California Code of Regulations
Title 25 - Housing and Community Development
Division 1 - Housing and Community Development
Chapter 4 - Manufactured Housing Sales, Occupational Licensing and Education
Subchapter 1 - Sales and Occupational Licensing
Article 1 - General
Section 5002 - Definitions

Universal Citation: 25 CA Code of Regs 5002

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

The following definitions and those set forth or referenced in Health and Safety Code Sections 18000 through 18153, shall govern the activities under this chapter:

(a) Accessory. Any additional structure, air-conditioning unit, driveway, landscaping, skirting, awning, carport, shed, porch, or other items contracted for and included in the purchase document for the purchase or lease of a MH-Unit and/or its installation site.

(b) Acknowledged. When used in this chapter means either notarized or attested to by a subscribing witness.

(c) Additional Business Location (ABL). This term means the same as secondary business location. See the definition of "Secondary Business Location" below.

(d) Advertising. Any statement, representation, act or announcement intentionally communicated to any member of the public by any means whatever, whether orally, in writing or otherwise, generally for the purpose of arousing a desire to buy or patronize.

(e) Cash or cash equivalent. Includes, but is not limited to:

(1) Cash, checks, money orders, or drafts.

(2) Promissory notes, bills of sale, certificates of ownership, or other intangible property.

(3) Assignments of funds, proceeds, contracts, rights, or other negotiable instruments.

(4) Any real or personal property.

(f) Clock hour. Fifty (50) continuous minutes in an approved preliminary or continuing education course, seminar, or conference excluding breaks for meals, rest, or smoking.

(g) Close of escrow. The date on which the conditions of the escrow have been met and the escrow agent is in a position to disburse all funds excepting funds withheld for uninstalled or undelivered accessories included in the purchase price.

(h) Continuing Education Course. A class, seminar or conference approved by the department, pursuant to law and this chapter, which offers licensees continuing education clock hour credits on one (1) topic.

(i) Correspondence Course. A continuing education program of a single topic approved by the department transmitted by mail between a licensee and an approved course provider.

(j) Course Provider. A person or entity offering preliminary or continuing education courses approved by the department. A course provider meeting the minimum qualifications established in this chapter may also be an approved instructor.

(k) Designated Managing Employee (DME). See Responsible Managing Employee.

(l) DOJ. The California Department of Justice.

(m) Instructor. A person approved by the department to present preliminary or continuing education courses while in the employ of a course provider. An instructor may also be a course provider.

(n) Live Scan. Digitally scanned fingerprinting using the electronic process certified by DOJ at an approved facility.

(o) Manufactured Home. A structure as defined by section 18007 of the Health and Safety Code.

(p) Main Business Location. An applicant or licensee's primary established place of business. All added business locations will be considered secondary business locations. If there is more than one location listed on a license application, then the primary location designated on the application will be deemed the main business location.

(q) Manufacturer's Suggested Retail Price. The total price shown on the label required by Health and Safety Code Section 18032.

(r) Mobilehome. A structure as defined by section 18008 of the Health and Safety Code.

(s) Multifamily Manufactured Home. A structure as defined by section 18008.7 of the Health and Safety Code. "Multi-unit manufactured housing" has the same meaning as "multifamily manufactured home", as that term is defined by section 18008.7 of the Health and Safety Code.

(t) MH-Unit. Shall have the same meaning in this chapter as Manufactured Home, Multifamily Manufactured Home and Mobilehome as defined in the Health and Safety Code, Division 13, Part 2, Chapter 1.

(u) 90-day certificate holder. An applicant for an original salesperson license, holding a certificate issued by the department which permits the applicant to perform the following activities while in the employment of a licensed dealer:

(1) A 90-day certificate holder may induce or attempt to induce a person to buy, lease, or exchange an interest in a new or used MH-Unit or commercial modular.

(2) For commission, money, profit, or other thing of value, a 90-day certificate holder may sell, exchange, buy, or lease; offer for sale; negotiate or attempt to negotiate a sale, lease or exchange of an interest in a new or used MH-Unit or commercial modular.

(3) A 90-day certificate holder shall not execute any documents, contracts, or listing agreements, or accept any cash or cash equivalent for the sale or lease of a new or used MH-Unit or commercial modular.

(v) Preliminary Education Course. A class, seminar or conference approved by the department pursuant to law and this chapter relating to laws and regulations governing MH-Unit sales, specifically designed for persons not holding a MH-Unit dealer or salesperson license.

(w) Purchase document. Any instrument of purchase, regardless of its title, which is prepared by a licensee to effect the sale of a MH-Unit or commercial modular to a retail purchaser.

(x) Responsible Managing Employee (RME). A licensed salesperson designated by a corporation, partnership or limited liability company to participate in the direction, control and management of the sales operation of a MH-unit or commercial modular dealer. Also acts as a supervising managing employee when designated by a dealer. Not applicable for manufacturers.

(y) Secondary Business Location. An additional business location and an established place of business for a licensed dealer or manufacturer, not the main business location.

(z) Supervising Managing Employee. A person designated by a licensed dealer of MH-Units or commercial modulars as responsible for the direct supervision of 90-day certificate holders employed by the dealer at an established place of business. A supervising managing employee must be either:

(1) A salesperson in possession of a valid occupational license as required by this chapter.

(2) A sole owner dealer.

(3) A partner in a partnership; or a member of a limited liability company; or a director or officer of a corporation who, as required by this chapter, has been designated as participating in the direction and control of the sales business.

(aa) Topic. The subject offered by a preliminary or continuing education course.

(bb) Working days. All days except Saturdays, Sundays, and state and federal holidays.

1. Certificate of Compliance including amendment transmitted to OAL 11-3-82 and filed 12-15-82 (Register 82, No. 51).
2. Amendment of subsection (d) filed 5-8-86 as an emergency; effective upon filing (Register 86, No. 19). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 9-5-86.
3. Amendment filed 11-25-91; operative 12-26-91. (Register 92, No. 12).
4. Repealer of subsection (j) and subsection relettering filed 2-6-98; operative 3-8-98 (Register 98, No. 6).
5. New subsections (j) and (l), subsection relettering, amendment of newly designated subsections (n)(1)-(3), (p) and (q) and amendment of NOTE filed 11-7-2005; operative 11-7-2005 pursuant to Government Code section 11343.4 (Register 2005, No. 45).
6. Change without regulatory effect adding subsections (m), (o) and (p), relettering subsections and amending NOTE filed 7-14-2008 pursuant to section 100, title 1, California Code of Regulations (Register 2008, No. 29).
7. Amendment of section and NOTE filed 1-29-2010; operative 1-29-2010 pursuant to Government Code section 11343.4 (Register 2010, No. 5).
8. New subsections (c), (k), (p), (x) and (y) and subsection relettering filed 3-7-2011; operative 4-6-2011 (Register 2011, No. 10).

Note: Authority cited: Sections 18015 and 18052.6, Health and Safety Code. Reference: Sections 18001.8, 18007, 18008, 18008.7 and 18035- 18066.5, Health and Safety Code; Sections 1797- 1797.7, Civil Code; Sections 17003 and 17004, Financial Code; and Sections 11077.1 and 11102.1, Penal Code.

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