MH Dealer Requirements in NE can't be right??? - Posted by Jen (NE)

Posted by Jen (NE) on December 14, 1998 at 21:35:46:

You are a Godsend! Good find. My father has a car dealership in Valley and he told me it was 8 for mobile homes (as it is with cars) but I could not prove it. The Licensing Board number is the one I called that had the confusing lady. I will try again. I am going to do some more digging tomorrow.

I just typed up all the Lonnie contracts/forms into Word if you would like them or would like to compare notes on any other deals/info. --just email me at jcpalmer@notes.up.com. THANKS AGAIN.

MH Dealer Requirements in NE can’t be right??? - Posted by Jen (NE)

Posted by Jen (NE) on December 14, 1998 at 16:36:14:

I purchased all of Lonnie’s books and am excited about getting into MH investing. I tried calling the DMV, Title Dept, Personal Property Dept, and the Dealers Licensing Dept to find out after how many deals in a year would require me to get a license. I want to play by the rules if I’m fortunate to do that many deals.

However, nobody anywhere really knew. The lady at the Dealers licensing dept said that I needed a TRAILER COURT and license to invest in mobile homes and finance them… I thought that cannot be right? I mean, it has to be possible to invest and finance on mobile homes without a trailer park. (Some people even told me that MH were considered real estate for taxes and the lady at the dept for Dealers licensing told me I’d have to pay sales tax, I’m confused :frowning:

Does anyone in Nebraska know the ‘rules’ or who to talk to? Any help would be appreciated. Thanks!!!

Re: MH Dealer Requirements in NE can’t be right??? - Posted by GregA

Posted by GregA on December 14, 1998 at 20:45:28:

Jen,

Call the Nebraska Motor Vehicle Industry Licensing Board (402-471-2148) and request an Application For Dealer License and an Application For Motor Vehicle Or Trailer Finance Company License.

The following is a site that contains Nebraska state statutes that you can query:

http://unicam1.lcs.state.ne.us/folio.pgi/statutes.nfo?

This is some of the information I found:

HEADING Chapter 60. Motor Vehicles.
CATCHLINE Terms, defined.
LAW 60-1401.02. For purposes of sections 60-1401.01 to
60-1440 and 60-2601 to 60-2607, unless the context otherwise requires:
.
(3) Motor vehicle dealer means any person, other than a bona fide consumer, actively and regularly engaged in the act of selling, leasing for a period of thirty or more days, or exchanging new or used motor vehicles and trailers who buys, sells, exchanges, causes the sale of, or offers or attempts to sell new or used motor vehicles. Such person is a motor vehicle dealer and subject to sections 60-1401.01 to 60-1440. Motor vehicle dealer does not include a lessor who was not involved in or associated with the selection, location, acquisition, or supply of a motor vehicle which is the subject of a lease agreement;
(4) Trailer dealer means any person, other than a bona fide consumer, actively and regularly engaged in the business of selling or exchanging new or used trailers;
.
(9) Trailer means trailers and semitrailers as defined in section 60-301 which are required to be licensed as commercial trailers, other vehicles without motive power constructed so as to permit their being used as conveyances upon the public streets and highways and so constructed as not to be attached to real estate and to permit the vehicle to be used for human habitation by one or more persons, and camping trailers, slide-in campers, fold-down campers, and fold-down tent trailers. Machinery and equipment to which wheels are attached and designed for being drawn by a motor vehicle are excluded from the provisions of sections 60-1401.01 to 60-1440;
.
(19) Finance company means any person engaged in the business of financing sales of motor vehicles, motorcycles, or trailers, or purchasing or acquiring promissory notes, secured instruments, or other documents by which the motor vehicles, motorcycles, or trailers are pledged as security for payment of obligations arising from such sales and who may find it necessary to engage in the activity of repossession and the sale of the motor vehicles, motorcycles, or trailers so pledged;
.
(26) Established place of business means a permanent location within this state, easily accessible to the public, owned or leased by the applicant or a licensee for at least the term of the license year, and conforming with applicable zoning laws, at which the licensee conducts the business for which he or she is licensed and may be contacted by the public during posted reasonable business hours which shall be not less than forty hours per week. The established place of business shall have the following facilities: (a) Office space in a building or mobile home, which space shall be clean, dry, safe, and well lighted and in which shall be kept and maintained all books, records, and files necessary for the conduct of the licensed business, which premises, books, records, and files shall be available for inspection during regular business hours by any peace officer or investigator employed or designated by the board. Dealers shall, upon demand of the board’s investigator, furnish copies of records so required when conducting any investigation of a complaint; (b) a sound and well- maintained sign which is legible from a public road and displayed with letters not less than eight inches in height and one contiguous area to display ten or more motor vehicles, motorcycles, or trailers in a presentable manner; © adequate repair facilities and tools to properly and actually service warranties on motor vehicles, motorcycles, or trailers sold at such place of business and to make other repairs arising out of the conduct of the licensee’s business or, in lieu of such repair facilities, the licensee may enter into a contract for the provision of such service and file a copy thereof annually with the board and shall furnish to each buyer a written statement as to where such service will be provided as required by section 60-1417. The service facility shall be located in the same county as the licensee unless the board specifically authorizes the facility to be located elsewhere. Such facility shall maintain regular business hours and shall have suitable repair equipment and facilities to service and inspect the type of vehicles sold by the licensee. Investigators of the board may certify ongoing compliance with the service and inspection facilities or repair facilities; and (d) an operating telephone connected with a public telephone exchange and located on the premises of the established place of business with a telephone number listed by the public telephone exchange and available to the public during the required posted business hours. A mobile truck equipped with repair facilities to properly perform warranty functions and other repairs shall be deemed adequate repair facilities for trailers. The requirements of this subdivision shall apply to the place of business authorized under a supplemental motor vehicle, motorcycle, or trailer dealer’s license;
.
(33) Bona fide consumer means an owner of a motor vehicle, motorcycle, or trailer who has acquired such vehicle for use in business or for pleasure purposes, who has been granted a certificate of title on such motor vehicle, motorcycle, or trailer, and who has registered such motor vehicle, motorcycle, or trailer, all in accordance with the laws of the residence of the owner, except that no owner who sells more than eight registered motor vehicles, motorcycles, or trailers within a twelve-month period shall qualify as a bona fide consumer;

My question is, if the mobile home does not need to be moved, what characteristics would be necessary for it to be considered attached to real estate? If these characteristics are met, does that mean that a license is not be applicable (see #9)? When I talked to William Jackson, the Executive Director of the Licensing Board, I was informed that based on my description of what I planned to do (Lonnie Deals), I would need a license (big surprise since the licensing fees pay his salary) along with meeting everything listed in #26 (not practical).

That said, until I can consult with an attorney, I am using point #33 to move forward. Based on this, it appears I can purchase 8 “wobbly boxes” every twelve months without obtaining a license (bona fide consumer). I would be interested in hearing about anything you find out and would be happy to compare notes. Any input anyone else has would also be appreciated.

Greg Adams
Omaha, Nebraska