CLTA News Express
An Express Article from the California Land Title Association
New Law Changes Escrow in Mobilehome Transacations
Bulletin 07/08-60 - November 26, 2007
Existing law requires a mobilehome or manufactured home dealer, for every transaction by or through the dealer to sell or lease with the option to buy a new or used manufactured home or mobilehome subject to registration under existing law, to execute in writing and obtain the buyer's signature on a purchase order, conditional sale contract, or other document evidencing the purchase contemporaneous with, or prior to, the receipt of any cash or cash equivalent from the buyer, to establish an escrow account with an escrow agent, and to cause to be deposited into that escrow account any cash or cash equivalent received at any time prior to the close of escrow as a deposit, downpayment, or whole or partial payment for the manufactured home or mobilehome or accessory thereto. If any dispute arises between the parties to the escrow and upon notification in writing to the escrow agent, unless otherwise specified in the escrow instructions, all funds denoted as deposit are required to be held in escrow until a release is signed by the disputing party, or pursuant to new written escrow instructions signed by the parties involved, or pursuant to a final order for payment or division by a court of competent jurisdiction.
Chapter 543, an act recently signed into law, makes slight changes to these requirements, and stipulates instead that, at the opening of escrow, and upon receiving written notice from a party to the escrow of a dispute, the escrow agent shall inform the parties of their right to hold funds in escrow by submitting a written request to hold funds in escrow, and that, upon receipt by the escrow agent of a party's written request to hold funds in escrow, all funds denoted as deposit be held in escrow pending release under specified conditions.
Full Chapter 543 bill text (PDF)
