home.

                                Warranty Expiration
   Notwithstanding Section 1797 of the Civil Code, in order to
provide reasonable time for the installation of your home, the
manufacturer's warranty, when applicable, will expire one year after
either the issuance of a certificate of occupancy or 120 days from
the close of escrow, whichever occurs first.

Name of Escrow Company: __________; Escrow Number: ______
Manufacturer's Name: _____________; Serial Number: ______
Dealer's Name: ___________________;
Address where purchaser will accept delivery: __________;
Address where purchaser intends to install home: ________

   (NOTE: An original copy of this document must be deposited with
the above named escrow agent as a condition precedent to the
preparation of escrow instructions. Upon close of escrow, the escrow
agency shall submit a copy of the original document to the department
along with documents required to report the sale; the original
document shall be retained by the escrow agent. Additionally, a copy
of the original document shall be sent to the manufacturer.)

   WARNING: This is an important document. Do not sign unless you
have read and understood the above declaration.

Purchaser's Printed Name:_____ Purchaser's Signature:_____ Date:____
Purchaser's Printed Name:_____ Purchaser's Signature:_____ Date:____

   (Section 18551 of the Health and Safety Code shall be reprinted on
the reverse side of this document.)

   (2) All funds in the escrow account, other than escrow fees,
amounts for accessories not yet delivered, and any other amounts
mutually agreed to by the dealer and buyer are disbursed.
   (3) The buyer takes delivery of the manufactured home, mobilehome,
or multiunit manufactured housing. For the purpose of this section,
taking delivery occurs upon the transfer of the home to the buyer at
a location mutually agreed upon and as specified in the purchase
agreement and the escrow instructions.
   (c) The warranty period pursuant to Chapter 3 (commencing with
Section 1797) of the Civil Code shall expire one year after either
120 days after the close of escrow or upon the issuance of the
certificate of occupancy, whichever occurs first.
   (d) All sales subject to this section shall meet the escrow
requirements of Section 18035.2 and the reporting requirements of
Section 18080.5. An escrow agent shall not create an escrow
instruction wherein a purchaser accepts responsibility for the
installation of a manufactured home unless and until the escrow agent
is in receipt of the declaration specified in subdivision (a). An
escrow instruction created before the receipt of the declaration is
null and void and unenforceable.
   (e) The report of sale and any related required documents shall be
filed with the department within 10 calendar days of the close of
escrow. The department shall designate its record as "pending
installation" for the unit until the certificate of occupancy is
issued and the recorded HCD 433A and applicable fees are received
from the enforcement agency. Only at this time shall the record be
amended to designate the foundation type to be a permanent foundation
pursuant to subdivision (a) of Section 18551 and the department's
record cancelled.


18035.3.  (a) For every sale by a dealer of a new or used
manufactured home or mobilehome, either the purchase order,
conditional sale contract, or other document evidencing the purchase
thereof, or any attachment to a purchase document signed and dated by
the purchaser, shall contain all of the following:
   (1) A description of the manufactured home or mobilehome, a
description and the cash price of each accessory, structure, or
service included with the purchase, and the total cash price for the
purchase. The statement shall also state whether the purchase price
includes or excludes the towbar, wheels, wheel hubs, tires, and axles
and, if they are not included in the purchase price, the price of
each shall be listed.
   (2) The amount, if any, charged by the dealer for documentary
preparation and, if a documentary preparation charge is imposed, a
notice advising the purchaser that the charge is not a governmental
fee.
   (3) A notice in type no smaller than 8-point that complaints
concerning the purchase shall be referred to the dealer and, if the
complaint is not resolved, may be referred to the Department of
Housing and Community Development, Division of Codes and Standards,
Occupational Licensing. The notice shall contain the current address
and telephone number of the department.
   (4) A notice, in at least 10-point boldface type reading as
follows:
   (A) Do NOT sign the purchase agreement before you read it or if it
contains any blank spaces to be filled in.
   (B) You are entitled to a completely filled-in copy of that
agreement and, if purchasing a manufactured home or mobilehome
covered by a warranty, a copy of the warranty.
   (5) The name, business address, and contractor's license number of
the licensed contractor whom the dealer certifies as performing the
installation of the manufactured home or mobilehome pursuant to
subdivision (c) of Section 7026.2 of the Business and Professions
Code.
   (6) The disclosures required by this subdivision need not be
contained in the same document.
   (b) A failure to disclose pursuant to this section shall not be
the basis for rescission of a conditional sales contract.
   (c) Notwithstanding any other provision of this part to the
contrary, a failure to provide the disclosures specified in paragraph
(5) of subdivision (a) is a ground for disciplinary action and not a
criminal offense.
   (d) If the dealer is also licensed as a real estate broker, the
sale of a manufactured home or mobilehome being installed on a
foundation system pursuant to Section 18551 may be included in the
purchase document for the underlying real property, if the
requirements of this section are met.



18035.4.  Sections 18035, 18035.1, and 18035.2 shall not apply to
the sale of manufactured homes or mobilehomes to:
   (a) The federal government.
   (b) The state.
   (c) Any agency or political subdivision of the state.
   (d) Any city, county, or city and county.



18035.5.  (a) As used in this section:
   (1) "Secured party" means a legal owner or junior lienholder.
   (2) "Entitled party" means a registered owner or any person
holding a security interest or other lien or encumbrance which is
subordinate to the security interest of the secured party or an
escrow agent in conjunction with an escrow involving the sale or
transfer of an interest in a manufactured home, mobilehome, or
commercial coach subject to registration under this part.
   (b) A secured party shall, on the written demand of an entitled
person, or the authorized agent of the entitled person, prepare and
deliver to the person demanding it, a true, correct, and complete
copy of the conditional sale contract or the promissory note and
security agreement and any subsequent modification thereto, and a
written statement indicating all of the following:
   (1) The amount of the unpaid balance of the obligation owing to
the secured party and the interest rate, together with the total
amounts, if any, of all overdue installments of either principal or
interest, or both.
   (2) The amounts of periodic payments, if any.
   (3) The date on which the obligation is due in whole or in part.
   (4) The date to which taxes and special assessments have been paid
to the extent that information is known to the secured party.
   (5) The amount of hazard insurance in effect and the term and
premium of that insurance to the extent that information is known to
the secured party.
   (6) The amount in an account, if any, maintained for the
accumulation of funds with which to pay taxes and insurance premiums.
   (7) The nature and, if known, the amount of any additional
charges, costs, or expenses paid or incurred by the secured party
which have become a lien on the manufactured home, mobilehome, or
commercial coach involved.
   (8) If applicable, a statement indicating that subsequently
incurred obligations will be secured by the manufactured home,
mobilehome, or commercial coach and, if there is a maximum amount
that may thereafter become secured, the maximum amount that may
thereafter become secured.
   (c) The secured party may, before delivering a statement, require
reasonable proof that the person making the demand is, in fact, an
entitled person, in which event the secured party shall not be
subject to the penalties of this section until 21 days after receipt
of the proof herein provided for. A statement in writing signed by
the entitled person appointing an authorized agent when delivered
personally to the secured party or delivered by registered return
receipt mail shall constitute reasonable proof as to the identity of
an agent. Similar delivery of a policy of title insurance,
preliminary report issued by a title company, original or
photographic copy of a sales agreement covering the manufactured
home, mobilehome, or commercial coach or certified copy of letters
testamentary, guardianship, or conservatorship shall constitute
reasonable proof as to the identity of a successor in interest,
provided the person demanding a statement is named as successor in
interest in the document.
   (d) Delivery of the statement by the secured party, as herein
referred to, shall mean depositing or causing to be deposited in the
United States mail an envelope, with postage prepaid, containing a
copy of the statement, addressed to the person whose name and address
is set forth in the demand therefor.
   (e) If a secured party for a period of 21 days after receipt of
the written demand willfully fails to prepare and deliver the
statement, the secured party is liable to the entitled person for all
damages which may be sustained by reason of the refusal and, whether
or not actual damages are sustained, the secured party shall forfeit
to the entitled person the sum of three hundred dollars ($300). Each
such failure to prepare and deliver such a statement, occurring at a
time when, pursuant to this section, the secured party is required
to prepare and deliver the statement, creates a separate cause of
action, but a judgment awarding an entitled person such forfeiture,
or damages and forfeiture, for any such failure to prepare and
deliver a statement bars recovery of such damages and forfeiture for
any other failure to prepare and deliver a statement, with respect to
the same obligation, in compliance with a demand therefor made
within six months before or after the demand as to which the award
was made.
   (f) If the secured party has more than one branch, office, or
other place of business, then the demand shall be made to the branch
or office at which the payments of the obligation are made, and the
statement, unless it specifies otherwise, shall be deemed to apply
only to the unpaid balance owing to or payable at that branch office
or place of business.
   (g) The secured party may make a charge not to exceed fifty
dollars ($50) for furnishing the required statement, whether or not
the security agreement covering the manufactured home, mobilehome, or
commercial coach so provides.



18036.  In the event a buyer of a manufactured home or mobilehome
obligates himself or herself to purchase, or receive possession of, a
manufactured home or mobilehome pursuant to a contract or purchase
order, and the seller knows that the buyer intends to obtain
financing from a third party without the assistance of the seller,
and the buyer is unable to obtain the financing within 30 days of the
execution of the contract or purchase order, the contract or
purchase order shall be deemed rescinded and all consideration
thereupon, other than escrow fees, shall be returned by the
respective parties without demand.



18036.5.  (a) As used in this section:
   (1) "Act" means the federal Truth in Lending Act, as amended (15
U.S.C., Sec. 1601, et seq.).
   (2) "Regulation Z" means any rule, regulation, or interpretation
promulgated by the Board of Governors of the Federal Reserve System
under the act and any interpretation or approval issued by an
official or employee of the Federal Reserve System duly authorized by
the board under the act to issue these interpretations or approvals.
   (b) A conditional sale contract relating to a new or used
manufactured home or mobilehome subject to registration under this
part shall contain all the disclosures required by Regulation Z if
Regulation Z otherwise applies to the transaction. Any disclosure
violation corrected pursuant to subdivision (d) shall not be the
basis of any recovery by the buyer.
   (c) With respect to a violation which is not corrected as provided
in subdivision (d), the seller shall be liable to the buyer in an
amount equal to the sum of:
   (1) Any actual damage sustained by such person as a result of the
failure;
   (2) (A) In the case of an individual action twice the amount of
any finance charge in connection with the transaction, except that
the liability under this subparagraph shall not be less than one
hundred dollars ($100) or greater than one thousand dollars ($1,000);
or
   (B) In the case of a class action, such amount as the court may
allow, except that as to each member of the class no minimum recovery
shall be applicable, and the total recovery under this subparagraph
in any class action or series of class actions arising out of the
same failure to comply by the same seller shall not be more than the
lesser of five hundred thousand dollars ($500,000) or 1 per cent of
the net worth of the seller; and
   (3) In the case of any successful action to enforce the foregoing
liability, the costs of the action, together with a reasonable
attorney's fee as determined by the court.
   In determining the amount of award in any class action, the court
shall consider, among other relevant factors, the amount of any
actual damages awarded, the frequency and persistence of failures of
compliance by the seller, the resources of the seller, the number of
persons adversely affected, and the extent to which the seller's
failure of compliance was intentional. In connection with the
disclosures referred to in Section 128 of the act, a seller shall
have a liability determined under paragraph (2) of this subdivision
only for failing to comply with the requirements of paragraph (2)
(insofar as it requires a disclosure of the "amount financed"), (3),
(4), (5), (6), or (9) of Section 128(a) of the act. With respect to
any failure to make disclosures required under this section,
liability shall be imposed only upon the seller required to make
disclosure, except as provided in subdivision (k).
   (d) A seller or assignee has no liability under this section for
any failure to comply with any requirement imposed under this section
if within 60 days after discovering an error, whether through the
seller's or assignee's own procedures or pursuant to procedures
permissible under the act, and prior to the institution of an action
under this section or the receipt of written notice of the error from
the buyer, the seller or assignee notifies the buyer concerned of
the error and makes whatever adjustments as are necessary to assure
that the buyer will not be required to pay an amount in excess of the
charge actually disclosed, or the dollar equivalent of the annual
percentage rate actually disclosed, whichever is lower.
   (e) A seller or assignee may not be held liable in any action
brought under this section if the seller or assignee shows by a
preponderance of evidence that the violation was not intentional and
resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adapted to avoid any such error. Examples of a
bona fide error include, but are not limited to, clerical,
calculation, computer malfunction and programming, and printing
errors, except that an error of legal judgment with respect to a
person's obligations under this section is not a bona fide error.
   (f) When there are multiple buyers in a transaction, there shall
be no more than one recovery of damages under paragraph (2) of
subdivision (c).
   (g) Any action under this section may be brought within one year
from the date of the occurrence of the violation. This subdivision
does not bar a person from asserting a violation of this section in
an action to collect the debt which was brought more than one year
from the date of the occurrence of the violation as a matter of
defense by recoupment or set-off in such action, except as otherwise
provided by law. No action may be brought under this section if an
action relating to the transaction or a defense thereto has been
brought or asserted under the act.
   (h) No provision of this section imposing any liability shall
apply to any act done or omitted in good faith in conformity with any
rule, regulation, or interpretation thereof by the Board of
Governors of the Federal Reserve System or in conformity with any
interpretation or approval by an official or employee of the Federal
Reserve System duly authorized by the Board of Governors of the
Federal Reserve System to issue such interpretations or approvals
under such procedures as the Board of Governors of the Federal
Reserve System may prescribe therefor, notwithstanding that after
such act or omission has occurred, such rule, regulation,
interpretation, or approval is amended, rescinded or determined by
judicial or other authority to be invalid for any reason.
   (i) The multiple failure to disclose to any person any information
required under this section shall entitle the buyer to a single
recovery.
   (j) A buyer may not take any action to offset any amount for which
a seller or assignee is potentially liable to such buyer under
paragraph (2) of subdivision (c) against any amount owed by such
buyer, unless the amount of the seller's or assignee's liability
under this section has been determined by judgment of a court of
competent jurisdiction in an action to which such buyer was a party.
This subdivision does not bar a buyer then in default on the
obligation from asserting a violation of this section as an original
action, or as a defense or counterclaim to an action to collect
amounts owed by the buyer brought by a person liable under this
title.
   (k) Except as otherwise specifically provided in this section, any
civil action for a violation of this section which may be brought
against a seller may be maintained against any assignee of such
seller only if the violation for which such action or proceeding is
brought is apparent on the face of the disclosure statement,
provided, however, that no civil action may be brought against such
assignee for such violation if the assignment was involuntary. For
purposes of this section, a violation apparent on the face of the
disclosure statement includes, but is not limited to, (1) a
disclosure which can be determined to be incomplete or inaccurate
from the face of the disclosure statement or other documents
assigned, or (2) a disclosure which does not use the terms required
to be used in Regulation Z.
   ( l) In any action or proceeding by or against any assignee of the
seller without knowledge to the contrary by the assignee when the
assignee acquires the obligation, written acknowledgment of receipt
by a buyer to whom disclosures are required to be given pursuant to
this section shall be conclusive proof of the delivery thereof and,
except as provided in subdivision (k), of compliance with this
section. This subdivision does not affect the rights of the buyer in
any action against the original seller.
   (m) No final judgment shall be entered in an action brought
pursuant to this section in favor of a buyer until the later of (1)
the expiration of one year after the occurrence of the violation, or
(2) the entry of judgment in an action for the violation brought
under Section 130 of the act and filed within such one-year period. A
buyer who has recovered any amount by way of judgment, settlement,
or otherwise under Section 130 or 131 of the act shall not be
entitled to any damages or other relief for the violation under this
section.


18037.  Notwithstanding any agreement to the contrary, the holder of
a conditional sale contract for which Regulation Z disclosures are
required pursuant to Section 18036.5 is subject to all equities and
defenses of the buyer against the seller, except as provided by
Section 18036.5. However, the assignee's liability may not exceed the
amount of the debt owing to the assignee at the time of assignment.
The assignee shall have recourse against the seller to the extent of
any liability incurred by the assignee pursuant to this section
whether the assignment was with or without recourse except to the
extent of any written agreement between the seller and assignee which
expressly references this section and modifies its effect.




18037.5.  (a) In the event of default under the provisions of any
security agreement relating to a loan or conditional sale contract
which, according to its terms, gives the secured party the right to
foreclose its security interest in a manufactured home, mobilehome,
truck camper, or floating home subject to registration under this
part which is not inventory of a dealer, including the right to
repossess the property, notwithstanding any contrary provisions in
the security agreement or conditional sale contract or in any other
agreement entered into prior to default, the secured party may
foreclose its security interest only by satisfying the requirements
of this section.
   (1) Unless the registered owner of the manufactured home,
mobilehome, truck camper, or floating home has abandoned the property
or has voluntarily surrendered possession of the property to the
foreclosing creditor, the foreclosing creditor shall deposit or cause
to be deposited in the United States mail an envelope addressed to
each registered owner as shown on the current registration of the
manufactured home, mobilehome, truck camper, or floating home,
registered or certified with postage prepaid, containing a notice in
substantially the following form and in at least 10-point type, which
notice shall be signed by the foreclosing creditor:

                       NOTICE OF
                        DEFAULT
  To: ______________________________________________
           (names of all registered owners)
  You (if the registered owner is not the person
  who is in default,
  substitute name of defaulting person(s)) are in
  default under the
  terms of the
  __________________________________________________
   (identify security agreement by title or caption
                       and date)
  in that _________________________________________.
                  (describe default)
  This default gives the creditor named below the
  right to sell your
  manufactured home, mobilehome, truck camper, or
  floating home
  which is registered with the Department of
  Housing and
  Community Development under registration number(s)
  _____________________________________, located at
  (give registration number(s))
  __________________________________________________
    (give location of property as shown on current
                     registration)
  unless the default is promptly cured.
  You may cure the default by  _____________________
                               (describe conditions
  __________________________________________________
      precedent to reinstatement required to cure
                       default)
  or by entirely repaying the outstanding secured
  indebtedness on or
  before
  __________________________________________________
   (state final date available for cure, which date
               shall be no earlier than
         45 days after mailing of the notice)
  To cure the default you may also be required to
  reimburse the
  creditor for its reasonable attorney's fees and
  legal expenses and for
  any other sums to which the creditor may have
  become entitled
  under the terms of your credit agreement after
  the date of this
  notice.  You may entirely repay the outstanding
  obligation by
  paying the creditor
  __________________________________________________
    (state dollar amount required to obtain release
               of security interest, and
     if the amount may increase due to passage of
                time, state that fact)
  plus any amount necessary to reimburse the
  creditor for its
  reasonable attorney's fees and legal expenses and
  any other sums
  to which the creditor may have become entitled
  after the date of
  this notice under the terms of your agreement.

   (2) Within five days following the mailing of the notice of
default required by paragraph (1), the foreclosing creditor shall
forward a copy thereof to the legal owner shown on the current
registration card, if different than the foreclosing creditor, and to
each junior lienholder shown on the current registration card, if
different than the foreclosing creditor, and, effective July 1, 1985,
to the department. The notice shall be forwarded to each party in
the same manner as provided for mailing the original notice to the
registered owner.
   (3) In the event of default under the provisions of any security
agreement relating to a loan or conditional sale contract which,
according to its terms, gives the secured party the right to
foreclose its security interest in a manufactured home, mobilehome,
truck camper, or floating home, each registered owner and each junior
lienholder having a security interest which is subordinate to the
security interest of the foreclosing creditor shall have the right to
cure the default by the methods and in the manner prescribed in the
notice within 45 days after mailing of the notice to the registered
owner required by paragraph (1).
   (4) If the default is not cured within the time indicated on the
notice required by paragraph (1), or if the property has been
abandoned by the registered owner or voluntarily surrendered by the
registered owner to the foreclosing creditor, the creditor may
proceed to sell the property at private or public sale pursuant to
the provisions of Section 9610 of the Commercial Code, except as
provided in paragraph (5) and subdivision (c). The notice of sale
required by Sections 9610, 9611, 9617, 9618, and 9624 of the
Commercial Code shall not be mailed or delivered before expiration of
the period for the right to cure the default, as stated in the
notice required by paragraph (1), unless the property has been
abandoned by the registered owner or voluntarily surrendered by the
registered owner to the foreclosing creditor.
   (5) Notwithstanding any contrary provisions of Sections 9610,
9611, 9615, 9617, 9618, and 9624 of the Commercial Code, the
foreclosing creditor shall deposit or cause to be deposited in the
United States mail, registered or certified with postage prepaid, an
envelope containing the notice of sale addressed to each party to
whom the notice of default was mailed pursuant to paragraph (2). The
notice of sale shall be given at least 10 days before the date fixed
for a public sale or on or after which any private sale is to be
made.
   (6) For purposes of this subdivision, a manufactured home,
mobilehome, truck camper, or floating home shall be deemed abandoned
if the foreclosing creditor gives written notice of its belief of
abandonment to the registered owner as provided in this paragraph and
the registered owner fails to give the foreclosing creditor written
notice, prior to the appropriate date specified in the foreclosing
creditor's notice, stating that the registered owner has not
abandoned and does not intend to abandon the manufactured home,
mobilehome, truck camper, or floating home and stating an address at
which the registered owner may be served by certified mail with a
summons in connection with any legal action which the foreclosing
creditor may appropriately initiate. The foreclosing creditor may
give a notice of belief of abandonment only where it reasonably
believes that the registered owner has abandoned the manufactured
home, mobilehome, truck camper, or floating home. The notice of
belief of abandonment shall be personally delivered to the registered
owner or sent by registered or certified mail, with postage prepaid,
to the registered owner at his or her last known address and, if
there is reason to believe that the notice sent to that address will
not be received by the registered owner, to any other address, if
any, known to the foreclosing creditor where the registered owner may
reasonably be expected to receive the notice. The notice of belief
of abandonment shall be in substantially the following form in at
least 10-point type:

                 NOTICE OF BELIEF OF
                     ABANDONMENT
  To: _____________________________________________
           (names of all registered owners)
  This notice is given pursuant to Section 18037.5
  of the Health and
  Safety Code concerning your manufactured home,
  mobilehome,
  truck camper, or floating home located at
  ________________________________________________.
   (address of manufactured home, mobilehome, truck
                      camper, or
   floating home as shown on current registration)
  You  ____________________________________________
             (if the registered owner is not the
                       person who is in
            default, substitute name of defaulting
                          person(s))
  are in default under the terms of the
  _________________________________________________
   (identify security agreement or conditional sale
                  contract by title
                 or caption and date)
  in that _____________________.
          (describe default)
  This default gives the foreclosing creditor
  named below the right
  to sell your manufactured home, mobilehome,
  truck camper, or
  floating home which is registered with the
  Department of Housing
  and Community Development under number(s)
  _________________________________________________
            (give registration number(s))
  unless the default is promptly cured.  Unless
  the foreclosing creditor receives a written
  notice from you to the contrary by
  ________________________________________________,
   (insert a date not less than 15 days after this
                   notice is served
   personally or, if mailed, not less than 18 days
                 after this notice is
                deposited in the mail)
  your manufactured home, mobilehome, truck
  camper, or floating
  home will be deemed abandoned, which means that
  the foreclosing
  creditor may sell your manufactured home,
  mobilehome, truck
  camper, or floating home sooner than would
  otherwise be permitted by law.  The written
  notice you must send to the foreclosing
  creditor shall be sent to
  _________________________________________________
          (address of foreclosing creditor)
  and shall state both of the following:
  1.  Your intent not to abandon the manufactured
  home,
  mobilehome, truck camper, or floating home.
  2.  An address at which you may be served by
  certified mail with
  a summons in connection with any legal action
  which the
  foreclosing creditor may appropriately initiate.


                      _____________________________
                           (name of foreclosing
                                creditor)
                      _____________________________
                        (signature of foreclosing
                                creditor)

   (b) In the event of default under the provisions of any security
agreement relating to a loan or a conditional sale contract in which
the collateral is a manufactured home, mobilehome, truck camper, or
floating home subject to registration under this part which is
inventory of a dealer or a commercial coach, the secured party may
repossess and dispose of the collateral in accordance with the
provisions of the security agreement or conditional sale contract and
applicable law, including the provisions of Division 9 (commencing
with Section 9101) of the Commercial Code. Upon repossession of a
manufactured home, mobilehome, truck camper, or floating home subject
to registration under this part which is inventory of a dealer or a
commercial coach subject to registration under this part, the secured
creditor shall prepare and forward to the department a notice of
repossession on the form prescribed by the department.
   (c) The proceeds of the sale of a manufactured home, mobilehome,
commercial coach, truck camper, or floating home shall be applied, in
the following order, to:
   (1) The reasonable and necessary expenses incurred for preparing
for and conducting the sale and, if the foreclosing creditor has
obtained possession of the collateral prior to the disposition, the
reasonable and necessary expenses for the retaking and holding of the
collateral and to the extent provided for in the agreement and not
prohibited by law, reasonable attorney's fees and legal expenses
incurred by the foreclosing creditor in retaking the property from
any person not a party to the credit contract.
   (2) The satisfaction of the indebtedness secured by the security
interest of the foreclosing creditor under which the disposition is
made.
   (3) The satisfaction of indebtedness secured by any subordinate
liens or encumbrances on the property in the order of their priority
as provided in Section 18105, if with respect to a junior creditor
written notification of demand therefor is received before
distribution of the proceeds is completed, and to the satisfaction of
any subordinate attachment lien or execution lien pursuant to
subdivision (b) of Section 701.040 of the Code of Civil Procedure if
notice of the levy of attachment or execution is received before
distribution of the proceeds is completed. If requested by the
foreclosing creditor, the holder of a subordinate lien or encumbrance
shall furnish reasonable proof of his or her interest, and unless it
does so, the foreclosing creditor need not comply with its demand.
   (4) The satisfaction of indebtedness secured by all senior liens
or encumbrances in the order of their priority as provided in Section
18105, if with respect to a senior creditor written demand therefor
is received by the foreclosing creditor before distribution of the
proceeds is completed. If requested by the foreclosing creditor, the
holder of a senior lien or encumbrance shall furnish reasonable proof
of his or her interest, and unless he or she does so, the
foreclosing creditor need not comply with his or her demand.
   (5) To the registered owner within 45 days after the sale is
conducted if a surplus remains.
   (d) Unless automatically provided to the registered owner within
45 days after the sale of a manufactured home, mobilehome, truck
camper, or floating home if a request for an accounting is made
within one year of the sale, the foreclosing creditor shall provide
to the registered owner a written accounting containing the gross
sales proceeds and its allocation pursuant to subdivision (c). In the
event any surplus is paid to the registered owner pursuant to
paragraph (5) of subdivision (c), the foreclosing creditor shall
furnish such an accounting whether or not requested by the registered
owner.


18038.7.  No deficiency judgment shall lie in any event, after the
sale of any manufactured home, mobilehome, commercial coach, truck
camper, or floating home subject to registration pursuant to this
part, for failure of the purchaser to complete his or her sale
contract given to the seller to secure payment of the balance of the
purchase price of the manufactured home, mobilehome, commercial
coach, truck camper, or floating home. This section shall not apply
in the event there is substantial damage to the manufactured home,
mobilehome, commercial coach, truck camper, or floating home other
than wear and tear from normal usage.
   In addition, no deficiency judgment shall lie in any event under a
deed of trust or mortgage or note on a floating home serving as a
dwelling for not more than four families given to a lender to secure
payment of a loan which was in fact used to pay for all or part of
the purchase price of that dwelling occupied, entirely or in part, by
the purchaser.



18039.  No agreement entered into pursuant to this chapter shall
contain any provision by which the buyer waives his or her rights
under this chapter, and any waiver shall be deemed contrary to public
policy and shall be void and unenforceable.




18039.1.  Notwithstanding any other provision of law to the
contrary, if a manufactured home or mobilehome is affixed to a
permanent foundation pursuant to Section 18551, or security for the
manufactured home or mobilehome loan includes the real property it is
affixed to or installed upon, procedures for notice of default and
sale shall be governed by Chapter 2 (commencing with Section 2920) of
Title 14 of the Civil Code and shall not be governed by the
provisions of this chapter.



18039.5.  (a) The provisions of this chapter, except Section
18037.5, shall not apply to any loan or credit sale secured by a
manufactured home or mobilehome subject to registration under this
part unless the loan or credit sale was made under circumstances
which required disclosures under Regulation Z, as defined by Section
18036.5.
   (b) In no respect shall the sale or financing of a manufactured
home or mobilehome subject to this chapter and of any goods or
services sold in conjunction with the sale of the manufactured home
or mobilehome be subject to the Retail Installment Sales Act, Chapter
1 (commencing with Section 1801) of Title 2 of Part 4 of Division 3
of the Civil Code or the Automobile Sales Finance Act, Chapter 2b
(commencing with Section 2981) of Title 14 of Part 4 of Division 3 of
the Civil Code.


State Codes and Statutes

Statutes > California > Hsc > 18035-18039.5

HEALTH AND SAFETY CODE
SECTION 18035-18039.5



18035.  (a) (1) For every transaction by or through a dealer to sell
or lease with the option to buy a new or used manufactured home or
mobilehome subject to registration under this part, the dealer shall
execute in writing and obtain the buyer's signature on a purchase
order, conditional sale contract, or other document evidencing the
purchase contemporaneous with, or prior to, the receipt of any cash
or cash equivalent from the buyer, shall establish an escrow account
with an escrow agent, and shall cause to be deposited into that
escrow account any cash or cash equivalent received at any time prior
to the close of escrow as a deposit, downpayment, or whole or
partial payment for the manufactured home or mobilehome or accessory
thereto. Checks, money orders, or similar payments toward the
purchase shall be made payable only to the escrow agent.
   (2) The downpayment, or whole or partial payment, shall include an
amount designated as a deposit, which may be less than, or equal to,
the total amount placed in escrow, and shall be subject to
subdivision (f). The parties shall provide for escrow instructions
that identify the fixed amounts of the deposit, downpayment, and
balance due prior to closing consistent with the amounts set forth in
the purchase documents and receipt for deposit if one is required by
Section 18035.1. The deposits shall be made by the dealer within
five working days of receipt, one of which shall be the day of
receipt.
   (3) For purposes of this section, "cash equivalent" means any
property, other than cash. If an item of cash equivalent is, due to
its size, incapable of physical delivery to the escrowholder, the
property may be held by the dealer for the purchaser until close of
escrow and, if the property has been registered with the department
or the Department of Motor Vehicles, its registration certificate
and, if available, its certificate of title shall be delivered to the
escrowholder.
   (b) For every transaction by or through a dealer to sell or lease
with the option to buy a new manufactured home or mobilehome subject
to registration under this part, the escrow instructions shall
provide all of the following:
   (1) That the original manufacturer's certificate of origin be
placed in escrow.
   (2) (A) That, in the alternative, either of the following shall
occur:
   (i) The lien of any inventory creditor on the manufactured home or
mobilehome shall be satisfied by payment from the escrow account.
   (ii) The inventory creditor shall consent in writing to other than
full payment.
   (B) For purposes of this paragraph, "inventory creditor" includes
any person who is identified as a creditor on the manufacturer's
certificate of origin or any person who places the original
certificate of origin in escrow and claims in writing to the escrow
agent to have a purchase money security interest in the manufactured
home or mobilehome, as contemplated by Section 9103 of the Commercial
Code.
   (3) That the escrow agent shall obtain from the manufacturer a
true and correct facsimile of the copy of the certificate of origin
retained by the manufacturer pursuant to Section 18093.
   (c) For every transaction by or through a dealer to sell or lease
with the option to buy a used manufactured home or mobilehome subject
to registration under this part, the escrow instructions shall
provide:
   (1) That the current registration card, all copies of the
registration cards held by junior lienholders, and the certificate of
title be placed in escrow.
   (2) That, in the alternative, either of the following shall occur:
   (A) (i) The registered owner shall acknowledge in writing the
amount of the commission to be received by the dealer for the sale of
the manufactured home or mobilehome, and (ii) the registered owner
shall release all of its ownership interests in the manufactured home
or mobilehome either contemporaneously upon the payment of a
specified amount from the escrow account or at the close of the
escrow where the buyer has executed a security agreement approved by
the registered owner covering the unpaid balance of the purchase
price.
   (B) (i) The dealer shall declare in writing that the manufactured
home or mobilehome is its inventory, (ii) the registered owner shall
acknowledge in writing that the purchase price relating to the sale
of the manufactured home or mobilehome to the dealer for resale has
been paid in full by the dealer, (iii) the current certificate of
title shall be appropriately executed by the registered owner to
reflect the release of all of its ownership interests, and (iv) the
dealer shall release all of its ownership interests in the
manufactured home or mobilehome either contemporaneously upon the
payment of a specified amount from the escrow account or at the close
of escrow where the buyer has executed a security agreement approved
by the dealer covering the unpaid balance of the purchase price.
   (3) That, in the alternative, the legal owner and each junior
lienholder, respectively, shall do either of the following:
   (A) Release his or her security interest or transfer its security
interest to a designated third party contemporaneously upon the
payment of a specified amount from the escrow account.
   (B) Advise the escrow agent in writing that the new buyer or the
buyer's stated designee shall be approved as the new registered owner
upon the execution by the buyer of a formal assumption of the
indebtedness secured by his or her lien approved by the creditor at
or before the close of escrow.
   (d) For every transaction by or through a dealer to sell or lease
with the option to buy a used manufactured home or mobilehome subject
to registration under this part:
   (1) The dealer shall present the buyer's offer to purchase the
manufactured home or mobilehome to the seller in written form signed
by the buyer. The seller, upon accepting the offer to purchase, shall
sign and date the form. Copies of the fully executed form shall be
presented to both the buyer and seller, with the original copy
retained by the dealer. Any portion of the form that reflects the
commission charged by the dealer to the seller need not be disclosed
to the buyer.
   (2) The escrow agent, upon receipt of notification from the dealer
that the seller has accepted the buyer's offer to purchase and
receipt of mutually endorsed escrow instructions, shall, within three
working days, prepare a notice of escrow opening on the form
prescribed by the department and forward the completed form to the
department with appropriate fees. If the escrow is canceled for any
reason before closing, the escrow agent shall prepare a notice of
escrow cancellation on the form prescribed by the department and
forward the completed form to the department.
   (3) (A) The escrow agent shall forward to the legal owner and each
junior lienholder at their addresses shown on the current
registration card a written demand for a lien status report, as
contemplated by Section 18035.5, and a written demand for either an
executed statement of conditional lien release or an executed
statement of anticipated formal assumption, and shall enclose blank
copies of a statement of conditional lien release and a statement of
anticipated formal assumption on forms prescribed by the department.
The statement of conditional lien release shall include, among other
things, both of the following:
   (i) A statement of the dollar amount or other conditions required
by the creditor in order to release or transfer its lien.
   (ii) The creditor's release or transfer of the lien in the
manufactured home or mobilehome contingent upon the satisfaction of
those conditions.
   (B) The statement of anticipated formal assumption shall include,
among other things, both of the following:
   (i) A statement of the creditor's belief that the buyer will
formally assume the indebtedness secured by its lien pursuant to
terms and conditions which are acceptable to the creditor at or
before the close of escrow.
   (ii) The creditor's approval of the buyer or his or her designee
as the registered owner upon the execution of the formal assumption.
   (4) Within five days of the receipt of the written demand and
documents required by paragraph (3), the legal owner or junior
lienholder shall complete and execute either the statement of
conditional lien release or, if the creditor has elected to consent
to a formal assumption requested by a qualified buyer, the statement
of anticipated formal assumption, as appropriate, and prepare the
lien status report and forward the documents to the escrow agent by
first-class mail. If the creditor is the legal owner, the certificate
of title in an unexecuted form shall accompany the documents. If the
creditor is a junior lienholder, the creditor's copy of the current
registration card in an unexecuted form shall accompany the
documents.
   (5) If either of the following events occurs, any statement of
conditional lien release or statement of anticipated formal
assumption executed by the creditor shall become inoperative, and the
escrow agent shall thereupon return the form and the certificate of
title or the copy of the current registration card, as appropriate,
to the creditor by first-class mail:
   (A) The conditions required in order for the creditor to release
or transfer his or her lien are not satisfied before the end of the
escrow period agreed upon in writing between the buyer and the seller
or, if applicable, before the end of any extended escrow period as
permitted by subdivision (g).
   (B) The registered owner advises the creditor not to accept any
satisfaction of his or her lien or not to permit any formal
assumption of the indebtedness and the creditor or registered owner
advises the escrow agent in writing accordingly.
   (6) If a creditor willfully fails to comply with the requirements
of paragraph (4) within 21 days of the receipt of the written demand
and documents required by paragraph (3), the creditor shall forfeit
to the escrow agent three hundred dollars ($300), except where the
creditor has reasonable cause for noncompliance. The three hundred
dollars ($300) shall be credited to the seller, unless otherwise
provided in the escrow instructions. Any penalty paid by a creditor
under this paragraph shall preclude any civil liability for
noncompliance with Section 18035.5 relating to the same act or
omission.
   (e) For every transaction by or through a dealer to sell or lease
with the option to buy a new or used manufactured home or mobilehome,
the escrow instructions shall specify one of the following:
   (1) Upon the buyer receiving delivery of an installed manufactured
home or mobilehome on the site and the manufactured home or
mobilehome passing inspection pursuant to Section 18613 or after the
manufactured home or mobilehome has been delivered to the location
specified in the escrow instructions when the installation is to be
performed by the buyer, all funds in the escrow account, other than
escrow fees and amounts for accessories not yet delivered, shall be
disbursed. If mutually agreed upon between buyer and dealer, the
escrow instructions may specify that funds be disbursed to a
government agency for the payment of fees and permits required as a
precondition for an installation acceptance or certificate of
occupancy, and the information that may be acceptable to the escrow
agent.
   (2) Upon the buyer receiving delivery of an installed manufactured
home or mobilehome not subject to the provisions of Section 18613
with delivery requirements as mutually agreed to and set forth in the
sales documents, all funds in the escrow account, other than escrow
fees, shall be disbursed.
   (f) Upon receiving written notice from a party to the escrow of a
dispute, the escrow agent shall inform the party of his or her right
to hold funds in escrow by submitting a written request to hold funds
in escrow. Upon receipt by the escrow agent of a party's written
request to hold funds in escrow, all funds denoted as deposit shall
be held in escrow until a release is signed by the disputing party,
or pursuant to new written escrow instructions signed by the parties
involved, or pursuant to a final order for payment or division by a
court of competent jurisdiction. Any other funds, other than escrow
fees, shall be returned to the buyer or any person, other than the
dealer or seller, as appropriate. At the opening of escrow, the
escrow agent shall give notice of the right to request that funds be
held in escrow pursuant to this subdivision.
   (g) Escrow shall be for a period of time mutually agreed upon, in
writing, by the buyer and the seller. However, the parties may, by
mutual consent, extend the time, in writing, with notice to the
escrow agent.
   (h) No dealer or seller shall establish with an escrow agent any
escrow account in an escrow company in which the dealer or seller has
more than a 5-percent ownership interest.
   (i) The escrow instructions may provide for the proration of any
local property tax due or to become due on the manufactured home or
mobilehome, and if the tax, or the license fee imposed pursuant to
Section 18115, or the registration fee imposed pursuant to Section
18114, is delinquent, the instructions may provide for the payment of
the taxes or fees, or both, and any applicable penalties.
   (j) For every transaction by or through a dealer to sell or lease
with the option to buy a new or used manufactured home or mobilehome
that is subject to inspection pursuant to Section 18613, and for
which it is stated, on the face of the document certifying or
approving occupancy or installation, that the issuance of the
document is conditioned upon the payment of a fee, charge,
dedication, or other requirement levied pursuant to Section 53080 of
the Government Code, the escrow instructions shall provide that the
payment of that fee, charge, dedication, or other requirement be made
to the appropriate school district upon the close of escrow.
   (k) No agreement shall contain any provision by which the buyer
waives his or her rights under this section, and any waiver shall be
deemed contrary to public policy and shall be void and unenforceable.
   (l) If a portion of the amount in the escrow is for accessories,
then that portion of the amount shall not be released until the
accessories are actually installed.
   (m) Upon opening escrow on a used manufactured home or mobilehome
which is subject to local property taxation, and subject to
registration under this part, the escrow officer may forward to the
tax collector of the county in which the used manufactured home or
mobilehome is located, a written demand for a tax clearance
certificate, if no liability exists, or a conditional tax clearance
certificate if a tax liability exists, to be provided on a form
prescribed by the office of the Controller. The conditional tax
clearance certificate shall state the amount of the tax liability
due, if any, and the final date that amount may be paid out of the
proceeds of escrow before a further tax liability may be incurred.
   (1) Within five working days of receipt of the written demand for
a conditional tax clearance certificate or a tax clearance
certificate, the county tax collector shall forward the conditional
tax clearance certificate or a tax clearance certificate showing no
tax liability exists to the requesting escrow officer. In the event
the tax clearance certificate's or conditional tax clearance
certificate's final due date expires within 30 days of date of
issuance, an additional conditional tax clearance certificate or a
tax clearance certificate shall be completed which has a final due
date of at least 30 days beyond the date of issuance.
   (2) If the tax collector on which the written demand for a tax
clearance certificate or a conditional tax clearance certificate was
made fails to comply with that demand within 30 days from the date
the demand was mailed, the escrow officer may close the escrow and
submit a statement of facts certifying that the written demand was
made on the tax collector and the tax collector failed to comply with
that written demand within 30 days. This statement of facts may be
accepted by the department in lieu of a conditional tax clearance
certificate or a tax clearance certificate, as prescribed by
subdivision (a) of Section 18092.7, and the transfer of ownership may
be completed.
   (3) The escrow officer may satisfy the terms of the conditional
tax clearance certificate by paying the amount of tax liability shown
on the form by the tax collector out of the proceeds of escrow on or
before the date indicated on the form and by certifying in the space
provided on the form that all terms and conditions of the
conditional tax clearance certificate have been complied with.
   (n) This section creates a civil cause of action against a buyer
or dealer or other seller who violates this section, and upon
prevailing, the plaintiff in the action shall be awarded actual
damages, plus an amount not in excess of two thousand dollars
($2,000). In addition, attorney's fees and court costs shall also be
awarded a plaintiff who prevails in the action.




18035.1.  (a) As a part of the documents executed for every
transaction by or through a dealer to sell or lease with the option
to buy a new or used manufactured home or mobilehome, the dealer and
purchaser shall sign a receipt for deposit, a copy of which shall be
provided to the purchaser and a copy shall be retained by the dealer
for not less than three years. It shall state at least the following
in type not less than 6-point type size:
   (1) A statement that the purchaser shall receive a copy of the
purchase contract and receipt for deposit.
   (2) A statement that all portions of the purchase documents and
receipt for deposit shall be completed prior to obtaining the
purchaser's signature.
   (3) A statement of the specific amounts of the deposit,
downpayment, or other category of funds required to be placed in
escrow prior to closing, and a warning that the deposit may be
withheld in escrow in case of a dispute between the purchaser and the
dealer.
   (4) A statement that the amounts of the deposit and downpayment
shall be agreed upon by the purchaser and dealer and shall have been
entered on the purchase documents and receipt of deposit prior to the
purchaser's signing.
   (5) Sections 18035, 18035.1, and 18035.3 of this code and Section
1797.3 of the Civil Code reprinted in their entirety.
   (6) A statement that any oral promises or commitments that have
been made are not binding unless they appear in writing on the
purchase documents.
   (7) A warning that a warranty document complying with Section
1797.3 of the Civil Code shall be provided to the purchaser of a new
manufactured home or mobilehome immediately after signing the
purchase documents.
   (8) A statement that the terms and duration of any other warranty,
not required by law, offered by the dealer shall be in writing.
   (9) A statement that, if the purchaser has any complaints with
respect to sales practices, delivery, warranty, or other matters
related to the manufactured home or mobilehome, he or she may seek
administrative relief from the department or legal relief in a court
of competent jurisdiction.
   (10) A statement that the sale will not be complete until the
escrow for the sale closes.
   (b) For the sale of a manufactured home or mobilehome not subject
to registration by the department, the dealer shall provide a
statement of fact, in type not less than 6-point type size,
containing the information specified in paragraphs (6), (7), (8),
(9), and (10) of subdivision (a) as part of the purchase documents.
   (c) Where the sale of a new or used manufactured home or
mobilehome subject to registration under this part does not involve a
dealer, the department, by regulation, may require the seller and
buyer to execute a receipt for deposit containing whatever
information of the nature described in this section, the department
deems appropriate.


18035.2.  (a) For every sale by a dealer of a new or used
manufactured home or mobilehome to be installed on a foundation
system pursuant to subdivision (a) of Section 18551, the dealer shall
execute in writing and obtain the buyer's signature on a purchase
order, conditional sale contract, or other document evidencing the
purchase, and provide a statement of fact complying with subdivision
(b) of Section 18035.1, contemporaneous with or prior to the receipt
of any cash or cash equivalent from the buyer and shall establish an
escrow account with an escrow agent. The escrow shall not be subject
to Section 18035. The parties shall provide for escrow instructions
that identify the fixed amounts of the deposit and balances due prior
to closing, consistent with the amounts set forth in the document
evidencing the purchase and related services. Escrow disbursements
and closing shall be consistent with the mutually agreed terms and
conditions of the documents evidencing the purchase and related
services. Disbursements of funds from escrow prior to delivery and
installation of the unit, any accessory structures, and related
services shall only be as mutually agreed upon in writing by the
dealer and buyer.
   (b) For every sale by a dealer of a new manufactured home or
mobilehome installed or to be installed on a foundation system
pursuant to subdivision (a) of Section 18551, the escrow instructions
shall provide all of the following:
   (1) That the original manufacturer's certificate of origin be
placed in escrow.
   (2) That, in the alternative:
   (A) The lien of any inventory creditor on the manufactured home or
mobilehome shall be satisfied by payment from the escrow account.
   (B) That the inventory creditor shall consent in writing to other
than full payment.
   For purposes of this paragraph, "inventory creditor" includes any
person who is identified as a creditor on the manufacturer's
certificate of origin or any person who places the original
certificate of origin in escrow and claims in writing to the escrow
agent to have a purchase money security interest in the manufactured
home or mobilehome as contemplated by Section 9103 of the Commercial
Code.
   (3) That the escrow agent shall obtain from the manufacturer a
true and correct facsimile of the copy of the certificate of origin
retained by the manufacturer pursuant to Section 18093.
   (c) For every sale by a dealer of a new or used manufactured home
or mobilehome that is subject to inspection pursuant to subdivision
(a) of Section 18551, and for which it is stated, on the face of the
document certifying or approving occupancy, that the issuance of the
document is conditioned upon the payment of a fee, charge,
dedication, or other requirement levied pursuant to Section 17620 of
the Education Code, the escrow instructions shall provide that the
payment of that fee, charge, dedication, or other requirement be made
to the appropriate school district upon the close of escrow.




18035.25.  Notwithstanding any other provision of this part to the
contrary, it is a ground for disciplinary action, and not a criminal
offense, for a dealer to fail to correct, or cause to be corrected,
any defects in the installation of a manufactured home or mobilehome
performed by a licensed contractor whom the dealer had certified to
the purchaser as the installation contractor pursuant to subdivision
(c) of Section 7027 of the Business and Professions Code. Any
accusation filed against a licensee for a violation of this section
shall be filed within three years after the occurrence of the act or
omission alleged as the ground for disciplinary action.



18035.26.  (a) Notwithstanding any other provision of law, the
requirements of this section apply only to the sale of a new or used
manufactured home or multiunit manufactured housing or used
mobilehome sold by a dealer and to be installed by the buyer on a
foundation system pursuant to subdivision (a) of Section 18551.
   (b) The sale shall be deemed complete at the close of escrow.
Escrow shall be deemed closed when all of the following have been
completed:
   (1) The following document is executed:

                           Declaration of Delivery Sale
   The undersigned purchaser hereby declares that he/she is agreeing
to a delivery sale wherein he/she intends to actually and physically
install the subject home described below, or accept responsibility
for engaging the services of a licensed contractor to perform that
installation. Additionally, the purchaser hereby declares that he/she
understands that most manufacturers' warranties do not cover defects
caused by improper site preparation or installation. The purchaser
takes full responsibility for the proper storage, including blocking
of the home and protection from the elements, prior to the completion
of the installation.
   It is strongly recommended that, before entering into this
agreement, the purchaser has ensured that the home described below
will be installed pursuant to subdivision (a) of Section 18551 of the
Health and Safety Code (see reverse side) and the manufacturer's
installation instructions. Additionally, the purchaser should make
certain that he/she can meet all permit and fee requirements,
including school development fees, most of which may be financed, for
the installation of the subject home.

                                Warranty Expiration
   Notwithstanding Section 1797 of the Civil Code, in order to
provide reasonable time for the installation of your home, the
manufacturer's warranty, when applicable, will expire one year after
either the issuance of a certificate of occupancy or 120 days from
the close of escrow, whichever occurs first.

Name of Escrow Company: __________; Escrow Number: ______
Manufacturer's Name: _____________; Serial Number: ______
Dealer's Name: ___________________;
Address where purchaser will accept delivery: __________;
Address where purchaser intends to install home: ________

   (NOTE: An original copy of this document must be deposited with
the above named escrow agent as a condition precedent to the
preparation of escrow instructions. Upon close of escrow, the escrow
agency shall submit a copy of the original document to the department
along with documents required to report the sale; the original
document shall be retained by the escrow agent. Additionally, a copy
of the original document shall be sent to the manufacturer.)

   WARNING: This is an important document. Do not sign unless you
have read and understood the above declaration.

Purchaser's Printed Name:_____ Purchaser's Signature:_____ Date:____
Purchaser's Printed Name:_____ Purchaser's Signature:_____ Date:____

   (Section 18551 of the Health and Safety Code shall be reprinted on
the reverse side of this document.)

   (2) All funds in the escrow account, other than escrow fees,
amounts for accessories not yet delivered, and any other amounts
mutually agreed to by the dealer and buyer are disbursed.
   (3) The buyer takes delivery of the manufactured home, mobilehome,
or multiunit manufactured housing. For the purpose of this section,
taking delivery occurs upon the transfer of the home to the buyer at
a location mutually agreed upon and as specified in the purchase
agreement and the escrow instructions.
   (c) The warranty period pursuant to Chapter 3 (commencing with
Section 1797) of the Civil Code shall expire one year after either
120 days after the close of escrow or upon the issuance of the
certificate of occupancy, whichever occurs first.
   (d) All sales subject to this section shall meet the escrow
requirements of Section 18035.2 and the reporting requirements of
Section 18080.5. An escrow agent shall not create an escrow
instruction wherein a purchaser accepts responsibility for the
installation of a manufactured home unless and until the escrow agent
is in receipt of the declaration specified in subdivision (a). An
escrow instruction created before the receipt of the declaration is
null and void and unenforceable.
   (e) The report of sale and any related required documents shall be
filed with the department within 10 calendar days of the close of
escrow. The department shall designate its record as "pending
installation" for the unit until the certificate of occupancy is
issued and the recorded HCD 433A and applicable fees are received
from the enforcement agency. Only at this time shall the record be
amended to designate the foundation type to be a permanent foundation
pursuant to subdivision (a) of Section 18551 and the department's
record cancelled.


18035.3.  (a) For every sale by a dealer of a new or used
manufactured home or mobilehome, either the purchase order,
conditional sale contract, or other document evidencing the purchase
thereof, or any attachment to a purchase document signed and dated by
the purchaser, shall contain all of the following:
   (1) A description of the manufactured home or mobilehome, a
description and the cash price of each accessory, structure, or
service included with the purchase, and the total cash price for the
purchase. The statement shall also state whether the purchase price
includes or excludes the towbar, wheels, wheel hubs, tires, and axles
and, if they are not included in the purchase price, the price of
each shall be listed.
   (2) The amount, if any, charged by the dealer for documentary
preparation and, if a documentary preparation charge is imposed, a
notice advising the purchaser that the charge is not a governmental
fee.
   (3) A notice in type no smaller than 8-point that complaints
concerning the purchase shall be referred to the dealer and, if the
complaint is not resolved, may be referred to the Department of
Housing and Community Development, Division of Codes and Standards,
Occupational Licensing. The notice shall contain the current address
and telephone number of the department.
   (4) A notice, in at least 10-point boldface type reading as
follows:
   (A) Do NOT sign the purchase agreement before you read it or if it
contains any blank spaces to be filled in.
   (B) You are entitled to a completely filled-in copy of that
agreement and, if purchasing a manufactured home or mobilehome
covered by a warranty, a copy of the warranty.
   (5) The name, business address, and contractor's license number of
the licensed contractor whom the dealer certifies as performing the
installation of the manufactured home or mobilehome pursuant to
subdivision (c) of Section 7026.2 of the Business and Professions
Code.
   (6) The disclosures required by this subdivision need not be
contained in the same document.
   (b) A failure to disclose pursuant to this section shall not be
the basis for rescission of a conditional sales contract.
   (c) Notwithstanding any other provision of this part to the
contrary, a failure to provide the disclosures specified in paragraph
(5) of subdivision (a) is a ground for disciplinary action and not a
criminal offense.
   (d) If the dealer is also licensed as a real estate broker, the
sale of a manufactured home or mobilehome being installed on a
foundation system pursuant to Section 18551 may be included in the
purchase document for the underlying real property, if the
requirements of this section are met.



18035.4.  Sections 18035, 18035.1, and 18035.2 shall not apply to
the sale of manufactured homes or mobilehomes to:
   (a) The federal government.
   (b) The state.
   (c) Any agency or political subdivision of the state.
   (d) Any city, county, or city and county.



18035.5.  (a) As used in this section:
   (1) "Secured party" means a legal owner or junior lienholder.
   (2) "Entitled party" means a registered owner or any person
holding a security interest or other lien or encumbrance which is
subordinate to the security interest of the secured party or an
escrow agent in conjunction with an escrow involving the sale or
transfer of an interest in a manufactured home, mobilehome, or
commercial coach subject to registration under this part.
   (b) A secured party shall, on the written demand of an entitled
person, or the authorized agent of the entitled person, prepare and
deliver to the person demanding it, a true, correct, and complete
copy of the conditional sale contract or the promissory note and
security agreement and any subsequent modification thereto, and a
written statement indicating all of the following:
   (1) The amount of the unpaid balance of the obligation owing to
the secured party and the interest rate, together with the total
amounts, if any, of all overdue installments of either principal or
interest, or both.
   (2) The amounts of periodic payments, if any.
   (3) The date on which the obligation is due in whole or in part.
   (4) The date to which taxes and special assessments have been paid
to the extent that information is known to the secured party.
   (5) The amount of hazard insurance in effect and the term and
premium of that insurance to the extent that information is known to
the secured party.
   (6) The amount in an account, if any, maintained for the
accumulation of funds with which to pay taxes and insurance premiums.
   (7) The nature and, if known, the amount of any additional
charges, costs, or expenses paid or incurred by the secured party
which have become a lien on the manufactured home, mobilehome, or
commercial coach involved.
   (8) If applicable, a statement indicating that subsequently
incurred obligations will be secured by the manufactured home,
mobilehome, or commercial coach and, if there is a maximum amount
that may thereafter become secured, the maximum amount that may
thereafter become secured.
   (c) The secured party may, before delivering a statement, require
reasonable proof that the person making the demand is, in fact, an
entitled person, in which event the secured party shall not be
subject to the penalties of this section until 21 days after receipt
of the proof herein provided for. A statement in writing signed by
the entitled person appointing an authorized agent when delivered
personally to the secured party or delivered by registered return
receipt mail shall constitute reasonable proof as to the identity of
an agent. Similar delivery of a policy of title insurance,
preliminary report issued by a title company, original or
photographic copy of a sales agreement covering the manufactured
home, mobilehome, or commercial coach or certified copy of letters
testamentary, guardianship, or conservatorship shall constitute
reasonable proof as to the identity of a successor in interest,
provided the person demanding a statement is named as successor in
interest in the document.
   (d) Delivery of the statement by the secured party, as herein
referred to, shall mean depositing or causing to be deposited in the
United States mail an envelope, with postage prepaid, containing a
copy of the statement, addressed to the person whose name and address
is set forth in the demand therefor.
   (e) If a secured party for a period of 21 days after receipt of
the written demand willfully fails to prepare and deliver the
statement, the secured party is liable to the entitled person for all
damages which may be sustained by reason of the refusal and, whether
or not actual damages are sustained, the secured party shall forfeit
to the entitled person the sum of three hundred dollars ($300). Each
such failure to prepare and deliver such a statement, occurring at a
time when, pursuant to this section, the secured party is required
to prepare and deliver the statement, creates a separate cause of
action, but a judgment awarding an entitled person such forfeiture,
or damages and forfeiture, for any such failure to prepare and
deliver a statement bars recovery of such damages and forfeiture for
any other failure to prepare and deliver a statement, with respect to
the same obligation, in compliance with a demand therefor made
within six months before or after the demand as to which the award
was made.
   (f) If the secured party has more than one branch, office, or
other place of business, then the demand shall be made to the branch
or office at which the payments of the obligation are made, and the
statement, unless it specifies otherwise, shall be deemed to apply
only to the unpaid balance owing to or payable at that branch office
or place of business.
   (g) The secured party may make a charge not to exceed fifty
dollars ($50) for furnishing the required statement, whether or not
the security agreement covering the manufactured home, mobilehome, or
commercial coach so provides.



18036.  In the event a buyer of a manufactured home or mobilehome
obligates himself or herself to purchase, or receive possession of, a
manufactured home or mobilehome pursuant to a contract or purchase
order, and the seller knows that the buyer intends to obtain
financing from a third party without the assistance of the seller,
and the buyer is unable to obtain the financing within 30 days of the
execution of the contract or purchase order, the contract or
purchase order shall be deemed rescinded and all consideration
thereupon, other than escrow fees, shall be returned by the
respective parties without demand.



18036.5.  (a) As used in this section:
   (1) "Act" means the federal Truth in Lending Act, as amended (15
U.S.C., Sec. 1601, et seq.).
   (2) "Regulation Z" means any rule, regulation, or interpretation
promulgated by the Board of Governors of the Federal Reserve System
under the act and any interpretation or approval issued by an
official or employee of the Federal Reserve System duly authorized by
the board under the act to issue these interpretations or approvals.
   (b) A conditional sale contract relating to a new or used
manufactured home or mobilehome subject to registration under this
part shall contain all the disclosures required by Regulation Z if
Regulation Z otherwise applies to the transaction. Any disclosure
violation corrected pursuant to subdivision (d) shall not be the
basis of any recovery by the buyer.
   (c) With respect to a violation which is not corrected as provided
in subdivision (d), the seller shall be liable to the buyer in an
amount equal to the sum of:
   (1) Any actual damage sustained by such person as a result of the
failure;
   (2) (A) In the case of an individual action twice the amount of
any finance charge in connection with the transaction, except that
the liability under this subparagraph shall not be less than one
hundred dollars ($100) or greater than one thousand dollars ($1,000);
or
   (B) In the case of a class action, such amount as the court may
allow, except that as to each member of the class no minimum recovery
shall be applicable, and the total recovery under this subparagraph
in any class action or series of class actions arising out of the
same failure to comply by the same seller shall not be more than the
lesser of five hundred thousand dollars ($500,000) or 1 per cent of
the net worth of the seller; and
   (3) In the case of any successful action to enforce the foregoing
liability, the costs of the action, together with a reasonable
attorney's fee as determined by the court.
   In determining the amount of award in any class action, the court
shall consider, among other relevant factors, the amount of any
actual damages awarded, the frequency and persistence of failures of
compliance by the seller, the resources of the seller, the number of
persons adversely affected, and the extent to which the seller's
failure of compliance was intentional. In connection with the
disclosures referred to in Section 128 of the act, a seller shall
have a liability determined under paragraph (2) of this subdivision
only for failing to comply with the requirements of paragraph (2)
(insofar as it requires a disclosure of the "amount financed"), (3),
(4), (5), (6), or (9) of Section 128(a) of the act. With respect to
any failure to make disclosures required under this section,
liability shall be imposed only upon the seller required to make
disclosure, except as provided in subdivision (k).
   (d) A seller or assignee has no liability under this section for
any failure to comply with any requirement imposed under this section
if within 60 days after discovering an error, whether through the
seller's or assignee's own procedures or pursuant to procedures
permissible under the act, and prior to the institution of an action
under this section or the receipt of written notice of the error from
the buyer, the seller or assignee notifies the buyer concerned of
the error and makes whatever adjustments as are necessary to assure
that the buyer will not be required to pay an amount in excess of the
charge actually disclosed, or the dollar equivalent of the annual
percentage rate actually disclosed, whichever is lower.
   (e) A seller or assignee may not be held liable in any action
brought under this section if the seller or assignee shows by a
preponderance of evidence that the violation was not intentional and
resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adapted to avoid any such error. Examples of a
bona fide error include, but are not limited to, clerical,
calculation, computer malfunction and programming, and printing
errors, except that an error of legal judgment with respect to a
person's obligations under this section is not a bona fide error.
   (f) When there are multiple buyers in a transaction, there shall
be no more than one recovery of damages under paragraph (2) of
subdivision (c).
   (g) Any action under this section may be brought within one year
from the date of the occurrence of the violation. This subdivision
does not bar a person from asserting a violation of this section in
an action to collect the debt which was brought more than one year
from the date of the occurrence of the violation as a matter of
defense by recoupment or set-off in such action, except as otherwise
provided by law. No action may be brought under this section if an
action relating to the transaction or a defense thereto has been
brought or asserted under the act.
   (h) No provision of this section imposing any liability shall
apply to any act done or omitted in good faith in conformity with any
rule, regulation, or interpretation thereof by the Board of
Governors of the Federal Reserve System or in conformity with any
interpretation or approval by an official or employee of the Federal
Reserve System duly authorized by the Board of Governors of the
Federal Reserve System to issue such interpretations or approvals
under such procedures as the Board of Governors of the Federal
Reserve System may prescribe therefor, notwithstanding that after
such act or omission has occurred, such rule, regulation,
interpretation, or approval is amended, rescinded or determined by
judicial or other authority to be invalid for any reason.
   (i) The multiple failure to disclose to any person any information
required under this section shall entitle the buyer to a single
recovery.
   (j) A buyer may not take any action to offset any amount for which
a seller or assignee is potentially liable to such buyer under
paragraph (2) of subdivision (c) against any amount owed by such
buyer, unless the amount of the seller's or assignee's liability
under this section has been determined by judgment of a court of
competent jurisdiction in an action to which such buyer was a party.
This subdivision does not bar a buyer then in default on the
obligation from asserting a violation of this section as an original
action, or as a defense or counterclaim to an action to collect
amounts owed by the buyer brought by a person liable under this
title.
   (k) Except as otherwise specifically provided in this section, any
civil action for a violation of this section which may be brought
against a seller may be maintained against any assignee of such
seller only if the violation for which such action or proceeding is
brought is apparent on the face of the disclosure statement,
provided, however, that no civil action may be brought against such
assignee for such violation if the assignment was involuntary. For
purposes of this section, a violation apparent on the face of the
disclosure statement includes, but is not limited to, (1) a
disclosure which can be determined to be incomplete or inaccurate
from the face of the disclosure statement or other documents
assigned, or (2) a disclosure which does not use the terms required
to be used in Regulation Z.
   ( l) In any action or proceeding by or against any assignee of the
seller without knowledge to the contrary by the assignee when the
assignee acquires the obligation, written acknowledgment of receipt
by a buyer to whom disclosures are required to be given pursuant to
this section shall be conclusive proof of the delivery thereof and,
except as provided in subdivision (k), of compliance with this
section. This subdivision does not affect the rights of the buyer in
any action against the original seller.
   (m) No final judgment shall be entered in an action brought
pursuant to this section in favor of a buyer until the later of (1)
the expiration of one year after the occurrence of the violation, or
(2) the entry of judgment in an action for the violation brought
under Section 130 of the act and filed within such one-year period. A
buyer who has recovered any amount by way of judgment, settlement,
or otherwise under Section 130 or 131 of the act shall not be
entitled to any damages or other relief for the violation under this
section.


18037.  Notwithstanding any agreement to the contrary, the holder of
a conditional sale contract for which Regulation Z disclosures are
required pursuant to Section 18036.5 is subject to all equities and
defenses of the buyer against the seller, except as provided by
Section 18036.5. However, the assignee's liability may not exceed the
amount of the debt owing to the assignee at the time of assignment.
The assignee shall have recourse against the seller to the extent of
any liability incurred by the assignee pursuant to this section
whether the assignment was with or without recourse except to the
extent of any written agreement between the seller and assignee which
expressly references this section and modifies its effect.




18037.5.  (a) In the event of default under the provisions of any
security agreement relating to a loan or conditional sale contract
which, according to its terms, gives the secured party the right to
foreclose its security interest in a manufactured home, mobilehome,
truck camper, or floating home subject to registration under this
part which is not inventory of a dealer, including the right to
repossess the property, notwithstanding any contrary provisions in
the security agreement or conditional sale contract or in any other
agreement entered into prior to default, the secured party may
foreclose its security interest only by satisfying the requirements
of this section.
   (1) Unless the registered owner of the manufactured home,
mobilehome, truck camper, or floating home has abandoned the property
or has voluntarily surrendered possession of the property to the
foreclosing creditor, the foreclosing creditor shall deposit or cause
to be deposited in the United States mail an envelope addressed to
each registered owner as shown on the current registration of the
manufactured home, mobilehome, truck camper, or floating home,
registered or certified with postage prepaid, containing a notice in
substantially the following form and in at least 10-point type, which
notice shall be signed by the foreclosing creditor:

                       NOTICE OF
                        DEFAULT
  To: ______________________________________________
           (names of all registered owners)
  You (if the registered owner is not the person
  who is in default,
  substitute name of defaulting person(s)) are in
  default under the
  terms of the
  __________________________________________________
   (identify security agreement by title or caption
                       and date)
  in that _________________________________________.
                  (describe default)
  This default gives the creditor named below the
  right to sell your
  manufactured home, mobilehome, truck camper, or
  floating home
  which is registered with the Department of
  Housing and
  Community Development under registration number(s)
  _____________________________________, located at
  (give registration number(s))
  __________________________________________________
    (give location of property as shown on current
                     registration)
  unless the default is promptly cured.
  You may cure the default by  _____________________
                               (describe conditions
  __________________________________________________
      precedent to reinstatement required to cure
                       default)
  or by entirely repaying the outstanding secured
  indebtedness on or
  before
  __________________________________________________
   (state final date available for cure, which date
               shall be no earlier than
         45 days after mailing of the notice)
  To cure the default you may also be required to
  reimburse the
  creditor for its reasonable attorney's fees and
  legal expenses and for
  any other sums to which the creditor may have
  become entitled
  under the terms of your credit agreement after
  the date of this
  notice.  You may entirely repay the outstanding
  obligation by
  paying the creditor
  __________________________________________________
    (state dollar amount required to obtain release
               of security interest, and
     if the amount may increase due to passage of
                time, state that fact)
  plus any amount necessary to reimburse the
  creditor for its
  reasonable attorney's fees and legal expenses and
  any other sums
  to which the creditor may have become entitled
  after the date of
  this notice under the terms of your agreement.

   (2) Within five days following the mailing of the notice of
default required by paragraph (1), the foreclosing creditor shall
forward a copy thereof to the legal owner shown on the current
registration card, if different than the foreclosing creditor, and to
each junior lienholder shown on the current registration card, if
different than the foreclosing creditor, and, effective July 1, 1985,
to the department. The notice shall be forwarded to each party in
the same manner as provided for mailing the original notice to the
registered owner.
   (3) In the event of default under the provisions of any security
agreement relating to a loan or conditional sale contract which,
according to its terms, gives the secured party the right to
foreclose its security interest in a manufactured home, mobilehome,
truck camper, or floating home, each registered owner and each junior
lienholder having a security interest which is subordinate to the
security interest of the foreclosing creditor shall have the right to
cure the default by the methods and in the manner prescribed in the
notice within 45 days after mailing of the notice to the registered
owner required by paragraph (1).
   (4) If the default is not cured within the time indicated on the
notice required by paragraph (1), or if the property has been
abandoned by the registered owner or voluntarily surrendered by the
registered owner to the foreclosing creditor, the creditor may
proceed to sell the property at private or public sale pursuant to
the provisions of Section 9610 of the Commercial Code, except as
provided in paragraph (5) and subdivision (c). The notice of sale
required by Sections 9610, 9611, 9617, 9618, and 9624 of the
Commercial Code shall not be mailed or delivered before expiration of
the period for the right to cure the default, as stated in the
notice required by paragraph (1), unless the property has been
abandoned by the registered owner or voluntarily surrendered by the
registered owner to the foreclosing creditor.
   (5) Notwithstanding any contrary provisions of Sections 9610,
9611, 9615, 9617, 9618, and 9624 of the Commercial Code, the
foreclosing creditor shall deposit or cause to be deposited in the
United States mail, registered or certified with postage prepaid, an
envelope containing the notice of sale addressed to each party to
whom the notice of default was mailed pursuant to paragraph (2). The
notice of sale shall be given at least 10 days before the date fixed
for a public sale or on or after which any private sale is to be
made.
   (6) For purposes of this subdivision, a manufactured home,
mobilehome, truck camper, or floating home shall be deemed abandoned
if the foreclosing creditor gives written notice of its belief of
abandonment to the registered owner as provided in this paragraph and
the registered owner fails to give the foreclosing creditor written
notice, prior to the appropriate date specified in the foreclosing
creditor's notice, stating that the registered owner has not
abandoned and does not intend to abandon the manufactured home,
mobilehome, truck camper, or floating home and stating an address at
which the registered owner may be served by certified mail with a
summons in connection with any legal action which the foreclosing
creditor may appropriately initiate. The foreclosing creditor may
give a notice of belief of abandonment only where it reasonably
believes that the registered owner has abandoned the manufactured
home, mobilehome, truck camper, or floating home. The notice of
belief of abandonment shall be personally delivered to the registered
owner or sent by registered or certified mail, with postage prepaid,
to the registered owner at his or her last known address and, if
there is reason to believe that the notice sent to that address will
not be received by the registered owner, to any other address, if
any, known to the foreclosing creditor where the registered owner may
reasonably be expected to receive the notice. The notice of belief
of abandonment shall be in substantially the following form in at
least 10-point type:

                 NOTICE OF BELIEF OF
                     ABANDONMENT
  To: _____________________________________________
           (names of all registered owners)
  This notice is given pursuant to Section 18037.5
  of the Health and
  Safety Code concerning your manufactured home,
  mobilehome,
  truck camper, or floating home located at
  ________________________________________________.
   (address of manufactured home, mobilehome, truck
                      camper, or
   floating home as shown on current registration)
  You  ____________________________________________
             (if the registered owner is not the
                       person who is in
            default, substitute name of defaulting
                          person(s))
  are in default under the terms of the
  _________________________________________________
   (identify security agreement or conditional sale
                  contract by title
                 or caption and date)
  in that _____________________.
          (describe default)
  This default gives the foreclosing creditor
  named below the right
  to sell your manufactured home, mobilehome,
  truck camper, or
  floating home which is registered with the
  Department of Housing
  and Community Development under number(s)
  _________________________________________________
            (give registration number(s))
  unless the default is promptly cured.  Unless
  the foreclosing creditor receives a written
  notice from you to the contrary by
  ________________________________________________,
   (insert a date not less than 15 days after this
                   notice is served
   personally or, if mailed, not less than 18 days
                 after this notice is
                deposited in the mail)
  your manufactured home, mobilehome, truck
  camper, or floating
  home will be deemed abandoned, which means that
  the foreclosing
  creditor may sell your manufactured home,
  mobilehome, truck
  camper, or floating home sooner than would
  otherwise be permitted by law.  The written
  notice you must send to the foreclosing
  creditor shall be sent to
  _________________________________________________
          (address of foreclosing creditor)
  and shall state both of the following:
  1.  Your intent not to abandon the manufactured
  home,
  mobilehome, truck camper, or floating home.
  2.  An address at which you may be served by
  certified mail with
  a summons in connection with any legal action
  which the
  foreclosing creditor may appropriately initiate.


                      _____________________________
                           (name of foreclosing
                                creditor)
                      _____________________________
                        (signature of foreclosing
                                creditor)

   (b) In the event of default under the provisions of any security
agreement relating to a loan or a conditional sale contract in which
the collateral is a manufactured home, mobilehome, truck camper, or
floating home subject to registration under this part which is
inventory of a dealer or a commercial coach, the secured party may
repossess and dispose of the collateral in accordance with the
provisions of the security agreement or conditional sale contract and
applicable law, including the provisions of Division 9 (commencing
with Section 9101) of the Commercial Code. Upon repossession of a
manufactured home, mobilehome, truck camper, or floating home subject
to registration under this part which is inventory of a dealer or a
commercial coach subject to registration under this part, the secured
creditor shall prepare and forward to the department a notice of
repossession on the form prescribed by the department.
   (c) The proceeds of the sale of a manufactured home, mobilehome,
commercial coach, truck camper, or floating home shall be applied, in
the following order, to:
   (1) The reasonable and necessary expenses incurred for preparing
for and conducting the sale and, if the foreclosing creditor has
obtained possession of the collateral prior to the disposition, the
reasonable and necessary expenses for the retaking and holding of the
collateral and to the extent provided for in the agreement and not
prohibited by law, reasonable attorney's fees and legal expenses
incurred by the foreclosing creditor in retaking the property from
any person not a party to the credit contract.
   (2) The satisfaction of the indebtedness secured by the security
interest of the foreclosing creditor under which the disposition is
made.
   (3) The satisfaction of indebtedness secured by any subordinate
liens or encumbrances on the property in the order of their priority
as provided in Section 18105, if with respect to a junior creditor
written notification of demand therefor is received before
distribution of the proceeds is completed, and to the satisfaction of
any subordinate attachment lien or execution lien pursuant to
subdivision (b) of Section 701.040 of the Code of Civil Procedure if
notice of the levy of attachment or execution is received before
distribution of the proceeds is completed. If requested by the
foreclosing creditor, the holder of a subordinate lien or encumbrance
shall furnish reasonable proof of his or her interest, and unless it
does so, the foreclosing creditor need not comply with its demand.
   (4) The satisfaction of indebtedness secured by all senior liens
or encumbrances in the order of their priority as provided in Section
18105, if with respect to a senior creditor written demand therefor
is received by the foreclosing creditor before distribution of the
proceeds is completed. If requested by the foreclosing creditor, the
holder of a senior lien or encumbrance shall furnish reasonable proof
of his or her interest, and unless he or she does so, the
foreclosing creditor need not comply with his or her demand.
   (5) To the registered owner within 45 days after the sale is
conducted if a surplus remains.
   (d) Unless automatically provided to the registered owner within
45 days after the sale of a manufactured home, mobilehome, truck
camper, or floating home if a request for an accounting is made
within one year of the sale, the foreclosing creditor shall provide
to the registered owner a written accounting containing the gross
sales proceeds and its allocation pursuant to subdivision (c). In the
event any surplus is paid to the registered owner pursuant to
paragraph (5) of subdivision (c), the foreclosing creditor shall
furnish such an accounting whether or not requested by the registered
owner.


18038.7.  No deficiency judgment shall lie in any event, after the
sale of any manufactured home, mobilehome, commercial coach, truck
camper, or floating home subject to registration pursuant to this
part, for failure of the purchaser to complete his or her sale
contract given to the seller to secure payment of the balance of the
purchase price of the manufactured home, mobilehome, commercial
coach, truck camper, or floating home. This section shall not apply
in the event there is substantial damage to the manufactured home,
mobilehome, commercial coach, truck camper, or floating home other
than wear and tear from normal usage.
   In addition, no deficiency judgment shall lie in any event under a
deed of trust or mortgage or note on a floating home serving as a
dwelling for not more than four families given to a lender to secure
payment of a loan which was in fact used to pay for all or part of
the purchase price of that dwelling occupied, entirely or in part, by
the purchaser.



18039.  No agreement entered into pursuant to this chapter shall
contain any provision by which the buyer waives his or her rights
under this chapter, and any waiver shall be deemed contrary to public
policy and shall be void and unenforceable.




18039.1.  Notwithstanding any other provision of law to the
contrary, if a manufactured home or mobilehome is affixed to a
permanent foundation pursuant to Section 18551, or security for the
manufactured home or mobilehome loan includes the real property it is
affixed to or installed upon, procedures for notice of default and
sale shall be governed by Chapter 2 (commencing with Section 2920) of
Title 14 of the Civil Code and shall not be governed by the
provisions of this chapter.



18039.5.  (a) The provisions of this chapter, except Section
18037.5, shall not apply to any loan or credit sale secured by a
manufactured home or mobilehome subject to registration under this
part unless the loan or credit sale was made under circumstances
which required disclosures under Regulation Z, as defined by Section
18036.5.
   (b) In no respect shall the sale or financing of a manufactured
home or mobilehome subject to this chapter and of any goods or
services sold in conjunction with the sale of the manufactured home
or mobilehome be subject to the Retail Installment Sales Act, Chapter
1 (commencing with Section 1801) of Title 2 of Part 4 of Division 3
of the Civil Code or the Automobile Sales Finance Act, Chapter 2b
(commencing with Section 2981) of Title 14 of Part 4 of Division 3 of
the Civil Code.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Hsc > 18035-18039.5

HEALTH AND SAFETY CODE
SECTION 18035-18039.5



18035.  (a) (1) For every transaction by or through a dealer to sell
or lease with the option to buy a new or used manufactured home or
mobilehome subject to registration under this part, the dealer shall
execute in writing and obtain the buyer's signature on a purchase
order, conditional sale contract, or other document evidencing the
purchase contemporaneous with, or prior to, the receipt of any cash
or cash equivalent from the buyer, shall establish an escrow account
with an escrow agent, and shall cause to be deposited into that
escrow account any cash or cash equivalent received at any time prior
to the close of escrow as a deposit, downpayment, or whole or
partial payment for the manufactured home or mobilehome or accessory
thereto. Checks, money orders, or similar payments toward the
purchase shall be made payable only to the escrow agent.
   (2) The downpayment, or whole or partial payment, shall include an
amount designated as a deposit, which may be less than, or equal to,
the total amount placed in escrow, and shall be subject to
subdivision (f). The parties shall provide for escrow instructions
that identify the fixed amounts of the deposit, downpayment, and
balance due prior to closing consistent with the amounts set forth in
the purchase documents and receipt for deposit if one is required by
Section 18035.1. The deposits shall be made by the dealer within
five working days of receipt, one of which shall be the day of
receipt.
   (3) For purposes of this section, "cash equivalent" means any
property, other than cash. If an item of cash equivalent is, due to
its size, incapable of physical delivery to the escrowholder, the
property may be held by the dealer for the purchaser until close of
escrow and, if the property has been registered with the department
or the Department of Motor Vehicles, its registration certificate
and, if available, its certificate of title shall be delivered to the
escrowholder.
   (b) For every transaction by or through a dealer to sell or lease
with the option to buy a new manufactured home or mobilehome subject
to registration under this part, the escrow instructions shall
provide all of the following:
   (1) That the original manufacturer's certificate of origin be
placed in escrow.
   (2) (A) That, in the alternative, either of the following shall
occur:
   (i) The lien of any inventory creditor on the manufactured home or
mobilehome shall be satisfied by payment from the escrow account.
   (ii) The inventory creditor shall consent in writing to other than
full payment.
   (B) For purposes of this paragraph, "inventory creditor" includes
any person who is identified as a creditor on the manufacturer's
certificate of origin or any person who places the original
certificate of origin in escrow and claims in writing to the escrow
agent to have a purchase money security interest in the manufactured
home or mobilehome, as contemplated by Section 9103 of the Commercial
Code.
   (3) That the escrow agent shall obtain from the manufacturer a
true and correct facsimile of the copy of the certificate of origin
retained by the manufacturer pursuant to Section 18093.
   (c) For every transaction by or through a dealer to sell or lease
with the option to buy a used manufactured home or mobilehome subject
to registration under this part, the escrow instructions shall
provide:
   (1) That the current registration card, all copies of the
registration cards held by junior lienholders, and the certificate of
title be placed in escrow.
   (2) That, in the alternative, either of the following shall occur:
   (A) (i) The registered owner shall acknowledge in writing the
amount of the commission to be received by the dealer for the sale of
the manufactured home or mobilehome, and (ii) the registered owner
shall release all of its ownership interests in the manufactured home
or mobilehome either contemporaneously upon the payment of a
specified amount from the escrow account or at the close of the
escrow where the buyer has executed a security agreement approved by
the registered owner covering the unpaid balance of the purchase
price.
   (B) (i) The dealer shall declare in writing that the manufactured
home or mobilehome is its inventory, (ii) the registered owner shall
acknowledge in writing that the purchase price relating to the sale
of the manufactured home or mobilehome to the dealer for resale has
been paid in full by the dealer, (iii) the current certificate of
title shall be appropriately executed by the registered owner to
reflect the release of all of its ownership interests, and (iv) the
dealer shall release all of its ownership interests in the
manufactured home or mobilehome either contemporaneously upon the
payment of a specified amount from the escrow account or at the close
of escrow where the buyer has executed a security agreement approved
by the dealer covering the unpaid balance of the purchase price.
   (3) That, in the alternative, the legal owner and each junior
lienholder, respectively, shall do either of the following:
   (A) Release his or her security interest or transfer its security
interest to a designated third party contemporaneously upon the
payment of a specified amount from the escrow account.
   (B) Advise the escrow agent in writing that the new buyer or the
buyer's stated designee shall be approved as the new registered owner
upon the execution by the buyer of a formal assumption of the
indebtedness secured by his or her lien approved by the creditor at
or before the close of escrow.
   (d) For every transaction by or through a dealer to sell or lease
with the option to buy a used manufactured home or mobilehome subject
to registration under this part:
   (1) The dealer shall present the buyer's offer to purchase the
manufactured home or mobilehome to the seller in written form signed
by the buyer. The seller, upon accepting the offer to purchase, shall
sign and date the form. Copies of the fully executed form shall be
presented to both the buyer and seller, with the original copy
retained by the dealer. Any portion of the form that reflects the
commission charged by the dealer to the seller need not be disclosed
to the buyer.
   (2) The escrow agent, upon receipt of notification from the dealer
that the seller has accepted the buyer's offer to purchase and
receipt of mutually endorsed escrow instructions, shall, within three
working days, prepare a notice of escrow opening on the form
prescribed by the department and forward the completed form to the
department with appropriate fees. If the escrow is canceled for any
reason before closing, the escrow agent shall prepare a notice of
escrow cancellation on the form prescribed by the department and
forward the completed form to the department.
   (3) (A) The escrow agent shall forward to the legal owner and each
junior lienholder at their addresses shown on the current
registration card a written demand for a lien status report, as
contemplated by Section 18035.5, and a written demand for either an
executed statement of conditional lien release or an executed
statement of anticipated formal assumption, and shall enclose blank
copies of a statement of conditional lien release and a statement of
anticipated formal assumption on forms prescribed by the department.
The statement of conditional lien release shall include, among other
things, both of the following:
   (i) A statement of the dollar amount or other conditions required
by the creditor in order to release or transfer its lien.
   (ii) The creditor's release or transfer of the lien in the
manufactured home or mobilehome contingent upon the satisfaction of
those conditions.
   (B) The statement of anticipated formal assumption shall include,
among other things, both of the following:
   (i) A statement of the creditor's belief that the buyer will
formally assume the indebtedness secured by its lien pursuant to
terms and conditions which are acceptable to the creditor at or
before the close of escrow.
   (ii) The creditor's approval of the buyer or his or her designee
as the registered owner upon the execution of the formal assumption.
   (4) Within five days of the receipt of the written demand and
documents required by paragraph (3), the legal owner or junior
lienholder shall complete and execute either the statement of
conditional lien release or, if the creditor has elected to consent
to a formal assumption requested by a qualified buyer, the statement
of anticipated formal assumption, as appropriate, and prepare the
lien status report and forward the documents to the escrow agent by
first-class mail. If the creditor is the legal owner, the certificate
of title in an unexecuted form shall accompany the documents. If the
creditor is a junior lienholder, the creditor's copy of the current
registration card in an unexecuted form shall accompany the
documents.
   (5) If either of the following events occurs, any statement of
conditional lien release or statement of anticipated formal
assumption executed by the creditor shall become inoperative, and the
escrow agent shall thereupon return the form and the certificate of
title or the copy of the current registration card, as appropriate,
to the creditor by first-class mail:
   (A) The conditions required in order for the creditor to release
or transfer his or her lien are not satisfied before the end of the
escrow period agreed upon in writing between the buyer and the seller
or, if applicable, before the end of any extended escrow period as
permitted by subdivision (g).
   (B) The registered owner advises the creditor not to accept any
satisfaction of his or her lien or not to permit any formal
assumption of the indebtedness and the creditor or registered owner
advises the escrow agent in writing accordingly.
   (6) If a creditor willfully fails to comply with the requirements
of paragraph (4) within 21 days of the receipt of the written demand
and documents required by paragraph (3), the creditor shall forfeit
to the escrow agent three hundred dollars ($300), except where the
creditor has reasonable cause for noncompliance. The three hundred
dollars ($300) shall be credited to the seller, unless otherwise
provided in the escrow instructions. Any penalty paid by a creditor
under this paragraph shall preclude any civil liability for
noncompliance with Section 18035.5 relating to the same act or
omission.
   (e) For every transaction by or through a dealer to sell or lease
with the option to buy a new or used manufactured home or mobilehome,
the escrow instructions shall specify one of the following:
   (1) Upon the buyer receiving delivery of an installed manufactured
home or mobilehome on the site and the manufactured home or
mobilehome passing inspection pursuant to Section 18613 or after the
manufactured home or mobilehome has been delivered to the location
specified in the escrow instructions when the installation is to be
performed by the buyer, all funds in the escrow account, other than
escrow fees and amounts for accessories not yet delivered, shall be
disbursed. If mutually agreed upon between buyer and dealer, the
escrow instructions may specify that funds be disbursed to a
government agency for the payment of fees and permits required as a
precondition for an installation acceptance or certificate of
occupancy, and the information that may be acceptable to the escrow
agent.
   (2) Upon the buyer receiving delivery of an installed manufactured
home or mobilehome not subject to the provisions of Section 18613
with delivery requirements as mutually agreed to and set forth in the
sales documents, all funds in the escrow account, other than escrow
fees, shall be disbursed.
   (f) Upon receiving written notice from a party to the escrow of a
dispute, the escrow agent shall inform the party of his or her right
to hold funds in escrow by submitting a written request to hold funds
in escrow. Upon receipt by the escrow agent of a party's written
request to hold funds in escrow, all funds denoted as deposit shall
be held in escrow until a release is signed by the disputing party,
or pursuant to new written escrow instructions signed by the parties
involved, or pursuant to a final order for payment or division by a
court of competent jurisdiction. Any other funds, other than escrow
fees, shall be returned to the buyer or any person, other than the
dealer or seller, as appropriate. At the opening of escrow, the
escrow agent shall give notice of the right to request that funds be
held in escrow pursuant to this subdivision.
   (g) Escrow shall be for a period of time mutually agreed upon, in
writing, by the buyer and the seller. However, the parties may, by
mutual consent, extend the time, in writing, with notice to the
escrow agent.
   (h) No dealer or seller shall establish with an escrow agent any
escrow account in an escrow company in which the dealer or seller has
more than a 5-percent ownership interest.
   (i) The escrow instructions may provide for the proration of any
local property tax due or to become due on the manufactured home or
mobilehome, and if the tax, or the license fee imposed pursuant to
Section 18115, or the registration fee imposed pursuant to Section
18114, is delinquent, the instructions may provide for the payment of
the taxes or fees, or both, and any applicable penalties.
   (j) For every transaction by or through a dealer to sell or lease
with the option to buy a new or used manufactured home or mobilehome
that is subject to inspection pursuant to Section 18613, and for
which it is stated, on the face of the document certifying or
approving occupancy or installation, that the issuance of the
document is conditioned upon the payment of a fee, charge,
dedication, or other requirement levied pursuant to Section 53080 of
the Government Code, the escrow instructions shall provide that the
payment of that fee, charge, dedication, or other requirement be made
to the appropriate school district upon the close of escrow.
   (k) No agreement shall contain any provision by which the buyer
waives his or her rights under this section, and any waiver shall be
deemed contrary to public policy and shall be void and unenforceable.
   (l) If a portion of the amount in the escrow is for accessories,
then that portion of the amount shall not be released until the
accessories are actually installed.
   (m) Upon opening escrow on a used manufactured home or mobilehome
which is subject to local property taxation, and subject to
registration under this part, the escrow officer may forward to the
tax collector of the county in which the used manufactured home or
mobilehome is located, a written demand for a tax clearance
certificate, if no liability exists, or a conditional tax clearance
certificate if a tax liability exists, to be provided on a form
prescribed by the office of the Controller. The conditional tax
clearance certificate shall state the amount of the tax liability
due, if any, and the final date that amount may be paid out of the
proceeds of escrow before a further tax liability may be incurred.
   (1) Within five working days of receipt of the written demand for
a conditional tax clearance certificate or a tax clearance
certificate, the county tax collector shall forward the conditional
tax clearance certificate or a tax clearance certificate showing no
tax liability exists to the requesting escrow officer. In the event
the tax clearance certificate's or conditional tax clearance
certificate's final due date expires within 30 days of date of
issuance, an additional conditional tax clearance certificate or a
tax clearance certificate shall be completed which has a final due
date of at least 30 days beyond the date of issuance.
   (2) If the tax collector on which the written demand for a tax
clearance certificate or a conditional tax clearance certificate was
made fails to comply with that demand within 30 days from the date
the demand was mailed, the escrow officer may close the escrow and
submit a statement of facts certifying that the written demand was
made on the tax collector and the tax collector failed to comply with
that written demand within 30 days. This statement of facts may be
accepted by the department in lieu of a conditional tax clearance
certificate or a tax clearance certificate, as prescribed by
subdivision (a) of Section 18092.7, and the transfer of ownership may
be completed.
   (3) The escrow officer may satisfy the terms of the conditional
tax clearance certificate by paying the amount of tax liability shown
on the form by the tax collector out of the proceeds of escrow on or
before the date indicated on the form and by certifying in the space
provided on the form that all terms and conditions of the
conditional tax clearance certificate have been complied with.
   (n) This section creates a civil cause of action against a buyer
or dealer or other seller who violates this section, and upon
prevailing, the plaintiff in the action shall be awarded actual
damages, plus an amount not in excess of two thousand dollars
($2,000). In addition, attorney's fees and court costs shall also be
awarded a plaintiff who prevails in the action.




18035.1.  (a) As a part of the documents executed for every
transaction by or through a dealer to sell or lease with the option
to buy a new or used manufactured home or mobilehome, the dealer and
purchaser shall sign a receipt for deposit, a copy of which shall be
provided to the purchaser and a copy shall be retained by the dealer
for not less than three years. It shall state at least the following
in type not less than 6-point type size:
   (1) A statement that the purchaser shall receive a copy of the
purchase contract and receipt for deposit.
   (2) A statement that all portions of the purchase documents and
receipt for deposit shall be completed prior to obtaining the
purchaser's signature.
   (3) A statement of the specific amounts of the deposit,
downpayment, or other category of funds required to be placed in
escrow prior to closing, and a warning that the deposit may be
withheld in escrow in case of a dispute between the purchaser and the
dealer.
   (4) A statement that the amounts of the deposit and downpayment
shall be agreed upon by the purchaser and dealer and shall have been
entered on the purchase documents and receipt of deposit prior to the
purchaser's signing.
   (5) Sections 18035, 18035.1, and 18035.3 of this code and Section
1797.3 of the Civil Code reprinted in their entirety.
   (6) A statement that any oral promises or commitments that have
been made are not binding unless they appear in writing on the
purchase documents.
   (7) A warning that a warranty document complying with Section
1797.3 of the Civil Code shall be provided to the purchaser of a new
manufactured home or mobilehome immediately after signing the
purchase documents.
   (8) A statement that the terms and duration of any other warranty,
not required by law, offered by the dealer shall be in writing.
   (9) A statement that, if the purchaser has any complaints with
respect to sales practices, delivery, warranty, or other matters
related to the manufactured home or mobilehome, he or she may seek
administrative relief from the department or legal relief in a court
of competent jurisdiction.
   (10) A statement that the sale will not be complete until the
escrow for the sale closes.
   (b) For the sale of a manufactured home or mobilehome not subject
to registration by the department, the dealer shall provide a
statement of fact, in type not less than 6-point type size,
containing the information specified in paragraphs (6), (7), (8),
(9), and (10) of subdivision (a) as part of the purchase documents.
   (c) Where the sale of a new or used manufactured home or
mobilehome subject to registration under this part does not involve a
dealer, the department, by regulation, may require the seller and
buyer to execute a receipt for deposit containing whatever
information of the nature described in this section, the department
deems appropriate.


18035.2.  (a) For every sale by a dealer of a new or used
manufactured home or mobilehome to be installed on a foundation
system pursuant to subdivision (a) of Section 18551, the dealer shall
execute in writing and obtain the buyer's signature on a purchase
order, conditional sale contract, or other document evidencing the
purchase, and provide a statement of fact complying with subdivision
(b) of Section 18035.1, contemporaneous with or prior to the receipt
of any cash or cash equivalent from the buyer and shall establish an
escrow account with an escrow agent. The escrow shall not be subject
to Section 18035. The parties shall provide for escrow instructions
that identify the fixed amounts of the deposit and balances due prior
to closing, consistent with the amounts set forth in the document
evidencing the purchase and related services. Escrow disbursements
and closing shall be consistent with the mutually agreed terms and
conditions of the documents evidencing the purchase and related
services. Disbursements of funds from escrow prior to delivery and
installation of the unit, any accessory structures, and related
services shall only be as mutually agreed upon in writing by the
dealer and buyer.
   (b) For every sale by a dealer of a new manufactured home or
mobilehome installed or to be installed on a foundation system
pursuant to subdivision (a) of Section 18551, the escrow instructions
shall provide all of the following:
   (1) That the original manufacturer's certificate of origin be
placed in escrow.
   (2) That, in the alternative:
   (A) The lien of any inventory creditor on the manufactured home or
mobilehome shall be satisfied by payment from the escrow account.
   (B) That the inventory creditor shall consent in writing to other
than full payment.
   For purposes of this paragraph, "inventory creditor" includes any
person who is identified as a creditor on the manufacturer's
certificate of origin or any person who places the original
certificate of origin in escrow and claims in writing to the escrow
agent to have a purchase money security interest in the manufactured
home or mobilehome as contemplated by Section 9103 of the Commercial
Code.
   (3) That the escrow agent shall obtain from the manufacturer a
true and correct facsimile of the copy of the certificate of origin
retained by the manufacturer pursuant to Section 18093.
   (c) For every sale by a dealer of a new or used manufactured home
or mobilehome that is subject to inspection pursuant to subdivision
(a) of Section 18551, and for which it is stated, on the face of the
document certifying or approving occupancy, that the issuance of the
document is conditioned upon the payment of a fee, charge,
dedication, or other requirement levied pursuant to Section 17620 of
the Education Code, the escrow instructions shall provide that the
payment of that fee, charge, dedication, or other requirement be made
to the appropriate school district upon the close of escrow.




18035.25.  Notwithstanding any other provision of this part to the
contrary, it is a ground for disciplinary action, and not a criminal
offense, for a dealer to fail to correct, or cause to be corrected,
any defects in the installation of a manufactured home or mobilehome
performed by a licensed contractor whom the dealer had certified to
the purchaser as the installation contractor pursuant to subdivision
(c) of Section 7027 of the Business and Professions Code. Any
accusation filed against a licensee for a violation of this section
shall be filed within three years after the occurrence of the act or
omission alleged as the ground for disciplinary action.



18035.26.  (a) Notwithstanding any other provision of law, the
requirements of this section apply only to the sale of a new or used
manufactured home or multiunit manufactured housing or used
mobilehome sold by a dealer and to be installed by the buyer on a
foundation system pursuant to subdivision (a) of Section 18551.
   (b) The sale shall be deemed complete at the close of escrow.
Escrow shall be deemed closed when all of the following have been
completed:
   (1) The following document is executed:

                           Declaration of Delivery Sale
   The undersigned purchaser hereby declares that he/she is agreeing
to a delivery sale wherein he/she intends to actually and physically
install the subject home described below, or accept responsibility
for engaging the services of a licensed contractor to perform that
installation. Additionally, the purchaser hereby declares that he/she
understands that most manufacturers' warranties do not cover defects
caused by improper site preparation or installation. The purchaser
takes full responsibility for the proper storage, including blocking
of the home and protection from the elements, prior to the completion
of the installation.
   It is strongly recommended that, before entering into this
agreement, the purchaser has ensured that the home described below
will be installed pursuant to subdivision (a) of Section 18551 of the
Health and Safety Code (see reverse side) and the manufacturer's
installation instructions. Additionally, the purchaser should make
certain that he/she can meet all permit and fee requirements,
including school development fees, most of which may be financed, for
the installation of the subject home.

                                Warranty Expiration
   Notwithstanding Section 1797 of the Civil Code, in order to
provide reasonable time for the installation of your home, the
manufacturer's warranty, when applicable, will expire one year after
either the issuance of a certificate of occupancy or 120 days from
the close of escrow, whichever occurs first.

Name of Escrow Company: __________; Escrow Number: ______
Manufacturer's Name: _____________; Serial Number: ______
Dealer's Name: ___________________;
Address where purchaser will accept delivery: __________;
Address where purchaser intends to install home: ________

   (NOTE: An original copy of this document must be deposited with
the above named escrow agent as a condition precedent to the
preparation of escrow instructions. Upon close of escrow, the escrow
agency shall submit a copy of the original document to the department
along with documents required to report the sale; the original
document shall be retained by the escrow agent. Additionally, a copy
of the original document shall be sent to the manufacturer.)

   WARNING: This is an important document. Do not sign unless you
have read and understood the above declaration.

Purchaser's Printed Name:_____ Purchaser's Signature:_____ Date:____
Purchaser's Printed Name:_____ Purchaser's Signature:_____ Date:____

   (Section 18551 of the Health and Safety Code shall be reprinted on
the reverse side of this document.)

   (2) All funds in the escrow account, other than escrow fees,
amounts for accessories not yet delivered, and any other amounts
mutually agreed to by the dealer and buyer are disbursed.
   (3) The buyer takes delivery of the manufactured home, mobilehome,
or multiunit manufactured housing. For the purpose of this section,
taking delivery occurs upon the transfer of the home to the buyer at
a location mutually agreed upon and as specified in the purchase
agreement and the escrow instructions.
   (c) The warranty period pursuant to Chapter 3 (commencing with
Section 1797) of the Civil Code shall expire one year after either
120 days after the close of escrow or upon the issuance of the
certificate of occupancy, whichever occurs first.
   (d) All sales subject to this section shall meet the escrow
requirements of Section 18035.2 and the reporting requirements of
Section 18080.5. An escrow agent shall not create an escrow
instruction wherein a purchaser accepts responsibility for the
installation of a manufactured home unless and until the escrow agent
is in receipt of the declaration specified in subdivision (a). An
escrow instruction created before the receipt of the declaration is
null and void and unenforceable.
   (e) The report of sale and any related required documents shall be
filed with the department within 10 calendar days of the close of
escrow. The department shall designate its record as "pending
installation" for the unit until the certificate of occupancy is
issued and the recorded HCD 433A and applicable fees are received
from the enforcement agency. Only at this time shall the record be
amended to designate the foundation type to be a permanent foundation
pursuant to subdivision (a) of Section 18551 and the department's
record cancelled.


18035.3.  (a) For every sale by a dealer of a new or used
manufactured home or mobilehome, either the purchase order,
conditional sale contract, or other document evidencing the purchase
thereof, or any attachment to a purchase document signed and dated by
the purchaser, shall contain all of the following:
   (1) A description of the manufactured home or mobilehome, a
description and the cash price of each accessory, structure, or
service included with the purchase, and the total cash price for the
purchase. The statement shall also state whether the purchase price
includes or excludes the towbar, wheels, wheel hubs, tires, and axles
and, if they are not included in the purchase price, the price of
each shall be listed.
   (2) The amount, if any, charged by the dealer for documentary
preparation and, if a documentary preparation charge is imposed, a
notice advising the purchaser that the charge is not a governmental
fee.
   (3) A notice in type no smaller than 8-point that complaints
concerning the purchase shall be referred to the dealer and, if the
complaint is not resolved, may be referred to the Department of
Housing and Community Development, Division of Codes and Standards,
Occupational Licensing. The notice shall contain the current address
and telephone number of the department.
   (4) A notice, in at least 10-point boldface type reading as
follows:
   (A) Do NOT sign the purchase agreement before you read it or if it
contains any blank spaces to be filled in.
   (B) You are entitled to a completely filled-in copy of that
agreement and, if purchasing a manufactured home or mobilehome
covered by a warranty, a copy of the warranty.
   (5) The name, business address, and contractor's license number of
the licensed contractor whom the dealer certifies as performing the
installation of the manufactured home or mobilehome pursuant to
subdivision (c) of Section 7026.2 of the Business and Professions
Code.
   (6) The disclosures required by this subdivision need not be
contained in the same document.
   (b) A failure to disclose pursuant to this section shall not be
the basis for rescission of a conditional sales contract.
   (c) Notwithstanding any other provision of this part to the
contrary, a failure to provide the disclosures specified in paragraph
(5) of subdivision (a) is a ground for disciplinary action and not a
criminal offense.
   (d) If the dealer is also licensed as a real estate broker, the
sale of a manufactured home or mobilehome being installed on a
foundation system pursuant to Section 18551 may be included in the
purchase document for the underlying real property, if the
requirements of this section are met.



18035.4.  Sections 18035, 18035.1, and 18035.2 shall not apply to
the sale of manufactured homes or mobilehomes to:
   (a) The federal government.
   (b) The state.
   (c) Any agency or political subdivision of the state.
   (d) Any city, county, or city and county.



18035.5.  (a) As used in this section:
   (1) "Secured party" means a legal owner or junior lienholder.
   (2) "Entitled party" means a registered owner or any person
holding a security interest or other lien or encumbrance which is
subordinate to the security interest of the secured party or an
escrow agent in conjunction with an escrow involving the sale or
transfer of an interest in a manufactured home, mobilehome, or
commercial coach subject to registration under this part.
   (b) A secured party shall, on the written demand of an entitled
person, or the authorized agent of the entitled person, prepare and
deliver to the person demanding it, a true, correct, and complete
copy of the conditional sale contract or the promissory note and
security agreement and any subsequent modification thereto, and a
written statement indicating all of the following:
   (1) The amount of the unpaid balance of the obligation owing to
the secured party and the interest rate, together with the total
amounts, if any, of all overdue installments of either principal or
interest, or both.
   (2) The amounts of periodic payments, if any.
   (3) The date on which the obligation is due in whole or in part.
   (4) The date to which taxes and special assessments have been paid
to the extent that information is known to the secured party.
   (5) The amount of hazard insurance in effect and the term and
premium of that insurance to the extent that information is known to
the secured party.
   (6) The amount in an account, if any, maintained for the
accumulation of funds with which to pay taxes and insurance premiums.
   (7) The nature and, if known, the amount of any additional
charges, costs, or expenses paid or incurred by the secured party
which have become a lien on the manufactured home, mobilehome, or
commercial coach involved.
   (8) If applicable, a statement indicating that subsequently
incurred obligations will be secured by the manufactured home,
mobilehome, or commercial coach and, if there is a maximum amount
that may thereafter become secured, the maximum amount that may
thereafter become secured.
   (c) The secured party may, before delivering a statement, require
reasonable proof that the person making the demand is, in fact, an
entitled person, in which event the secured party shall not be
subject to the penalties of this section until 21 days after receipt
of the proof herein provided for. A statement in writing signed by
the entitled person appointing an authorized agent when delivered
personally to the secured party or delivered by registered return
receipt mail shall constitute reasonable proof as to the identity of
an agent. Similar delivery of a policy of title insurance,
preliminary report issued by a title company, original or
photographic copy of a sales agreement covering the manufactured
home, mobilehome, or commercial coach or certified copy of letters
testamentary, guardianship, or conservatorship shall constitute
reasonable proof as to the identity of a successor in interest,
provided the person demanding a statement is named as successor in
interest in the document.
   (d) Delivery of the statement by the secured party, as herein
referred to, shall mean depositing or causing to be deposited in the
United States mail an envelope, with postage prepaid, containing a
copy of the statement, addressed to the person whose name and address
is set forth in the demand therefor.
   (e) If a secured party for a period of 21 days after receipt of
the written demand willfully fails to prepare and deliver the
statement, the secured party is liable to the entitled person for all
damages which may be sustained by reason of the refusal and, whether
or not actual damages are sustained, the secured party shall forfeit
to the entitled person the sum of three hundred dollars ($300). Each
such failure to prepare and deliver such a statement, occurring at a
time when, pursuant to this section, the secured party is required
to prepare and deliver the statement, creates a separate cause of
action, but a judgment awarding an entitled person such forfeiture,
or damages and forfeiture, for any such failure to prepare and
deliver a statement bars recovery of such damages and forfeiture for
any other failure to prepare and deliver a statement, with respect to
the same obligation, in compliance with a demand therefor made
within six months before or after the demand as to which the award
was made.
   (f) If the secured party has more than one branch, office, or
other place of business, then the demand shall be made to the branch
or office at which the payments of the obligation are made, and the
statement, unless it specifies otherwise, shall be deemed to apply
only to the unpaid balance owing to or payable at that branch office
or place of business.
   (g) The secured party may make a charge not to exceed fifty
dollars ($50) for furnishing the required statement, whether or not
the security agreement covering the manufactured home, mobilehome, or
commercial coach so provides.



18036.  In the event a buyer of a manufactured home or mobilehome
obligates himself or herself to purchase, or receive possession of, a
manufactured home or mobilehome pursuant to a contract or purchase
order, and the seller knows that the buyer intends to obtain
financing from a third party without the assistance of the seller,
and the buyer is unable to obtain the financing within 30 days of the
execution of the contract or purchase order, the contract or
purchase order shall be deemed rescinded and all consideration
thereupon, other than escrow fees, shall be returned by the
respective parties without demand.



18036.5.  (a) As used in this section:
   (1) "Act" means the federal Truth in Lending Act, as amended (15
U.S.C., Sec. 1601, et seq.).
   (2) "Regulation Z" means any rule, regulation, or interpretation
promulgated by the Board of Governors of the Federal Reserve System
under the act and any interpretation or approval issued by an
official or employee of the Federal Reserve System duly authorized by
the board under the act to issue these interpretations or approvals.
   (b) A conditional sale contract relating to a new or used
manufactured home or mobilehome subject to registration under this
part shall contain all the disclosures required by Regulation Z if
Regulation Z otherwise applies to the transaction. Any disclosure
violation corrected pursuant to subdivision (d) shall not be the
basis of any recovery by the buyer.
   (c) With respect to a violation which is not corrected as provided
in subdivision (d), the seller shall be liable to the buyer in an
amount equal to the sum of:
   (1) Any actual damage sustained by such person as a result of the
failure;
   (2) (A) In the case of an individual action twice the amount of
any finance charge in connection with the transaction, except that
the liability under this subparagraph shall not be less than one
hundred dollars ($100) or greater than one thousand dollars ($1,000);
or
   (B) In the case of a class action, such amount as the court may
allow, except that as to each member of the class no minimum recovery
shall be applicable, and the total recovery under this subparagraph
in any class action or series of class actions arising out of the
same failure to comply by the same seller shall not be more than the
lesser of five hundred thousand dollars ($500,000) or 1 per cent of
the net worth of the seller; and
   (3) In the case of any successful action to enforce the foregoing
liability, the costs of the action, together with a reasonable
attorney's fee as determined by the court.
   In determining the amount of award in any class action, the court
shall consider, among other relevant factors, the amount of any
actual damages awarded, the frequency and persistence of failures of
compliance by the seller, the resources of the seller, the number of
persons adversely affected, and the extent to which the seller's
failure of compliance was intentional. In connection with the
disclosures referred to in Section 128 of the act, a seller shall
have a liability determined under paragraph (2) of this subdivision
only for failing to comply with the requirements of paragraph (2)
(insofar as it requires a disclosure of the "amount financed"), (3),
(4), (5), (6), or (9) of Section 128(a) of the act. With respect to
any failure to make disclosures required under this section,
liability shall be imposed only upon the seller required to make
disclosure, except as provided in subdivision (k).
   (d) A seller or assignee has no liability under this section for
any failure to comply with any requirement imposed under this section
if within 60 days after discovering an error, whether through the
seller's or assignee's own procedures or pursuant to procedures
permissible under the act, and prior to the institution of an action
under this section or the receipt of written notice of the error from
the buyer, the seller or assignee notifies the buyer concerned of
the error and makes whatever adjustments as are necessary to assure
that the buyer will not be required to pay an amount in excess of the
charge actually disclosed, or the dollar equivalent of the annual
percentage rate actually disclosed, whichever is lower.
   (e) A seller or assignee may not be held liable in any action
brought under this section if the seller or assignee shows by a
preponderance of evidence that the violation was not intentional and
resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adapted to avoid any such error. Examples of a
bona fide error include, but are not limited to, clerical,
calculation, computer malfunction and programming, and printing
errors, except that an error of legal judgment with respect to a
person's obligations under this section is not a bona fide error.
   (f) When there are multiple buyers in a transaction, there shall
be no more than one recovery of damages under paragraph (2) of
subdivision (c).
   (g) Any action under this section may be brought within one year
from the date of the occurrence of the violation. This subdivision
does not bar a person from asserting a violation of this section in
an action to collect the debt which was brought more than one year
from the date of the occurrence of the violation as a matter of
defense by recoupment or set-off in such action, except as otherwise
provided by law. No action may be brought under this section if an
action relating to the transaction or a defense thereto has been
brought or asserted under the act.
   (h) No provision of this section imposing any liability shall
apply to any act done or omitted in good faith in conformity with any
rule, regulation, or interpretation thereof by the Board of
Governors of the Federal Reserve System or in conformity with any
interpretation or approval by an official or employee of the Federal
Reserve System duly authorized by the Board of Governors of the
Federal Reserve System to issue such interpretations or approvals
under such procedures as the Board of Governors of the Federal
Reserve System may prescribe therefor, notwithstanding that after
such act or omission has occurred, such rule, regulation,
interpretation, or approval is amended, rescinded or determined by
judicial or other authority to be invalid for any reason.
   (i) The multiple failure to disclose to any person any information
required under this section shall entitle the buyer to a single
recovery.
   (j) A buyer may not take any action to offset any amount for which
a seller or assignee is potentially liable to such buyer under
paragraph (2) of subdivision (c) against any amount owed by such
buyer, unless the amount of the seller's or assignee's liability
under this section has been determined by judgment of a court of
competent jurisdiction in an action to which such buyer was a party.
This subdivision does not bar a buyer then in default on the
obligation from asserting a violation of this section as an original
action, or as a defense or counterclaim to an action to collect
amounts owed by the buyer brought by a person liable under this
title.
   (k) Except as otherwise specifically provided in this section, any
civil action for a violation of this section which may be brought
against a seller may be maintained against any assignee of such
seller only if the violation for which such action or proceeding is
brought is apparent on the face of the disclosure statement,
provided, however, that no civil action may be brought against such
assignee for such violation if the assignment was involuntary. For
purposes of this section, a violation apparent on the face of the
disclosure statement includes, but is not limited to, (1) a
disclosure which can be determined to be incomplete or inaccurate
from the face of the disclosure statement or other documents
assigned, or (2) a disclosure which does not use the terms required
to be used in Regulation Z.
   ( l) In any action or proceeding by or against any assignee of the
seller without knowledge to the contrary by the assignee when the
assignee acquires the obligation, written acknowledgment of receipt
by a buyer to whom disclosures are required to be given pursuant to
this section shall be conclusive proof of the delivery thereof and,
except as provided in subdivision (k), of compliance with this
section. This subdivision does not affect the rights of the buyer in
any action against the original seller.
   (m) No final judgment shall be entered in an action brought
pursuant to this section in favor of a buyer until the later of (1)
the expiration of one year after the occurrence of the violation, or
(2) the entry of judgment in an action for the violation brought
under Section 130 of the act and filed within such one-year period. A
buyer who has recovered any amount by way of judgment, settlement,
or otherwise under Section 130 or 131 of the act shall not be
entitled to any damages or other relief for the violation under this
section.


18037.  Notwithstanding any agreement to the contrary, the holder of
a conditional sale contract for which Regulation Z disclosures are
required pursuant to Section 18036.5 is subject to all equities and
defenses of the buyer against the seller, except as provided by
Section 18036.5. However, the assignee's liability may not exceed the
amount of the debt owing to the assignee at the time of assignment.
The assignee shall have recourse against the seller to the extent of
any liability incurred by the assignee pursuant to this section
whether the assignment was with or without recourse except to the
extent of any written agreement between the seller and assignee which
expressly references this section and modifies its effect.




18037.5.  (a) In the event of default under the provisions of any
security agreement relating to a loan or conditional sale contract
which, according to its terms, gives the secured party the right to
foreclose its security interest in a manufactured home, mobilehome,
truck camper, or floating home subject to registration under this
part which is not inventory of a dealer, including the right to
repossess the property, notwithstanding any contrary provisions in
the security agreement or conditional sale contract or in any other
agreement entered into prior to default, the secured party may
foreclose its security interest only by satisfying the requirements
of this section.
   (1) Unless the registered owner of the manufactured home,
mobilehome, truck camper, or floating home has abandoned the property
or has voluntarily surrendered possession of the property to the
foreclosing creditor, the foreclosing creditor shall deposit or cause
to be deposited in the United States mail an envelope addressed to
each registered owner as shown on the current registration of the
manufactured home, mobilehome, truck camper, or floating home,
registered or certified with postage prepaid, containing a notice in
substantially the following form and in at least 10-point type, which
notice shall be signed by the foreclosing creditor:

                       NOTICE OF
                        DEFAULT
  To: ______________________________________________
           (names of all registered owners)
  You (if the registered owner is not the person
  who is in default,
  substitute name of defaulting person(s)) are in
  default under the
  terms of the
  __________________________________________________
   (identify security agreement by title or caption
                       and date)
  in that _________________________________________.
                  (describe default)
  This default gives the creditor named below the
  right to sell your
  manufactured home, mobilehome, truck camper, or
  floating home
  which is registered with the Department of
  Housing and
  Community Development under registration number(s)
  _____________________________________, located at
  (give registration number(s))
  __________________________________________________
    (give location of property as shown on current
                     registration)
  unless the default is promptly cured.
  You may cure the default by  _____________________
                               (describe conditions
  __________________________________________________
      precedent to reinstatement required to cure
                       default)
  or by entirely repaying the outstanding secured
  indebtedness on or
  before
  __________________________________________________
   (state final date available for cure, which date
               shall be no earlier than
         45 days after mailing of the notice)
  To cure the default you may also be required to
  reimburse the
  creditor for its reasonable attorney's fees and
  legal expenses and for
  any other sums to which the creditor may have
  become entitled
  under the terms of your credit agreement after
  the date of this
  notice.  You may entirely repay the outstanding
  obligation by
  paying the creditor
  __________________________________________________
    (state dollar amount required to obtain release
               of security interest, and
     if the amount may increase due to passage of
                time, state that fact)
  plus any amount necessary to reimburse the
  creditor for its
  reasonable attorney's fees and legal expenses and
  any other sums
  to which the creditor may have become entitled
  after the date of
  this notice under the terms of your agreement.

   (2) Within five days following the mailing of the notice of
default required by paragraph (1), the foreclosing creditor shall
forward a copy thereof to the legal owner shown on the current
registration card, if different than the foreclosing creditor, and to
each junior lienholder shown on the current registration card, if
different than the foreclosing creditor, and, effective July 1, 1985,
to the department. The notice shall be forwarded to each party in
the same manner as provided for mailing the original notice to the
registered owner.
   (3) In the event of default under the provisions of any security
agreement relating to a loan or conditional sale contract which,
according to its terms, gives the secured party the right to
foreclose its security interest in a manufactured home, mobilehome,
truck camper, or floating home, each registered owner and each junior
lienholder having a security interest which is subordinate to the
security interest of the foreclosing creditor shall have the right to
cure the default by the methods and in the manner prescribed in the
notice within 45 days after mailing of the notice to the registered
owner required by paragraph (1).
   (4) If the default is not cured within the time indicated on the
notice required by paragraph (1), or if the property has been
abandoned by the registered owner or voluntarily surrendered by the
registered owner to the foreclosing creditor, the creditor may
proceed to sell the property at private or public sale pursuant to
the provisions of Section 9610 of the Commercial Code, except as
provided in paragraph (5) and subdivision (c). The notice of sale
required by Sections 9610, 9611, 9617, 9618, and 9624 of the
Commercial Code shall not be mailed or delivered before expiration of
the period for the right to cure the default, as stated in the
notice required by paragraph (1), unless the property has been
abandoned by the registered owner or voluntarily surrendered by the
registered owner to the foreclosing creditor.
   (5) Notwithstanding any contrary provisions of Sections 9610,
9611, 9615, 9617, 9618, and 9624 of the Commercial Code, the
foreclosing creditor shall deposit or cause to be deposited in the
United States mail, registered or certified with postage prepaid, an
envelope containing the notice of sale addressed to each party to
whom the notice of default was mailed pursuant to paragraph (2). The
notice of sale shall be given at least 10 days before the date fixed
for a public sale or on or after which any private sale is to be
made.
   (6) For purposes of this subdivision, a manufactured home,
mobilehome, truck camper, or floating home shall be deemed abandoned
if the foreclosing creditor gives written notice of its belief of
abandonment to the registered owner as provided in this paragraph and
the registered owner fails to give the foreclosing creditor written
notice, prior to the appropriate date specified in the foreclosing
creditor's notice, stating that the registered owner has not
abandoned and does not intend to abandon the manufactured home,
mobilehome, truck camper, or floating home and stating an address at
which the registered owner may be served by certified mail with a
summons in connection with any legal action which the foreclosing
creditor may appropriately initiate. The foreclosing creditor may
give a notice of belief of abandonment only where it reasonably
believes that the registered owner has abandoned the manufactured
home, mobilehome, truck camper, or floating home. The notice of
belief of abandonment shall be personally delivered to the registered
owner or sent by registered or certified mail, with postage prepaid,
to the registered owner at his or her last known address and, if
there is reason to believe that the notice sent to that address will
not be received by the registered owner, to any other address, if
any, known to the foreclosing creditor where the registered owner may
reasonably be expected to receive the notice. The notice of belief
of abandonment shall be in substantially the following form in at
least 10-point type:

                 NOTICE OF BELIEF OF
                     ABANDONMENT
  To: _____________________________________________
           (names of all registered owners)
  This notice is given pursuant to Section 18037.5
  of the Health and
  Safety Code concerning your manufactured home,
  mobilehome,
  truck camper, or floating home located at
  ________________________________________________.
   (address of manufactured home, mobilehome, truck
                      camper, or
   floating home as shown on current registration)
  You  ____________________________________________
             (if the registered owner is not the
                       person who is in
            default, substitute name of defaulting
                          person(s))
  are in default under the terms of the
  _________________________________________________
   (identify security agreement or conditional sale
                  contract by title
                 or caption and date)
  in that _____________________.
          (describe default)
  This default gives the foreclosing creditor
  named below the right
  to sell your manufactured home, mobilehome,
  truck camper, or
  floating home which is registered with the
  Department of Housing
  and Community Development under number(s)
  _________________________________________________
            (give registration number(s))
  unless the default is promptly cured.  Unless
  the foreclosing creditor receives a written
  notice from you to the contrary by
  ________________________________________________,
   (insert a date not less than 15 days after this
                   notice is served
   personally or, if mailed, not less than 18 days
                 after this notice is
                deposited in the mail)
  your manufactured home, mobilehome, truck
  camper, or floating
  home will be deemed abandoned, which means that
  the foreclosing
  creditor may sell your manufactured home,
  mobilehome, truck
  camper, or floating home sooner than would
  otherwise be permitted by law.  The written
  notice you must send to the foreclosing
  creditor shall be sent to
  _________________________________________________
          (address of foreclosing creditor)
  and shall state both of the following:
  1.  Your intent not to abandon the manufactured
  home,
  mobilehome, truck camper, or floating home.
  2.  An address at which you may be served by
  certified mail with
  a summons in connection with any legal action
  which the
  foreclosing creditor may appropriately initiate.


                      _____________________________
                           (name of foreclosing
                                creditor)
                      _____________________________
                        (signature of foreclosing
                                creditor)

   (b) In the event of default under the provisions of any security
agreement relating to a loan or a conditional sale contract in which
the collateral is a manufactured home, mobilehome, truck camper, or
floating home subject to registration under this part which is
inventory of a dealer or a commercial coach, the secured party may
repossess and dispose of the collateral in accordance with the
provisions of the security agreement or conditional sale contract and
applicable law, including the provisions of Division 9 (commencing
with Section 9101) of the Commercial Code. Upon repossession of a
manufactured home, mobilehome, truck camper, or floating home subject
to registration under this part which is inventory of a dealer or a
commercial coach subject to registration under this part, the secured
creditor shall prepare and forward to the department a notice of
repossession on the form prescribed by the department.
   (c) The proceeds of the sale of a manufactured home, mobilehome,
commercial coach, truck camper, or floating home shall be applied, in
the following order, to:
   (1) The reasonable and necessary expenses incurred for preparing
for and conducting the sale and, if the foreclosing creditor has
obtained possession of the collateral prior to the disposition, the
reasonable and necessary expenses for the retaking and holding of the
collateral and to the extent provided for in the agreement and not
prohibited by law, reasonable attorney's fees and legal expenses
incurred by the foreclosing creditor in retaking the property from
any person not a party to the credit contract.
   (2) The satisfaction of the indebtedness secured by the security
interest of the foreclosing creditor under which the disposition is
made.
   (3) The satisfaction of indebtedness secured by any subordinate
liens or encumbrances on the property in the order of their priority
as provided in Section 18105, if with respect to a junior creditor
written notification of demand therefor is received before
distribution of the proceeds is completed, and to the satisfaction of
any subordinate attachment lien or execution lien pursuant to
subdivision (b) of Section 701.040 of the Code of Civil Procedure if
notice of the levy of attachment or execution is received before
distribution of the proceeds is completed. If requested by the
foreclosing creditor, the holder of a subordinate lien or encumbrance
shall furnish reasonable proof of his or her interest, and unless it
does so, the foreclosing creditor need not comply with its demand.
   (4) The satisfaction of indebtedness secured by all senior liens
or encumbrances in the order of their priority as provided in Section
18105, if with respect to a senior creditor written demand therefor
is received by the foreclosing creditor before distribution of the
proceeds is completed. If requested by the foreclosing creditor, the
holder of a senior lien or encumbrance shall furnish reasonable proof
of his or her interest, and unless he or she does so, the
foreclosing creditor need not comply with his or her demand.
   (5) To the registered owner within 45 days after the sale is
conducted if a surplus remains.
   (d) Unless automatically provided to the registered owner within
45 days after the sale of a manufactured home, mobilehome, truck
camper, or floating home if a request for an accounting is made
within one year of the sale, the foreclosing creditor shall provide
to the registered owner a written accounting containing the gross
sales proceeds and its allocation pursuant to subdivision (c). In the
event any surplus is paid to the registered owner pursuant to
paragraph (5) of subdivision (c), the foreclosing creditor shall
furnish such an accounting whether or not requested by the registered
owner.


18038.7.  No deficiency judgment shall lie in any event, after the
sale of any manufactured home, mobilehome, commercial coach, truck
camper, or floating home subject to registration pursuant to this
part, for failure of the purchaser to complete his or her sale
contract given to the seller to secure payment of the balance of the
purchase price of the manufactured home, mobilehome, commercial
coach, truck camper, or floating home. This section shall not apply
in the event there is substantial damage to the manufactured home,
mobilehome, commercial coach, truck camper, or floating home other
than wear and tear from normal usage.
   In addition, no deficiency judgment shall lie in any event under a
deed of trust or mortgage or note on a floating home serving as a
dwelling for not more than four families given to a lender to secure
payment of a loan which was in fact used to pay for all or part of
the purchase price of that dwelling occupied, entirely or in part, by
the purchaser.



18039.  No agreement entered into pursuant to this chapter shall
contain any provision by which the buyer waives his or her rights
under this chapter, and any waiver shall be deemed contrary to public
policy and shall be void and unenforceable.




18039.1.  Notwithstanding any other provision of law to the
contrary, if a manufactured home or mobilehome is affixed to a
permanent foundation pursuant to Section 18551, or security for the
manufactured home or mobilehome loan includes the real property it is
affixed to or installed upon, procedures for notice of default and
sale shall be governed by Chapter 2 (commencing with Section 2920) of
Title 14 of the Civil Code and shall not be governed by the
provisions of this chapter.



18039.5.  (a) The provisions of this chapter, except Section
18037.5, shall not apply to any loan or credit sale secured by a
manufactured home or mobilehome subject to registration under this
part unless the loan or credit sale was made under circumstances
which required disclosures under Regulation Z, as defined by Section
18036.5.
   (b) In no respect shall the sale or financing of a manufactured
home or mobilehome subject to this chapter and of any goods or
services sold in conjunction with the sale of the manufactured home
or mobilehome be subject to the Retail Installment Sales Act, Chapter
1 (commencing with Section 1801) of Title 2 of Part 4 of Division 3
of the Civil Code or the Automobile Sales Finance Act, Chapter 2b
(commencing with Section 2981) of Title 14 of Part 4 of Division 3 of
the Civil Code.