Posted by firefox on October 27, 2003 at 18:34:54:
>You say buying or selling is not acting as a
>salesperson. What would you call it when you negotiate
>the sale of a home that your LLC owns?
He’s not a salesperson, as that law defines it, because he’s not taking a commission “or other consideration”. The law is intended to cover selling for a third party, not selling for yourself (representing a business entity as an officer thereof is not selling for a third party).
Lonnie deal in paper, can’t do it - Posted by Tom Kirby
Posted by Tom Kirby on October 18, 2003 at 09:07:57:
I just ran across this ad: Mobile home 3br living room pull out12x65 needs minor repairs can stay with lot- rent or may be moved. 2,500 or best offer. I’m not setup yet with a LLC, nor do I have my buyer agreements,notes, or any other papers. According to Ben in P.A, you can’t do one deal in P.A without a license. Should I try to buy anyway? And maybe do a L\O? Or just pass it on for now until I’m setup. Tempting! Thanx, Tom K
…interpreting the PA mobile home laws. I did not say how many deals you can do in PA and I even said that I was not interpreting for you.
My reason for responding was because of the post by Greg where he advocates breaking the PA mobile home law. My point was to quote the laws he overlooked so Tom and others in PA can make their own decisions. All posts I’ve ever read concerning PA never mention the Mobile Home Park Rights Act. Here it is again:
?It shall be unlawful for any person, for a commission, compensation or other consideration, to sell or act as salesperson, broker or sales agent in connection with the sale of one or more mobile homes located in a mobile home park, as provided for in section 11 of the act of November 24, 1976 (P.L.1176, No 261), known as the Mobile Home Park Rights Act, unless such person shall be licensed under this act, except as provided for in paragraph (2).?
(Note paragraph 2 has to do with realtors? exemption)
I’ve learned that the PA laws are not vague and to try to play games to get around them is a mistake. I also learned a lot about parks that suprised me. Suffice it to say it is wise to play by the rules.
Additionally, Greg suggested multiple LLCs to avoid licensing as a dealer. The minimum annual filing fee for a PA LLC is $600. Way less than a dealer license. And multiple LLCs will really add up-as well as the accounting and tax prep costs. It just doesn’t make sense to me. After all that trouble and expense, it is still illegal.
Again, my advice is to get the information from Harrisburg and READ IT for yourself. It is written in easily understood English, don’t translate it to fit your situation. If you are frustrated and confused it is probably because you realize there are no loopholes. I went through the same thing a couple years ago until I finally admitted the only way for me to do this was to get licensed.
I also agree with Doc’s suggestion to go through someone else as a valid way to get started.
Someone in your town must have a MH dealer’s license. Can’t you partner up with such a person. Read the licensing laws YOURSELF and look for individuals who may be exempt from licensing laws, such as attorneys, real estate brokers, etc. Can’t you find a mobile home resale lot that will work with you for just a flat fee of, say $200, to run the paperwork through its name.
Lawyers are fine when they tell you how you can’t do something. They are 1,000 better if they can figure out a way for you to do what you want to do, legally. They usually can’t. Lawyers are generally techincal people, not creative people. Thats why they practice law instead of going into business, and making the big bucks, like Lonnie.
I did not advocate “breaking” the PA mobile home law. If you had ordered the dealer packet as I suggested, and read the entire thing, you would have seen at the end that those who do 4 or fewer deals per year are EXEMPTED from licensure. In fact, the law you quoted above has nothing to do with buying and selling homes. Buying and selling homes is not working as a “salesperson, broker or sales agent”.
I am not frustrated nor confused in the slightest, I found that there IS a loophole perfect for my situation. Again, for new readers, call Harrisburg’s MH Dealer Services, order the packet, then read the ENTIRE thing, especially the exemptions part about 2 pages from the back cover.
Doc’s advice is, as usual, absolutely sound. The continual questions about dealer licensing in the various states are often thinly disguised efforts at folks talking themselve sout of their own deals. In my view there is never a reason to lay out money and jump through hoops to become a dealer before getting a deal or two under one’s belt. If, in your own reading of your own state’s laws, you determine that you would be at risk doing your first deal ‘barefoot’, then simply visit any licensed dealer and ask them what thye would charge to do the deal under their license. In Colorado I have been quoted as low as $200 for this service, and I am sure thta could be negotiated down.
If your projected first deal doesn’t have $200 of slack in it, it’s not the right first deal, perhaps.