How are customer deposits required to be handled by a licensed dealer?

Customer deposits must be kept in a separate trust account to ensure they are protected and not commingled with the dealer's own funds. This practice is crucial for maintaining transparency and accountability in financial transactions, especially in the manufactured home industry where significant consumer trust is involved. By keeping these funds separate, the dealer can safeguard the deposit until it is either applied towards the purchase of a manufactured home or returned to the customer if the transaction does not proceed. This also protects the customer's interests, ensuring that their money is not inadvertently spent or misappropriated. Maintaining a separate trust account is a standard practice in many industries to uphold ethical business practices and regulatory compliance.