The Basics of Mobile Home Dealer Bonds


Mobile home dealerships that sell either new or used mobile homes are often required to maintain a mobile home dealer bond. Mobile homes, also known as manufactured homes, are homes built in a factory on a steel frame, complete with axels and wheels. Consumers may not realize that modular homes, that are built using the same construction materials as traditional homes, are not considered as mobile or manufactured homes. The inclusion of a steel frame and axle, which makes homes able to be towed on the road, is a very important distinction when it comes mobile home dealer bonds. If your business sells these types of homes you may need to maintain a continuous mobile home dealer surety bond.


A mobile home dealer bond is a type of auto dealer bond. These bonds are often required as part of the licensing process, which means that a mobile home dealer will need to obtain a bond in order to secure the dealership license. The state requires this surety bond as it helps ensure that the mobile home dealership follows all of the required regulations and pays their taxes.

How Do Mobile Home Auto Dealer Bonds Work?

Manufactured home dealership bonds, just like other types of surety bonds, are a contract between three parties. The first of these parties is the obligee, which is the agency or business that requires the bond—for mobile home dealership bonds, this will be a local government agency. The second party is the principal, this is the business who needs the bond, which in this situation will be the mobile home dealership. The third party is the surety, the company that will underwrite the bond.

You might be wondering, what is a surety bond? Surety bonds are often mistaken for a type of insurance, but they actually work in a much different way. Although, like insurance, a surety bond can be claimed against, there is one distinct difference—the bond principal will be required to reimburse the surety for all claims made against the bond. Put simply, the bond does not protect the principal from financial loss, instead, it protects the obligee.

Securing The Right Auto Dealer Bond For Your Business

Viking Bond Service has experience helping mobile home dealerships secure the bonding they need to stay compliant with all state regulations. Call our team at (888) 278-7389 to request a quote.