Section 5060 - Escrow Required(a) Concurrent with a dealer's receipt of any cash or cash equivalent from a purchaser at any time prior to delivery of a new or used MH-Unit subject to registration, the dealer shall execute a mutually-endorsed receipt for deposit and purchase document. Within five (5) working days of receipt of deposit, the dealer must establish with an escrow agent an escrow account into which all cash or cash equivalents shall be deposited. The escrow shall not be established with an escrow agent or agency in which the dealer has more than five (5) percent ownership interest.(b) Upon the purchaser's signing of the receipt for deposit and purchase document, the dealer shall provide the purchaser with a copy of each document, which must be mutually-endorsed.(c) Upon establishment of the escrow account, the dealer shall provide the escrow agent, in writing, with the information required for the preparation of escrow instructions.(d) These regulations do not imply, nor shall they be interpreted to require, that a recorded certificate of title or junior lienholder registration card(s) be delivered to the purchaser through escrow as a condition of escrow. These regulations shall, however, provide that a release of any prior rights, title, or interest in a MH-Unit being purchased or traded in as payment toward the MH-Unit being purchased, held by the registered owner(s), legal owner, flooring lender shown on or in possession of a manufacturer's certificate of origin and junior lienholder(s) be obtained as a condition of escrow. In the event that the dealer owns the MH-Unit and it has no liens, the dealer shall deliver into escrow either the certificate(s) of title or the manufacturer's certificate of origin, whichever is available.(e) If the sale is subject to Section 18035.26 of the Health and Safety Code, the escrow agent must be in receipt of the signed Declaration of Delivery Sale document prior to preparing escrow instructions. The date the Declaration was received by the escrow agent shall precede the date of preparation of escrow instructions.Cal. Code Regs. Tit. 25, § 5060
1. Certificate of Compliance including amendment transmitted to OAL 11-3-82 filed 12-15-82 (Register 82, No. 51).
2. Amendment of subsection (d) filed 2-1-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 5).
3. Change without regulatory effect adding subsection (e) and amending NOTE filed 7-6-2007 pursuant to section 100, title 1, California Code of Regulations (Register 2007, No. 27).
4. Amendment of subsections (a) and (d) and NOTE filed 1-29-2010; operative 1-29-2010 pursuant to Government Code section 11343.4 (Register 2010, No. 5). Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18007, 18008, 18008.7, 18035, 18035.1 and 18035.26, Health and Safety Code.
1. Certificate of Compliance including amendment transmitted to OAL 11-3-82 filed 12-15-82 (Register 82, No. 51).
2. Amendment of subsection (d) filed 2-1-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 5).
3. Change without regulatory effect adding subsection (e) and amending Note filed 7-6-2007 pursuant to section 100, title 1, California Code of Regulations (Register 2007, No. 27).
4. Amendment of subsections (a) and (d) and Note filed 1-29-2010; operative 1-29-2010 pursuant to Government Code section 11343.4 (Register 2010, No. 5).