Updated October 2017

An ADOH license is generally required to sell manufactured/mobile homes
Generally, a license issued by the Office of Administration of the Arizona Department of Housing (“ADOH”) is required to act as a broker or salesperson in the sale of manufactured homes, mobile homes and factory-built buildings (also known as modular) and subassemblies. Pursuant to A.R.S. §41-4047(3-4), it is unlawful to “engage in the business of a salesperson of manufactured homes, mobile homes or factory-built buildings . . .” or engage in the business of contracting to sell any new or used manufactured home, mobile home, factory-built building or subassembly (hereinafter collectively referred to as “manufactured/mobile home”) without a license issued by the ADOH.

There are limited exemptions from the ADOH licensing requirements for real estate licensees
There is a limited exemption for real estate licensees in the ADOH licensing requirements. Pursuant to A.R.S. §41-4028(B) (1), the requirements of licensure from the ADOH do not apply to:

Real estate brokers and real estate salesmen licensed under section 32-2122 . . . with respect to used manufactured luxury homes, mobile homes, factory-built buildings or subassemblies, if the manufactured home, mobile home, factory-built building or subassembly is listed in a contract for transfer of an interest in real property executed by its owner and is installed on the real property.

Moreover, effective August 2017, HB 2072 expanded the exemption for real state licensees in A.R.S. §41-4028 to include:

(b) New or used manufactured homes and mobile homes that are located in mobile home parks as defined in section 33-1409 if the licensed real estate broker or real estate salesman is acting as an agent for a licensed manufactured housing dealer and the dealer is responsible for filing all of the required paperwork and submitting the required fees on the sale of the home . . . .

(c) Used manufactured homes and mobile homes that are located in mobile home parks as defined in section33-1409 if the licensed real estate broker or real estate salesman is acting on behalf of a private party and the real estate broker or real estate salesman remains subject to the real estate licensure requirements prescribed in Title 32, Chapter 20.

FAQ’s on qualifying for the ADOH licensing exemption
(1) What are the statutory requirements of the ADOH licensing exemption?

• The manufactured/mobile home must be “used”
• The manufactured/mobile home must be “installed” on the property
• The manufactured/mobile home must be “listed” in a contract for transfer of an interest in real property executed by its owner

(2) When is a manufactured/mobile home “used”? 

A used manufactured/mobile home is one “which has been sold, bargained, exchanged or given away from a purchaser who first acquired the unit which was titled in the name of such purchaser” “in good faith from a licensed dealer or broker for purposes other than resale.” See A.R.S. §41-4001(27) and A.R.S. §41-4001(39).

(3) When is a manufactured/mobile home “installed” on the property?

Pursuant to A.R.S §41-4001(18) a manufactured/mobile home is installed on the property when it is:

• connected to on-site utility terminals.
• placed on a foundation system.
• secured by ground anchoring.

“Installation” does not require the filing of an affidavit of affixture for purposes of the exemption.

(4) When is a manufactured/mobile home “listed” in a contract for transfer of an interest in real property executed by its owner?

This occurs when both the manufactured/mobile home and the real property interest is transferred in the same purchase contract. In order to transfer both the manufactured/mobile home and an interest in the real property in the same purchase contract, the seller must either own the real property or have the right to directly assign the lease for the property.

(5) What is the significance of recording an affidavit of affixture?

Except in limited circumstances set forth in A.R.S §33-1501 , an affidavit of affixture may be recorded by a person who owns a mobile home that is installed on real property owned by the owner. A.R.S §42-15201 et. seq. A mobile home that has been permanently affixed to real property and for which an affidavit of affixture has been recorded:

• will be assessed as real property A.R.S. §42-15202, and
• any liens against the mobile home must be perfected in the same manner as real property or a fixture. A.R.S. §28-2135.

(6): How is a mobile home park defined?

A.R.S. §33-1409 defines mobile home park as “any parcel of land that contains four or more mobile home spaces.”

(7): How can you determine whether a manufactured housing dealer is licensed?

You can determine if a manufactured housing dealer is licensed by going to the Arizona Department of Housing (ADOH), Manufactured Housing Division’s home page and performing an online licensing search or contacting the ADOH.

(8): What paperwork must the manufactured housing dealer file?

A.R.S. §41-4040 provides the following:

Every dealer who acquires or sells a previously titled manufactured home or mobile home . . . shall submit a written report of all acquisitions and sales to the department of revenue and to the county assessor of the county where such dealer is located. Such report shall be submitted by the fifteenth day of each month for the period of the previous month and shall include:

1. The manufacturer, brand name or model, size, factory price list, total selling price and serial number of such manufactured home or mobile home.
2. The name and address of the person from whom such manufactured home or mobile home was acquired and the last previous location of such manufactured home or mobile home.
3. The name and address of the person to whom such manufactured home or mobile home was sold.
4. The new location of such manufactured home or mobile home if such location is known to the dealer.

(9): Where can I find forms necessary for the sale of a manufactured or mobile home?

The Manufactured Housing Communities of Arizona (MHCA) drafted a form titled “Mobile and Manufactured Home Purchase Agreement and Sales Contract,” as well as ancillary forms needed to effectuate the sale of a manufactured or mobile home. In an effort to assist REALTORS^® with these types of transactions, with the permission of MHCA, AAR has made these forms available on AAR’s website.

(10): If the person selling the manufactured or mobile home is a private owner and not a manufactured housing dealer, does the agent need to find a dealer to sell the manufactured or mobile home?

No. A.R.S. §41-4028 (c) exempts real estate licensees acting on behalf of a private owner selling a manufactured or mobile home located in a mobile home park. The law provides that “[i]f the licensed real estate broker or real estate salesman is acting on behalf of a private party and the real estate broker or real estate salesman remains subject to the real estate licensure requirements prescribed in Title 32, Chapter 20.”

So when can a real estate broker sell a manufactured/mobile home?
According to the ADOH, a real estate licensee may list and sell a manufactured/mobile home without a ADOH license only if:

• the manufactured/mobile home is:
  • used
  • installed on the real property and
  • listed in the purchase contract for the transfer of an interest in the real property executed by its owner (i.e., the seller owns the real property or has the right to directly assign the lease for the property), or
• an affidavit of affixture has been recorded against a used manufactured/mobile home so that it is considered real property.
• if the manufactured/mobile home is located in a mobile home park and the licensee
  • acts as an agent for a licensed manufactured housing dealer, or
  • acts on behalf of a private party and the [licensee] remains subject to the real estate licensure requirements

For Additional Information
For information on obtaining a license, visit The Arizona Department of Housing website at: https://housing.az.gov/general-public/manufactured-housing/licensing

To review the Arizona statutes governing the sale of manufactured/mobile homes, visit the State Legislature website at: www.azleg.state.az.us/ArizonaRevisedStatutes.asp

ⁱ The Manufactured Housing Division of ADOH maintains standards of safety for all manufactured homes, mobile homes and factory-built buildings. These standards promote the health, safety and welfare of Arizona citizens and are consistent with the U.S. Department of Housing and Urban Development (HUD) standards.

ⁱⁱ Pursuant to A.R.S §33-1501 a person who owns a mobile home located in a mobile home park on real property that is not owned by that person may file an affidavit of affixture with the county recorder of the county in which the real property is located if: (1) the mobile home has been installed on the real property with all wheels and axles removed in compliance with applicable state and local mobile home installation standards; (2) The owner of the mobile home has entered into a lease for the real property on which the mobile home is located for a primary term of at least twenty years and the lease specifically permits the recording of an affidavit of affixture; (3) Before filing the affidavit of affixture, a memorandum of lease is recorded that includes all of the requirements set forth in the statute. Once recorded the mobile home and the leasehold interest to which it is affixed shall be treated as real property.