Florida mobile home dealers are required by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) to file a surety bond as part of the licensing process. This requirement helps ensure that all licensed dealers comply with state laws and operate honestly and responsibly when selling or brokering mobile homes.
The Florida Mobile Home Dealer Bond provides financial protection for consumers and the state in the event a licensed dealer engages in unethical, fraudulent, or unlawful business practices. If a dealer violates the law, a claim may be made against the bond to recover losses.
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Why You Need A Florida Mobile Home Dealer Bond
You need a Mobile Home Dealer Bond (often referred to strictly as a Manufactured Home Dealer Bond) because it is a mandatory requirement for obtaining your dealer license from the state DMV or Department of Housing. This surety bond serves as a financial guarantee that you will operate your business according to state laws, such as paying all necessary sales taxes and fees. Crucially, it protects the consumer: if you fail to deliver a valid title, misrepresent a home’s condition, or breach a warranty, the buyer can file a claim against the bond to recover their financial losses. Operating without this bond not only prevents you from getting licensed but also exposes your dealership to fines and immediate closure by state regulators.
Mobile Home Dealer Bond FAQs
These are some of the most common questions asked about Mobile Home Dealer Bonds and how they work.
A Florida Mobile Home Dealer Bond is a specific surety bond required by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) for any business acting as a dealer or broker of manufactured housing.Submitted on Form HSMV 86018, this financial guarantee ensures that the dealer complies with Florida Statutes (specifically Chapters 319 and 320). Its primary purpose is to protect the consumer: if a dealer commits fraud, fails to transfer a title to a buyer, or violates the terms of a written contract, the affected party can file a claim against the bond to recover losses. The standard bond amount is $25,000 for most dealers; however, if you operate more than four supplemental branch locations, the state increases the requirement to $50,000.
The cost of a Florida Mobile Home Dealer Bond is an annual premium that typically ranges from 1% to 5% of the bond amount for applicants with good credit. Since the standard requirement is a $25,000 bond, most dealers can expect to pay between $250 and $1,250 per year. However, if you have more than four supplemental branch locations, the state raises the bond requirement to $50,000, which doubles your premium. Because this is a financial guarantee, surety underwriters will review your personal credit score. Applicants with lower credit may see rates between 5% and 10% but can still get approved through high-risk programs.
A Florida Mobile Home Dealer Bond is a binding contract between three parties: the Dealer (Principal), the Florida Department of Highway Safety and Motor Vehicles (FLHSMV), and the surety company. It is designed strictly for consumer protection, not as insurance for your business. If you fail to deliver a valid title, misrepresent a home's condition, or violate the terms of a written contract, the buyer can file a claim against the bond to recover their financial losses. The surety will pay valid claims up to the full bond amount, but you must indemnify (reimburse) the surety for every dollar paid out, plus legal fees.
This bond is required for any individual or business that buys, sells, or deals in mobile homes or manufactured housingin Florida. Specifically, it is a mandatory step for obtaining a Mobile Home Dealer (DH) or Mobile Home Broker (BH)license from the FLHSMV. This requirement applies to both retail dealers selling new units and independent dealers selling used homes. It is important to note that this is a separate requirement from the standard Motor Vehicle Dealer Bond; if you sell both cars and mobile homes, you may need distinct coverage for each license type to remain compliant with Florida Statute 320.77.
To get this bond, you must apply with a licensed surety agency that will issue the official Form HSMV 86018. Once signed, you must file this original form with the FLHSMV Regional Office responsible for your district as part of your license application. To renew, you simply pay the renewal premium to your surety provider each year. The surety will then issue a Continuation Certificate or update the state's records to prove your coverage is active. Be aware that Florida Mobile Home Dealer licenses and bonds generally expire on September 30th annually, so you must renew before this date to avoid license suspension.