Re: Starting with mobile homes in Missouri - Posted by Rod - Mo
Posted by Rod - Mo on September 07, 2003 at 17:32:01:
Bob, Philip, Marty, and anyone else who cares
As for the rules in Missouri concerning MH sales, RSMo Chapter 700 at http://www.moga.state.mo.us/STATUTES/C700.HTM spells out the laws specific to MH. Chapter 365 covers time sales, and chapter 408 covers Trade and Commerce. Much legalese, some of which doesn’t apply, some incomprehensible just so it complies with the reasonable man policy (no reasonable man shall be able to understand a thing we do.)
The limit on sales without a license includes offereing for sale any mobile home. The limit is 3 in any twelve consecutive months, so 3 in December and 3 in January would be counted as six. The registration is $200. If you get it in a corp. name, there is an additional $10 fee for a Statement of Good Standing from the Sec. of State’s office. Then there are forms that must be filled out monthly listing the units you have sold, even if none. Registrations expire on Jan 15th over every year. Annual renewal fee is currently $200. You can use a home office if you are not warehousing units on a lot, such as a display lot. You are subject to inspections of your records during normal business hours. According to the chief inspector, normal business hours are defined by the hours posted on your door. For example, he said 6 to 9 would be fine. You would get a certificate that must be prominently displayed. He also said that since I buy and sell where they sit, I probably would not get inspected. I think I am considered too small a potatoe. Certificates are managed by the Missouri Public Service Commission, web site is http://www.psc.state.mo.us/manufacturedhousing-registration.asp.
My personal preference is to use a lawyer, since I am not one, but my customized forms are still very similar to standard forms. I work on the theory that my lawyer knows what angles her contemporaries are exploiting and she will protect me from those specifically.
The way I read the usuray laws, Mo has a 10% limit, sometimes. How a court would determine the limit is based at least in part on the sale price of the unit. Much mumbo jumbo, and some categories aren’t defined, so it would be who has the better lawyer. I personally don’t charge more interest, I just raise the price. Every buyer has asked what the total price is after I quote the asked down and payment, but they usually get glassy eyes before I answer. Seems like they know they should care enough to ask, but not enough to care.
Also note: St. Loius has many exceptions in the statutes, so what is true in the rest of the state may or may not hold there. One question you may want to get answered up front is when which part of the law applies. Is it where the sale took place, where your office is, where the unit is, etc. (refer to reasonable man policy.)
Welcome to the business.
Best of luck to all