(1) Any person required to register with the division pursuant to section 24-32-3323 must comply with any escrow requirements as established by the board through rulemaking.
(2) (a) A seller must provide a letter of credit or certificate of deposit issued by a licensed financial institution or surety bond issued by an authorized insurer in an amount and in accordance with the process established by the board by rule.
(b) A financial institution or authorized insurer is required to make payment to the division when the division makes a claim against the letter of credit, certificate of deposit, or surety bond:
(I) If a court of competent jurisdiction has rendered a final judgment in favor of the division based on a finding that the registered seller failed to:
(A) Deliver the manufactured home or tiny home or refund payments made toward the purchase of the manufactured home or of the tiny home as required by this part 33 or board rules; or
(B) Provide a reasonable per diem living expense in violation of the contractual provisions required by section 24-32-3325; or
(II) If the registered seller ceases business operations or files for bankruptcy.
(c) The division may suspend or revoke the registration of any seller that fails to provide a letter of credit, certificate of deposit, or surety bond as required by this subsection (2) or that otherwise fails to pay any judgment by a court of competent jurisdiction in favor of the division.
Source: L. 2003: Entire part added, p. 547, � 2, effective March 5. L. 2021: Entire section amended, (HB 21-1019), ch. 122, p. 482, � 25, effective September 7. L. 2022: (2) amended, (HB 22-1242), ch. 172, p. 1132, � 19, effective August 10.
24-32-3325. Contract for sale of manufactured home or tiny home - requirements. (1) A seller must provide a contract with the sale of each manufactured home or tiny home and make the following disclosures in any contract for the sale of a manufactured home or tiny home:
(a) That the purchaser may have no legal right to rescind the contract absent delinquent delivery or the existence of a specific right of rescission set forth in the contract;
(b) If required to maintain an escrow account by the division, the seller has a separate fiduciary account in compliance with board rules and a letter of credit, certificate of deposit, or surety bond in an amount required in board rules;
(c) That an aggrieved person may file a complaint with the division against the seller for a refund of any payment held in escrow by a seller; and
(d) That an aggrieved person may bring a civil action pursuant to the Colorado Consumer Protection Act, section 6-1-709, to remedy violations of seller requirements in this part 33. However, damages are limited in accordance with section 6-1-113 (2.5).
(2) A contract for the sale of a manufactured home or tiny home by a seller must also contain the following provisions:
(a) Either:
(I) A date certain for the delivery of the manufactured home or tiny home; or
(II) A listing of specified delivery preconditions that must occur before a date certain for delivery can be determined;
(b) A statement that if delivery of the manufactured home or tiny home is delayed by more than sixty days after the delivery date specified in the contract of sale or by more than sixty days after the delivery preconditions set forth in the contract of sale have been met if no date certain for delivery has been set, the seller will either refund the down payment or provide a reasonable per diem living expense to the buyer for the days between the delivery date specified in the contract or the sixty-first day after the delivery preconditions set forth in the contract have been met, whichever is applicable, and the actual date of delivery, unless the delay in delivery is unavoidable or caused by the buyer; and
(c) An agreed upon location for delivery of the manufactured home or tiny home to the purchaser.
(3) Any seller who fails to provide a contract as required by this section, including all disclosures and provisions is subject to the suspension or revocation of the registration by the division.
Source: L. 2003: Entire part added, p. 548, � 2, effective March 5. L. 2021: Entire section amended, (HB 21-1019), ch. 122, p. 483, � 26, effective September 7. L. 2022: IP(1), (1)(a), (1)(c), (1)(d), and (2) amended, (HB 22-1242), ch. 172, p. 1132, � 20, effective August 10.
24-32-3326. Unlawful sales practices - manufactured homes and tiny homes - fines. (1) A seller engages in an unlawful manufactured home or tiny home sales practice when the person:
(a) Fails to comply with the registration requirements of section 24-32-3323;
(b) Fails to comply with the escrow and bonding requirements of section 24-32-3324 or board rules;
(c) Fails to provide and include in any contract for the sale of a manufactured home or tiny home any of the disclosures or contract provisions required by section 24-32-3325; or
(d) Fails to refund any payments made toward the purchase of the home or provide a reasonable per diem living expense in violation of the contractual provisions required by section 24-32-3325 (2)(b).
(2) A person that sells a manufactured home or tiny home in a manner contrary to this part 33 or rules adopted under this part 33 is subject to revocation or suspension of a seller's registration, fines, or any other measures as prescribed by rules that the division promulgates or by other applicable Colorado law. The division may issue a fine of up to ten thousand dollars for each violation. Multiple violations of this part 33 or rules adopted under this part 33 that are committed during a single sale constitute one violation. Each sale performed in violation of this part 33 or rules adopted under this part 33 constitutes a separate violation. Fines must be paid to the division and transmitted to the state treasurer, who must credit the fines to the building regulation fund created in section 24-32-3309.
Source: L. 2003: Entire part added, p. 549, � 2, effective March 5. L. 2021: IP(1), (1)(b), (1)(c), and (1)(d) amended and (2) added, (HB 21-1019), ch. 122, p. 484, � 27, effective September 7. L. 2022: IP(1), (1)(b), (1)(c), and (2) amended, (HB 22-1242), ch. 172, p. 1133, � 21, effective August 10.