Individuals and businesses who sale manufactured homes and collect the down payment are required to being registered with the Colorado Division of Housing. Additionally, such businesses are also required to maintain a separate fiduciary account. The account will hold all down payment money received toward the purchase of a manufactured home.
The Division requires you to furnish evidence of having obtained the proper surety bond.
The Colorado home sale down payment bond is a $50,000 surety bond required of businesses which sale manufactured homes. By statute, the bond is mandated under § 6-1-604 of the Colorado Revised Statutes.
To obtain this bond, you will complete a standard surety bond application (which can be completed over the phone with an agent), and undergo a credit inquiry.
Our agency utilizes a “soft pull” credit inquiry which will not adversely affect your credit score.
Once the application has been approved, and the bond’s first year premium paid, our agency can send you an emailed copy of the bond for your filing. The original bond with the wet signature will follow in the mail to be sent by the following business day.
A $50,000 Colorado home sale down payment bond will have an estimated premium of $1000, or 2%. The home sale down payment bond, once issued, will be active for one year from the date of issuance.
While the term of this bond is one year, you have the option of prepaying this bond for 2 or 3 years. The decision is entirely yours to make. Prepayment allows you a savings over year to year renewal of your surety bond premium.
The prepayment options are as follows:
As stated by statute, this surety bond is required of you as a financial guarantee that any money collected towards a down payment will be refunded in accordance with the terms of the contract provided to the consumer.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, and fiduciary surety bonds throughout Colorado.
Our agency also provides surety bonds nationwide.
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