Regulation of Manufactured Home Brokers in Oregon
In Oregon, individuals who list, sell, or market manufactured homes without accompanying land ownership must possess a Manufactured Structure Dealers (MSD) License, issued by the Oregon Department of Consumer and Business Services. This requirement specifically targets brokers who handle transactions involving manufactured homes situated in communities where the land is rented rather than owned by the homeowner, classifying these homes as “Chattel.”
Real estate agents can also engage in the sale of such homes, but only if their associated office holds a valid MSD license. This distinction ensures that the marketplace for manufactured homes operates under regulations tailored to the unique aspects of this housing sector.
Clarifying the Impact of the Sitzer-Burnett Lawsuit Settlement
The policy changes resulting from the Sitzer-Burnett lawsuit settlement by the National Association of Realtors® (NAR), effective August 17, 2024, are intended to improve fairness and transparency within real estate transactions. These changes mandate clearer commission disclosures and eliminate the exclusion of listings based on compensation offered, which are primarily directed at NAR members.
It’s important to note that Manufactured Home Brokers are not governed by NAR regulations nor are they typically members of the association. As such, while the new NAR policies directly affect its members, Manufactured Home Brokers operate independently of these changes. However, the evolving standards set by NAR can still indirectly influence the broader industry, including the practices of non-members. This ripple effect could prompt all professionals in the housing market, including Manufactured Home Brokers, to adapt their practices to align with new industry norms, thus maintaining competitiveness and compliance with general market expectations.
Expert Insight
Tom Turner of MH Insights comments on the broader implications of these regulatory changes. He highlights that although Manufactured Home Brokers are not directly affected by NAR’s new policies, the industry standards NAR sets often influence how all real estate professionals, including those outside of NAR’s purview, conduct their business. Thus, while the immediate regulatory impact on Manufactured Home Brokers might be minimal, the indirect influence of these changes is significant. Adapting to these changes can be beneficial, ensuring transparency and fairness that enhances trust and competitiveness in the manufactured home market.
As the regulatory and professional landscapes continue to develop, both specific licensure requirements for Manufactured Home Brokers and the broader industry shifts, like those initiated by the NAR, are essential in shaping a fair and efficient marketplace for all forms of housing.
