Modular Unit Dealer or Selling Agent Setup Responsibilities

PURPOSE: This rule sets forth the extent to which modular unit dealers are responsible for proper initial setup of modular units. (1) Modular Unit Dealer Setup. (A) A dealer who sells a modular unit shall arrange for the proper initial setup of the modular unit unless the dealer obtains from the purchaser or the purchaser’s authorized agent a written waiver of that service as described in section 700.100.3(6), RSMo. (B) As used in this rule, “proper initial setup” means installation and setup of the modular unit in accordance with the installation manual provided by the manufacturer of the modular unit and in complete compliance with the code and with all of the provisions regarding setup in sections 700.010 to 700.115, RSMo. (C) If a dealer, unless the dealer obtains the waiver of initial setup referred to in subsection (A) above, fails to arrange for the proper initial setup of a modular unit, the commission may discipline the dealer’s registration by suspending it, revoking it, or placing it on probation, pursuant to the provisions of section 700.100, RSMo, if the manager provides evidence to the commission, incident to an inspection under subsections (2)(B) or (2)(C), of setup deficiencies. (2) Modular Unit Inspections. (A) Dealers shall submit to the manufactured housing and modular units program a property locator indicating the destination of the new residential modular unit(s) or new or used classroom modular unit(s) within five (5) business days to the date the unit leaves the dealer’s location or the manufacturer’s location if the unit is shipped direct to the consumer. For multi-section new residential or new or used classroom modular unit(s) the five (5) business days begins when the first section leaves the dealer’s or manufacturer’s location. The dealer shall use the property locator form provided by the manufactured housing and modular units program. 1. The manager, in consultation with the commission staff director, after attempting to contact the entity involved and documenting consideration of potential mitigating factors, including, but not limited to, the number of similar non-compliance issues, circumstances beyond the entity’s control, and the entity’s responsiveness to commission requirements, may assess a fifty dollar ($50) per home inspection fee to dealers who fail to submit the property locator within five (5) business days from the due date. The manager will track fees assessed or waived under this provision, along with any documented consideration of mitigating factors, and compile a quarterly report summarizing such information for review by the commission. 2. The manager may commence an action to discipline a dealer’s registration for failure to timely report property locators or make payment upon property locator home inspection fees if the commission has assessed no fewer than two (2) property locator home inspection fees against the dealer within the previous twelve (12) months of the due date of the property locator at issue. (B) For dealers selling residential one (1) and two (2) family modular units built pursuant to the International Residential Code (IRC) to consumers, the manager will have a period of one (1) year from the date the unit is installed to conduct the initial set up inspection of the home setup. (C) Within two (2) years of the delivery date of the home to the consumer, if no initial inspection was performed pursuant to subsection (2)(B) of this rule, the manager may conduct an initial inspection of the home for setup and code violations upon the receipt of a formal written complaint by the consumer. (D) A copy of an inspection report from a routine inspection of a modular unit that occurs prior to the occupation by a purchaser, and does not arise from a consumer complaint, shall be transmitted to the manufacturer, installer, or dealer, or each responsible entity, within ten (10) days from the date of the inspection. Should an inspection occur as a result of a consumer complaint, copies of the inspection report will be provided to the complainant and to the manufacturer or dealer, or each responsible entity, within ten (10) days from the date of the inspection. (E) If an initial inspection identifies no code violations or any re-inspection verifies that corrections have been made to address code violations identified on an initial inspection report, the manager will issue, within twenty (20) days of the final inspection or re-inspection, a notice of completion to each responsible entity, and the complainant if the initial inspection occurs subsequent to a consumer complaint, indicating no outstanding issues remain to be addressed. This notice is intended to notify parties when the manager has completed an inspection process, but does not serve to indemnify any responsible party from any future liability. (3) Every dealer of a modular unit shall provide to the purchaser at the time of sale a purchase agreement or bill of sale containing at least the following: (A) The purchaser name and address; (B) Make of the unit; (C) Serial number; (D) Date of sale; (E) Model and size; (F) The total price of the unit and its contents; (G) A list of all furniture and appliances in the unit; (H) Any other items which will be the responsibility of the purchaser, such as transportation, handling, setup, or installation; and (I) If the unit is new or used and if the unit has incurred any damages. AUTHORITY: section 700.040, RSMo 2016.* This rule originally filed as 4 CSR 240-123.065. Original rule filed June 12, 2001, effective Jan. 30, 2002. Amended: Filed Oct. 15, 2007, effective April 30, 2008. Amended: Filed Aug. 15, 2013, effective March 30, 2014. Amended: Filed July 6, 2017, effective March 30, 2018. Moved to 20 CSR 4240-123.065, effective Aug. 28, 2019. *Original authority: 700.040, RSMo 1973, amended 1976, 1978, 1982, 1984, 1989, 1993, 1995, 1999.