Before acquiring a license to become a mobile home dealer, individuals in Arizona must possess a surety bond. This type of bond protects consumers and it’s also required to ensure that dealers remain compliant with state laws. Individuals who need to learn more information before contacting a company for a mobile home dealer bond in Arizona should read the frequently asked questions listed below.
What exactly is a surety bond and why do individuals need one to sell mobile homes?
The state of Arizona requires that individuals who go into the business of selling mobile homes must secure a surety bond. This type of bond is a guarantee that the dealer will follow all of the state regulations when selling mobile homes and will also follow through with any contracts that are made between the individual and customers. If a dealer does not comply with the regulations or fails to honor a contract, the state and the customer are protected due to the bond. If the dealer is found to have committed fraud, the state or the customer can start a claim against the mobile home bond. If the holder of the bond, which is called the surety, loses money or has to pay any legal fees because of the claim, the surety will pursue the costs incurred from the individual who purchased the bond.
How much does it cost an individual when purchasing a surety bond to sell mobile homes?
The cost of a surety bond from a company that will provide a Mobile Home Dealer Bond in Arizona is different for each individual who applies for one and this is due to several factors. The price that each person pays depends on the amount of the bond that’s required and individuals will only pay a bond premium, which is a portion of the actual price of the bond. The percentage that’s required to secure the bond is dependent on the individual’s credit score, personal and business finances, assets and knowledge of the mobile home business. Individuals who have bad credit are often also eligible for a surety bond, but they’ll pay a much higher bond premium than someone who has a high credit score.
Individuals who need to contact a surely company for a bond should check out website for additional information. This experienced company also provides various other types of surety bonds including court, contract, probate, title and construction.